Middle District of Florida

Tampa, FL – Acting U.S. Attorney A. Lee Bentley, III announced today that the Middle District of Florida (MDFL) collected over $366 million in Fiscal Year (FY) 2013 in criminal, civil, and forfeiture actions. Almost $30 million was recovered in criminal actions, most of which will be distributed to crime victims. Approximately $290 million was collected in civil actions, including in excess of $96 million as a result of approximately nine major civil fraud settlements arising from cases filed in the MDFL. The amounts recovered in civil lawsuits over and above $96 million resulted from recoveries in cases involving other judicial districts, most notably a major nationwide discriminatory lending case brought by the Department of Justice Civil Rights Division.

Additionally, the office collected $46.2 million in criminal and civil forfeitures Forfeited assets are deposited into the Departments of Justice and Treasury Assets Forfeiture Funds and are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, approximately $3.1 million in forfeited funds was used to compensate crime victims and more than $20 million is in the process of being returned to victims this year. In addition, approximately $3.5 million in forfeited funds was shared with state and local law enforcement agencies, and property valued at more than $55,000 was retained by federal law enforcement agencies for official use.

“Recovering monies from convicted criminals and others defrauding the government is critical to our mission,” said Acting U.S. Attorney A. Lee Bentley, III. “Working alongside our law enforcement partners and other federal, state, and local agencies, our efforts ensure not only that criminals and others committing fraud are held fully accountable for their offenses, but also that we help victims recover from their losses to the extent possible. In addition, a huge portion of the recovered funds is used to replenish public resources.”

Attorney General Eric Holder announced on Thursday that the Justice Department collected $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

“The department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the American people,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”    The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

The Middle District of Florida has historically had one of the busiest whistleblower case dockets in the country, and in FY2013 placed third among the 94 judicial districts in qui tam cases filed under the False Claims Act. The significant FY 2013 recoveries in the Civil Division's affirmative enforcement program were driven in large measure by a national discriminatory lending case and settlements in cases filed by private whistleblowers involving fraud against federal healthcare programs (see case highlights for details).

For further information, view the United States Attorneys' Annual Statistical Reports on the internet at http://www.justice.gov/usao/resources/annual-statistical-reports. See highlighted cases below from the U.S. Attorney's Office for the Middle District of Florida.

Middle District of Florida Affirmative Case Highlights

Wells Fargo lending settlement

In the past fiscal year, the MDFL partnered with the Department of Justice Civil Rights Division in a major national discriminatory lending case against a large institutional lender, Wells Fargo Bank. The investigation, spearheaded by the Civil Rights Division, found that Wells Fargo discriminated against African American and Hispanic borrowers by charging higher fees and interest rates than non-Hispanic white borrowers, in the wholesale and retail markets. These practices were without regard to the credit applicants’ creditworthiness or objective criteria related to risk. Wells Fargo was found to have discriminated against 30,000 borrowers from 2004 and 2009, eventually settling the claims against it, in return for $175 million.

United States ex rel Freedman v. SuarezHoyos, et al.

The MDFL intervened in this civil qui tam case, in which a physician whistleblower alleged that a local pathology lab and a dermatologist violated the federal anti-kickback statutes through an arrangement in which the pathologist agreed to provide the dermatologist with an opportunity to bill Medicare and other federal health programs for work that the dermatologist did not perform. This arrangement was designed to induce referrals of Medicare business from the dermatologist to the pathology lab. In investigating this claim, the MDFL uncovered other significant schemes by the dermatologist, including upcoded claims for dermatology services and billing Medicare for expensive surgical services that he did not perform. In an earlier settlement, the pathologist defendant agreed to settle the civil kickback claims against him, in return for $1 million. In FY2013, the MDFL settled all of its claims against the dermatologist for an additional $26.2 million. It is believed to be the largest settlement with an individual physician in the history of the False Claims Act.

United States ex rel. Myers v. Shands Healthcare, et al.

The MDFL intervened, in part, in this civil qui tam case filed by an officer of a health care consulting firm against the Shands hospital chain in North Florida.  The whistleblower alleged that from 2003 through 2008, six of the system’s hospitals submitted claims for reimbursement of inpatient hospital services, when those claims should have been for outpatient services.  In August, 2013, we announced a settlement that paid $26 million to resolve these civil claims. Of this amount, $25,170,440 was paid to Medicare and other federal payors, while $829,600 went to the Florida Medicaid program. At the time that it was announced, the Shands settlement was the largest on record to address allegations of this kind.

United States ex rel. Ferrare v. Morton Plant Mease Healthcare, et al.

The qui tam case was filed by a former director of case management for Morton Plant Hospital. She alleged that the Morton Plant chain of hospitals used a written billing protocol to require its hospitals to bill certain interventional cardiology procedures on an inpatient basis, regardless of whether the patients’ condition justified those claims. In November 2012, the MDFL settled the civil claims in the case against the chain of hospitals for $10.1 million.

United States ex rel. Ferner v. Stallings, et al.

This was a procurement fraud case filed by a whistleblower who alleged that a government contractor, SAIC, used fraud to deceive the General Services Administration to steer federal consulting services contracts to it. The whistleblower – a former military officer – alleged that a private individual had misrepresented himself to be a senior government executive with the Department of Defense, in order to bypass competitive bidding and win government contracts for SAIC. The MDFL intervened in the case and settled all claims for $5.75 million.

United States ex rel. Numbers et al. v. Hernando Pasco Hospice Inc., et al.

This qui tam case was filed by two former employees of a non-profit hospice company based in Hernando County. They alleged that the hospice provider had submitted false claims to Medicare and Medicaid for reimbursement of hospice services to patients who did not qualify for the services. After a lengthy investigation, the MDFL intervened and settled the claims based upon the provider’s ability to pay, for $1,000,000, payable in installments over time plus interest.

Mortgage Investors Corp. consent decree

The MDFL assisted the Federal Trade Commission in its effort to confront violations by a St. Petersburg based residential lending firm of federal Do Not Call statutes. The FTC found that the firm had targeted veterans with a campaign of home mortgage telemarketing calls, contacting 5.4 million homes in violation of federal law. The FTC imposed a record civil penalty of $7.5 million under the Do Not Call statute.  

Middle District of Florida Asset Forfeiture Case Highlights

United States v. $20,000,000 (Jacksonville Division)

As part of the Non-Prosecution Agreement (NPA) entered into between the United States and Lender Processing Services (LPS), the United States completed a civil forfeiture of $20 million, which it alleged was derived from the mail fraud and wire fraud scheme perpetrated through DocX involving the preparation and filing of an estimated one million mortgage documents with false and misleading signatures and notarizations. DocX was at relevant times, a wholly-owned subsidiary of LPS. LPS, without admitting or denying the allegations regarding DocX’s proceeds, consented to the civil forfeiture of the $20 million.  

United States v. Louis Fernandez, III, et al. (Tampa Division)

Defendants Louis Fernandez, III, Louis Fernandez, Jr., Marco Beltran, Kimberly Curtis, and Christopher Switlyk pleaded guilty to conspiracy to illegally distribute and dispense controlled substances. The defendants, operated pain clinics and pharmacies, for the purpose of unlawfully distributing and dispensing controlled substances, primarily Oxycodone, a prescription painkiller sold generically or under a variety of brand names, including Roxicodone, Roxicet, Oxycontin, Percocet, and Endocet. Defendants Beltran and Switlyk also pleaded guilty to engaging in unlawful monetary transactions. As part of their plea agreements, the defendants consented to the forfeiture of more than $2.5 million in drug proceeds seized from them as well as a Rolex watch, car, and real property that had been purchased with drug proceeds.  Additionally, in fiscal year 2011, the government forfeited more than $3.6 million in drug proceeds that had been seized from the defendants during execution of search warrants.

United States v. Dennis Devlin (Orlando Division)

In July 2011, Dennis Brian Devlin, of Daytona Beach, was sentenced to 15 years in federal prison for sexually exploiting a minor. As part of Devlin’s sentence, the court ordered Devlin to forfeit his interest in the Desert Inn because it was used to facilitate the crimes for which he was convicted. The titled owner of the Desert Inn, Deslin Hotels, Inc., filed a claim to contest the forfeiture of the hotel because it alleged that Devlin did not have an interest in the hotel. In September 2013, after months of litigation, a settlement was reached wherein Deslin Hotels, Inc. agreed to the forfeiture of $1,552,588.62, representing Devlin’s interest in the proceeds obtained from the recent sale of the Desert Inn.

United States v. $1,820,008.93 (Ft. Myers Division)

The United States civilly forfeited approximately $1.8 million in proceeds of online gambling, which is illegal in the state of Florida, for violations of wire fraud. The funds were seized as they were being wire transferred through Deutsche Bank Trust Company Americas. Deutsche Bank’s policy was not to accept wire transfers that were related to online gambling of any sort whether legal or illegal. Indeed, the bank had created a filter for key words in wire transfers in order to identify and prevent the receipt and/or transmission of wires related to online gambling.  As alleged in the amended complaint, Chargestream, a company wiring gambling winnings to gamblers in the United States, created a series of letter and number identifiers in their wires in order to disguise the nature of the wires and to evade bank filters.

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Fuada Delic (31, Jacksonville) with tax fraud. Delic, who owned a tax preparation business (“Delica’s Tax Service”), is charged with 2 counts of filing fraudulent tax returns, on her own behalf, and 41 counts of filing fraudulent tax returns on behalf of her business customers. If convicted, she faces a maximum penalty of 3 years’ imprisonment per count.

