Middle District of Florida
Press releases recorded for this federal judicial district.
Daytona Beach Man Sentenced to over 19 Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Orlando, Florida - U.S. District Judge Charlene E. Honeywell today sentenced Antwan Derell Jackson (26, Daytona Beach) to 19 years and seven months in federal prison for being a felon in possession of a firearm. Jackson was found guilty following a bench trial on March 28, 2013.
According to court documents and testimony presented at trial, Jackson was arrested after Volusia County Sheriff's Office (VCSO) deputies conducted a traffic stop on a vehicle in which he was riding. The occupants of the vehicle, including Jackson, attempted to flee, but Jackson was apprehended. During a subsequent search of the vehicle, the deputies found a loaded .380 caliber handgun. Based upon Jackson's extensive criminal history, he qualified as an Armed Career Criminal and was subject to enhanced penalties.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Volusia County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Vincent S. Chiu and James D. Mandolfo.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, 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.
Two Individuals Indicted on Firearms and Drugs ChargesRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces the return by a grand jury of an indictment charging David P. Lawrence (26, Bradenton) and Mark Alan Finehout (37, Sarasota) each with being a felon in possession of a firearm. Lawrence is also charged with possessing with intent to distribute 5 grams or more of methamphetamine. If convicted of the firearms offense, Finehout faces a maximum penalty of 10 years in federal prison. Due to his prior criminal history, Lawrence faces a mandatory minimum of 15 years, up to life imprisonment for the firearms offense. For the narcotics offense, Lawrence faces a mandatory minimum of 10 years in federal prison. The indictment also notifies the individuals that the United States intends to forfeit the firearms and ammunition they are charged with possessing, and any narcotics proceeds related to the charges against Lawrence.
According to the indictment, Lawrence and Finehout, who are both previously convicted felons, are each charged with possessing a .40 caliber Taurus pistol on April 17, 2013. Lawrence is also charged with possessing an SKS rifle on April 18, 2013, and possessing with the intent to distribute 5 grams or more of methamphetamine on April 19, 2013.
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 jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Mark E. Bini.It is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, 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.
Husband and Wife Sentenced to Prison for Defrauding HSBC Mortgage Services and HSBC Bank Out of More Than $2 MillionRead the Press Release
Tampa, Florida - U.S. District Judge Elizabeth A. Kovachevich sentenced Michelle Guy (40) to 48 months in federal prison yesterday for conspiracy to commit mail fraud and wire fraud. The court also ordered Michelle Guy to forfeit over 400 high-end purses, shoes, sunglasses, electronics, and other clothing, which are traceable to proceeds of the offense. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $2,205,420.82, which constitutes the proceeds of the mail and wire fraud conspiracy. In addition, Michelle Guy was ordered to serve 100 hours of community service and pay $2,280,263.17 in restitution to HSBC Bank. Michelle Guy pleaded guilty on April 4, 2013.
Previously, on May 7, 2013, U.S. District Judge James D. Whittemore sentenced Michelle Guy’s husband (Kevin Guy) to 37 months in prison for his involvement in the same fraud conspiracy. Kevin Guy pleaded guilty on February 12, 2013.
According to court documents, between February 2001 and August 2011, Michelle Guy worked in various administrative capacities for HSBC Mortgage Services in Brandon, Florida. During her employment, HSBC Mortgage Services maintained an employee Recognition Program. Beginning around January 2007, and continuing through November 2011, Michelle Guy conspired with various individuals, including her husband (Kevin Guy), to defraud HSBC Mortgage Services, Inc. and HSBC Bank by ordering approximately $2,216,776.12 in American Express gift cards, AMEX gift checks, and store gift cards, without authorization. Michelle Guy then directed those gift checks and gift cards to her residence and office. Once the gift cards and gift checks were delivered, Michelle and Kevin Guy deposited the AMEX gift checks into various bank accounts and used the gift cards to go on shopping sprees.
The gift cards and gift checks were used to buy numerous luxury items, including tens of thousands of dollars of merchandise from Gucci, Louis Vuitton, Tiffany’s, Neiman Marcus, and other high-end stores. On June 24, 2011, Kevin Guy used fraud proceeds as a down payment on a 2011 Mercedes Benz S Class with a sticker price of $96,000.00.
During the execution of two search warrants, law enforcement seized approximately seventy-two AMEX gift checks and more than sixty store gift cards associated with Dillard’s, Olive Garden, Target, Banana Republic, Nordstrom, Neiman Marcus, Foot Locker, Walmart, Outback, JC Penney’s, and Darden. Agents also seized over 25 luxury purses, more than 100 pairs of designer shoes, over 100 pairs of jeans, more than twenty pairs of designer sunglasses, four flat screen televisions, two computers, and a high-end refrigerator—all purchased with fraud proceeds.
This case was investigated by the United States Secret Service, the United States Postal Inspection Service, and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorneys Simon Gaugush and Anita Cream.
Bank Vice-President and Senior Business Director Sentenced in Wire Fraud SchemeRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Susan Emily Jones (50, Lutz) to 24 months in federal prison for committing wire fraud. As part of her sentence, the court also entered a money judgment in the amount of $824,301.57, the proceeds of the wire fraud scheme. Jones has already forfeited her interest in a BMW, her personal residence, and the funds in three bank accounts totaling $7,166.38. Jones pleaded guilty on January 16, 2013.
According to court documents, Jones served as Vice-President and Senior Business Director of Citicorp Services, Inc. and managed its employees and operations. From November 13, 2003, through January 5, 2010, in Tampa, Jones falsely and fraudulently led Citicorp Services, Inc. employees to believe that she was authorized to make certain expenditures of company funds and misappropriated these funds for her personal enrichment. Specifically, Jones used these funds to pay for Tampa Bay Buccaneers football season tickets, personal credit card expenses, charitable contributions, prepaid debit cards, auto-related expenses, travel, and other goods and services. As part of the scheme to misappropriate funds, she caused the unauthorized transfer of funds from the Citibank, N.A. reserve account to the Citicorp Services, Inc. account. In sum, Jones misappropriated $824,301.57 using interstate wire transmissions, by bypassing Citicorp Services, Inc.’s and Citibank, N.A.’s internal controls for business and travel and entertainment expenses.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Sarasota Man Pleads Guilty to Operating Aircraft Under Influence of AlcoholRead the Press Release
Tampa, FL - United States Attorney Robert E. O’Neill announced that Philip Lavoie (28, Sarasota) pleaded guilty yesterday to operating a common carrier while under the influence of alcohol. The plea was entered before United States Magistrate Judge Anthony E. Porcelli in Tampa. Lavoie faces a maximum penalty of 15 years in federal prison.
According to the information and testimony presented in court, Lavoie held a Commercial Pilot Certificate from the Federal Aviation Administration (FAA) and was an employee of Flight Express, an air cargo company based in Orlando. On December 8, 2012, Lavoie was the pilot and lone occupant of Flight 840, which departed from Greensboro, North Carolina and was on the way back to Tampa.
Air traffic tower personnel observed that after takeoff, Lavoie had gone silent on his radio and was not in contact with them for significant periods during his flight. Lavoie also changed the altitude at which he was flying without the controllers’ permission and made deviations from his projected flight path. FAA controllers later alerted the authorities at Tyndall Air Force Base in Panama City, Florida, whereby two jet fighters were dispatched to investigate and attempt to establish contact with Lavoie’s plane. The Air Force jets never came into contact with the Flight Express plane because Lavoie ultimately re-established contact with air traffic controllers.
