Middle District of Florida

Orlando, FL - U.S. District Judge Roy B. Dalton, Jr., yesterday sentenced Edwin Vidal Torres (31, Deltona) to 21 years and 10 months in federal prison for possession of a firearm by a convicted felon and possession of a firearm during a drug trafficking offense. Based upon his lengthy criminal history, which included offenses involving violence, firearms, and drug trafficking, Torres was designated a career offender. He pleaded guilty to the charges on June 4, 2013.

According to court documents, on April 18, 2013, Torres possessed a firearm during the sale of cocaine. Immediately following the sale, agents arrested Torres with 19 ounces of cocaine, a digital scale, $3,793 in cash, and a revolver. Following his arrest, Torres admitted that he carried the firearm during drug deals involving more than nine ounces of cocaine. He also stated that he carried the firearm to protect his drugs, drug money, as well as himself during his drug transactions.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Volusia Bureau of Investigations. It was prosecuted by Assistant United States Attorney Daniel C. Irick.

Tampa. Florida- U.S. District Judge William J. Castagna yesterday sentenced Eugene E. Davis (39) to life in federal prison for conspiracy to possess with the intent to distribute five kilograms or more of cocaine and conspiracy to possess 280 grams or more of cocaine base. The life sentence was imposed as a result of Davis's prior felony drug convictions. A federal jury found Davis guilty on May 16, 2013.

According to testimony and evidence presented at trial, Davis engaged in a year- long conspiracy with others to distribute hundreds of kilograms of cocaine and crack cocaine in Hillsborough County. Davis, a prolific crack dealer, was known for purchasing multiple kilograms of cocaine and cooking it into crack cocaine. Often described as "flashy and flamboyant," Davis used his drug proceeds to fund an extravagant lifestyle of high-end cars, expensive jewelry, and thousands of dollars in cash. The court also concluded that Davis was a career offender who obstructed justice when he attempted to intimidate witnesses by listing their names in news outlets and on social media, labeling them "snitches."

This case resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) joint investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service - Criminal Investigation, Hillsborough County Sheriff's Office, and Tampa Police Department. It was prosecuted by Assistant United States Attorney Shauna S. Hale. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces the arrest of Eleftherios (Ted) Zachariadis (46, Lake Alfred) for possession of child pornography. If convicted, Zachariadis faces a maximum penalty of 10 years in federal prison and a fine of up to $250,000. Zachariadis was charged by criminal complaint on September 9, 2013.

According to the complaint, an undercover law enforcement officer downloaded multiple child pornography files over the Internet from an IP address connected to Zachariadis's residence. On September 9, 2013, a federal search warrant was executed at the residence. Zachariadis was found to be in possession of more than 900 images and more than 200 videos depicting child pornography.

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

This case was investigated by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Florida Department of Law Enforcement, the Polk County Sheriff's Office, the Internet Crimes Against Children Task Force and the Lake Alfred Police Department. It will be prosecuted by Assistant United States Attorney Jennifer L. Peresie.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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.

Orlando, FL - Acting United States Attorney A. Lee Bentley, III announces that Warren Scott Kennell (45, West Milford, New Jersey) today pleaded guilty to two counts of production of child pornography. Kennell faces a mandatory minimum penalty of 15 years, up to a maximum of 30 years in federal prison.
According to court documents, between December 2008 and August 2011, Kennell produced images of child pornography involving two minor victims. According to the plea agreement, on May 31, 2013, Kennell arrived at Orlando International Airport from Panama City, Panama. After retrieving his luggage, Kennell was escorted to the United States Customs and Border Protection (CBP) secondary inspection area.

After Kennell was seated, a special agent with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) searched Kennell's belongings and found three thumb drives and one external hard drive. During an interview, Kennell said that he had worked in Brazil as a missionary for the New Tribes Mission, in Sanford, Florida, and that he had been doing missionary work for several years. Kennell told the agent that he had never touched a child in a sexual and/or inappropriate manner, that he had never taken pornographic images of a child, and that there would be no child pornography found on any of the items in his luggage.

After Kennell made these statements, Florida Department of Law Enforcement (FDLE) computer forensic agents advised that two images of child pornography had been found on Kennell's external hard drive.

When shown the first image, Kennell acknowledged that he was the man in the picture performing a sex act on the prepubescent female. Kennell said that he believed the girl was about 12 years old at the time the picture was taken. When shown the second image, Kennell admitted that he had taken that picture and that the girl in the second image also had been about 12 years old at the time. Kennell further admitted that both images had been taken in Brazil while he was on the missionary assignment.

A forensic examination of Kennell’s external hard drive showed more than 940 images of child pornography. The child victims are members of an indigenous tribe in the Amazon, where Kennell was setting up a church.

This case was investigated by HSI, with assistance from FDLE. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.

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 John Martin Spaulding (22, Jacksonville) to 38 years in federal prison for two counts of armed robbery and two counts of discharging a firearm during a crime of violence. He pleaded guilty on April 24, 2013.

According to court documents, Spaulding robbed the Walgreens on Normandy Boulevard, in Jacksonville, on June 13, 2012. During the robbery, Spaulding fired a 9mm pistol into the ceiling. No one was injured and Spaulding escaped with approximately $144.

On July 18, 2012, Spaulding and an accomplice attempted to rob the Walgreens on Park Street. Spaulding demanded money and prescription drugs from an employee. The employee told Spaulding that the pharmacy was closed. Spaulding then fired multiple shots into a door as he tried unsuccessfully to break into the pharmacy department. Officers from the Jacksonville Sheriff's Office responded to the scene and arrested Spaulding and his accomplice. No one was injured in the attempted robbery. Officers also recovered a Hi-Point 9mm pistol that Spaulding used in both robberies.

This case was investigated by the Jacksonville Sheriff's Office Robbery Unit and the FBI. It was prosecuted by Assistant United States Attorney Frank Talbot.

Jacksonville, Florida -United States District Judge Marcia Morales Howard today sentenced John Carver Lester (61, Jacksonville) to five years in federal prison for receiving child pornography over the Internet. Lester was also ordered to serve an 8-year term of supervised release, forfeit five computers, and register as a sex offender. He pleaded guilty on April 25, 2013, and has been in the custody of the United States Marshals Service since his arrest on December 20, 2012.

According to court documents, an agent with the Federal Bureau of Investigation, in Jacksonville, began an investigation to identify individuals that had access to and/or were trading images and videos depicting child pornography over the Internet. The agent determined that a computer in the Jacksonville area was hosting images of child pornography using a file sharing program. The agent made a connection to this computer and downloaded several video files. Each of the videos depicted young children engaged in sexually explicit conduct. Further investigation revealed that the IP address resolved back to Lester’s Jacksonville residence.

According to court documents, on December 10, 2012, FBI agents and other law enforcement officers executed a federal search warrant at Lester’s residence and seized, among other things, five computers and several hundred compact disks.

During an interview with law enforcement, Lester stated that he had been downloading child pornography for approximately five years and had developed a curiosity for it. Lester also stated that he was worried about possibly wanting to touch a child. A subsequent forensic analysis of the computers used by Lester revealed that they contained a total of 261 videos and 844 images depicting child pornography.

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

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, FL - Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge Mary S. Scriven today sentenced Michelle M. Lutz (Clearwater, 36) to two years in federal prison for aggravated identity theft. On August 20, 2013, Senior U.S. District Judge Susan C. Bucklew sentenced her husband, Paul M. Lutz (Clearwater, 44), to two years and eight months in federal prison for misuse of a passport and aggravated identity theft.

According to court documents, Paul and Michelle Lutz were arrested in San Bernadino, California, for drug and weapon violations in October 2001. Shortly after their arrests, they fled California and assumed new identities. The Lutzs lived in Nevada for several years before moving to Clearwater, Florida, in 2008. While living in Clearwater, the couple had a son. Michelle Lutz worked as an exotic dancer, while Paul M. Lutz attended school, cared for the minor son, and coached a Clearwater Little League team.

In May 2012, Michelle M. Lutz, using an assumed identity, applied for a United States Passport in Clearwater. During the processing of her application, fraud detection managers determined that the information provided in the application was false. A follow up investigation revealed that Michelle and Paul Lutz had active warrants out of the State of California and were hiding out in Clearwater.