According to the indictment, on or about April 14, 2009 and September 28, 2010, Delic filed personal tax returns in which she underreported the income that she received from the tax preparation business. The indictment also alleges that Delic filed tax returns for customers in which she falsely claimed, among other things, that they had incurred educational expenses, tax credits, and charitable contributions for which they were entitled to tax deductions. The filed returns span the 2008, 2009, and 2010 tax years.

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

This case was investigated by the Internal Revenue Service - Criminal Investigation.  It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.

Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that Sirrico Lewis (42, Orlando) today pleaded guilty to access device fraud. He faces a maximum penalty of 15 years in federal prison and a 3-year term of supervised release, following his incarceration. A sentencing date has not yet been set.

According to court documents, Lewis and others engaged in a scheme to defraud several Central Florida area Sam’s Clubs and Wal-Mart stores through the fraudulent acquisition and use of duplicate Sam’s Club credit cards. To facilitate the scheme, a conspirator would manufacture counterfeit identification documents of existing Sam’s Club customers. Lewis and others obtained those counterfeit documents, took them to various Sam’s Clubs, and used them to obtain duplicate credit cards on existing accounts.

They then used those credit cards to make fraudulent purchases at area Sam’s Club and Wal-Mart stores, or turned the cards over to another conspirator who either made fraudulent purchases or got another person to do so. The fraudulently purchased items would then be sold, with the proceeds from those sales being divided amongst the conspirators. The total amount of actual loss suffered by the victims of this scheme is over $2 million. Of that amount, Lewis was involved in over $750,000 worth of fraudulent transactions.

Lewis is the second individual to plead guilty in this case. On October 30, 2012, Reginald Holley (36, Winter Garden) pleaded guilty to access device fraud. On January 14, 2013, he was sentenced to 46 months in federal prison. A third co-conspirator, Brenda Shoukry, (63, of Orlando) has been charged with the same offense, by criminal complaint. A criminal complaint is merely a charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

These cases were investigated by the United States Secret Service. They are being prosecuted by Assistant United States Attorney Roger B. Handberg.

Tampa, Florida – U.S. District Judge Virginia Covington today sentenced Katherine Rumph-Smith (44, Largo) to four years in federal prison for defrauding student financial aid and filing false claims with the Internal Revenue Service (IRS). The Court also ordered Rumph-Smith to make restitution to the IRS, in the amount of $110,971, and to the Federal Stafford Loan Program, in the amount of $22,350.

Rumph-Smith pleaded guilty on October 10, 2013.

According to court documents, Rumph-Smith had previously procured several student loans with outstanding balances, then had the balances discharged due to a disability. In order to obtain further student loans, she submitted physician forms, with the physician’s signature forged by her, saying that her condition had improved, and agreeing to repay her prior loan balances. Rumph-Smith then applied for additional student loans to attend Walden University, which she did not attend, and obtained over $27,000 in loans, from which a total of $22,350 was disbursed to her.

In connection with the IRS, Rumph-Smith created four fictitious Florida corporations and then filed corporate tax returns claiming over $500,000 in refundable tax credits on behalf of the corporations. Also, she opened bank accounts in the names of the corporations, where refunds from the fraudulent corporate tax returns were directly deposited. She used these funds for personal expenses and admitted that these corporations were created solely for the purpose of filing false corporate tax returns and were not operational in any manner whatsoever. 

This case was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Department of Education – Office of Inspector General. It was being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Sara Sweeney.

WASHINGTON – A federal grand jury in Fort Myers, Fla., indicted former Desoto County Sheriff’s Office deputies Steven Rizza and Jonathan Mause today for charges related to the violation of the civil rights of an inmate who was assaulted by Rizza at the Desoto County Jail and the ensuing obstruction of the investigation into that offense.

The six-count indictment charges Rizza with one count of violating the civil rights of another, and charges both Rizza and Mause with one count of falsifying records in a federal investigation, one count of obstruction of justice and one count of perjury to a grand jury.  Additionally, the indictment charges Mause with one count of making a false statement to a federal investigator.

The indictment alleges that on May 25, 2013, Rizza assaulted an inmate at the Desoto County Jail.  Further, according to the indictment, on May 26 and 27, Rizza and Mause falsified an incident about the assault by changing the incident report to conceal Rizza’s conduct.  The indictment also alleges that Rizza subsequently made false statements about the May 25 incident to a Desoto County Sheriff’s Office investigator and to a federal grand jury.  According to the indictment, Mause made false statements about the May 25 incident to a federal grand jury and a federal investigator.

If convicted, Rizza could face a statutory maximum sentence of 10 years on the civil rights violation count.  Both Rizza and Mause could each face a statutory maximum of 20 years for the obstruction of justice and falsification of records counts and a maximum of five years for the perjury count.  Further, Mause could face a maximum of five years for the count of making a false statement to a federal investigator. 

The Federal Bureau of Investigation and the Florida Department of Law Enforcement are investigating this case with the assistance of the Desoto County Sheriff’s Office.  Chief Assistant U.S. Attorney Jesus M. Casas of the Middle District of Florida and Trial Attorney Douglas Kern of the Civil Rights Division are prosecuting this case. 

An indictment is merely an accusation, and all defendants are presumed innocent unless and until proven guilty.

Fort Myers, Florida – U.S. District Judge John E. Steele yesterday sentenced Gregory Wayne Eagle (63, Cape Coral) to six years in federal prison for bank fraud, mail fraud, and wire fraud. Eagle pleaded guilty on March 14, 2013.

According to court documents, Eagle was president and director of Eagle Realty of
Southwest Florida, Inc. In June 1990, Eagle created a Trust Agreement for approximately 101 acres of unimproved land, in Cape Coral. A portion of this land bordered on Pine Island Road. Eagle was the trustee of this Pine Island 101 Land Trust and was also one of its beneficiaries, along with 52 named combined interest holders or beneficiaries. Eagle mortgaged the trust property without the knowledge of the other beneficiaries. He did so by submitting fraudulently altered trust agreements to multiple banks naming him, or an entity which he controlled, as the sole beneficiary. 

Eagle also executed a number of loan documents, in which he falsely claimed to be the sole beneficiary, and that he had authorization to mortgage the property. In the first mortgage loan, in 2002, Eagle received $2 million from Florida Community Bank. He paid off that loan in 2006, with a mortgage loan from First National Bank of Pennsylvania. The 2006 loan was for an amount exceeding $17 million. Eagle used most of the proceeds of the second loan for his own personal use, mainly to fund other projects. He defaulted on the First National Bank of Pennsylvania mortgage loan, causing the bank to initiate foreclosure proceedings, in October 2009, leaving an unpaid principal balance of $17.03 million. The beneficiaries of the Pine Island 101 Land Trust have not received compensation for their initial payments as interest holders, yearly payments, nor for the increase in the value of the Trust property from the time of its inception.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.

WASHINGTON – A Florida-based physician, Dr. Ravi Sharma, has agreed to pay $400,000 to resolve allegations that he and his clinics violated the False Claims Act by knowingly billing Medicare for vein injections and physician office visits performed by unqualified personnel, the Justice Department announced today. 

“Vein injections and other invasive procedures should be performed by appropriately qualified personnel,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “We will not tolerate those who put patients’ health at risk for their personal gain and convenience.”  

The government alleged that, between 2009 and 2010, Sharma owned and operated a clinic in the Tampa area called Premier Vein Centers.  Beginning in 2009, Sharma allegedly sent text messages to his office manager instructing her to perform varicose vein injections on patients when he was not in the office.  The government further alleged that, when Sharma was in the office, he performed unnecessary vein injections and unnecessary ultrasound imaging procedures associated with those vein injections.

Sharma also owned and operated, between 2009 and 2010, a weight loss clinic in the Tampa area called Life’s New Image.  Allegedly, unqualified personnel met with patients of the clinic, but Sharma billed those visits as physician office visits using his own Medicare provider number.  Sharma closed Premier Vein Centers and Life’s New Image in 2010. 

“We are pleased to announce this very favorable resolution of our claims against this provider,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III.  “Again, it demonstrates our commitment to civil health care fraud enforcement in our district.”

The allegations covered by the settlement were originally raised in a lawsuit filed by Patti Lovell, the former office manager for Sharma, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for the submission of false claims and to receive a share of any recovery.  Lovell will receive $72,000.

As part of the settlement, Sharma entered into a three-year Integrity Agreement with the Office of Inspector General of the Department of Health and Human Services.  The agreement requires Sharma to attend training courses provided by the Centers for Medicare and Medicaid Services and provides for an independent external review of his federal health care program coding and billing procedures. 

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 Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius.  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 $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The investigation of this matter reflects a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida and the Department of Health and Human Services Office of Inspector General. 

The lawsuit is captioned U.S. ex rel. Lovell v. Ravi Sharma, M.D. and Premier Vein Centers, 12-CV-133 (M.D. Fla.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Tampa, FL – U.S. District Judge Susan C. Bucklew today sentenced Rodney Andre McCray (31, Tampa) to 18 months in federal prison for theft of government funds. As part of his sentence, the court also ordered McCray to pay $78,728.00 in restitution to the Internal Revenue Service, and entered a money judgment in the amount of $3,500.00, the proceeds of the theft personally received by McCray.

McCray pleaded guilty on October 8, 2013.

According to court documents, during the summer of 2012, McCray and another person agreed that McCray would receive fraudulently acquired income tax refund deposits in a bank account opened in McCray’s name. McCray then opened a Bank of America bank account for the purpose of receiving the "drop money," or the fraudulent income tax return deposits. McCray was the only authorized signatory on the bank accounts.