After landing in Tampa, Lavoie failed a voluntary field sobriety test. Later he submitted to a breathalyzer test. The results of two separate tests of his blood alcohol were 0.272 and 0.274. Both results exceeded the legal intoxication level in the State of Florida.
This case was investigated by the U.S. Transportation Security Administration and the Federal Air Marshal Service, with assistance from the Tampa Police Department and the Hillsborough County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer of the Tampa Division.
Sarasota Man Pleads Guilty to ExtortionRead the Press Release
Tampa, FL - United States Attorney Robert E. O'Neill announces that Louis Thomas Caputo (78, Sarasota) pleaded guilty to extortionate collection of debt. Caputo faces a maximum penalty of twenty years in federal prison. Caputo was indicted in November 2012. His sentencing hearing is scheduled for August 21, 2013.
According to court documents, Caputo extended loans with interest rates that exceeded 500% per year. Over a number of months, beginning in September 2008, he employed extortionate means to collect these debts. Caputo threatened to harm the debtor, made assertions of his connections to the Gambino family, delivered anonymous threatening letters to the debtor, and, told the debtor that he had previously been convicted of a similar offense. In fact, Caputo was previously convicted in federal court of, among other things, the extortionate extensions and collections of debt.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Jury Finds Inmate Guilty of Assault Resulting in Serious Bodily InjuryRead the Press Release
Orlando, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury found Scott Michael Patrick (48) guilty of assault resulting in serious bodily injury. He faces a maximum penalty of ten years in federal prison. His sentencing hearing is scheduled for September 19, 2013. Patrick was indicted on October 6, 2010.
According to evidence presented at trial, Patrick, who was an inmate at the Federal Correctional Complex in Coleman, Florida, carried out a plan to viciously attack a fellow inmate. On February 3, 2007, Patrick went to the victim's assigned unit. Patrick then began shadow boxing and stretching inside of another inmate's cell. After the victim walked past the cell, Patrick and another inmate began brutally beating the victim. A third inmate joined in the fight and stabbed the victim six times while Patrick continued to strike the victim until he collapsed to the floor, smacking his head against a metal kick plate. The victim died as a result of the attack.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Vincent Citro and James Mandolfo.
Former President of Galiano Career Academy Agrees to Plead Guilty to Theft of Federal Funds, Obstruction, and Aggravated Identity TheftRead the Press Release
Orlando, FL - United States Attorney Robert E. O’Neill announces that Michael Gagliano (49, Sanford) has agreed to plead guilty to theft of government property, obstruction of a federal audit, and aggravated identity theft. He faces a maximum sentence of 10 years in federal prison for the theft of government property charge, up to five years in prison for the obstruction charge, and a mandatory minimum term of 2 years in prison, which must be served consecutive to his sentence for any of the other underlying offenses. The information also notifies Galiano that the United States intends to seek a money judgment in the amount of $2,105,761.00, which are alleged to be traceable to proceeds of the offenses. Gagliano was charged by information on June 12, 2013.
According to court documents, Galiano Career Academy, Inc. (GCA), located in Altamonte Springs, was a for-profit trade school, offering career programs such as Medical Assistant, Medical Billing and Coding, Pharmacy Technician, Travel Counselor, and Travel and Tourism Specialist. Gagliano was GCA’s President and School Director. GCA was approved by the United States Department of Education (DOE) to administer Federal Student Assistance (FSA) programs, including the Federal Family Education Loan Program (FFEL) and the Federal Pell Grant program, which offered assistance to eligible students participating in post-secondary education at eligible institutions. GCA also received financial assistance for job training from Workforce Central Florida (WCF), a permanent placement agency, helping employers connect with job seekers each year in the central Florida area.
Gagliano used Columbus Academy, a high school “diploma mill” owned and operated by his wife, to make students eligible for FSA when they otherwise would not have been qualified. The GCA students who “graduated” from Columbus Academy were not eligible to receive the federal funds since these students did not receive a real high school education. From July 2007 through July 2010, 176 ineligible students enrolled at GCA through Columbus Academy received $1,221,878.00 in Direct Student Loan funds and $715,708.00 in Pell grant funds. Additionally, GCA received federal funds from the United States Department of Labor and WCF for ineligible students who attended GCA. As a result, GCA unlawfully received $168,175.00 of funds for unqualified students.
On July 13, 2009, the DOE Office of Federal Student Aid conducted a program review of GCA. The review was conducted to assess GCA’s administration of the financial aid programs in which it participated. During the program review Gagliano tampered with student records. The investigation also revealed that GCA/Gagliano electronically submitted the name and social security number of a student to the DOE in order to obtain loan funds on her behalf, well after she stopped attending GCA. Gagliano falsified the student’s attendance records to indicate that she was in attendance at GCA.
An information 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 United States Department of Education, Office of Inspector General and the United States Department of Labor, Office of Labor Racketeering and Fraud Investigation. It will be prosecuted by Assistant United States Attorney David Haas.
Former CENTCOM Employee Sentenced to 10 Years in Federal Prison for Attempted Sexual Enticement of A ChildRead the Press Release
Orlando, Florida - Chief U.S. District Judge Anne C. Conway today sentenced Stephen Governale (50, Tampa) to 10 years in federal prison for attempted enticement of a minor to engage in a sexual activity. Governale was also ordered to serve a ten-year term of supervision and required to register as a sex offender, following his release from prison. He pleaded guilty on January 29, 2013.
According to court documents, on September 11, 2012, the Federal Bureau of Investigation was contacted by the parents of a seventeen-year-old child who was receiving sexually inappropriate messages from Governale. At the time of his arrest, Governale, a United States Air Force Reserve Lieutenant Colonel, was a protocol officer at CENTCOM in Tampa. In an interview, the child victim explained that he met Governale through an organization affiliated with the military. He said that he went with Governale to conferences and stayed in Governale’s hotel room. The victim also stated that he and Governale had watched pornographic movies and engaged in sexual activity while staying together.
On September 21, 2012, as Governale was planning to travel to Central Florida for business, a Task Force Agent with the FBI assumed the child victim’s on-line identity. The agent began to communicate online with Governale. During th online chats Governale attempted to entice the child victim to engage in sexual activity. Governale also arranged to meet the victim at a location in Central Florida. When Governale arrived, he was arrested by the FBI.
This case was investigated by the Federal Bureau of Investigation and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
This is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.usdoj.gov/psc for more information about internet safety education.
Convicted Child Sex Offender Sentenced to More Than 21 Years in Prison for Receipt of Child PornographyRead the Press Release
Orlando - U.S. District Judge Anne C. Conway today sentenced Michael F. Callahan (63, Palm Bay) to 21 years and eight months in federal prison for receipt of child pornography. The court also ordered him to forfeit the computer he used to commit the offense. As part of Callahan's sentence, he was ordered to serve a life term of supervised release and to register as a sex offender, following his release from prison. Callahan pleaded guilty on January 24, 2013.