On March 6, 2013, a federal search warrant was executed at the Lutzs' Clearwater residence. Law enforcement seized blank birth certificates from more than seven different states, blank baptismal records, blank education school diplomas, a blank marriage license, social security cards and numbers in approximately fifteen different identities, stamps and seals for official documents, counterfeit currency, and an instruction book on how to establish a new identity.

This case was investigated by the Department of State Diplomatic Security Service. It was prosecuted by Assistant United States Attorney Stacie B. Harris.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces the charging by Complaint of Jose Duarte, a.k.a "Margarito Garcia-Camacho" (45), a Mexican national residing in Highlands County; Ivan (a.k.a: "Costancio") Cabrerra-Pineda (41), a Mexican national residing in Charlotte County, and Brittnay Farabee (23), of Charlotte County, with conspiracy to possess with intent to distribute and to distribute methamphetamine. If convicted on all counts, each face a maximum penalty of life in federal prison.

According to the Complaint, on August 19, 2013, Duarte was approached by law enforcement at his residence in Lake Placid, Florida and admitted to being illegally in the United States after having been deported. He also admitted that he had been involved in the purchasing and selling of methamphetamine. Later, on that same date, investigators observed the delivery of approximately 5.4 pounds of methamphetamine from Cabrera-Pineda and Farabee to Duarte. The individuals were then taken into custody. A subsequent search was conducted at Farabee's residence, in Punta Gorda, where an additional seven pounds of methamphetamine was seized by law enforcement.

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

This case was investigated by the Drug Enforcement Administration, the United States Border Patrol, the Hardee County Sheriff's Office, the Desoto County Sheriff's Office, and the Charlotte County Sheriff's Office. It will be prosecuted by Assistant United States Attorney Kathy J.M. Peluso.

Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that John G. Wilkins (63, Chuluota, Florida) today pleaded guilty to conspiracy to commit mail fraud and wire fraud. Wilkins is facing up to 20 years in federal prison. Wilkins has also agreed to forfeit more than $4 million that is being held in various bank and trading accounts. These monies will be returned to the victims of the fraud, as partial payment towards the expected restitution in the case of over $16 million. Sentencing has been set for November 21, 2013.

According to court documents, Altamont Global Partners, L.L.C. owned or managed a series of investment funds. Altamont Global began operating business in 2009. Wilkins joined the company in 2009 and later became one of its managing members.

The Matterhorn Fund, LLC was the first fund for which investors were solicited by Altamont Global. To induce individuals to invest, Wilkins and others falsely represented that the Matterhorn Fund had a long history of making profits and that the individual who would be handling the trading was a graduate of Stanford University, worked for Salomon Brothers as an institutional investment advisor, and had successfully traded worldwide investment vehicles for more than three decades.

In the first quarter of 2010, the Matterhorn Fund experienced significant trading losses. Rather than accurately reporting those losses on the quarterly statements, Wilkins falsified the quarterly statements to falsely claim that the Matterhorn Fund was earning an above-market rate of return.

The false rates of returns that were claimed for the Matterhorn Fund were then used to induce individuals to invest in the McKinley Fund. The McKinley Fund also lost money and Wilkins, again, falsified the quarterly statements for that fund. Wilkins and others then used their alleged performance with the Matterhorn Fund and the McKinley Fund to solicit investments in two other funds: Midas Management Partners LLC and Binary Strategy One Fund, LLC. In total, more than 200 individuals invested more than $16 million in the four funds owned or managed by Altamont Global.

In June 2012, the National Futures Association (NFA) conducted a surprise examination of Altamont Global. During that examination, the NFA discovered that the quarterly statements were being falsified to hide losses and that the net asset values of the Matterhorn Fund and the McKinley Fund were being inflated to make it appear that trading had been successful.

On July 16, 2012, the U.S. Commodity Futures Trading Commission filed a complaint against Wilkins and others. The District Court entered an emergency order that same day, freezing the assets of the defendants in that civil case.

This case was investigated by the United States Secret Service and the State of Florida, Office of Financial Regulation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.

Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announces the return by a grand jury of a superseding indictment charging Antoun Arbaji and Abas Issa with one count of conspiracy, six counts of theft of government property and six counts of aggravated identity theft. If convicted, each faces a maximum penalty of five years in federal prison for the conspiracy charge, up to 10 years for each theft of government property charge, and 2 consecutive years for each aggravated identity theft charge. Arbaji faces an additional charge of making a false statement to the Department of the Treasury for which he could receive an additional five years in federal prison.

According to the indictment, Issa obtained tax refund checks that were the result of fraudulently filed tax returns that had been prepared by others, using stolen personal identification information. Many of the returns were prepared using the identities of deceased individuals. Arbaji operated a convenience store ("Fina Express") in Green Cove Springs. Issa provided the fraudulent refund checks to Arbaji, who cashed them using his business, in exchange for a fee. Arbaji then provided the proceeds to Issa. In 2011, Fina Express allegedly cashed 212 fraudulent treasury checks totaling more than $1.5 million.

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, the United States Secret Service, and the Florida Department of Law Enforcement. It will be prosecuted by Assistant United States Attorney Mac D. Heavener, III.

Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that U.S. District Judge Susan C. Bucklew earlier this week sentenced Connie Lee (50, Brooksville) to two years in federal prison for theft of government funds and aggravated identity theft.  As part of her sentence, the court also entered a money judgment in the amount of $21,402 against Lee. Lee pleaded guilty on April 30, 2013. 

According to court documents, a fraudulent federal income tax return was filed in the name of Lee's son.  Lee received the corresponding fraudulent tax refund check at her residence.  After bribing her grandson to steal her son's personal identification documents, Lee took her nephew to a local bank, where she presented her son's stolen identification to bank personnel and duped her nephew into impersonating her son in order to open a bank account.  Lee then deposited the fraudulent tax refund check into the bank account and withdrew all of the funds for her own use.  Lee also assisted another individual in cashing a fraudulent tax refund check at the same bank and was paid for her assistance in that scheme.

This case was investigated by the Internal Revenue Service - Criminal Investigation, the Brooksville Police Department, and the Hernando County Sheriff's Office.  It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

Orlando, Florida - U.S. District Judge Charlene Honeywell yesterday sentenced James R. Wiese (49, Apopka) to 9 years and 7 months in federal prison for distribution and possession of child pornography. The court also ordered Wiese to serve a 10-year term of supervised release after he completes his prison sentence, and to register as a sex offender. Wiese pleaded guilty on May 29, 2013.

According to court documents, Wiese traded child pornography with others via email. As part of an undercover investigation, HSI special agents executed a search warrant at Wiese's residence on February 25, 2013, and seized all of Wiese’s computer equipment. When confronted by law enforcement officers, Wiese admitted to having collected child pornography images and videos, and storing them on his computer for at least two years. A forensic examination of Wiese’s computer equipment found more than 3,800 images and 1,150 videos depicting child pornography involving prepubescent children.

“Child pornography, when it is released onto the Internet, lives on forever. It haunts the children depicted in it, who live daily with the knowledge that countless strangers use an image of their worst experiences for their own gratification,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa, which oversees the agency’s Orlando office that conducted this investigation. “It is our duty as special agents to find and arrest these child predators and ensure they 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) Orlando. It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.

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 - Acting United States Attorney A. Lee Bentley, III announces that yesterday a federal jury found Antonius Russel Ford (28, Odessa) guilty of conspiracy to possess with intent to distribute cocaine. Ford faces a maximum penalty of 30 years in federal prison. His sentencing hearing will be scheduled at a later date. Ford was indicted on May 13, 2013.

According to testimony and evidence presented at trial, Ford bought hundreds of grams of cocaine and crack cocaine from a supplier in Town 'n' Country, a community in Tampa. Ford then resold the drugs in Spring Hill and elsewhere. During the investigation, numerous telephone conversations between Ford and the supplier were intercepted by law enforcement. On April 12, 2013, agents executed federal search warrants at two businesses in Town 'n' Country and recovered approximately 255 grams of cocaine, as well as several thousand dollars in cash.

This case was investigated by the Federal Bureau of Investigation, the Hillsborough County Sheriff's Office, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.

Orlando, Florida - Senior District Judge John Antoon, II today sentenced Shawn Alan Marshall (50, Brevard County) to life in federal prison for sexually abusing a minor female victim by threatening her and placing her in fear. Marshall pleaded guilty on May 8, 2013.