Thereafter, fraudulent Form 1040 U.S. Individual Income Tax Returns ("1040 Returns") were filed with the IRS, directing that any refunds from the returns be deposited into McCray's Bank of America checking account. The 1040 Returns were false and fraudulent, in that the returns: (1) included false information, such as false interest and dividends earned information and related false withholding information; and (2) were filed in the name and on behalf of individuals who did not sign, authorize, or in any way give permission for the returns to be filed. In many cases, the fraudulent 1040 Returns were filed on behalf of deceased persons. In those instances, the 1040 Returns were filed together, with a form stating that McCray was authorized to receive refunds on behalf of the deceased filers, which was also false.
As a result of this scheme, McCray was complicit in converting approximately fifteen fraudulently-acquired U.S. Treasury refunds through his Bank of America account, resulting in a total loss of approximately $78,728.00 to the U.S. Treasury.

This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay G. Trezevant.

Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest of Orville Dwight Hylton (40, Riverview), on a federal complaint, charging him with theft of government property. If convicted, he faces a maximum penalty of 10 years’ imprisonment for each offense.

According to the complaint, Hylton, a United States Postal Service mail carrier, attempted to sell nearly $20,000 worth of fraudulently obtained United States Treasury checks, in other peoples’ names, for a discounted amount. The addresses on the fraudulent tax refund checks were located in the same postal zip code, where Hylton delivered the United States mail 

This case was part of an ongoing joint investigative effort by the Federal Bureau of Investigation, United States Postal Service - Office of the Inspector General, Internal Revenue Service – Criminal Investigation, and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kelley Howard-Allen.  

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

Orlando, FL - Acting U.S. Attorney A. Lee Bentley, III announces that a federal jury today found Brian K. Hatten (33, Orlando) guilty of possession of a firearm by a convicted felon. Based on his prior felony convictions, Hatten faces a mandatory minimum penalty of 15 years, up to life in federal prison. His sentencing hearing is scheduled for March 28, 2014, before U.S. District Court Judge John Antoon, II. 
Hatten was indicted on October 23, 2013.

According to testimony and evidence presented at trial, Orlando Police Department officers arrested Hatten, after he fled from them, at an intersection west of downtown Orlando. During his flight from officers, Hatten became entangled on a fence and officers found packages of marijuana, a semi-automatic pistol loaded with four rounds of ammunition, and a cell phone in Hatten’s possession. An investigation revealed that Hatten had at least six previous felony convictions, including various drug offenses, robbery, battery on a law enforcement officer, and aggravated assault with a firearm. As such, he was not permitted to possess a firearm or ammunition under federal law.

This case was investigated by the Orlando Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy.  Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.

TAMPA, FL – Acting United States Attorney A. Lee Bentley, III announces that Lyndon Jones (45, Sarasota) today pleaded guilty to theft of government funds. Jones faces a maximum penalty of 10 years in federal prison.

According to the plea agreement, Jones served as executive director of ManUp of Greater Sarasota, which ran a summer youth program to assist Sarasota community youth in the development of good leadership and professional skills. From at least as early as June 19, 2009, and continuing through on or about September 29, 2011, Jones stole at least $76,707.12 in federal funds from a Community Development Block Grant, which he used for his own benefit. He stole the funds by fraudulently submitting duplicate billing for the hours worked by the students. One set of billing was submitted to the grant administrator, and a second set was submitted to the students’ employers (e.g., the Sarasota Manatee Airport and Sarasota Memorial Hospital). Both paid Jones, for him to make payment to the students. However, Jones kept the second set of payments for himself. In addition, the airport paid the students at a rate of $14.00 per hour. But Jones actually remitted an amount equal to $8.00 an hour to the students, keeping the difference for himself.

This case was investigated by U.S. Department of Housing and Urban Development (HUD) Office of the Inspector General (OIG). It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Tampa, FL – U.S. District Judge James S. Moody, Jr. today sentenced Charlie Vernon, Jr. (Tampa, 54) to 23 years in federal prison for possessing with the intent to distribute more than an ounce of crack cocaine and being a felon in possession of firearms and ammunition. He was also ordered to forfeit various firearms and ammunition, which are traceable to the offenses. 

Charlie Vernon, Jr. was found guilty by a jury on October 10, 2013.

According to court documents, the Tampa Police Department (TPD) executed a search warrant at Vernon’s residence on February 1, 2013, and recovered two ounces of crack cocaine, various quantities of powder cocaine, marijuana, and paraphernalia used to package and distribute those drugs, including scales, baggies, crack pipes, and cutting instruments. In addition to locating those items in Vernon’s bedroom, TPD also found four firearms and over 800 rounds of ammunition fitting those firearms. Prior to February 1, 2013, Vernon had previously been convicted of three felonies for drug trafficking offenses. As such, he was prohibited from possessing any firearms or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Matthew Jackson and Natalie Adams.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy.  Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Jonathan Daniel Adleta (26, Glenpool, Oklahoma) to life in federal prison for conspiring to transport and transporting a minor in interstate commerce, with intent to engage in sexual activity. 

Jonathan Adleta was found guilty by a federal jury on September 12, 2013.

According to the evidence presented at trial, Jonathan Adleta conspired with his ex-wife, Sarah Adleta, to transport a three year-old child, with the intent of sexually abusing the child. On December 23, 2012, Sarah Adleta flew with the child from Orlando, Florida to Oklahoma, where Jonathan Adleta lived. Jonathan Adleta sexually abused the child during the child’s week-long stay at his home. Both before and after the trip, Sarah Adleta also sexually abused the child and sent pictures of the abuse to Jonathan Adleta and others.

Sarah Adleta (29, Oviedo, Florida) pleaded guilty to producing child pornography, and on October 28, 2013, Judge Dalton sentenced her to 54 years in federal prison, followed by a life term of supervised release.

“The sexual exploitation of children will not be tolerated at any level.  We will continue to aggressively investigate those who choose to victimize innocence,” said FBI Special Agent in Charge Paul Wysopal. 

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.

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.projectsafechildhood.gov.

Fort Myers, Florida – U.S. District Judge John E. Steele today sentenced Charles Allen Nave, III (39, Fort Myers) to seven years in federal prison for distributing child pornography. The court also ordered him to forfeit a Dell Precision laptop and a 2 GB SD card, which were used in the facilitation of the offense.   

Charles Allen Nave, III was found guilty on September 17, 2013.

According to court documents, on January 31, 2013, Nave knowingly distributed child pornography over the Internet, to an undercover agent that he met in an online chat room. Nave sent the undercover agent four emails, along with images of child pornography as attachments. Subsequent to the execution of a search warrant, Nave was found to possess in excess of 300 images and 20 videos of child pornography.

This case was investigated by U.S. Immigration Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with participation from the Sanibel Police Department, the Fort Myers Police Department, the Florida Department of Law Enforcement, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.

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 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.projectsafechildhood.gov.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Maurice Futch (32, Middleburg) to nine years and ten months in federal prison for being a felon in possession of ammunition. 

Futch pleaded guilty to the charge on August 28, 2013.

According to court documents, officers with the Clay County Sheriff’s Office and special agents with the Drug Enforcement Administration (DEA) executed a search warrant at Futch’s home in Middleburg, on July 16, 2012. During the search, agents located over 50 rounds of 9mm ammunition, along with a drug scale and other narcotics paraphernalia. Agents also located a picture of Futch shooting a pistol at a local gun range and later discovered that Futch was, in fact, a member of the gun range. Futch had five prior felony convictions and is prohibited from possessing a firearm or ammunition under federal law. 

This case was investigated by the Clay County Sheriff’s Office, DEA and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  It was prosecuted by Assistant United States Attorney Frank Talbot.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jairus Quaintance (21, Jacksonville) to five years in federal prison for possessing a firearm while selling marijuana. 

Quaintance pleaded guilty on August 28, 2013.

According to court documents, Quaintance was selling marijuana from a street corner just north of downtown Jacksonville. An officer with the Jacksonville Sheriff’s Office made contact with Quaintance and found that he was armed with a loaded 9mm pistol and marijuana packaged for sale.     

This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy.  Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

This case is also a part of ATF’s Frontline strategy - an effective method in reducing violent crime and improving the quality of life in communities where law enforcement efforts are focused.

Orlando, FL – Acting United States Attorney A. Lee Bentley, III announces that Camorette James (28, Miami) today pleaded guilty to one count of conspiracy to commit bank fraud. She faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

James was indicted on March 12, 2012.

According to court documents, James and others engaged in a conspiracy to commit bank fraud and to defraud the Navy Federal Credit Union ("NFCU"). They facilitated the conspiracy by opening fraudulent accounts by telephone, while claiming to be members of the United States Armed Forces, and by using the identification of others without authorization. Following these telephone calls, the conspirators requested account access cards, known as "CuCards," to be mailed to addresses in Central Florida. 

As part of the scheme, James deposited worthless checks into the fraudulently opened NFCU accounts, in order to inflate the accounts’ balances. These checks were drawn on accounts in which there were no funds. Along with other conspirators, James then withdrew funds from the fraudulent accounts, before the bank realized that the deposited checks were worthless. 

On November 2, 2012, Brittany Jones was sentenced 48 months’ imprisonment for her role in the scheme, after pleading guilty to conspiracy to commit bank fraud, three counts of bank fraud, and aggravated identity theft. Jones was also ordered to pay $180,034.72 in restitution.

This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Christopher LaForgia.

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that a federal grand jury, in Jacksonville, has returned an indictment against Samuel Franklin Crews (31, Lake City), charging him with three counts of receiving child pornography over the Internet.  Crews faces a mandatory minimum penalty of not less than 5 years, up to 20 years in federal prison on each count, and a potential life term of supervised release.  Crews was arrested on December 31, 2013, in Lake City, and has been ordered detained pending his trial in March 2014. 