According to court documents, on June 22, 2012, Callahan was convicted of illegal sexual contact with a minor and possession of child pornography in Connecticut Superior Court. Callahan returned to Florida to his Palm Bay home pending his sentencing hearing. Two weeks later, a Federal Bureau of Investigation task force agent downloaded several videos of child pornography from Callahan, that Callahan had made available on a file sharing network. On August 2, 2012, federal agents executed a search warrant at Callahan's home and seized his computer. Callahan admitted that he continued to download and possess child pornography after his Connecticut conviction. A forensic examination of Callahan’s computer revealed 736 movies and 12 pictures showing the sexual abuse of prepubescent girls.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Karen L. Gable.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Owner of Las Americas Latin Market Pleads Guilty to Food Stamp FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Carlos Chavez (46, Sarasota) pleaded guilty yesterday to theft of government funds in relation to a food stamp fraud scheme perpetrated at his convenience store, Las Americas Latin Market. Chavez faces a maximum penalty of 10 years in federal prison.
According to the plea agreement, Chavez has been the partial owner and operator of “More 4 Less Grocery Store Inc.,” a convenience store located at 560 N. Washington Boulevard in Sarasota. Over the years, this convenience store has done business as “More 4 Less Grocery Store” and, most recently, as “Las Americas Latin Market.”
Since August 2009, Las Americas has participated in the Supplemental Nutrition Assistance Program (“SNAP”), formerly known as the Food Stamp Program. SNAP was established by the United States Government to alleviate hunger and malnutrition among low and middle income families by increasing their food-purchasing power and ability. The U.S. Department of Agriculture is responsible for administering SNAP. Regulations mandate that retail businesses are prohibited from purchasing SNAP benefits in exchange for cash, a practice commonly known as “cash-back.”
Between February 1, 2010, and March 1, 2012, Chavez conducted numerous illegal “cash-back” transactions with SNAP recipients at Las Americas. Chavez collected a substantial fee for providing this cash-back service to SNAP recipients—typically 25% to 50% of the overall SNAP transaction. For example, if a SNAP recipient requested $50 cash back, Chavez would generally charge $100 to the recipient’s EBT card. When the $100 purchase was authorized, he would give the SNAP recipient $50 in cash and, within 48 hours, Las Americas would receive a $100 redemption from the Department of Agriculture. This illegal activity resulted in a loss of $735,886.00 in SNAP benefits to the U.S. Department of Agriculture.
In February 2011, law enforcement officials noticed that there were numerous suspicious SNAP transactions at Las Americas. For instance, Las Americas’ SNAP redemptions far exceeded those of similar convenience stores and even medium-size grocery stores in the immediate area. Also, between February 1, 2010, and March 1, 2012, Las Americas’ SNAP redemptions far exceeded state and national averages by 1,300%. After law enforcement executed a search warrant at Las Americas, SNAP redemptions at the store fell precipitously.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Department of Agriculture, the Internal Revenue Service Criminal Investigation, and the Sarasota Police Department. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Kissimmee Couple Pleads Guilty to Stealing $2.8 Million from Clients in Medicaid Planning Fraud SchemeRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces that Ross Littlefield (48, Kissimmee) and Linda Littlefield (41, Kissimmee) have each pleaded guilty to one count of conducting a prohibited monetary transaction. They each face a maximum penalty of 10 years in federal prison. The Littlefields were charged by information on April 29, 2013.
According to their plea agreements, Linda Littlefield, a former attorney, formed The Littlefield Law Group, P.A. The law group ultimately matured to specialize in Medicaid planning. In 2007, Ross Littlefield, Linda Littlefield, and others became the new directors of a non-profit organization called the JNN Foundation, Inc. The JNN Foundation established the JNN Special Needs Asset Preservation Pooled Trust. This type of trust can lawfully shelter assets and not affect the beneficiary’s Medicaid or Social Security Income eligibility.
Between 2007 and 2010, Ross and Linda Littlefield induced approximately 26 clients to contribute more than $4.7 million to the JNN Foundation under false pretenses. Once the client funds were received by the foundation, the Littlefields began transferring money to other accounts, which they controlled. They then used the money for their own personal benefit. Specifically, they used client deposits to purchase property, vehicles, and make personal loans to their other business. The deposits received from clients were made under the guise of Medicaid planning. To conceal their scheme, the Littlefields sent false quarterly statements to their clients. The falsified quarterly statements showed the client’s balance, when in fact, the Littlefields did not have the money in the bank accounts to cover all of the clients’ expenses. Consequently, the Littlefields stole $2,897,604.49 from their clients.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney David Haas.
Four Former WellCare Executives Found GuiltyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill and Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division announce that a federal jury today found four former executives of WellCare Health Plans, Inc. (“WellCare”) guilty of various charges, including health care fraud, making false statements relating to health care matters, and making false statements to a law enforcement officer. Specifically, former WellCare Chief Executive Officer Todd S. Farha (45, Tampa) was convicted of two counts of health care fraud; former WellCare Chief Financial Officer Paul L. Behrens (51, Odessa) was convicted of two counts of making false statements relating to health care matters and two counts of health care fraud; William L. Kale (63, Oldsmar), former Vice President of Harmony Behavioral Health, Inc. (a wholly-owned subsidiary of WellCare), was found guilty of two counts of health care fraud; and Peter E. Clay (56, Wellesley, Massachusetts), former WellCare Vice President of Medical Economics, was found guilty of making false statements to a law enforcement officer. The maximum penalty for each of the health care fraud counts is ten years’ imprisonment. The maximum penalty for all other counts is five years’ imprisonment. A sentencing date has not yet been set.
The jury returned not guilty verdicts with respect to several counts and was unable to reach a verdict on others. The judge declared a mistrial as to those counts on which the jury was deadlocked. The U.S. Attorney’s Office will decide, at a later date, whether to retry the individuals on those charges.
Thaddeus M.S. Bereday (Tampa), WellCare's former General Counsel, was severed from the trial in February of this year. He will be tried separately, at a later date.
On March 2, 2011, a federal grand jury sitting in Tampa, Florida returned an indictment charging Farha, Behrens, Kale, and Clay with various federal criminal violations related to a scheme to defraud the Florida Medicaid program, from the summer of 2003 through the fall of 2007, by making false and fraudulent statements relating to expenditure information for behavioral health care services. WellCare operates health maintenance organizations (“HMOs”) in several states targeted for government-sponsored health care benefit programs like Medicaid. Two WellCare HMOs operating in Florida, StayWell and Healthease, contracted with the Agency for Health Care Administration (“AHCA”), the Florida agency which administers the Medicaid program, to provide Florida Medicaid program recipients with an array of services, including behavioral health services.
In 2002, Florida enacted a statute that required Florida Medicaid HMOs to expend 80% of the Medicaid premium paid for certain behavioral health services upon the provision of those services. In the event that the HMO expended less than 80% of the premium, the difference was required to be returned to AHCA. As part of the scheme, the individuals falsely and fraudulently submitted inflated expenditure information in the company’s annual reports to AHCA, in order to reduce the WellCare HMOs’ contractual payback obligations for behavioral health care services.
On May 5, 2009 the government filed related charges in an information and Deferred Prosecution Agreement ("DPA") against WellCare. Pursuant to that DPA, WellCare was required to pay $40 million in restitution, forfeit another $40 million to the United States, and cooperate with the government’s criminal investigation. The company complied with all of the requirements of the DPA. As a result, the information was later dismissed by the court following a government motion.