According to his plea agreement, from March 16, 2011, through November 30, 2012, on Patrick Air Force Base, Marshall sexually abused and raped the victim on numerous occasions. During some of the abuse, Marshall physically restrained the victim by locking her in a bathroom with him, pinning her arms behind her back, and wrapping a cord around her throat. Marshall was physically and verbally abusive in the presence of the victim and used coercion to prevent the victim from disclosing the abuse. In February 2013, the victim disclosed the sexual abuse. Shortly thereafter, Marshall was arrested by the Federal Bureau of Investigation.

This case was investigated by the Federal Bureau of Investigation and the United States Air Force, Office of Special Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.

Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Senior U.S. District Judge G. Kendall Sharp sentenced Obnes Latigue (51, Orlando) yesterday to 13 months in federal prison for aiding in the preparation of false tax returns. As part of his sentence, Latigue was also ordered to pay $1,129,418 to the Internal Revenue Service in restitution and to serve one year of supervised release. Latigue pleaded guilty on May 23, 2013.

According to his plea agreement, Latigue was the owner of a tax return business called Tax Winners Enterprises, Inc. For tax years 2006, 2007, and 2008, Latigue prepared returns for individuals in which he falsified the amounts of deductions and tax credits owed to taxpayers, which resulted in those taxpayers receiving undeserved tax refunds. In particular, Latigue fraudulently claimed education credits for clients who never attended college. He also inflated itemized deductions. In response to the false returns that Latigue prepared, the Internal Revenue Service issued more than $1.1 million in undeserved refunds, which is the amount that Latigue was ordered to pay in restitution.

This case was investigated by the Internal Revenue Service Criminal Investigation Division. It was prosecuted by Assistant United States Attorney Roger B. Handberg.

Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Senior District Judge G. Kendall Sharp sentenced Richard Middleton (36, New York) today to five years and ten months in federal prison for possession of device -making equipment and possession of a false identification implement. Middleton pleaded guilty on May 29, 2013.

According to documents, on August 20, 2011, deputies from the Osceola County Sheriff’s Office executed a search warrant on a room that Middleton occupied at a timeshare resort in Kissimmee. Inside the room deputies recovered equipment used to manufacture counterfeit credit cards and false identification documents, including a credit card embosser, a foil press “tipping” machine, card making devices, MasterCard hologram stickers, blank plastic cards and holograms typically used in genuine state issued identification cards and driver licenses, more than 1,000 blank American Express and Visa credit cards, and a laptop computer. A forensic review of the laptop revealed evidence indicating its use in the charged crimes.

This case was investigated by the United States Secret Service. The Osceola County Sheriff’s Office assisted in the investigation. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

Jacksonville, FL - Acting United States Attorney A. Lee Bentley, III announced that Dwaine Charles Idleman (66, Jacksonville) pleaded guilty yesterday to receiving images and videos depicting child pornography over the Internet. He faces not less than 5 years, up to 20 years in federal prison, and a potential life term of supervised release. A sentencing date has not yet been set. Idleman was named in a criminal information charging him with the offense on August 5, 2013.

According to court documents, a special agent with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) began an undercover operation to identify persons using the Internet to receive and share child pornography. The agent identified a particular host computer using a particular internet protocol (IP) address that was sharing images of child pornography on a file sharing network. Further investigation revealed that the subscriber was Dwaine C. Idleman in Jacksonville.

On June 28, 2012, HSI special agents and other law enforcement officers executed a federal search warrant at the Idleman residence in Jacksonville. Idleman was present, and agreed to speak with the agents. Idleman stated, among other things, that he had come across pornography sites with people that were “too young” but that he “got out of it.” Idleman stated that he had a particular file sharing program, but does not keep it installed on his computer. When told that the agents knew that he was downloading child pornography files into his residence and that he was sharing it back out of the residence, Idleman stated, “I’m not sharing it; I didn’t think I was, and I didn’t know that I was keeping it, I know I got a problem and if this escalates into an arrest, my life is over.”

While at Idleman's residence, the agents seized his laptop computer. Subsequent forensic analysis revealed that it contained at least four images and one video depicting child pornography. The analysis also showed Idleman downloaded child pornography on the morning of June 28, 2012, just before the arrival of law enforcement.

The case was investigated by HSI, and the Jacksonville Sheriff's Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.

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, 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 - Acting United States Attorney A. Lee Bentley, III announces that Tyler Andrew Smith (23, Port Orange) pleaded guilty this week to one count of distribution of child pornography and one count of possession of child pornography. Smith faces a maximum penalty of not less than 5 years, up to 20 years in federal prison for the distribution count, and a maximum penalty of 20 years in federal prison for the possession count. A sentencing hearing has been set for November 4, 2013. Smith was indicted on June 5, 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, law enforcement discovered Smith's email with the attached child pornography image during an investigation into the individual in the other state. On March 16, 2013, federal agents went to Smith's residence in Volusia County and interviewed him. Smith turned over to agents a cellular telephone with a memory card, a netbook computer, and an SD memory card, all three of which contained child pornography. Smith admitted, among other things, that he sent the email with the attached child pornography image, that he used 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.

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 is being 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.

Fort Myers, Florida - Acting United States Attorney A. Lee Bentley, III announces the arrest of Burson J. Augustin (29, Fort Myers) for distribution of cocaine. If convicted, Augustin faces a maximum penalty of 20 years in federal prison and a fine of up to $1million. Augustin was charged by criminal complaint on August 15, 2013.

According to the complaint, on August 7, 2013, Augustin sold approximately 29 grams of cocaine to a confidential informant working with the Lee County Sheriff’s Office for $1,200. The complaint also states that Augustin was previously arrested as a member of the Liberty City Seven, in 2006, for conspiracy and providing material support to terrorism related to a plot to blow up the Sears Tower in Chicago. For that offense, he was convicted and sentenced to six years in federal prison, followed by ten years of supervised release. At the time of this offense, Augustin was on supervised release. He was released from prison on September 21, 2012. A criminal complaint is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Lee County Sheriff's Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.

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Fort Myers, Florida - United States District Judge John E. Steele sentenced Dr. Stephen M. Lovell (55, Windermere) to five years in federal prison for conspiracy to commit health care fraud. As part of his sentence, the court also entered a money judgment in the amount of $1.695 million, the proceeds of the offense. A jury found Lovell guilty on February 28, 2013, following a two-week trial.

According to testimony presented at trial, Xtreme Care Rehabilitation Center Inc. (“Xtreme Care”) was operating in Cape Coral, Florida as an unlicensed health care clinic since 2009. The State of Florida licensing requirements were circumvented by the conspirators as a result of the purported exclusive ownership of these clinics by licensed health care practitioners, including licensed chiropractor Dr. Stephen M. Lovell. As a result of the purported ownership of the clinics by a licensed health care practitioner, these clinics avoided greater regulatory scrutiny. In actuality, other conspirators including Francisco Huici Fernandez and Ernesto Diaz were the true owners of the clinics.

In furtherance of the health care fraud, the conspirators caused individuals to be recruited to be involved in staged accidents and received injuries. These individuals would then go to Xtreme Care in exchange for payment. Xtreme Care then billed insurance companies by submitting false claims through the mail for alleged medically necessary treatments that these patients received. Treatment was either never provided to these patients or was not medically necessary. Upon payment by the insurance company, the proceeds of the fraudulent activity were then transferred to corporations created by the conspirators to launder the proceeds of the criminal activity. Ultimately, Lovell and his co-conspirators received the benefits of the fraudulent activity through payments or expenditures for themselves from the corporate bank accounts.
Francisco Huici Fernandez and Ernesto Diaz previously pleaded guilty for their roles in the case. On March 13, 2013, Fernandez was sentenced to five years and ten months in federal prison. On July 15, 2013, Diaz was sentenced to eight years in federal prison.

This case was investigated by the Cape Coral Police Department, the Internal Revenue Service Criminal Investigation, the United States Secret Service, Hialeah Police Department, City of Miami Police, Florida Department of Financial Services, along with the assistance of the National Insurance Crime Bureau and the Federal Reserve Board - Office of the Inspector General. It was prosecuted by Assistant United States Attorney Jesus M. Casas.

Tampa, Florida - U.S. District Judge James E. Whittemore sentenced James Earl Smiley (41, Tampa) yesterday to 5 years and one month in federal prison for committing stolen identity refund fraud. As part of his sentence, the court also entered a forfeiture money judgment in the amount of $98,719.65, representing the proceeds of the offense.