The indictment alleges that between on or about April 28, 2013 through on or about April 30, 2013, in the Middle District of Florida, Crews knowingly received visual depictions of minors engaged in sexually explicit conduct, over the Internet.

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

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

It is another 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces that Anderson Scott Hall, a/k/a Scott Hall (49, Jacksonville) today pleaded guilty to four felony counts of operating a sham investment scheme. Specifically, Hall pleaded guilty to two counts of mail fraud, one count of wire fraud, and one count of money laundering.  He faces a maximum penalty of 20 years’ imprisonment for each count. A sentencing date has not yet been set.

According to the plea agreement, Hall, a licensed insurance salesman, was the architect of a sham investment scheme, which he operated for more than 10 years, between approximately 1996 through late 2011. During this time, Hall defrauded in excess of 50 victims and received more than $4 million from his victim investors. The investors included residents of the greater Jacksonville, Florida area; Columbus, Georgia; and North Carolina. A significant portion of the victim investors were either active or retired Duval County school teachers and administrators, who invested their retirement funds, including their "DROP" (Deferred Retirement Option Program) money, with Hall.

During the scheme, Hall was employed by various financial companies as an independent agent. His victim pool included current clients and client referrals. As part of this scheme, Hall incorporated a shell company, Abaco Securities International, Ltd. (ASI), in the Turks and Caicos Islands, British West Indies. Hall is listed as the Director of that company, whose only presence in the Turks and Caicos is a post office box.

As reflected in the plea agreement, Hall’s scheme included his solicitation of clients to invest their retirement savings in an investment product, which he described as ASI, promising interest rates sometimes exceeding 12%. Hall directed the victim investors to cause their retirement savings, usually held in IRAs and other investment products, to be transferred from legitimate life insurance companies and investment companies, to his sham business. Generally, Hall would deposit the clients' funds into one of several bank accounts that he maintained at SunTrust. Occasionally, as in a Ponzi scheme whereby older investors are paid money from the funds taken from newer investors, Hall would make partial payments to victim investors.

A forensic analysis of Hall’s SunTrust accounts established that he failed to invest the victim investors' funds as promised. At times, in an effort to conceal and perpetuate his scheme, Hall created sham account documents falsely reflecting that the investors' funds were invested in a legitimate investment product. These sham account statements were provided to the investors to dispel questions regarding their investments.  The accounting analysis also revealed that Hall used the investors' funds to pay for personal expenses, purchase commercial property, and to buy luxury automobiles.

This case was investigated by Federal Bureau of Investigation and the Florida Office of Financial Regulation, Bureau of Financial Investigations and the DFS, Division of Insurance Fraud. It is being prosecuted by Assistant United States Attorney Mark Devereaux.

Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment charging Erich Clifford Mandell Ramos (27, Tampa) with one count of aggravated sexual abuse, two counts of production of child pornography, and one count of possession of child pornography. If convicted on all counts, he faces a mandatory minimum term of 30 years’ imprisonment, up to a maximum penalty of life in federal prison.  Mandell Ramos has remained in federal custody since his arrest, pursuant to a complaint, on November 21, 2013.

According to the indictment, Mandell Ramos sexually abused a person under twelve years old and created images of the sexual abuse, while on MacDill Air Force Base. 

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

This case was investigated by the Federal Bureau of Investigation.  It will be prosecuted by Assistant United States Attorney Stacie B. Harris.

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 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.projectsafechildhood.gov.

WASHINGTON - Genzyme Corp. has agreed to pay $22.28 million to resolve allegations that it marketed, and caused false claims to be submitted to federal and state health care programs for use of, a “slurry” version of its Seprafilm adhesion barrier, the Justice Department announced today.  Seprafilm is a thin film intended to reduce adhesions after surgery by forming a bio-resorbable barrier between abdominal tissue and organs.  Genzyme is a biotechnology corporation based in Cambridge, Mass., and was acquired by Sanofi-Aventis SA in April 2011.

“There will be consequences when medical device companies alter products to increase sales and profits without regard for risks to patient safety,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery.  “Federal health care participants should receive only devices that are medically reasonable and necessary.”

The government alleges that Genzyme sales representatives taught doctors and other staff to cut the Seprafilm sheets into small pieces, add saline and allow the pieces to dissolve until the desired consistency was reached.  This mixture was referred to as “slurry.”  Genzyme sales representatives traded recipes for slurry, and trained each other in how to create it.  The slurry was used in laparoscopic or “key hole” surgeries by inserting a catheter filled with the mixture into the body and squirting it into the abdominal cavity.  Seprafilm is FDA-approved for use in open abdominal surgery but not for minimally invasive surgeries, such as laparoscopic or key hole surgery.  Allegedly, as a result of this conduct, Genzyme knowingly caused hospitals and other purchasers of Seprafilm to submit false and fraudulent claims to federal health care programs for uses of Seprafilm that were not reimbursable.

“Beneficiaries of federal health care plans, including Medicare recipients and military families, should not be treated with devices that have been improperly altered,” said Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III.  “When companies promote such practices, resulting in the submission of health care claims that cannot legally be reimbursed, they will be made to pay by this office and the Department of Justice.”

“As with drugs, patients need assurance that medical devices are safe and effective,” said Inspector General of the U.S. Department of Health and Human Services Daniel R. Levinson.  “The government contends that Genzyme marketed an altered, untested device.  Taxpayers and patients deserve better.”

The allegations resolved by today’s settlement were originally raised in two lawsuits filed against Genzyme under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery.  The whistleblowers, or relators’, share of the settlement has not been determined.

Assistant Attorney General Delery thanked the Office of Chief Counsel for the Food and Drug Administration, the U.S. Attorney’s Office for the Middle District of Florida, the Justice Department’s Commercial Litigation Branch, the Defense Health Agency, the Office of Personnel Management, the Department of Veterans Affairs and the Department of Health and Human Services Office of Inspector General for the collaboration that resulted in the settlement.  This case was investigated jointly by Assistant U.S. Attorney Charles Harden of the United States Attorney’s Office for the Middle District of Florida and Trial Attorney Charles Biro of the Commercial Litigation Branch of the Justice Department’s Civil Division.
           
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 Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius.  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 $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims settled by this agreement are allegations only, and there has been no determination of liability.  The two lawsuits are captioned United States ex rel. Fuentes, Russo v. Genzyme Corp., No. 09-cv-1245 (M.D. Fla.) and United States ex rel. Kelley v. Genzyme Corp., No. 10-cv-549 (M.D. Fla.).  

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest and unsealing of an indictment charging former Jacksonville Sheriff’s Office (JSO) Corrections Officer Leon Perry Brooks, Sr. (39, Jacksonville) with two counts of receipt of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. If convicted on each of the receipt counts and the distribution count, he faces a minimum of 5 years, up to 20 years in federal prison. On the possession of child pornography charge, Brooks faces a maximum penalty of 10 years’ imprisonment.

Brooks will make his initial appearance in federal court today, in Jacksonville, at 2:15 p.m. before U.S. Magistrate James R. Klindt.

According to the indictment, the offenses occurred between June 19, 2012, and May 20, 2013, and involve certain named computer files depicting minors engaging in sexually explicit conduct.

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

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), in conjunction with the Jacksonville Sheriff’s Office’s Internet Crimes Against Children Task Force. It will be prosecuted by Assistant United States Attorney Diidri Robinson.

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

Click HERE to view indictment.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Estella D. (Washington) Wright and her husband, Dorian D. Wright, to 4 years, 3 months’ and 15 months’ imprisonment, respectively. The sentences were handed down in connection with the couple’s involvement in a tax refund scheme and Estella Wright’s conviction on seven counts of aggravated identity theft. The court also ordered the couple to pay restitution in the amount of $210,737.97, to the Internal Revenue Service, and $1,500.00 to a victim of the identity theft. The couple resides in Brunswick, Georgia.

Both pleaded guilty to the charges on June 26, 2013.

According to court documents, from at least September 2007 through 2008, Estella Wright stole the means of identification from individuals through her employment at a temporary staffing agency. Wright then provided these means of identification to her co-conspirators to fraudulently file tax returns and obtain income tax refunds. The fraudulently filed tax returns caused a total of $816,384.00 to be directly deposited into bank accounts held in either Estella Wright’s or Dorian Wright’s name.

The case was investigated by Internal Revenue Service - Criminal Investigation.  It is being prosecuted by Assistant United States Attorney Kelly S. Karase.

Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Heriberto Pena-Salazar (25, Bradenton) to 27 years in federal prison for production of child pornography. As part of his sentence, he was also ordered to serve a 15-year term of supervised release, following his incarceration, and to register as a sex offender.

Salazar was found guilty on October 2, 2013.

According to court documents, in May 2012 Pena-Salazar persuaded a pre-pubescent female to engage in sexually explicit conduct for the purpose of producing a visual depiction of the act. In a video recovered on Pena-Salazar’s cellular phone, his face is visible, as he is seen pulling back the victim’s pants and underwear and performing sexual acts on her. During an interview, he admitted that he abused the child and stated that he did so in order to trade the video for child pornography from others.
A forensic review of the computer laptops and hard drive seized from Pena-Salazar revealed 600 videos and 400 images of child pornography, including files depicting pre-pubescent children and sadomasochistic conduct. Pena-Salazar, a Mexican national, was illegally present in the United States.

“The exploitation of children is one of the most heinous crimes we investigate,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “This case was especially egregious, and as a result, this man will serve nearly 30 years in prison. Let this case serve as a warning to individuals who prey on innocent children – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law.”