Also, in May 2009, an information and plea agreement for Gregory West (55, Tampa) a former WellCare analyst, was unsealed. In his plea agreement, West admitted to participating in the scheme to defraud the Medicaid program and agreed to cooperate in the government's investigation. At trial, West provided extensive and detailed testimony explaining the complex scheme. Other former WellCare executives provided additional testimony about the four individuals' roles in the scheme.
“Today’s guilty verdicts send a clear message that health care fraud will not be tolerated in the Middle District of Florida,” said U.S. Attorney Robert O’Neill. “The greed of those who siphon funds from individuals dependent upon federal healthcare programs must be investigated and prosecuted to the full extent of the law.”
“Medicaid recipients deserve quality, honest healthcare,” said Christopher B. Dennis, Special Agent in Charge, Health and Human Services, Office of Inspector General, Office of Investigations. “Today’s guilty verdicts should serve as a clear warning that anyone – no matter what their status - who defrauds the American people and abuses their trust will be brought to justice.”
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Florida Attorney General's Medicaid Fraud Control Unit. It was prosecuted by Assistant United States Attorneys Jay Trezevant and Cherie Krigsman, along with Department of Justice Senior Trial Attorney John Michelich and Special Assistant United States Attorney John Bowers.
Tampa Man Sentenced to More Than 4 Years in Prison for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Nedal Faisal Ahmad to four years and three months in federal prison for mail fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $35,989.75, the proceeds of the charged criminal conduct. Ahmad pleaded guilty on March 8, 2013.
According to court documents, through his business and through other means, Ahmad negotiated U.S. Treasury checks and reloadable debit cards containing fraudulently obtained tax refunds. For instance, Ahmad "swiped" reloadable debit cards at his business (Al-Wafaa Trading), knowing that the funds on these cards were fraudulently obtained tax refunds, and kept a large portion of the cards’ value as a fee for processing the illegal funds. Ahmad processed over $60,000 of fraudulently obtained tax refunds through his business.
Ahmad was also involved in cashing fraudulent U.S. Treasury checks. The treasury checks were tax refunds that were fraudulently obtained by others. Beginning in October 2011, Ahmad began sending fraudulent Treasury checks via the U.S. mail and other delivery services to an individual in New York. Ahmad further instructed the individual to pay him sixty percent of the funds from the check, while the associate could keep the remaining forty percent. During the undercover operation, Ahmad sent the associate nine fraudulently obtained U.S. Treasury checks, totaling over $95,000 of stolen money from the U.S. Treasury.
This case was investigated by the United States Secret Service, Internal Revenue Service - Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
This case was prosecuted as part of Operation Rainmaker, a coordinated effort among the U.S. Attorney's Office for the Middle District of Florida and various federal and local law enforcement agencies, including the U.S. Secret Service, IRS, United States Postal Inspection Service, the Federal Bureau of Investigation, the Tampa Police Department, and the Hillsborough County Sheriff's Department to combat the filing of false tax returns in the Tampa Bay region.
Punta Gorda Man Indicted for Investor FraudRead the Press Release
Fort Myers, Florida - United States Attorney Robert E. O'Neill announces the unsealing of an indictment charging Anthony Michael Defeo (48, Punta Gorda) with eight counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in federal prison on each count, a fine of up to $250,000, and restitution to his victims. The indictment also notifies Defeo that the United States is seeking a money judgment in the amount of $6,280,580.00, the proceeds of the offense.
According to the indictment, Defeo solicited victim investors who thought they were investing in an opportunity involving road improvements on Interstate 75, along the west coast of Florida. Specifically, Defeo misrepresented to victim investors that he had lucrative contracts and purchase orders with a legitimate corporation engaged in asphalt paving, grading, and related services for roadway and civil construction projects. Instead of using the victim investors’ money as represented, Defeo used the investors’ money for his own purposes. The indictment alleges that Defeo fraudulently diverted and converted approximately $6,280,580.00 in monies from investors for his own purposes and has failed to repay these investors.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Tampa Woman Sentenced to More Than 5 Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Nikia Williams yesterday to five and six months in federal prison for theft of government property and aggravated identity theft. As part of her sentence, the court also ordered Williams to forfeit jewelry valued at more than $110,000, traceable to proceeds of the offenses. Williams also consented to forfeit a 2007 Mercedes Benz, which she purchased using $30,000 in cash. Williams pleaded guilty on February 27, 2013.
According to court documents, Williams engaged in stolen identity tax refund fraud from at least as early as January of 2011. In excess of 150 fraudulent tax returns were electronically filed from her residence during this period. Williams was linked to additional tax returns based on her use of debit cards containing fraudulently obtained tax refunds.
This case was investigated by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Sara C. Sweeney and Amanda L. Riedel.
Sarasota Man Convicted for Role in Mortgage Fraud ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that a federal jury yesterday found J. Patrick Brester (41, Sarasota) guilty of one count of conspiracy to commit wire fraud affecting a financial institution and three counts of wire fraud affecting a financial institution. Each count carries a maximum penalty of thirty years in federal prison and a $1million fine. Michael Chadwick, Matthew Landsman, and Joshua Unger previously pleaded guilty for their roles in the conspiracy.
According to evidence presented at trial, Brester conspired with others to engage in fraudulent cash back to buyer mortgage transactions involving the 2007 purchase and sale of condominiums at Vintage Grand, a large condominium complex in Sarasota. Each fraudulent transaction involved Brester first purchasing the unit from the development company (Sarasota 432, LLC) and then simultaneously “flipping” it to Michael Chadwick. To facilitate the scheme, Brester and his co-conspirators deceived mortgage lenders about the true nature of the transactions. They inflated the purchase prices of the properties, and ultimately the amount lent by the mortgage lenders. They did so by including fees that were falsely described as “management fees" that were made payable to shell corporations under their control. The “management fees” were actually the method by which Brester and his co-conspirators funneled cash back to themselves without the lenders’ knowledge.
In furtherance of the conspiracy, Brester and his co-conspirators caused interstate wire transfers of the loan proceeds from the victim mortgage lenders into bank accounts held in the names of shell companies, including IGS, Inc. and Landwick I, LLC. Evidence presented at trial showed that Brester made more than $550,000 from his role in the conspiracy. The loss to the mortgage lenders totaled more than$1.3 million.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Amanda L. Riedel and Matthew J. Mueller.
Mulberry Man Sentenced to 30 Years in Federal Prison for Drug TraffickingRead the Press Release
Tampa, Florida - U.S. District Judge Susan C. Bucklew today sentenced Earl Eugene Hampton (58, Mulberry) to 30 years in federal prison for conspiring with others to distribute cocaine. The court also ordered Hampton to forfeit a 2004 Dodge Quad Cab ST recreational vehicle (RV), which was traceable to proceeds of the offense. Hampton pleaded guilty on March 6, 2013. According to court documents and testimony presented at sentencing, Hampton had been involved in distributing cocaine for the past forty years. Between 2009 and 2012, he was responsible for the distribution of approximately 280 kilograms of cocaine in Orlando, Clearwater, and elsewhere.
In numerous intercepted phone calls, Hampton negotiated with his Miami-based cocaine suppliers, and arranged for Gerald Jermaine Head, to drive him to Miami to pick up the cocaine. The investigation revealed that Head drove from Clearwater and picked up Hampton in Mulberry. Hampton and Head then drove together to the Miami area and spent the night at a motel in Hallandale, Florida.