Smiley pleaded guilty on March 6, 2013, to one count of theft of government property and one count of aggravated identity theft.

According to the plea agreement and court documents, in October 2012, Smiley was stopped by the Tampa Police Department. He had several Turbo Tax Visa debit cards and receipts in his possession. The debit cards were not in Smiley's name, or in the name of his passenger. Further investigation revealed that the debit cards were funded with fraudulent tax return proceeds. On numerous occasions, Smiley was captured on video surveillance using the fraudulent debit cards. He admitted that the cards contained proceeds from fraudulently filed tax returns. None of the victims, including deceased individuals and others whose names appeared on the debit cards, had given Smiley or his passenger the authority to use their identities.

This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Secret Service, the Tampa Police Department, the Hillsborough County Sheriff's Office, and the Collier County Sheriff's Office. It was prosecuted by Assistant United States Attorney Kelley C. Howard-Allen.

Orlando, FL - U.S. District Judge Charlene Honeywell today sentenced Gurudeo "Buddy" Persaud (47, Orlando) to three years in federal prison for mail fraud. As part of his sentence, the court also ordered Persaud to pay $948,340.00 in restitution to the victims of his scheme.

According to the plea agreement, Persaud, a licensed securities broker, formed White Elephant Trading Company LLC in 2007. White Elephant was a private equity fund that purportedly invested in securities on the national markets. Persaud solicited investors by telling them that he would generate profits using his trading skills and that he would make all trading decisions. Persaud guaranteed investors rates of return of between 6% and 18% that were payable in a short period of time. However, Persaud used a trading strategy that was based on lunar cycles and the gravitational pull between the moon and the Earth. Furthermore, Persaud did not invest all of the money that he received from investors, but instead used money from later investors to pay earlier investors and used significant portions of the money for his own personal use. Persaud defrauded investors out of more than $1million.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney David Haas.

TAMPA, FLORIDA - Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Do Nguyen (39, Bradenton) guilty of conspiracy to possess with intent to distribute 100 or more marijuana plants. Nguyen faces a maximum penalty of 40 years in federal prison. His sentencing hearing will be scheduled at a later date. Nguyen was indicted on November 6, 2012.

According to testimony and evidence presented at trial, Nguyen managed five separate marijuana grow houses throughout Manatee County from mid-2010 through October 2011. The houses were located in Bradenton, Parrish, and Duette. Nguyen recruited and employed three workers at the houses. Between March and October 2011, law enforcement executed a series of searches at the homes and recovered approximately 3,387 marijuana plants, worth approximately $5 million, along with extensive growing equipment and paraphernalia. During the time period of the conspiracy, Nguyen also paid a relative (Minh Tran), who worked as a driver for UPS, to deliver packages to him containing multiple pounds of marijuana from California. Tran pleaded guilty to conspiracy to distribute 100 kilograms or more of marijuana in May 2013. His sentencing is scheduled for September 23, 2013.

This case was investigated by the Manatee County Sheriff's Office, Bradenton Police Department, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.

Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced John D. Stanton, III (64, Tampa) to 10 years in federal prison for attempting to interfere with the Internal Revenue laws and failing to file income tax returns. The court also ordered Stanton to pay restitution to the Internal Revenue Service in the amount of $37,816,875.00. Stanton was found guilty on December 17, 2012 by a federal jury.

According to evidence presented at trial, Stanton was the former president of Florida Engineered Construction Products Corporation ("FECP"), more commonly known as Cast Crete Corporation. FECP/Cast Crete manufactured and sold concrete construction products. As president of the company, Stanton interfered with the administration of the tax laws by impeding an Internal Revenue Service ("IRS") audit of the company, creating and backdating two fraudulent demand promissory notes totaling $500,000,000, causing false Forms 1099 to be filed with the IRS, failing to file corporate tax returns on behalf of the company, and other acts of obstruction and concealment. During approximately 2004 through 2008, the company made well over $100 million and failed to file a single corporate income tax return.

Additional trial evidence showed that Stanton failed to file corporate tax returns on behalf of Denouement Strategies, Inc., for 2006 and 2007. Stanton controlled Denouement Strategies and transferred over $43 million worth of FECP/Cast Crete profits into the Denouement Strategies bank accounts in 2005, 2006, and 2007. Stanton also failed to file personal income tax returns for 2005 and 2007.

“Today the Internal Revenue Service continued its core mission to protect the integrity of the tax system as John D. Stanton III’s was sentenced to 10 years in prison following a trial and guilty verdict earlier this year,” stated James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation. “Stanton used his education and skills as a MBA and CPA to purposefully impede the Internal Revenue Service, depriving the U.S. government and its citizens of in excess of $60 million in tax revenue and now he, and those close to him, are paying a high price for this breach of trust. Violations of Internal Revenue laws are not victimless crimes and this sentence should serve as a reminder to all Americans of the consequences of purposefully flouting their civic responsibilities and the Internal Revenue laws.”

This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Robert Monk and Matthew Mueller.

Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Alexis Antoine Davis, a/k/a "Big Mike," (32, Polk County) guilty of three counts of being a felon in possession of firearms. Davis faces a maximum penalty of life in federal prison. His sentencing hearing will be scheduled at a later date. Davis was indicted on January 8, 2013.

According to evidence presented at trial, on August 30, 2012, September 4, 2012, and September 5, 2012, Davis possessed and sold five firearms to undercover agents, as part of an ongoing undercover operation in Polk County. At the time the transactions took place, Davis was a convicted felon. As a convicted felon, Davis is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It is being prosecuted by Assistant United States Attorneys Joseph W. Swanson, Stacie B. Harris, and Adam M. Saltzman.

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.

Tampa, FL - U.S. District Judge Virginia Hernandez-Covington yesterday sentenced Daniel Arroyo (39, Tampa) to 15 years, eight months in federal prison for being a felon in possession of a firearm. The court also ordered Arroyo to forfeit the stolen firearm, which was used to facilitate the offense. Arroyo pleaded guilty on February 21, 2013.

According to court documents, Arroyo, also known as "King Tweet," worked with a prostitute to steal from her "johns." On August 8, 2011, Arroyo stole a Springfield Model XD-9 semiautomatic handgun from a "john," but the gun owner unexpectedly called law enforcement to report the theft. Law enforcement eventually recovered the gun at an abandoned house, where Arroyo and the prostitute had hidden it, to be retrieved later.

Arroyo is a convicted felon. His prior felony convictions include attempted murder in the first degree, aggravated battery (deadly weapon), carrying a concealed firearm, robbery, discharge of a firearm from a vehicle (occupied), and battery on a law enforcement officer. He is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Hillsborough County Sheriff's Office, and Tampa Police Department. It was prosecuted by Assistant United States Attorney Thomas N. Palermo.

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.

Orlando, Florida - Acting United States Attorney A. Lee Bentley, III announces that Jeffrey Alan Barnett (46, Orlando) today pleaded guilty to three counts of distribution of child pornography and one count of possession of child pornography. Barnett faces a mandatory minimum of not less than 5 years, up to 20 years in federal prison for each distribution count, and a maximum penalty of up to 10 years in federal prison for the possession count. Sentencing has been set for December 19, 2013. Barnett was indicted on April 17, 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 search warrant, investigators found a computer located in Barnett’s bedroom that contained child pornography. Barnett was interviewed and admitted, among other things, that the computer belonged to him and that he had been using a peer-to-peer file sharing program to download and trade child pornography. He was arrested on the same date.

This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff's Office. It is being 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 - Acting United States Attorney A. Lee Bentley, III announces that Robert Gordon Shaw (37, Deleon Springs) pleaded guilty yesterday to one count of armed bank robbery. Shaw faces a maximum penalty of 25 years in federal prison.

According to the plea agreement, on April 19, 2013, Shaw and a separately charged individual named Matthew Anthony Cosimini robbed a Regions Bank in Sanford. They displayed a fake explosive detonation device and passed a note to a bank teller demanding money and indicated that an explosive had been placed inside the bank. During the robbery, Shaw and Cosimini also possessed a semiautomatic pistol with ammunition. After Shaw passed the demand note and displayed the detonation device, the bank teller handed Shaw approximately $14,098 in bank money. After the robbery, Shaw and Cosimini fled in a stolen vehicle and responding officers from the Sanford Police Department pursued them. During the pursuit, Shaw caused damage to both a police vehicle and a civilian's vehicle. Police officers eventually stopped and arrested Shaw and Cosimini one mile from the bank. The officers also recovered the firearm and detonation device from the stolen vehicle. Further investigation revealed that the detonation device was a fake and that there were no explosives inside the bank.