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Enforcement and Removal Operations, the Florida Department of Law Enforcement, the Manatee County Sheriff’s Office, and the Bradenton Police. It was prosecuted by Assistant United States Attorneys Jennifer L. Peresie and Amanda C. Kaiser.
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 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.projectsafechildhood.gov.

Tampa, Florida – U.S. District Judge James D. Whittemore today sentenced Quincy Wimberly (29, Tampa) to seven years in federal prison for theft of government property and aggravated identity theft.  Quincy Wimberly pleaded guilty on September 5, 2013.

According to court documents, from at least as early as January of 2011, Wimberly engaged in stolen identity tax refund fraud. He was responsible for over sixty fraudulently filed tax returns and fraudulently obtained tax refunds in excess of $175,000.

Wimberly’s co-conspirators, Nikia Williams and Porscha Williams, were previously sentenced to 6 ½ years and 4 years in prison, respectively, for their roles in the scheme.

This case was investigated by the Internal Revenue Service - Criminal Investigation, the U.S. Postal Inspection Service, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.

Orlando, Florida – U.S. District Judge Gregory A. Presnell yesterday sentenced Daniel M. Metz (54, Oviedo) to 30 months in federal prison for filing false returns and attempting to obstruct justice. He was also ordered to serve a 3-year term of supervision, following his release from prison, and to pay $112,995 in restitution.

Metz was found guilty by a federal jury, on July 18, 2013.

According to court documents, in 2009, Metz's business account was the subject of an Internal Revenue Service civil audit.  During the course of the audit, the auditor realized that Metz had not filed personal tax returns for years 2005, 2006, and 2007. After being told about the personal tax returns, Metz prepared the returns and attached false 1099s, which he also had prepared.  Metz mailed the returns to the auditor. The auditor suspected that the 1099s were false and requested records from Metz's personal bank accounts. The banks confirmed that the 1099s were false. The personal tax returns were never processed. Had they been processed, Metz would have received approximately $330,344 in refunds from the IRS. Through various means, Metz tried to hinder the IRS' investigation, including filing a lawsuit against the IRS Commissioner and the special agent who was conducting a criminal investigation. That lawsuit was ultimately dismissed. 

At the sentencing hearing, the court spoke at length about Metz’s plan to defraud the United States government.  The court said that the scheme was long term and “egregious.”  It added that Metz had “intentionally filed patently false documents to cheat his way out of paying taxes.”

This case was investigated by Internal Revenue Service – Criminal Investigation.  It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.

Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Jeffrey Alan Barnett (46, Orlando) to 12 years, 11 months in federal prison for distribution and possession of child pornography.  The court also ordered Barnett to serve a 10-year term of supervision, following his release from prison, and to register as a sex offender.

Barnett pleaded guilty on August 7, 2013. 

According to court documents, Barnett used a peer-to-peer filing sharing program to distribute child pornography to an undercover federal task force agent, on three separate occasions. On March 21, 2013, a federal search warrant was executed at Barnett’s residence. During the execution of that warrant, investigators found a computer located in Barnett’s bedroom that contained child pornography. During an interview, Barnett admitted that the computer belonged to him, that he had been using a peer-to-peer file sharing program to download and trade child pornography, and that he had been trading child pornography for over twenty years. Barnett was arrested on federal charges on March 21, 2013.  A forensic examination of his computer found that he possessed over 250 videos of child pornography, including images of sadistic and masochistic conduct.

This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff's Office.  It was prosecuted by Assistant United States Attorney Roger B. Handberg.

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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

Orlando, Florida – Chief U.S. District Judge Anne C. Conway today sentenced Albert Nedd (41) to 15 years in federal prison for being a felon in possession of a firearm.  Nedd pleaded guilty on September 13, 2013.

According to court documents, on December 8, 2012, Daytona Beach Police Department Officers responded to a complaint concerning a weapon and saw Nedd walking away from the scene and concealing what appeared to be a small handgun in his waistband. The officers commanded Nedd to stop, but he kept walking away. Nedd walked up a staircase attached to a building, placed the handgun at the top of the staircase, and then was stopped by officers once he walked down. Officers found a loaded .38 caliber revolver at the top of staircase. Nedd, a previously convicted felon, is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney James D. Mandolfo.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy.  Acting United States Attorney A. Lee Bentley, III, along with Julie Leon, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

This case is also part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.

Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge James D. Whittemore this week sentenced Vanessa Cooper (39, El Cajon, California), Canetha Johnson (43, El Cajon, California), and Raul Carbajal (23, Plant City, Florida) to 17, 14 and 15 years in federal prison, respectively, for conspiracy to possess with the intent to distribute and possession with intent to distribute more than 500 grams of methamphetamine. 

Cooper and Johnson were found guilty by a federal jury on September 23, 2013.  Carbajal pleaded guilty on September 13, 2013.

According to the evidence and testimony presented at trial, on or about April 1, 2013, Cooper and Johnson, along with co-defendant Selena Blanchard, departed from an airport in San Diego, California, ultimately destined for Tampa, Florida. The purpose of the trip was to deliver approximately two pounds of high-purity methamphetamine to Carbajal. In order to get the drugs through airport security, without detection, each individual smuggled a package inside of her body.  The three women arrived in Tampa on April 2, 2013, where they were met by Carbajal. All three women then delivered the packages of methamphetamine to Carbajal. In the same manner, Cooper and Blanchard had delivered methamphetamine from California to Carbajal, in Tampa, on several prior occasions. 
Blanchard was found guilty, following a jury trial, on September 23, 2013. A sentencing date has not yet been set.

This case was investigated by special agents and local task force agents with the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Matthew Jackson.

WASHINGTON – A south Florida man has pleaded guilty today for his role in a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney for the Middle District of Florida A. Lee Bentley III, Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office and Special Agent in Charge Christopher Dennis of the U.S. Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations made the announcement.

Luis Alberto Garcia Perojo, 42, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiring to commit health care fraud.  He faces a maximum penalty of 10 years in prison, and his sentencing will be scheduled at a later date. 

According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC, a comprehensive outpatient rehabilitation facility that he helped operate.  From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries.  As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account.  The fraud proceeds in that account were later disbursed to various entities, including a combined total of $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc.  Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies.  Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.

This case is being investigated by the FBI and HHS-OIG, and 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 for the Middle District of Florida.  This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,700 defendants who have collectively billed the Medicare program for more than $5.5 billion.  In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, 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 – U.S. District Judge Susan C. Bucklew yesterday resentenced Marian I. Morgan to 33 years and 9 months in federal prison for conspiracy, wire fraud, interstate/foreign transportation of stolen funds, money laundering, and filing false tax returns. The court also ordered her to pay restitution in the amount of $19,958,995.00. A federal jury found Marian I. Morgan guilty on September 29, 2011, after a seventeen-day trial.

Marian I. Morgan was originally indicted on December 17, 2009.  She was subsequently charged by a superseding indictment on May 31, 2011. Her husband, John Morgan, was also indicted. He pleaded guilty to conspiracy and money laundering charges, on June 15, 2011, and was sentenced to 10 years and 1 month in prison on November 28, 2011.

According to the evidence presented during the trial, Marian and John Morgan, who resided in Sarasota, Florida, were principals of a company named Morgan European Holdings from about 2005 to 2009. They promoted sham "high yield/ prime bank note" investment programs through the company, promising investors that they would receive returns of 200-300% in three months and that their principal funds would be held safe in an escrow account in Denmark. Trial evidence showed that the Morgans spent over $10 million of investors’ money on themselves, soon after investors wired the funds to the escrow account. The Morgans purchased luxury automobiles, a waterfront mansion, and numerous luxury items with investors’ funds. When investors inquired about the status of their investments, Marian Morgan sent repeated "lulling" communications, assuring the investors that their funds were safe in the escrow account. Between 2005 and 2009, the Morgans took in over $28 million in investors’ funds and returned some funds in the form of "Ponzi" payments. 

In June 2009, the U.S. Securities and Exchange Commission (SEC) filed an enforcement action in the Middle District of Florida against the Morgans and others, alleging investment fraud. In response to the SEC action, Marian Morgan told investors to lie to the SEC and not cooperate with the agency. When the Morgans fled the United States and did not return, as ordered for a hearing in that case on July 16, 2009, U.S. District Judge Richard Lazzara issued a warrant for their arrest. The Morgans were arrested in August 2009, in the island nation of Sri Lanka, after attempting to pass a forged financial instrument. They were returned by federal agents to the United States in December 2009.

In April 2012, Judge Bucklew sentenced Marian Morgan to serve 35 years in prison. Marian Morgan appealed her sentence to the Eleventh Circuit United States Court of Appeals. In September 2013, that Court held that Marian Morgan’s sentence should not have included an enhancement for abusing a position of trust and remanded it to the trial court for resentencing.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation.  The Danish National Police also cooperated in the investigation of this case.  It was prosecuted by Assistant United State Attorney Cherie L. Krigsman and former Assistant United States Attorney Robert T. Monk.

Orlando, Florida – U.S. District Judge John Antoon II today sentenced Magda Raphael (35, Orlando) to 15 months in federal prison for theft of government property.  As part of her sentence, the court also entered a money judgment in the amount of $63,169.00, the proceeds of the charged criminal conduct.  Raphael pleaded guilty on September 30, 2013.

According to court documents, Raphael stole $63,169.00 of government money that was designated for her child. From 2006 to 2010, Raphael’s sister was the representative payee for the money. However, Raphael completed the Social Security forms and forged her sister's signature without her consent. After the funds were issued, Raphael would then forge her sister's signature on her daughter's Social Security Administration’s paper checks. Raphael then used her daughter’s benefits for her own personal use, including court fees for a prior welfare fraud case.