On July 19, 2012, Hampton and Head met with Hampton's suppliers in Miami, obtained cocaine, and drove the drugs back to Hampton's residence in Polk County. Head then left with most of the cocaine.
Officers from the Clearwater Police Department later conducted a traffic stop on the vehicle being driven by Head, on Gulf-to-Bay Boulevard. The officers made contact with Head and immediately smelled marijuana when he lowered the driver's side window. A drug-detecting canine alerted to the presence of narcotics inside the vehicle. Officers then located and seized 482 grams of cocaine (part of the cocaine they had purchased in Miami earlier in the day) from underneath the passenger seat of the vehicle. On August 4, 2012, a search warrant executed at Hampton's residence resulted in the seizure of three firearms that Hampton admitted to possessing illegally.
Gerald Head pleaded guilty to a cocaine distribution conspiracy charge on January 18, 2013. On April 10, 2013, he was sentenced to 10 years and 10 months in federal prison. Hampton received a lengthier sentence because of his greater role in the offense and lengthy criminal history.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Metropolitan Bureau of Investigation (MBI), with assistance from the Drug Enforcement Administration (DEA), U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), the Clearwater Police Department, and the Lee County Sheriff's Office, as part of as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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.
This case was a part of ATF’s “Frontline” strategy; an intelligence-driven approach to investigating federal firearms crimes. It focuses on the continuous communication, assessment, measurement, and collaboration of resources among Federal, state, and local law enforcement partners. It was prosecuted by Assistant United States Attorneys Christopher F. Murray and Robert E. Bodnar, Jr.
Tax Preparers Indicted and Arrested on Fraud ChargesRead the Press Release
Jacksonville, FL - U.S. Attorney Robert E. O’Neill announces the return of a multi-count indictment charging Jacksonville residents Troy Solomon (29) and Antonio Gadsden (37) with conspiracy to defraud the government and multiple counts of aiding and assisting in the preparation of false income tax returns. Solomon is also charged with 16 counts of wire fraud, one count of aggravated identity theft and one count of willful failure to file a return. They each face a maximum penalty of three years in federal prison for the conspiracy charge. Gadsden faces up to three years in federal prison for each of his four false preparation charges. Solomon faces a maximum penalty three years in federal prison for each of his sixteen false preparation charges. Additionally, Solomon faces a maximum penalty of twenty years in federal prison for each wire fraud charge, two consecutive years in prison for the aggravated identity theft charge, and up to one year in prison for the failure to file charge. Both individuals were arrested on federal warrants today.
According to the indictment, Solomon and Gadsden worked at Solomon's Tax Services, LLC and conspired to defraud the United States by preparing returns using false information to maximize the refund amount received. The indictment further alleges that larger refunds resulted in more tax preparation business, which led to greater tax preparation fees. Solomon allegedly stole the identity of an individual in order to participate in the IRS E-File Program, through which Solomon obtained an Electronic Filing Identification Number. That identification number was used to file IRS Form 1040s. Further, the indictment alleges that Solomon failed to file an income tax return for tax year 2011.
An indictment is merely a formal charge that a defendant has committed a violation of federal criminal law, and every defendant is presumed innocent until, and unless, proven guilty.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Kelly S. Karase is handling the prosecution of this case.
Tampa Man Sentenced to 12 Years on Federal Child Pornography ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore sentenced Paul Henry Carlin (58, Tampa) yesterday to 12 years in federal prison for transportation and receipt of child pornography. The court also ordered Carlin to forfeit computers and thumb drives, which were used in the offense. Carlin pleaded guilty on March 1, 2013.
According to court documents, between May and December 2012, Carlin used a peer-to-peer file sharing program to distribute at least 17 files depicting child pornography to undercover FBI agents. In December 2012, Carlin's computers and thumb drives were seized. Agents found more than 300 images and 100 videos of child pornography on his computer media. Carlin also admitted to law enforcement agents that he had been seeking and downloading images and videos of child pornography.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
It is another case 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.
St. Petersburg "Doomsday Prepper" Sentenced to More Than 8 Years in Federal PrisonRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Jason Deon Thomas today (32, St. Petersburg) to 97 months in federal prison for possession with intent to distribute cocaine and marijuana and being a felon in possession of firearms and ammunition. The court also ordered Thomas to forfeit a host of firearms, ammunition, and $7,390 in U.S. currency, which were traceable to the offenses. Thomas pleaded guilty on March 8, 2013.
According to court documents, on February 7, 2013, the St. Petersburg Police Department, along with agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, executed a search warrant at Thomas' residence. Inside the residence, law enforcement officers located 29 firearms, including six assault rifles, five shotguns, 17 handguns, a machine gun, a silencer, four bullet proof vests, and thousands of rounds of ammunition. Distribution amounts of marijuana, cocaine, a quantity of prescription drugs, and $7,390 in cash were also recovered. Thomas was previously convicted of felony drug trafficking offenses, and thus prohibited from possessing a firearm or ammunition under federal law.
Thomas claimed, in court filings, that he was a "doomsday prepper," and stockpiling firearms, ammunition, bullet proof vests, and other items to prepare for the end of the world.
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.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, 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.
Seffner Woman Sentenced to Federal Prison for Misprision of Felony ConvictionRead the Press Release
Tampa, Florida - U.S. District Judge James S. Moody, Jr. today sentenced Courtnee Brantley (Seffner) to 12 months and one day in federal prison for her felony conviction of misprision of felony. Brantley was found guilty of the crime by a federal jury on January 16, 2013, following a second trial in the case. The first trial resulted in a hung jury.
Brantley's charge and conviction resulted from her actions following the murders of Tampa Police Officers David Curtis and Jeffrey Kocab on June 29, 2010, by Dontae Morris. Brantley was operating a vehicle without a tag, resulting in Officer Curtis stopping the vehicle and the ensuing fatal encounter. The evidence at the trial revealed that Brantley left the scene of the shooting and concealed her vehicle. Brantley further communicated with Morris following the murders.
This case was investigated by the Tampa Police Department, Federal Bureau of Investigation, Hillsborough County Sheriff's Office, Florida Department of Law Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and other federal and local law enforcement agencies. It was prosecuted by Assistant United States Attorney James C. Preston, Jr.
Real Estate Developer Pleads Guilty to Mortgage Fraud ConspiracyRead the Press Release
TAMPA, FL - United States Attorney Robert E. O'Neill announces that Joseph Daniele (42, Tampa) pleaded guilty this week to conspiracy to commit wire fraud affecting a financial institution. Daniele faces a maximum penalty of thirty years in federal prison. Daniele’s three co-conspirators, also real estate professionals, previously pleaded guilty for their roles in the conspiracy. Misty Rudd, a realtor, Michael Jordan, a mortgage broker, and Adam Ort, the owner of a title company owner, are currently awaiting sentencing.
According to the plea agreements, Daniele moved from Ohio to Florida in 2002. Directly and through a series of companies, he bought numerous houses, primarily in Pinellas County, for the purpose of “flipping” them. “Flipping” is generally a practice whereby property is bought and then sold for more than the amount for which the purchaser acquired it. In total, the conspiracy involved approximately 400 mortgage transactions.