This case was investigated by the Federal Bureau of Investigation with assistance from the Sanford Police Department and the Seminole County Sheriff's Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Marcus Dontell Lloyd (35, Port Charlotte) pleaded guilty today to one count of conspiracy to commit bank robbery, and one count of bank robbery. Lloyd faces a maximum penalty of five years in federal prison for the conspiracy count, and up to 20 years in federal prison for the bank robbery offense.

According to the plea agreement, Lloyd, aided and abetted by a separately charged woman named Kaylee Sanchez, committed a series of bank robberies in the Middle District of Florida between July 26, 2012, and August 21 of 2012. While robbing the banks, Lloyd used helmets, hats, sunglasses, and on at least one occasion, a wig, to disguise his appearance. Lloyd did not display or indicate that he had a weapon while committing the robberies, but would jump or climb over the teller counter and literally grab cash from the teller drawers. Sanchez acted as his getaway driver.

Lloyd's bank robberies included a TD Bank in Apollo Beach on July 27; a Bank of America (BOA) in Lakeland on July 27; a BB&T Bank in New Port Richey on July 31; a BOA in Ormond Beach on August 2; and a BOA in Belleview on August 13, 2012. On August 21, 2012, Lloyd and Sanchez were arrested following a car and foot chase, after Lloyd had robbed a Bank of America bank in Boynton Beach. Lloyd dropped a bag with most of the bank money while running away from police officers. In total, Lloyd’s robberies totaled more than $91,000.

The case was investigated by the Federal Bureau of Investigation, the Hillsborough County Sheriff’s Office, and the Pasco County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Mark E. Bini.

Tampa, FL - U.S. District Judge Richard A. Lazzara today sentenced Steven Scott Schriebman (24, Palm Harbor) to 6 years in federal prison for the unlawful possession and transfer of machineguns and destructive devices. Schriebman pleaded guilty on January 4, 2013.

According to court documents, from May through November 2012, Schriebman unlawfully sold a number of high-powered assault rifles, including AK-47s, AR-15s, and an Uzi, to an undercover agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives. Schriebman was selling the firearms from his residence in Palm Harbor. In addition to the machineguns, Schriebman sold the undercover agent several explosive devices that Schriebman believed the agent needed to blow up a vehicle. Schriebman also offered to obtain silencers, military weapons, and bullet proof vests for the undercover agent.

During the execution of a federal search warrant at Schriebman's residence, agents recovered a number of additional assault rifles, machineguns, shotguns, handguns, pen guns, magazines, ammunition, assorted firearm parts, flares, firearm conversion kits, and other firearm paraphernalia.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

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.

Orlando, Florida - U.S. District Judge John Antoon, II sentenced Christopher Castillo (28, Melbourne) today to 15 months in federal prison for threatening to kill the President of the United States. Castillo was convicted by a federal jury on February 5, 2013.

According to testimony and evidence presented at trial, Castillo posted the following threat on Facebook, "that's the last straw, if he gets re-elected I'm going to hunt him down and kill him watch the life disappear from his eyes." Later, after someone informed him that threatening the President was a federal offense, Castillo "doubled-down" as the witness described, by posting, "I wouldn't call it a threat but more of a promise, let them come after me...Be more than happy to take a few of them with me."

A witness reported the threat to the United States Secret Service and law enforcement officers subsequently interviewed Castillo at his home. During the interview, Castillo admitted making the statements. He also stated that he meant it because of his "severe anger" toward the President because of the President's views on healthcare. When asked what he would do if the President were standing in front of him, Castillo made an explicit statement about slapping and beating the President. Castillo also told agents that he would call the President a terrorist. During the trial, Castillo testified that he was just angry and did not really mean that he would kill the President.

This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney Shawn P. Napier.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Robert Benefield (44, Sarasota) pleaded guilty today to a one count information charging him with conspiring with others to distribute Oxycodone. Benefield faces a maximum penalty of thirty years in federal prison because of his prior felony drug convictions.

According to the plea agreement, in 2012, Benefield recruited drug users to unlawfully obtain Oxycodone and other prescription pain medications. Benefield coordinated with doctors in the Miami area, and drove his co-conspirators from Sarasota to these doctors' offices in Miami. The doctors sometimes met with persons recruited by Benefield, and gave them prescriptions for Oxycodone and other pain medications. Upon their return to Sarasota, the co-conspirators filled the prescriptions and turned the drugs over to Benefield for further illegal distribution, in exchange for money and drugs. Benefield also obtained prescriptions from doctors without having the prescribed patients actually present at the doctors' offices.

This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Sarasota Police Department as part of Organized Crime Drug Enforcement Task Force (OCDETF) Operation SRQ Cartel II, an ongoing investigation into the most serious drug traffickers in and around Sarasota. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation's illegal drug supply. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.

Orlando, FL - U.S. District Judge John Antoon, II sentenced Kameron E. McCall (30, Orlando) today to 8 years and 4 months in federal prison for being a convicted felon in possession of a firearm. A federal jury found McCall guilty on May 7, 2013.

According to testimony and evidence presented at trial, Orlando Police Department officers detained and searched McCall's vehicle while investigating an alleged carjacking in North Orlando. During that search, officers located a loaded firearm in the glove compartment. McCall admitted to the officers that he was a convicted felon and that he possessed the firearm because "he was a rapper and people hated him." Further investigation revealed that McCall has at least five previous felony convictions, including possessing a firearm as a convicted felon, carjacking, and various drug offenses. 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 was prosecuted by Assistant United States Attorney Shawn P. Napier.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney 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.

Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces that Paul Thorpe (43, Brooksville) today pleaded guilty to transportation of child pornography. Thorpe faces a mandatory minimum penalty of 5 years and a maximum penalty of 20 years in federal prison. A sentencing date has been set for October 24, 2013.

According to the plea agreement, an undercover agent downloaded 33 images and a video from an IP address connected to Thorpe. On January 31, 2013, law enforcement seized Thorpe's computer pursuant to a federal search warrant. An examination of the computer revealed that it contained 155 images of child pornography. Thorpe confessed to possessing, receiving, and transporting child pornography.

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

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 - Acting United States Attorney A. Lee Bentley, III announces that a federal jury today found Lander Carlton McLoyd (39, Melbourne) guilty of possession with intent to distribute cocaine base and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. McLoyd faces a mandatory minimum sentence of 15 years, up to a maximum penalty of life in federal prison. His sentencing hearing is scheduled for October 2013. McLoyd was indicted on January 30, 2013.

According to evidence presented at trial, a confidential source working at the direction of law enforcement purchased cocaine base from McLoyd's residence in Melbourne, on two separate occasions. A search warrant was executed at the residence on October 12, 2012. During the execution of that search warrant, investigators found, among other things, cocaine base, marijuana, and three loaded firearms. McLoyd has a prior federal felony conviction for conspiracy and possession with intent to distribute cocaine base, as well as prior state felony convictions for vehicular homicide, cocaine possession, and uttering a forged instrument. Due to his prior federal conviction, he is facing enhanced penalties at sentencing.

This case was investigated by the Melbourne Police Department, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.

Fort Myers, Florida - U.S. Magistrate Judge Douglas N. Frazier sentenced Juergen H. Kreuzer (52, Cape Coral) yesterday to a fine of $4,000 for operating a vessel at 55 miles per hour in a posted and marked 25 mile per hour manatee protection zone. Kreuzer was operating his vessel on the Caloosahatchee River, near Shell Point. He pleaded guilty on July 16, 2013.

According to court documents, Kreuzer had seven prior convictions for manatee zone speeding violations. Kreuzer operates All Around Boats - a business in Cape Coral that is engaged in boat rentals, and fishing and boat tours.

This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.

Tampa, Florida - U.S. District Judge William J. Castagna sentenced Kwamane Coleman (23, Largo) yesterday to 15 years in federal prison for being a felon in possession of a firearm. Coleman pleaded guilty on February 27, 2013.

According to court documents, Coleman was arrested for trespassing in Largo, and was found to be in possession of a firearm and crack cocaine. As a previously convicted felon, Coleman is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pinellas County Sheriff's Office. It was be prosecuted by Assistant United States Attorney Jennifer L. Peresie.