This case was investigated by Social Security Administration. It was prosecuted by Assistant United States Attorney Christopher LaForgia.

Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the arrest of Carlos Santiago Garcia, a/k/a “Xavier Constatinos” (21, Oldsmar) on charges of receipt, distribution, and possession of child pornography, attempting to coerce or entice a minor to engage in sexual activity through any facility of interstate commerce, and attempted transportation of a minor in interstate commerce to engage in illicit sexual activity.  If convicted, Garcia faces a mandatory minimum penalty of 5 years, up to a maximum penalty of 20 years in federal prison on the distribution charge, and a mandatory minimum penalty of 10 years, up to a maximum of 30 years in federal prison on the enticement charge. 

According to the complaint, Garcia posed online (under the pseudonym “Xavier Constatinos”) as a minor female on Facebook in order to lure and recruit another minor female victim to meet him, for the purpose of traveling out of state to engage in sex acts.  As Garcia arrived at the victim’s residence and assisted her with placing her suitcase into his vehicle, he was arrested by members of the Clearwater Area Human Trafficking Task Force. At the time of his arrest, law enforcement officers found marijuana, vodka, a written itinerary for the trip, and other items indicative of “grooming” for sex acts in Garcia’s vehicle.  Law enforcement also examined several of Garcia’s email accounts, which revealed hundreds of images of child pornography. Garcia was ordered detained without bond pending further proceedings.

A complaint is merely a charge that probable cause exists that a defendant has committed a violation of the federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case is being investigated by members of the Clearwater Area Human Trafficking Task Force, which is comprised of multiple law enforcement agency partners including U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Clearwater Police Department, and the Pinellas County Sheriff’s Office.  It will be prosecuted by Assistant United States Attorney 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 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.projectsafechildhood.gov.

Tampa, Florida - Senior District Court Judge Susan C. Bucklew yesterday sentenced Alma Lucrecia Hernandez-Preciado, a/k/a "La Tia," (40, Tecun Uman, Guatemala) to 30 years in federal prison for violations of the Maritime Drug Law Enforcement Act (MDLEA). She was convicted on two counts, by a jury, on September 20, 2013.

Specifically, the jury found that Hernandez-Preciado, from a date unknown to the date of the indictment (September 22, 2011), conspired with others, including persons who were on board a vessel subject to the jurisdiction of the United States, to possess with intent to distribute and to distribute five kilograms or more of cocaine. Hernandez-Preciado was also convicted of aiding and abetting others, including persons who were on board the same vessel, to commit the above offense.  

Hernandez-Preciado was arrested in Guatemala on October 10, 2011 pursuant to the indictment. She was extradited to Tampa in February, 2013, to face the charges. 

Evidence presented at trial proved that Hernandez-Preciado organized a series of maritime cocaine smuggling shipments from Ecuador to Guatemala, including a smuggling venture where the crew of a go-fast boat was interdicted by the United States Coast Guard (USCG) on May 19, 2011, off the coast of Guatemala. Three hundred and forty-seven kilograms of cocaine were seized by the USCG during that interdiction. Trial evidence also included testimony from the USCG, wiretap intercepts conducted by the Guatemalan National Police, cooperating witnesses in the smuggling conspiracy, as well as communications from Hernandez-Preciado's email account, which were obtained from a search warrant by Panama Express Strike Force agents.

This case was investigated by the Panama Express Strike Force, an OCDETF funded operation targeting maritime smuggling. Operation Panama Express currently targets South American-based drug trafficking organizations responsible for smuggling drugs to the United States and elsewhere for distribution. Participating agencies include the Drug Enforcement Administration (DEA), including DEA's Guatemala City Country Office, the Federal Bureau of Investigation (FBI), the United States Coast Guard Investigative Service (CGIS), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Joint Interagency Task Force - South (JIATFS) and the United States Marshals Service, with assistance from the government of Guatemala and Guatemalan law enforcement agencies. 

The case was indicted by Assistant United States Attorney W. Stephen Muldrow and prosecuted by Assistant United States Attorney Joseph K. Ruddy.

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. yesterday sentenced Tyler Andrew Smith (23, Port Orange) to 10 years in federal prison for distributing and possessing child pornography.  As part of his sentence, he was ordered to serve a 15-year term of supervision, following his release from prison, and required to register as a sex offender.  The court also ordered Smith to forfeit the devices upon which he used to store the child pornography. 

Smith pleaded guilty on August 13, 2013.

According to court documents, on July 31, 2012, Smith used his email account to send an email containing an image of child pornography to an individual in another state.  In April 2013, during an investigation into the individual in the other state, law enforcement discovered Smith's email, along with the attached pornographic image. On March 16, 2013, Homeland Security Investigations (HIS) agents interviewed Smith at his residence, in Volusia County.  Smith turned over, to agents, a cellular telephone containing a memory card, a netbook computer, and an SD memory card, all three of which contained child pornography. Smith admitted to sending the email with the attached child pornography image, using email accounts and the Internet to collect and trade child pornography, and that the devices containing child pornography belonged to him. Smith was subsequently arrested.  Smith’s child pornography collection included images of children less than 12 years of age being sexually abused, exploited, and being subjected to sadistic and masochistic conduct. 

"Individuals who download child pornography further the victimization of innocent children who have already experienced horrific abuse," said Susan McCormick, special agent in charge of HSI Tampa. "I issue this warning to child predators – we will find you, arrest you and ensure you are prosecuted to the fullest extent of the law."

This case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Brevard County Sheriff's Office.  It was prosecuted by Assistant United States Attorney Andrew C. Searle.

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 the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.

Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging James Dee Jaeger (62) and Lora Anne Jaeger (50), both of North Port, with one count of conspiracy to defraud the Internal Revenue Service (“IRS”) and seven counts of causing false and fraudulent claims for tax refunds to be filed with the IRS. If convicted on all counts, each faces a maximum penalty of five years in federal prison for the conspiracy charge and five years’ imprisonment for each false claim charge. 

According to the indictment, the Jaegers devised and participated in a scheme to help “taxpayers,” including themselves, obtain fraudulent tax refunds from the IRS. The scheme was premised upon the “redemption theory,” which is a fraudulent notion that individuals are not responsible for their common personal debt obligations such as home mortgages, unpaid credit card bills, and lines of credit, and may instead seek money from the IRS to repay these outstanding obligations. Collectively, at least fifteen tax returns were filed as part of the scheme, seeking refunds totaling $2,583,207.70.  The indictment further alleges that the Jaegers instructed taxpayers on how to conceal fraudulent tax refunds and how to frustrate the lawful collection efforts of the IRS.           

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

This case was investigated by the Internal Revenue Service – Criminal Investigation. It will be prosecuted by Assistant United States Attorney Matthew J. Mueller.

Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Marin Gigore Dobre (36, a citizen of Romania) guilty of possession of device making equipment. He faces a maximum penalty of 15 years in federal prison. A sentencing hearing has been set for March 10, 2013.

Dobre was indicted on October 9, 2013.

According to testimony and evidence presented at trial, between September 11, 2013 and September 13, 2013, Dobre was part of a team from Romania that had installed skimming devices on at least two bank ATMs in Orlando. A “skimmer” device captures a person’s account information stored in the magnetic strip on credit and debit cards. Bank officials were alerted to installation of the first device by an alert bank customer, and when a second device was installed two days later, the bank notified the Orange County Sheriff’s Office. Sheriff’s deputies began surveillance at the second ATM location and observed Dobre serving as a lookout, while his associate (Cristian Octavian Barbu, 31) removed the skimmer device from the ATM. Both men were apprehended at the scene.

Barbu pleaded guilty on December 2, 2013. His sentencing hearing is scheduled for March 10, 2014.

This case was investigated by the U.S. Secret Service and the Orange County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Bruce S. Ambrose.

Tampa, FL – U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Michael Alan Klevene (62) to 13 years and 7 months in federal prison for transporting child pornography over the Internet.  As part of his sentence, Klevene was also ordered to serve a lifetime term of supervised release, following his incarceration, and to register as a sex offender.        

Klevene was found guilty on June 4, 2013.

According to court documents, between October and December 2012, Klevene uploaded numerous videos and images of child pornography to the Internet. On January 24, 2013, Klevene e-mailed links to the uploaded child pornography to an undercover agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

In February 2013, law enforcement executed a federal search warrant at Klevene’s residence. During an interview, Klevene confessed to possessing, downloading, and transporting child pornography.  He stated that he had been collecting images and videos of child pornography for over twenty years.  Klevene also admitted to paying a pre-pubescent male, in Tampa, to take photographs of himself and to subsequently posting these photographs to the Internet, in order to meet people interested in child pornography and to obtain more child pornography.

"Distributing child pornography is not a victimless crime," said Susan McCormick, special agent in charge of HSI Tampa. "We cannot repair the damage done to innocent children exploited for perverse pleasure, but we can continue to aggressively pursue and prosecute child predators like Klevene."

This case was investigated by HSI, the Florida Department of Law Enforcement (FDLE), and the Tampa Police Department.  It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.

It is another 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Jacksonville, FL – Acting United States Attorney A. Lee Bentley, III announces the return of an indictment and arrest charging Harold B. Walbey, III (45, Jacksonville) with wire fraud and aggravated identity theft. If convicted on all counts, he faces a maximum penalty of 22 years in federal prison. 

Walbey was arraigned in federal court on December 12, 2013. He pleaded not guilty and was released on bond. A status conference hearing is scheduled for January 21, 2014.