Rudd helped Daniele to flip the properties by soliciting investors to buy the houses. As a part of the scheme, Rudd and others claimed that these "investments" would require no money from investors to buy the houses. In reality, to obtain these loans, the lenders required the borrowers to contribute money toward the transactions. In the documents submitted to the lenders, the banks were told that the borrowers were paying the down payments and funds-to-close. In fact, the conspirators concealed the actual source of the money from the banks. In some cases, the borrower's contribution was netted out of the transaction. That is, it was taken out of the money the seller (Daniele or his companies) was supposed to receive. This required the direct involvement of the title agents closing the loans. Most of the loans were closed by title companies run by Ort. In other cases, the borrower's contribution was paid by a check from one of Daniele's companies. Frequently, the borrower's contribution came from a company called Premiere Financial, a company run by Ort and Jordan. Premiere Financial would fund the borrower’s contribution and then, on the seller’s side of the transaction, the money would be paid back to Premiere Financial, along with a small fee. This concealed the fact, from lenders, that the borrower had not made a financial contribution to the deal.
In addition, mortgage brokers, including Jordan, facilitated the scheme by adding false information to the mortgage loan applications. Applications were falsified to make the borrowers appear to have the financial ability to make the down payment and qualify for loans which they could not really afford.
This case was investigated by FBI. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.
Long Island Man Sentenced to More Than 9 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - U.S. District Judge Charlene Edwards Honeywell yesterday sentenced Andrew Beasley (30, Patchogue, NY) to 9 years and 7 months in federal prison for receiving and possessing child pornography. He is also required to register as a sex offender and serve a 10-year term of supervision, following his release from prison. The court also ordered Beasley to forfeit his computer equipment. He pleaded guilty on January 29, 2013.
According to court documents, Beasley used a Peer to Peer directory to download images and movies of children being sexually abused and exploited. Law enforcement officers conducted a forensic examination of his computers and hard drives and found that Beasley amassed more than 6,400 images and 265 videos depicting children being sexually abused and exploited. Some of these images also contained bestiality and bondage.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It was prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
This is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.usdoj.gov/psc for more information about internet safety education.
Idaho Man Sentenced to 8 Years in Prison for Transporting Child Pornography Aboard A Cruise ShipRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II yesterday sentenced Gary Lee Reed (47, Blackfoot, Idaho), to 8 years in federal prison for transporting child pornography. Reed pleaded guilty to the charge on February 28, 2013.
According to court documents, Customs and Border Protection (CBP) Officers discovered thousands of images and videos of child pornography on Reed's laptop computer during a secondary inspection of his luggage. At the time of the inspection, Reed was returning to Port Canaveral, Florida, aboard a cruise ship that had recently sailed to the Bahamas.
This case was investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.
It is another case 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.
Owner of B.L. Jennings and Bryco Firearms Sentenced to More Than 10 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - U.S. District Judge John Antoon, II today sentenced Bruce Lee Jennings (64, Port Orange) to 10 years and one month in federal prison for possessing and distributing child pornography. Jennings was also sentenced to serve a 10-year term of supervision, following his release from prison, and is required to register as a sex offender. In addition, the court ordered Jennings to forfeit his computer equipment and $500,000 from the sale of his home, both of which were used to commit the offenses. Jennings pleaded guilty on January 28, 2013.
According to court documents, Jennings made child pornography directly available for others to download from his “IP” (Internet Protocol) address and Peer to Peer shared directory. During a recorded interview, Jennings admitted to hoarding child pornography images and videos for more than five years. Law enforcement officers conducted a forensic examination of his computers and hard drives and found that Jennings amassed more than 1,490 images and 3,220 videos depicting images of children being sexually abused and exploited.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.usdoj.gov/psc.
Former Travel Agent Convicted in Scheme to Cash Tax Refunds Obtained with Stolen IdentitiesRead the Press Release
Orlando, FL - U.S. Attorney Robert E. O'Neill announces that a federal jury has found Ana Orosa Parada (49, Orlando) guilty of conspiracy to obtain payment of false claims. Parada faces a maximum penalty of 10 years in federal prison. Her sentencing hearing is scheduled before U.S. District Judge Charlene E. Honeywell on August 13, 2013. Parada was indicted on September 19, 2012.
According to testimony and evidence presented at trial, Marisol Panel and her husband, Wilfredo Flores, both held travel accounts at “Holiday Travel and Tours.” Panel testified that she had illegally obtained identities of adults and children who lived in Puerto Rico and said that she prepared tax returns using a tax filing program and paid local residents to receive refund checks at their residences. After the refund checks arrived, Panel and her co-defendant husband, Flores, would pick up the refund checks and deliver them to Parada. Parada would either cash the refund checks belonging to the identity theft victims or apply the checks to Panel and Flores' travel packages. Parada testified that she knew cashing and exchanging the refund checks for Panel and Flores’ travel packages was wrong.
Bank records showed Prada deposited 123 refund checks into her business checking account. The records also showed business checks which Parada had made payable to Marisol Panel for the amount of the refund checks, minus the fee Parada had charged for cashing the checks. Parada’s fee ranged from $700 to $1,000 per check. Other evidence showed that refund checks also had been applied to the cost of the travel packages purchased through Parada’s now defunct travel agency (Holiday Travel and Tours).
Both Panel and Flores have pleaded guilty for their role in the conspiracy. They are scheduled to be sentenced on July 9, 2013.This case was investigated by the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Clearwater Man Sentenced to Eight Years for Stolen Identity Refund FraudRead the Press Release
Tampa, Florida - U.S. District Judge James D. Whittemore sentenced Carlos Johnson yesterday to eight years in federal prison for wire fraud and aggravated identity theft. As part of his sentence, the court also entered a money judgment in the amount of $431,625.00, the proceeds of the offenses. Johnson was also ordered to forfeit a Cadillac and a Dodge Charger that were purchased with the fraud proceeds. Johnson pleaded guilty on February 26, 2013.
According to court documents, Johnson engaged in stolen identity tax refund fraud from as early as July 2011 through October 2012. More than 170 fraudulent tax returns were electronically filed from his residence during this period. Johnson was also tied to additional returns based on his use of debit cards containing fraudulently obtained tax refunds. Johnson used the fraudulently obtained money from the U.S. Treasury for cars and travel, including a Cadillac CTS and a stay at the Bellagio Hotel in Las Vegas, Nevada.
This case was investigated by the Internal Revenue Service Criminal Investigation, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Sara C. Sweeney.
Tax Return Preparer Pleads Guilty to More Than $1 Million in Tax FraudRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Obnes Latigue (50, Orlando) pleaded guilty today to three counts of aiding in the preparation of false tax returns. He faces a maximum penalty of 3 years in federal prison for each count. His sentencing hearing has been set for August 21, 2013. Latigue was indicted on April 10, 2013.
According to his plea agreement, Latigue was the owner of a tax return business called “Tax Winners Enterprises, Inc.” For the tax years 2006, 2007, and 2008, Latigue prepared returns for individuals in which he falsified the amounts of deductions and tax credits owed to the taxpayers. As a result, those taxpayers received undeserved tax refunds. Latigue fraudulently claimed education credits for clients who never attended college. He also inflated itemized deductions. As a result of the false returns prepared by Latigue, the Internal Revenue Service issued more than $1.1 million in undeserved refunds. Latigue has agreed to repay the IRS that amount in restitution.
This case was investigated by the Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Roger B. Handberg.