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.

Tampa, FL - U.S. District Judge Steven D. Merryday has sentenced three Lakeland residents to federal prison terms for various firearm and drug violations. Phillip Thomas (28) was sentenced today to three years in federal prison for transferring an unregistered short barreled shotgun and aiding and abetting a felon in possession of a firearm. On July 24, 2013, Michael Joseph Harper (25) was sentenced to eight years’ imprisonment for transferring an unregistered short barreled shotgun and for being a felon in possession of a firearm. On July 17, 2013, Merryday sentenced Joshua Paul Blevins (20) to 5 years’ probation for aiding and abetting a felon in possession of a firearm. Thomas, Harper and Blevins pleaded guilty to the offenses in May 2013.

According to court documents, Harper, along with Thomas and Blevins, sold multiple firearms and drugs to undercover law enforcement agents. Harper, a convicted felon, either sold or was involved in selling forty-five firearms, Hydrocodone, Xanax, and Oxycodone pills, marijuana, and cocaine. Thomas sold six firearms, including a short barreled shotgun, cocaine, Xanax, and Hydrocodone pills. Blevins assisted Harper in selling two high-powered rifles.

Thomas, Harper and Blevins were arrested during Operation “Smoke-N-Guns.” “Smoke-N-Guns” was a joint law enforcement effort that targeted convicted felons, drug dealers and gang members who were illegally possessing or selling firearms in the Lakeland area.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It was prosecuted by Assistant United States Attorney Stacie B. Harris.

This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. Acting United States Attorney 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.

Tampa, FL - U.S. District Judge James D. Whittemore today sentenced Ronald William Brown (58, Largo) to 20 years in federal prison for receipt and possession of child pornography. In addition, he was sentenced to a lifetime of supervision, following his release from prison. The court also ordered Brown to forfeit his computer equipment and phone which were used to commit the offenses. On March 25, 2013, Brown pleaded guilty to five counts of receiving child pornography and three counts of possessing child pornography.

According to court documents, approximately on May 23, 2012, Michael Arnett was arrested by Homeland Security Investigations special agents in Roeland Park, Kansas for the production of child pornography. This investigation revealed that Arnett, had images including bondage-type photographs, involving four child victims. Previously, on May 15, 2012, a search warrant had been executed at Arnett's residence and computers were seized. A forensic examination of Arnett's computers revealed that he had been communicating and exchanging child pornography materials with other individuals using online chat programs, as well as engaging in extremely graphic discussions regarding the kidnaping, sexually abuse, murder, and eating of children. One of the individuals with whom Arnett discussed these acts was Ronald William Brown.

On July 19, 2012, law enforcement agents conducted a search of Brown's residence in Largo, Florida. During the search, agents seized multiple pieces of electronic media, including, but not limited to, a computer, various CD/DVDS, micro disks, cameras and a thumb drive. A forensic review of Brown's electronic media showed that he possessed hundreds of images of child pornography and child erotica, including various images showing children being bound and tortured. Additionally, Brown had hundreds of images of deceased children. In chats with various individuals, Brown discussed abducting, torturing, and murdering children.

“Brown, a church puppeteer, lived a double life,” said Shane Folden, deputy special agent in charge of Homeland Security Investigations Tampa. “Behind closed doors, he had a sick obsession that focused on children. Let this case be an example to other child predators. We will find you, arrest you and make sure you are prosecuted to the fullest extent of the law. Homeland Security Investigations does not tolerate adults that prey on innocent children.”

Brown’s sentencing is part of Operation Holitna, an ongoing investigation led by Homeland Security Investigations that originated in Boston. In 2010, the U.S. Attorney's Office for the District of Massachusetts and HSI Boston arrested Robert Diduca on charges of producing child pornography. Diduca was convicted and sentenced to 18 years in federal prison in June 2012. Forensic analysis of Diduca's computer led investigators to the Netherlands where a Dutch national was arrested and charged with producing, distributing and possessing child pornography, as well as sexually assaulting 87 minors. Since that time, a worldwide network of offenders continues to be unraveled, which also included Brown. Defendants and victims continue to be identified around the world. To date, more than 160 children have been rescued and more than 50 perpetrators arrested worldwide as a result of Operation Holitna.

This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.

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, 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.

Jacksonville, Florida - Acting United States Attorney A. Lee Bentley, III announced today that John George Sessine (53, Lake City) has been indicted by a federal grand jury in Jacksonville on child pornography charges. Sessine is charged with three counts of receiving child pornography. On each of the receipt counts, he faces a mandatory minimum of not less than 5 years, up to 20 years in prison. Sessine was taken into federal custody on July 29, 2013 and is currently in the custody of the U.S. Marshals Service. His arraignment and detention hearing is scheduled for August 1, 2013 at 2:30 p.m. before U.S. Magistrate Judge Joel B. Toomey at the U.S. Courthouse in Jacksonville.

According to the indictment, Sessine did knowingly receive visual depictions of a minor engaged in sexually explicit conduct over the Internet, on three separate occasions. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.

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

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, 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.

JACKSONVILLE – The United States Attorney’s Office for the Middle District of Florida announced today that Bao Pham, D.O., and AccMed Healthcare Systems, LLC, d/b/a Florida Spine Care and Pain Center, have paid $448,794 to resolve allegations that they violated the False Claims Act by submitting false claims for medical services to the Medicare and federal Office of Workers Compensation (OWCP) programs.  Pham is an osteopathic physician who focuses his practice on pain management and who, through Florida Spine Care and Pain Center,  provides treatment to Medicare recipients for various conditions and to federal employees who are suffering various types of on-the-job injuries. Florida Spine Care and Pain Center is a Florida corporation located in Clay and Duval Counties in Florida. 

Medicare benefits are available to eligible patients who are disabled or are aged 65 and older and who are enrolled in Part B of the Medicare Program to obtain benefits from participating healthcare providers.  The federal OWCP benefits are available to federal civilian workers who are injured at work or who have acquired an occupational disease.

Today’s settlement resolves allegations that, between January 1, 2004, and December 31, 2008, Pham and Florida Spine Care and Pain Center submitted false Medicare and OWCP claims for non-reimbursable procedures and services by upcoding and unbundling medical services provided to beneficiaries of these two federal programs. The government alleged that Pham and Florida Spine Care and Pain Center upcoded a non-reimbursable procedure, performed in-office, as a surgical procedure and further routinely unbundled claims for certain pain management services in order to obtain reimbursement that would be higher than if properly submitted.   

“This settlement represents another notable achievement in our battle against health care fraud in this district,” stated A. Lee Bentley, III, Acting United States Attorney for the Middle District of Florida. “Civil health care fraud enforcement is, and will continue to be, one of our top priorities.”     

“Billing Medicare for one procedure but actually providing another, much cheaper procedure – as Pham allegedly did – is plain and simple fraud,” said Christopher B. Dennis, Special Agent in Charge, Office of Inspector General (OIG), Department of Health and Human Services, Miami region. “When providers pad their pockets at Medicare’s expense, they can expect the OIG to investigate and hold them responsible.”

“This settlement demonstrates the OIG’s commitment to investigate those who defraud the U.S. Department of Labor’s Federal Employees’ Compensation Program by billing for services that were not rendered. We will continue to work with our law enforcement partners to investigate these types of schemes,” said Richard Walker, the Special Agent-in-Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.

These allegations arose as a result of information received from a fraud investigator at a major health insurance carrier, which was simultaneously conducting an investigation into Dr. Pham’s billing practices.

This matter was handled by the U.S. Attorney’s Office for the Middle District of Florida, the Office of the Inspector General for the Department of Health and Human Services, the Office of the Inspector General for the Department of Labor and the Office of Inspector General for the United States Postal Service.  

This matter was settled prior to filing suit by the United States of America. The claims settled by this agreement are allegations only; there has been no determination of liability.

Tampa, FL - Acting United States Attorney A. Lee Bentley, III announces the arrest of Donald E. Gallagher, Jr. (51, St. Petersburg), on charges of  distribution and possession of child pornography.  If convicted, Gallagher faces a mandatory minimum penalty of 5 years and a maximum penalty of 20 years in federal prison on the distribution charge, and a maximum of 10 years in federal prison on the possession charge. 