According to the indictment, Harold B. Walbey, III worked as a corrections officer with the Jacksonville Sheriff’s Office, at the John E. Goode Pretrial Detention Facility.  While working in this capacity, he stole personal identifying information, including the names and social security numbers, of multiple inmates who were housed at the facility.  From 2010 through May 2012, Walbey used this information to electronically file numerous fraudulent tax returns and open pre-paid debit card accounts with various financial institutions.  The tax refunds were then directly deposited into the pre-paid debit card accounts that were created in specific inmates’ names. 

“The Jacksonville Sheriff’s Office investigates all allegations of criminal activity that may involve our employees. In this case our investigators from the Integrity/Special Investigations Unit, working with our federal agency partners, effected two arrests - Mr. Walbey and his daughter, Tianna Walbey, who was arrested in February on federal charges in this same crime,” said  Jacksonville Sheriff John Rutherford.

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

This case was investigated by the Jacksonville Sheriff’s Office, Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation.  It is being prosecuted by Assistant United States Attorney Malisa Chokshi.

Click HERE to view Indictment

Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces that following a four-day trial, a federal jury yesterday found Viviana Reyes (40) guilty of conspiracy to commit credit card fraud, conspiracy to commit bank fraud, credit card fraud, bank fraud, aggravated identity theft, and identity theft. Reyes faces maximum penalties ranging from 5 to 30 years in federal prison on each conspiracy, fraud and identity theft count, and a mandatory 2-year consecutive term in prison for each of the three aggravated identity theft counts. A sentencing hearing has been set for March 6, 2014.

Reyes was first indicted on July 29, 2013.  Four of her co-conspirators have already pleaded guilty and are awaiting sentencing. Another co-conspirator (Michel Lermos-Hernandez) remains a fugitive.

According to the testimony and evidence presented at trial, the individuals in this indictment, led by Michel Lermos-Hernandez, ran a credit card fraud ring.  Lermos, aided by others, obtained credit card numbers by placing key loggers that intercepted and stored swiped credit and debit card account information on credit card terminals at the International Mall, in Tampa. One device, in particular, was located at the Haagen-Dazs ice cream store. Using the stolen credit and debit card account numbers, Lermos and his co-conspirators then created counterfeit credit cards.  Lermos obtained blank credit card stock (cards), embossing machines and magnetic stripe re-encoders from Viviana Reyes, and also sold stolen credit and debit card numbers, taken from the key loggers, to her. 

After making the credit cards, Lermos provided the counterfeit credit cards to his co-conspirators, including his sister (Norma Cabezas-Hernandez), his girlfriend (Danay-Crespo Rodgriguez), and at least two other separately charged individuals (Lazaro Rodriguez and Abel Osorio-Cuok), to buy electronics and gift cards at Tampa area retailers.  The conspirators then took these items to Viviana Reyes’ house, where she paid them in cash for the fraudulently obtained merchandise.

A search of Reyes’ house, in February 2013, revealed a credit card skimming device and two thumb drives filled with hundreds of stolen credit and debit card numbers, many of which were compromised at Haagen-Dazs. Agents also recovered three counterfeit Florida Drivers Licenses, which were indicative of those that Reyes had sold to others for the purpose of opening lines of credit at area stores. A search of Reyes’ phone revealed pictures of merchandise such as Apple computers and tablets for sale, along with numerous text messages advertising electronics and gift cards for sale at greatly reduced prices.

To date, agents estimate the loss to the affected financial institutions to exceed $650,000.

This case was investigated by the Tampa Police Department, Florida Department of Law Enforcement, and the United States Secret Service (USSS), as part of the USSS’s Credit Card Fraud and Identity Theft Task Force. It is being prosecuted by Assistant United States Attorneys Mandy Riedel and Suzanne Nebesky.

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announced today that John George Sessine (58, Lake City) has pleaded guilty in United States District Court, in Jacksonville, to receiving images and videos depicting the sexual abuse of minor children over the Internet.  He faces a mandatory minimum penalty of not less than 5 years, up to 20 years in federal prison, a potential life term of supervision, and will be required to register as a sex offender.  The court also forfeited his computer media, which was traceable to the offense.  Sessine has been in custody since his arrest on June 5, 2013.  A sentencing date has not yet been set.

According to court documents, on June 5, 2013, FBI agents and other law enforcement officers executed a federal search warrant at a residence occupied by Sessine, in Lake City, Florida.  The FBI had previously learned that at least one computer using an Internet Protocol (IP) address resolved to that residence was sharing videos of child pornography over the Internet.  Sessine was at the residence and was interviewed by the agents.  During an interview, Sessine stated, among other things, that he used a particular file sharing program to download images and videos, that his preference was for young females, and that the youngest child on his computer was 10 or 12 years old.  A forensic analysis of Sessine’s computer media revealed that Sessine had collected 107 images and 104 videos of minor children being sexually abused. 

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

It is another 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, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."

Tampa, FL – Acting United States Attorney A. Lee Bentley, III announces the return of a six-count superseding indictment charging Michael Moshe Shimshoni (56, Tierra Verde) with four counts of failing to provide approved Environmental Protection Agency (“EPA”) lead paint warning notices and brochures to his tenants, and two counts of alteration or falsification of records in a federal investigation.  If convicted, he faces a maximum penalty of one year in federal prison on each of the failures to provide warning notice counts, and twenty years’ imprisonment for each of the falsification of records counts.

According to the indictment, Shimshoni owned, managed, and offered commercial and residential properties for lease in St. Petersburg through Pinellas Properties, Inc., and Affordable Realty and Property Management, Inc., among other entities.  The superseding indictment alleges that Shimshoni knowingly and willfully failed to provide the prescribed lead paint hazard warning notices and federally approved lead paint hazard brochures to lessees of his properties.  Federal law and regulations require that landlords must provide a prospective tenant of certain “target housing” built prior to 1978, before a tenant is obligated under any lease, with various warning notices including a lead warning statement, and a statement by the tenant affirming the receipt of an EPA approved lead hazard information pamphlet. The purpose of the pamphlet is to alert tenants to the dangers of lead paint and inform them about measures to reduce the risk of lead-based hazards.    

The superseding indictment further alleges that Shimshoni altered, falsified, and made false entries in documents and records with the intent to impede, obstruct, and influence the Environmental Protection Agency’s investigation and administration of the Lead Hazard Reduction Act, the Toxic Substance Control Act, and related provisions by producing backdated "Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards" forms. 

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

This case was investigated by the EPA Criminal Investigations Division.  It will be prosecuted by Assistant United States Attorney Matthew J. Mueller.

Click HERE to view Superseding Indictment

Tampa, Florida - Judge Elizabeth A. Kovechevich today sentenced Marterrance Q. Holloway (33, Tampa) to 9 years and 8 months in federal prison for conspiracy to defraud the United States Treasury through committing tax fraud and aggravated identity theft.  As part of his sentence, the court entered a forfeiture money judgment in the amount of $238,573.30.  Other items purchased with proceeds of the fraud and other substitute assets were also ordered to be forfeited, including two 2010 Chevrolet Camaros, a 2011 Dodge Charger, a 2005 Dodge Charger, a motor scooter, an iPad computer, assorted jewelry and $779 in cash. 

Holloway pleaded guilty on July 24, 2013.

On September 23, 2013, Holloway’s co-defendant, Maurice Larry, a/k/a/ “Thirst,” was previously sentenced to 8 years and 5 months in prison for his involvement in this case.  The following day, Larry was also sentenced to a concurrent prison term of 14 years, 6 months’ imprisonment in an unrelated tax fraud case with co-defendant, Rashia Wilson.

According to court documents filed in this case, Holloway and Larry were filing fraudulent tax returns from a Tampa hotel room, in September 2010.  Inside the hotel room were four computers, which were used to electronically file fraudulent tax returns in the names of deceased individuals, along with website pages, ledgers, and lists of stolen names, dates of birth and social security numbers.  Multiple "Turbo Tax" reloadable debit cards were also found in the hotel room, along with ATM receipts for cash withdrawals and approximately $3700 in cash. Larry and his co-defendant admitted to filing fraudulent tax returns on the computers while staying at the hotel. 

Further, in August 2011, Holloway used a fraudulent debit card at a local bank ATM machine that had been loaded with the proceeds of a fraudulently filed tax return in the amount of over $9800. 

“These individuals have demonstrated a blatant disregard of the integrity of the United States tax system and caused immeasurable hardship to innocent victims and deserve to be punished to the fullest extent of the law,” said James Robnett, Special Agent in Charge, IRS Criminal Investigation-Tampa Field Office. “IRS Criminal Investigation remains committed to the pursuit of stolen identity refund fraud and, together with our partners at the U.S. Attorney’s Office and the Tampa Bay Identity Theft Alliance, we will hold those who commit the same crimes similarly accountable.”

This case was investigated by the Internal Revenue Service – Criminal Investigation, the United States Secret Service and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Kelley Howard-Allen.

Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of an indictment, on December 4, 2013, charging Robert Charles Zeigler (44, formerly of St. Petersburg) with two counts of theft of government property.  If convicted, Zeigler faces a maximum penalty of 10 years in federal prison on each count.  The indictment also notifies Zeigler that the United States intends to forfeit any traceable proceeds of the offense.

According to the indictment, in late 2012 or early 2013, Zeigler stole or converted to his own use a 17-foot Boston Whaler and Evinrude ETEC 75 HP outboard motor from the St. Petersburg Geological Center, which is part of the U.S. Geological Survey, Department of the Interior.  Zeigler made his initial appearance in Gulfport, Mississippi today and is scheduled to be arraigned on January 2, 2014, at 10:00 A.M., before U.S. Magistrate Judge Thomas B. McCoun.