New York Man Pleads Guilty to Possession of False Document Making EquipmentRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces that Richard Middleton (36, New York) pleaded guilty today to possessing device-making equipment, with intent to defraud, and possessing a false identification implement intended to be used in the production of a false identification document. Middleton faces a maximum penalty of 15 years in federal prison on each of the two counts. His sentencing hearing is scheduled before Senior U.S. District Judge G. Kendall Sharp on August 21, 2013. Middleton was indicted on February 27, 2013, and arrested in the Eastern District of New York on March 6, 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, with assistance from the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
Employee Pleads Guilty to Filing False Tax DocumentsRead the Press Release
Orlando, FL - United States Attorney Robert E. O'Neill announces today that Mary Jean Holzworth (63, Longwood) pleaded guilty to filing false tax documents. Holzworth faces a maximum penalty of three years in federal prison.
According to the plea agreement, while Holzworth worked for Fulfillment Partners, she embezzled $1,629,677. She made several purchases at high-end retail stores and bought high-end assets including a new Cadillac. She also used the embezzled funds to pay for gym memberships. When co-workers began to notice a change in Holzworth's lifestyle, she told them that she had an uncle in Germany who had passed away and left her an inheritance.
During the time Holzworth embezzled from Fulfillment Partners, she prepared and filed her own tax return for 2009 and reported only her W-2 wages and some interest. She did not report any embezzled funds. In an interview with the IRS, Holzworth admitted that she had prepared and signed a 2009 tax return under penalty of perjury. Holzworth admitted that she had filed the Form 1040 for tax year 2009 and knowingly failed to report the additional income from the theft on her tax return.
This case was investigated by Internal Revenue Service Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tanya Davis Wilson.
Former Chief Warrant Officer Sentenced to Prison for Government TheftRead the Press Release
Orlando, Florida - U.S. District Judge Gregory A. Presnell sentenced Sebastian Stewart Oyegun, II (33) today to 30 months in federal prison for theft of government property. Oyegun was ordered to pay restitution in the amount of $10,205,304.05. The court also forfeited a 2011 Infiniti QX56, a 2011 Dodge Charger, a 2011 Spyder Roadster motorcycle, approximately $170,000 in cash, and more than $250,000 that Oyegun had deposited in various bank accounts. Oyegun pleaded guilty on July 2, 2012.
According to his plea agreement, between 2009 and 2011, while employed as a Chief Warrant Officer in the United States Army Active Guard Reserve, Oyegun made more than $10 million in unauthorized purchases. Oyegun purchased high-end engineering equipment, computer equipment and power tools, and charged them to the United States Army. The purchases were made over the Internet using the General Services Administration (GSA) Advantage System website and were shipped to various addresses throughout the United States. Oyegun manipulated the purchasing system by fraudulently creating a phony user ID and password, providing bogus points of contact and fake approving officials, and adding multiple shipping addresses. The theft was discovered after an internal audit conducted by the United States Army revealed that Oyegun had used an accounting code from a unit he was previously assigned to in order to make the on-line purchases. Oyegun sold the items for 10% to 20% of their retail value at local swap meets, on Craigslist and to third parties. As part of his plea agreement, Oyegun agreed to resign from the Army and cooperate in the investigation against others involved in the theft of the stolen goods.
This case was investigated by the Federal Bureau of Investigation, the Army Criminal Investigative Command, the Office of Inspector General for the General Services Administration, and the Department of Commerce’s Office of Export Enforcement. It was prosecuted by Assistant United States Attorney Daniel W. Eckhart.
Pharmacist and Former Owner of St. George Pharmacy Pleads Guilty to Conspiracy to Commit Health Care FraudRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Samuel Wahba (45, Palm Harbor) pleaded guilty yesterday to conspiracy to commit health care fraud, lying to a federal agency, making false claims to a federal health care program, and concealing his exclusion from all federal health care programs with the intent to fraudulently seek payment from such programs. Wahba faces a maximum penalty of five years in federal prison for the charge.
According to the plea agreement, on August 10, 2001, Wahba was convicted of one count of violating the Florida Racketeering Influenced and Corrupt Organization Act (RICO), one count of Medicaid Provider Fraud, one count of Grand Theft (Second Degree), and one count of Grand Theft (Third Degree), in the Circuit Court of the Sixth Judicial Circuit. These felony criminal convictions arose out of Wahba’s operation of Clover Pharmacy, located in Palm Harbor.
On July 31, 2002, Wahba received notice that he was excluded for a period of 15 years from participating in any and all other federal health care programs, including Medicare and Medicaid. This exclusion notice also advised Wahba that he could not collect any payments from any federal health care programs during the period of exclusion.
After being excluded from participation in all federal health care programs, Wahba went about devising a scheme to form a new pharmacy. The new pharmacy, called St. George Pharmacy, was secretly owned and controlled by him. Wahba knew that he could only bill Medicaid, Medicare, TRICARE, and other federal health care programs, if his ownership and control of St. George Pharmacy was covert. This aspect of the scheme required Wahba to enlist the assistance of individuals to pretend, at various times, to be the owners and operators of St. George Pharmacy. The main objective in creating the fictional (“nominee”) owners was to enable St. George Pharmacy to bill federal health care programs notwithstanding Wahba’s exclusion from participation in these programs.
During the time frame of the conspiracy, Wahba recruited three individuals to serve as nominee owners of St. George Pharmacy. Wahba paid these nominee owners a one-time fee or compensation.
During the conspiracy, St. George Pharmacy submitted millions of dollars in claims for reimbursement to Medicaid, Medicare, and TRICARE for prescription drug services. In total, St. George Pharmacy fraudulently received $5,281,931.00 in reimbursement payments from federal healthcare programs.
This case was investigated by the Department of Health and Human Services, Office of Inspector General; the Defense Criminal Investigative Service; and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
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Largo Man Sentenced to More Than 12 Years in Prison for Child Pornography OffensesRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington sentenced David Lee Franklin (62, Largo) yesterday to twelve years and seven months in federal prison for transportation, receipt, and possession of child pornography. The court also ordered Franklin to forfeit computers, hard drives, and assorted CDs and DVDs that were involved in the offenses. Franklin pleaded guilty on February 26, 2013.
According to court documents, an undercover detective downloaded multiple image and video files depicting child pornography from Franklin over several months beginning in November 2011. On June 13, 2012, law enforcement officers executed a search warrant at Franklin's residence. Franklin agreed to an interview and confessed to downloading and viewing child pornography. Also at the time of the search, the officers observed that Franklin was downloading child pornography via the internet. The officers seized Franklin's computers and related equipment. Subsequent forensics review found that they contained several thousand images and videos of child pornography.This case was investigated by the Federal Bureau of Investigation, the Pinellas County Sheriff’s Office, the Largo Police Department, and the Florida Department of Law Enforcement as part of the FBI's Violent Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former Key West Bank Officer Pleads Guilty to Disclosing A Federal Grand Jury Subpoena with the Intent to Obstruct A Judicial ProceedingRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Karen Galo (33, Key West) pleaded guilty yesterday to unlawfully disclosing a federal grand jury subpoena to a third party with the intent to obstruct a judicial proceeding. Galo faces a maximum penalty of 5 years in federal prison.