According to the complaint, Gallagher used an online peer-to-peer file sharing program to download and share numerous images and videos of minors, some pre-pubescent, engaging in explicit sexual activity.  Based upon the investigation into the origin of these images, the Federal Bureau of Investigation obtained and executed a federal search warrant at a residence in St. Petersburg.  During the search on July 24, 2013, agents located and seized a laptop computer belonging to Gallagher. A preliminary examination of the computer revealed hundreds of images of child pornography.

An 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 the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the St. Petersburg Police Department, and the Largo Police Department.  It will be prosecuted by Assistant United States Attorney Josephine W. Thomas.

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.

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Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Michael M. Rucker (34, St. Petersburg) to twenty years in federal prison for possession with intent to distribute crack cocaine and marijuana within 1,000 feet of a school and being a convicted felon in possession of firearms and ammunition. The court also ordered Rucker to forfeit firearms and ammunition involved in the commission of the offenses. Rucker was found guilty by a jury on February 14, 2013.

According to court documents, on May 15, 2012, the St. Petersburg Police Department Vice and Narcotics Unit executed a search warrant at Rucker's residence located on 9th Avenue South, in St. Petersburg. During the execution of the search warrant, officers located two fully loaded handguns in Rucker's bedroom, distribution amounts of crack cocaine under a couch, marijuana, and tools of the drug trade commonly used to make and sell crack cocaine. The residence was located within 1,000 feet of both a middle school and daycare center.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Josephine W. Thomas.

It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy led by ATF. 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.

Tampa, Florida - U.S. District Judge Richard A. Lazzara today sentenced Arlin Troncoso-Pena (33, Sarasota) to 20 years in federal prison for conspiracy to possess with intent to distribute, and to distribute, 100 grams or more of heroin. The court also ordered Troncoso-Pena to forfeit $3,005, proceeds of the offense. Troncoso-Pena pleaded guilty on March 29, 2013.

According to his plea agreement, in October 2010, Troncoso-Pena arranged for two females to travel from Boston to Florida with heroin. After Troncoso-Pena picked up the two females at the train station in Osceola County, his vehicle was stopped by law enforcement. One of the women in Troncoso-Pena's vehicle possessed heroin weighing approximately 150 grams.

In 2012, law enforcement authorities in Sarasota County learned that Troncoso-Pena was selling heroin as part of a conspiracy. In May 2012, law enforcement purchased a total of approximately 40 grams of heroin, after arranging the sales through Troncoso-Pena. In June 2012, during the execution of search warrant at a residence used by members of the conspiracy, approximately 35 grams of heroin and more than $5,000 were recovered. On that same date, Troncoso-Pena was arrested and found to be in possession of $3,005.

This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the Sarasota County Sheriff's Office, the Sarasota Police Department, the Osceola County Investigative Bureau, and U.S. Immigration and Customs Enforcement's (ICE) Enforcement and Removal Operations (ERO). It was prosecuted by Assistant United States Attorney Joseph W. Swanson.

Ocala, Florida - Senior United States District Judge Wm. Terrell Hodges today sentenced Roberto Jesus Acosta (54, Cuba) to 15 years in federal prison for possession of a firearm and ammunition affecting interstate commerce by a convicted felon. Acosta pleaded guilty on April 24, 2013.

According to court documents, members of the Ocala Police Department executed a search warrant at Acosta's apartment on February 2, 2013, after learning that Acosta had just purchased a 50-round box of ammunition at a local retailer. Video footage from the business showed Acosta buying the box of .25 caliber ammunition earlier that day. During the search of the apartment, officers recovered the box of ammunition, a .25 caliber handgun and three other rounds of ammunition. The box of ammunition had been hidden inside of an air conditioning unit. When interviewed by the officers, Acosta admitted that he had purchased the box of ammunition "for a neighbor."

Acosta has prior state convictions for manslaughter, burglary, aggravated assault and possession of a firearm by a convicted felon. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law. Furthermore, because Acosta's prior criminal record included several crimes of violence, he qualified for enhanced sentencing as an Armed Career Criminal under federal law.

This case jointly was investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

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

Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Christopher Holladay (37, Deland) to 15 years in federal prison for possession of a firearm by a previously convicted felon and possession with intent to distribute a controlled substance. Holladay pleaded guilty on April 30, 2013.

According to his plea agreement, Holladay, a previously convicted felon, sold a stolen Remington rifle to an undercover officer and a confidential informant for $350 on August 2, 2012. The rifle had been stolen the day before in a residential burglary. Later that month, a deputy with the Volusia County Sheriff's Office stopped a vehicle being driven by Holladay. A drug detection canine alerted to the presence of drugs in the vehicle. In a subsequent search of the vehicle, investigators found marijuana and methamphetamine.

Holladay has ten prior state felony convictions, including drug possession, conspiracy to traffic in methamphetamine, grand theft, robbery, burglary, possession of a firearm by a convicted felon, resisting an officer with violence, accessory after the fact, and failure of a career offender to properly register. As a previously convicted felon, Holladay is prohibited from possessing firearms or ammunition under federal law. As a result of his prior criminal record, Holladay qualified for enhanced sentencing as an Armed Career Criminal under federal law.

This case was investigated by the Volusia County Sheriff's Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Roger B. Handberg.

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 Torres, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Marterrance Q. Holloway (33, Tampa) pleaded guilty today to aggravated identity theft and access device fraud charges, in addition to charges that he conspired with others to defraud the United States Treasury. Holloway faces a maximum penalty of five years in federal prison on the conspiracy charge, ten years on the fraud charge, and a consecutive two-year prison sentence on the aggravated identity theft charge. As part of the plea, Holloway also agreed to forfeit two 2010 Chevrolet Camaros, a 2011 Dodge Charger, a 2005 Dodge Magnum, a motor scooter, an Apple iPad, cash and assorted jewelry -- all of which were purchased with the proceeds of his fraud. The net proceeds of the forfeited items will be credited towards any future forfeiture money judgment. A sentencing date has not yet been scheduled.

On April 17, 2013, Holloway's co-defendant, Maurice Larry, pleaded guilty to similar charges. Larry is scheduled for sentencing on September 23, 2013, at 10:30 A.M. before U.S. District Judge Elizabeth A. Kovachevich.

According to Holloway's plea agreement, he and Larry filed fraudulent tax returns from the Howard Johnson Hotel on 50th Street in Tampa. A room at the hotel was purchased in Larry's name. In the hotel room were four computers that were used to electronically file fraudulent tax returns in the names of deceased individuals. Also located in the room were pages from an internet website, along with ledgers and lists of stolen names, dates of birth and social security numbers. Some of the names included specific codes to be used for electronic filing purposes or notes about whether a tax return had been either accepted or rejected. Multiple "Turbo Tax" reloadable debit cards were found in the hotel room, along with ATM receipts for cash withdrawals, and approximately $3,700 in cash. Both Holloway and Larry admitted to filing fraudulent tax returns while staying at the hotel.

Approximately one year later, Holloway used a fraudulent debit card at a local bank ATM machine. The debit card was loaded with the proceeds of a fraudulently filed tax return in the amount of over $9,800.

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 - U.S. District Judge Mary S. Scriven today sentenced Paul Robert Gunter (64, Odessa, Florida; originally of London) to 25 years in federal prison, Simon Andrew Odoni (56, originally of Hertfordshire, UK) to 13 years, 4 months in federal prison, and Richard Sinclair Pope (55, originally of Hertfordshire, UK) to 4 years, 9 months in federal prison for their respective roles in an international investment fraud and money laundering scheme. The court also ordered all three individuals to forfeit their interests in real property and bank accounts in the U.S. and abroad, an airplane, vessels, and vehicles purchased with proceeds of the fraud scheme.

As part of the investigation, federal agents seized nearly $5 million in U.S. currency. At the sentencing hearing, the court granted the government's request to use these assets to help compensate victims for their losses. In addition, the court entered money judgments in excess of $137 million against Paul Gunter and Simon Odoni.

On April 19, 2013, Paul Gunter and Simon Odoni were found guilty by a federal jury, following a 19-day trial. Specifically, the jury returned verdicts of guilty on three counts of conspiracy to commit mail fraud, wire fraud, and money laundering, as well as nineteen counts of mail and wire fraud, and fourteen counts of money laundering.

Prior to trial, on March 10, 2011, Richard Pope pleaded guilty to one count of conspiracy to commit wire and mail fraud. Pope cooperated with the government and testified at trial.