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

This case was investigated by Federal Protective Services. It will be prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

Jacksonville, Florida – Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of five indictments charging seven individuals with conspiracy to commit mail and wire fraud in connection with a scheme to defraud Boat U.S. Those charged include: John J. Kurant, Jr. (46, St. Augustine); Christopher E. Labaire (35, Jupiter); Greg Wilson (47, Jupiter); Jerold Wolfe (36, Jupiter); John Grant (47, Jupiter); Scott Coleman (45, Jupiter); and Adam Horvit (34, Parkland).  If convicted, each faces a maximum penalty of 20 years in federal prison.  The indictments also notify the defendants that the United States intends to forfeit the proceeds of their fraudulent scheme. In total, the indictments of Kurant and Labaire reflect that Boat U.S. paid out $853,758.33 in insurance proceeds based upon the sham and fraudulent marine insurance claims. 

According to court documents, Kurant was a claims adjuster for Boat U.S., in its Orange Park, Florida office. It is alleged that he reached an unlawful agreement with Labaire to defraud Boat U.S., in connection with Boat U.S.’s marine insurance program, by creating sham insurance policies and submitting fraudulent marine insurance claims.  The indictments allege that Kurant would abuse his position as a claims adjuster by assisting in the procurement of sham boat insurance policies with Boat U.S. In addition, Labaire, a long-time friend of Kurant, submitted fraudulent claims himself and also recruited other individuals in the south Florida area to pose as pleasure boat owners and fraudulently secure sham marine insurance policies with Boat U.S. After making a few premium payments on the sham insurance policy, the co-conspirators would then submit false claims of total boat losses due to theft, accident damage, or reporting that the boat sank. Kurant is alleged to have caused the fraudulent claims to be assigned to him for claims adjudication, which resulted in electronic transfers of claims information from Orange Park, Florida to Alexandria, Virginia.  Based upon the fraudulent claims, Boat U.S. issued checks to the sham boat owners, which were sent by a commercial carrier.  After receiving the insurance proceeds check(s), they were deposited into bank accounts and the funds were shared with conspirators.

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

This case was investigated by the Federal Bureau of Investigation and Florida Department of Financial Services, Division of Insurance Fraud.  It will be prosecuted by Assistant United States Attorney Mark B. Devereaux.

Orlando, Florida – Acting United States Attorney A. Lee Bentley, III announces the return of a federal indictment charging William A. White (36, Roanoke, Virginia) with five counts of making threats in aid of extortion over the Internet and one count of the unlawful use of identification information in furtherance of those offenses.  If convicted, he faces a maximum penalty of 20 years in federal prison for each count.  The indictment also notifies White that the United States intends to forfeit electronic equipment, which is alleged to have been used in furtherance of the offenses.

According to the indictment, White, a white supremacist based in Roanoke, Virginia, sent a series of five electronic communications demanding the release of fourteen persons charged by state authorities in the Ninth Judicial Circuit of Florida. Those individuals had been charged in relation to their alleged involvement in the American Front, a white supremacist organization with connections to Osceola County, Florida.  Four of the threats made by White were directed to Florida’s Ninth Circuit State Attorney Lawson Lamar (who was then the elected state attorney who initiated the prosecution of the alleged American Front members), Florida Circuit Judge Walter G. Komanski (the presiding judge over the case against the group’s alleged members), and an FBI Task Force Agent involved in the state’s prosecution. In addition, one of the threats made by White was directed to the adult son of Lawson Lamar. Each communication identified in the indictment contained a threat to kidnap, torture, rape, and kill those persons and their spouses, children, and grandchildren.  The threatening communications also contained the names and home addresses of those threatened.

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

This case was investigated by the Federal Bureau of Investigation.  It will be prosecuted by Assistant United States Attorney Daniel C. Irick.

Ocala, Florida – U.S. Magistrate Judge Philip R. Lammens yesterday sentenced Thomas W. Harter, D.M.D., (49, Ocala) to three years in federal prison for six misdemeanor counts of failure to file income tax returns.  The court also ordered Harter to pay $438,384 in restitution to the Internal Revenue Service (IRS), an amount representing the tax loss from his crimes. 

Harter was found guilty by a federal jury on September 17, 2013. 

According to the evidence and testimony presented at trial, Harter worked as a dentist in the Ocala area for approximately twenty years. He stopped filing federal income tax returns, beginning in the year 2000. From 2006 through 2011, Harter received a gross income, from his dental practice, of at least $1,709,230.  Despite this income, Harter willfully failed to file a single tax return or pay any income tax during that same time period.       

This case was investigated by the Internal Revenue Service - Criminal Investigation.  It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Joseph E. Thornton (34, of Largo) to 15 years in federal prison for being a felon in possession of a firearm. Thornton pleaded guilty on June 27, 2013. 

According to court documents, Thornton made a series of gun and cocaine sales to an undercover officer, including selling cocaine and a .40 caliber Hi-Point pistol and ammunition to an officer on January 8, 2013.  Following the purchase, law enforcement learned that the pistol had been reported stolen on December 17, 2012, following a residential burglary.

Additionally, two other individuals were separately charged and sentenced federally, as a result of the same joint federal and state investigation. On September 23, 2013, U.S. District Judge Virginia M. Hernandez Covington sentenced Anthony Maurice McSwain (28, Pinellas County) to 5 years and 10 months in federal prison for being a felon in possession of a firearm, in connection with a gun sale to an undercover officer on November 16, 2012.  On November 4, 2013, U.S. District Judge James D. Whittemore sentenced Jarvis Antwan Dorsey (22, Pinellas County) to 5 years and 6 months in federal prison for the same offense, in connection with the sale of a gun to an undercover officer on January 15, 2013.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF"), the Largo Police Department, and the Clearwater Police Department.  The cases arose from a joint federal and state investigation resulting in 28 people being arrested on state and federal violations, and the seizure of 13 firearms, as well as quantities of cocaine, marijuana, hydrocodone and other narcotics.  The federal cases arising from the investigation were prosecuted by Assistant United States Attorney Mark E. Bini.

This investigation is part of ATF’s Frontline strategy to reduce violent crime and improve the quality of life in communities where law enforcement efforts are focused.

Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced James Olivos (47, Lake Mary) to 5 years in federal prison for bank fraud and money laundering.  As part of his sentence, the court also entered a money judgment in the amount of $2,866,121.39, the proceeds of the fraud scheme. Olivos pleaded guilty on September 18, 2013.

According to court documents, between March 2003 and November 2007, Olivos engaged in a scheme wherein he recruited other individuals ("straw purchasers") to purchase expensive homes, which they could not afford. Olivos prepared loan applications for these straw purchasers, which grossly overstated their incomes and gave false employment histories.  Additionally, these applications stated that these homes would be used as primary residences, but Olivos had actually told these buyers that the homes would be investments and that he would find renters to cover the mortgage payments.  Further, in order to increase his profits, Olivos convinced the sellers of the homes to inflate the sales prices by stating additional money would be necessary for home improvement.  Olivos would then split the proceeds of the sales with the sellers.  As a result of this fraud, Olivos caused a total loss to the lenders of approximately $3.2 million dollars. 

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Vincent S. Chiu.

Tampa, Florida – Acting United States Attorney A. Lee Bentley, III announces that Latasha Callens (35, Tampa) yesterday pleaded guilty to bank fraud, access device fraud, mail fraud, and aggravated identity theft.  Callens faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

Callens was indicted on July 24, 2013.

According to the plea agreement, Callens committed crimes from at least as early as July 2011 through May 2013, when she was finally arrested.  She committed many of the crimes while on release from state charges, after having failed to appear to face them. Over a period of two years, and at least 58 times, Callens defrauded banks and individuals.  As part of her scheme Callens would approach people, usually at ATMs, and give them a sad story about her need to cash a check and her inability to deposit the check into her bank account.  Callens would convince her victims to deposit the checks, which were worthless, into their own account and then withdraw funds, sometimes giving them $100 for their trouble. 

Callens’ checks were generally drawn on closed accounts, because the checks had been stolen or were from the accounts of deceased individuals.  When she was arrested for failure to appear warrants in May 2013, some of the items recovered from Callens included a checkbook, stolen from a purse at a local mall, along with the victim’s (“T.M.”) Florida Driver’s License, Social Security card, a Visa card, and a GTE FCU debit card. At no time was Callens given permission, by the victim, to possess or use these items. Callens also used “T.M.’s” name to rent vehicles.

On December 27, 2012 and December 29, 2012, Callens also committed access device fraud (credit card fraud) by using the stolen identity of “T.J.” (including the date of birth and Social Security Number) to obtain dental care at a Clearwater dental office.  Callens was assisted by another woman, who claimed to be “E.A.” (a victim of identity theft from Opa Locka, Florida).  “T.J.” purchased $12,000 worth of dental services under the false pretense that “E.A.” would consent to pay for the treatment.  Using “E.A.'s” stolen credit card number, Callens paid for herself to receive a root canal, a bridge, an extraction, a temporary crown, a retainer, anesthesia, and other items and services.

For tax years 2010, 2011, and 2012, Callens committed mail fraud, defrauding the Internal Revenue Service and certain taxpayers.  Similar to the bank fraud scheme and access device fraud, Callens stole the identities of taxpayers, then using her laptop, Callens filed false and fraudulent tax returns with those stolen identities. As a result Callens obtained tax refunds to which she was not entitled.  The refunds were often accessed through bank-issued debit cards, many of which were mailed to Callens. 

This case was investigated by Tampa Police Department, the Hillsborough County Sheriff’s Office, the Temple Terrace Police Department, the Clearwater Police Department, the Internal Revenue Service – Criminal Investigation, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.