According to the evidence and testimony presented at trial, from at least as early as July 2004 through at least March 13, 2008, Gunter, Odoni, Pope and others engaged in a sophisticated investment fraud and money laundering scheme, in which worthless stock in hijacked dormant, publicly-traded companies in the United States was sold to victim-investors, primarily in the United Kingdom. The scheme used boiler room telemarketers, mostly in Spain, who employed high pressure and misleading sales techniques. The victim-investors wired more than $127 million to Gunter's bank accounts in the Middle District of Florida. The conspirators bilked victim-investors out of another $10 million via a FOREX currency trading scheme, which also utilized the boiler rooms in Spain.

Gunter, Odoni, Pope and their co-conspirators used the victim-investors' funds to perpetuate the fraud scheme and for their own personal enrichment. Victim-investors' funds were used to buy, among other things, an airplane, two vessels, vehicles, including a Ferrari, and real property in the Caribbean islands, England, and Florida.

In a related trial that took place in May 2012, Houston lawyers Roger Lee Shoss and Nicolette Loisel were convicted of one count of conspiracy to commit wire fraud in connection with their participation in the corporate identity theft aspect of the scheme.

The case remains pending as to one individual, Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (48, Costa Rica; a U.S. lawyer formerly of New York and Florida), who allegedly conspired with Gunter, Odoni, Pope and others in this case. In May 2013, Hartman was arrested on an immigration violation by Nicaraguan authorities. He was expelled and deported from Nicaragua and turned over to U.S. authorities to face the charges in this case. Hartman's apprehension and expulsion was achieved with the special assistance of the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police.

The case was investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), Tampa, Florida, as well as the U.S. Secret Service, Tampa, Florida and Newark, New Jersey Field Offices. The government received assistance from several other authorities, including the City of London Police, the UK's Serious Fraud Office and Norfolk Constabulary, the Spanish National Police, the U.S. Securities and Exchange Commission, the Ontario Securities Commission, and the British Columbia Securities Commission.

“This investment fraud and money laundering scheme stretched across continents. The three defendants sentenced today had no qualms with preying on innocent victims – many of them elderly U.K. citizens – to further their own assets,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “Let today’s sentences serve as notice to other fraudsters. HSI and our law enforcement partners will investigate and ensure that you are prosecuted for your crimes.” "This case is a great example of how law enforcement partnerships work on an international scale," said John Joyce, Special Agent in Charge Tampa. "The United States Attorney’s Office, HSI and the US Secret Service worked this case with their law enforcement partners from London to investigate, prosecute and convict Mr. Gunter, Mr. Odoni and Mr. Pope. Their sentences should send a clear message to other fraudsters."

"Unfortunately, this sentencing will not repair the huge damage they caused to the lives of thousands of people who were simply looking for a safe place to invest their money, but hopefully it will bring a measure of comfort and a sense of closure to those caught up in what was fraud committed on a truly significant scale. That Pope, Gunter and Odoni have now been successfully prosecuted is thanks to trans-Atlantic law enforcement cooperation, painstakingly piecing together this crime, insuring that those involved would one day face their day of reckoning," stated City of London Police Detective Inspector Kerrie Gower.

The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.

TAMPA – The United States Attorney’s Office for the Middle District of Florida announced today that Hernando-Pasco Hospice, Inc., d/b/a HPH Hospice, has agreed to pay $1 million to resolve allegations that it violated the False Claims Act by submitting false claims for hospice services to the Medicare and Medicaid programs. HPH Hospice is a Florida not-for-profit corporation that provides hospice services in various locations throughout Hernando, Pasco, and Citrus counties in Florida.

The Medicare hospice benefit is available for patients who have a life expectancy of six months or less if their disease runs its normal course. Patients admitted to a hospice stop receiving care to cure their illnesses and instead receive medical care focussed on providing them with relief from the symptoms, pain, and stress of a terminal illness. Medicare reimburses for different levels of hospice care.

Today’s settlement resolves allegations that between January 1, 2005, and December 31, 2010, HPH Hospice submitted false Medicare and Medicaid claims for patients who did not need end of life care. The government alleged that HPH Hospice caused staff to admit ineligible patients in order to meet targets imposed by management, adopted procedures to delay and discourage staff from discharging patients who were not appropriate for hospice services, instructed staff to make false or misleading statements in patients’ medical records to make them appear eligible when they were not, and failed to implement an adequate compliance program that might have corrected these problems.

The settlement also resolves allegations that HPH Hospice billed the government at higher reimbursement rates than it was entitled to receive, and provided illegal kickbacks when it provided free services to skilled nursing facilities in exchange for patient referrals.

“The hospice industry provides medical care to our most vulnerable citizens. This settlement should send a message to providers that misconduct of this kind will not be tolerated,” stated A. Lee Bentley, III, Acting United States Attorney for the Middle District of Florida.

As part of the settlement, HPH Hospice has agreed to enter into a Corporate Integrity Agreement with the Inspector General of the Department of Health and Human Services that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.

The allegations settled today arose from a lawsuit filed by two former HPH Hospice employees, Heather Numbers and Greg Davis, under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the United States for false claims and share in any recovery. The whistleblowers in this case will collectively receive $250,000.

This matter was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Middle District of Florida, the Office of the Inspector General for the Department of Health and Human Services, and the Florida Attorney General’s Office, Medicaid Fraud Control Unit.

The lawsuit is captioned United States and State of Florida ex rel. Numbers and Davis v. Hernando-Pasco Hospice, Inc., et al., No. 10-cv-912 (M.D. Fla.). The claims settled by this agreement are allegations only; there has been no determination of liability.

Tampa, Florida - Acting United States Attorney A. Lee Bentley, III announces that Tammy Roaderick (39, Largo) pleaded guilty yesterday to conspiracy to commit wire fraud. Roaderick faces a maximum penalty of five years in federal prison. Her sentencing hearing is scheduled for November 7, 2013.

Dean Counce pleaded guilty to conspiracy to commit wire fraud on September 14, 2012. On February 20, 2013, he was sentenced to 97 months in federal prison.

According to the plea agreement, Roaderick and her co-conspirator, Dean Counce, owned a company called American Mortgage Field Services, LLC (AMFS). AMFS performed preservation and inspection work for homes in various phases of foreclosure, including homes that were owned by government entities such as Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). The government entities paid servicing lenders, such as Bank of America, to protect and maintain their properties. Beginning in or around 2007, some of these servicing lenders retained AMFS to conduct periodic inspections of government-owned or insured properties to prevent unnecessary deterioration that may have resulted from neglect or vandalism.

The servicing lenders would send Counce, Roaderick, and AMFS a list of properties each month that required inspection. These inspections required AMFS employees to visit a property, fill out an inspection report, and take photographs. Counce, Roaderick, and others then compiled these inspection reports and transmitted them electronically to the requesting party, such as Bank of America. The servicing lenders then paid AMFS a fee per inspection.

As the real estate market declined in Florida and throughout the country, AMFS began to receive more and more requests for inspections on properties in foreclosure. Most or all of the mortgages on the properties were owned or insured by Fannie Mae, Freddie Mac or FHA. The requests for inspections far exceeded AMFS’s capacity to complete them. As a result, Counce, Roaderick, and other AMFS employees began fabricating inspection reports.

For example, Counce and Roaderick would direct that each new property be inspected the first time and that inspectors take numerous photographs, far more than were required for a single month’s inspection report. AMFS employed individuals, many of whom were high school students or recent high school graduates, to use previous months’ photographs to fabricate subsequent inspection reports on properties. Counce and Roaderick also instructed AMFS employees to fabricate inspection reports by using publicly available websites, such as property appraiser sites, to obtain data about properties that were not inspected. AMFS employees acting under Counce and Roaderick's direction submitted the falsified inspection reports to AMFS’s clients along with false claims for payments. Employees who produced large numbers of false inspection reports were often rewarded with cash bonuses.

In total, between 2007 and 2009, Bank of America remitted $4,490,398.87 to Mid-Florida Home Securing (later known as AMFS) and, between 2009 and 2012, Bank of America paid AMFS $19,044,973.06 for inspections, a large percentage of which were never actually performed. Based on employee reports of fabrication rates, the government estimates the loss in this case to be approximately $12,774,102.

This case was investigated by the Federal Housing Finance Agency, Office of the Inspector General, the Department of Housing and Urban Development, Office of the Inspector General, and the United States Secret Service. It is being prosecuted by Assistant United States Attorney Mandy Riedel.