According to the plea agreement, on October 9, 2008, Galo, in her capacity as an officer of Key West Bank, received two federal grand jury subpoenas related to an investigation into mortgage fraud and money laundering. Galo knew the subject of the grand jury subpoenas. After receiving the grand jury subpoenas at the bank, Galo contacted the subject and sent him the subpoenas by fax. Galo disclosed the subpoenas to the subject with the intent to obstruct the investigation being conducted in Tampa. Included with the grand jury subpoenas served on the bank was a warning letter notifying Galo that it is a federal crime to disclose a federal grand jury subpoena received by a financial institution. Galo included the letter in the fax sent to the subject, along with the two subpoenas. Two days after the subject received the grand jury subpoenas, he fled the United States.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Customer Service Representative Indicted for Conspiracy to Issue Fraudulently Obtained Florida Driver Licenses and Aggravated Identity TheftRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces the return of an indictment charging Walter Brown (41, Kissimmee) with one count of conspiracy to knowingly and without lawful authority produce identification documents and nine counts of aggravated identity theft. If convicted, Brown faces up to 15 years in federal prison for the conspiracy charge and two years in federal prison for each count of aggravated identity theft charge.
According to the indictment, Brown was a Customer Service Representative in the Office of the Osceola County Tax Collector. Brown’s primary duty was to issue driver licenses and identification cards. Court documents show that in his capacity as a Customer Service Representative, Brown issued at least 200 Florida driver licenses and identification cards individuals who may not be legally entitled to the documents. In some instances, Brown fraudulently issued driver licenses and identification cards in multiple identities to the same person.
The Osceola County Tax Collector’s Office reported Brown to law enforcement after internal controls revealed suspicious activity involving his issuance of Florida State driver licenses and identification cards. The Tax Collector’s Office cooperated fully in the investigation. Brown was terminated from his employment.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of State Diplomatic Security Services, and the Florida Highway Patrol’s Bureau of Criminal Investigations and Intelligence. It is being prosecuted by Special Assistant United States Attorney Myrna Amelia Mesa.
Fort Myers Man Sentenced to Life in Prison for Selling HeroinRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele sentenced Epifanio H. Benitez (61, Fort Myers) yesterday to life in federal prison for selling heroin within 1,000 feet of Lee Middle School. The court also sentenced Benitez to a concurrent term of 15 years in prison for three counts of selling heroin, and one count of possessing ammunition as a convicted felon. Based on his multiple prior drug convictions, Benitez was sentenced as an armed career criminal. Benitez pleaded guilty on March 4, 2013.
According to court documents, between May and November 2011, Benitez was involved in seven drug transactions with undercover law enforcement. He sold heroin on four occasions to undercover detectives from the Fort Myers Police Department. He sold heroin on three occasions to undercover detectives from the Lee County Sheriff's Office. Benitez sold the heroin within 1,000 feet of Lee Middle School during four of the transactions.
A subsequent search warrant was executed at Benitez’s residence, culminating in his arrest. Among the items seized during the execution of the search warrant were forty-six rounds of .40 S&W ammunition found in Benitez’s bedroom. As a previously convicted felon, Benitez is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Fort Myers Police Department, the Lee County Sheriff's Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, along with Julie Torres, Special Agent In Charge, ATF Tampa Field Division, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials.
Nine Indicted for Federal Firearm and Drug ViolationsRead the Press Release
Jacksonville, Florida- United States Attorney Robert E. O'Neill announces the return of indictments charging nine individuals involved in the illegal sale of firearms and narcotics in Jacksonville. Today, special agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Florida Department of Law Enforcement (FDLE), along with detectives from the Jacksonville Sheriff's Office (JSO) arrested four individuals as part of an undercover law enforcement operation. The effort, dubbed "Delta Deuce," involved coordinated efforts among local, state, and federal law enforcement agencies and state and federal prosecutors. Three individuals were previously taken into custody and two are still being sought by law enforcement.
Nicklas McLain (23, Calahan) was indicted on eleven felony charges involving the sale of marijuana, cocaine, and firearms from December 2012 through March 2013. McLain sold three firearms to undercover agents. McLain also has prior felony convictions for sale of cannabis and possession of cocaine. He faces a minimum sentence of five years, up to a maximum of life imprisonment. McLain was arrested on April 3, 2013, and is being detained without bond pending trial.
Edward Dooley (20, Jacksonville) was indicted on ten felony charges involving the sale of marijuana and firearms from December 2012 through February 2013. Dooley sold eight firearms to undercover agents. He also has a prior felony conviction for burglary. Dooley faces a minimum sentence of five years, up to a maximum sentence of life imprisonment. He was also arrested on April 3, 2013. Dooley is serving a state sentence for violation of probation.
Jamar Powell (27, Jacksonville) was indicted on four felony charges involving the sale of crack cocaine and firearms during January 2013. Powell sold four firearms to undercover agents. Powell also has a prior felony conviction for sale of cocaine. He faces a minimum sentence of five years up to a maximum of life imprisonment. Powell was arrested on May 13, 2013, and is being detained without bond pending trial.
Omar Stovall (22, Jacksonville) was indicted on four felony charges involving the sale of marijuana and a firearm during December 2012. Stovall faces a minimum sentence of five years, up to a maximum of life imprisonment.
Leggetts Jenkins (28, Jacksonville) was indicted on three felony charges involving the sale of cocaine and a stolen firearm during February 2013. Jenkins faces a sentence of up to 50 years in federal prison.
Yessenia Terrell (20, Jacksonville) was indicted for selling crack cocaine to ATF agents during January and April 2013. He faces up to 40 years in federal prison.David Gonzalez (32, Middleburg) was indicted for being a felon in possession of a firearm. Gonzalez sold a 9mm pistol to ATF agents during January 2013. Gonzalez faces up to 10 years in federal prison.
Four others are being prosecuted by the State Attorney's Office for selling narcotics.
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.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jacksonville Sheriff's Office and the Florida Department of Law Enforcement. The cases will be prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, 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.
The successes of today’s activities are directly related to ATF’s “Frontline” strategy; an intelligence-driven approach to investigating federal firearms crimes. It focuses on the continuous communication, assessment, measurement, and collaboration of resources among federal, state, and local law enforcement partners.
Tarpon Springs Man Sentenced to 5 Years in Federal Prison for Narcotics and Firearm ChargesRead the Press Release
Tampa, FL - U.S. District Judge James D. Whittemore yesterday sentenced Gary Galati (46, Tarpon Springs) to five years in federal prison for possessing with intent to distribute marijuana and using a firearm during and in relation to that drug trafficking crime, and for possessing a firearm in furtherance of that drug trafficking crime. Galati pleaded guilty to those charges on January 15, 2013.According to court documents, Galati owned Galati Guns, Inc. and sold firearms without maintaining records as required by federal law. In addition, during the course of the investigation, Galati sold marijuana, firearms, and ammunition to a confidential source. On December 12, 2012, while at Galati Guns, Galati exchanged two firearms for marijuana with the confidential source. Later that day, federal agents executed search warrants at Galati Guns and at Galati’s residence, where they found additional marijuana near a loaded firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco County Sheriff’s Office, and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” program - a nationwide, gun-violence reduction strategy. United States Attorney Robert E. O’Neill, 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 Man Found Guilty of Drug ConspiracyRead the Press Release
Tampa, Florida - U.S. Attorney Robert E. O'Neill announces that a federal jury yesterday found Eugene E. Davis (39, Tampa) guilty of conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to possess with the intent to distribute 280 grams or more of crack cocaine. Based on his prior felony drug convictions, Davis faces a mandatory minimum term of life imprisonment. His sentencing hearing is scheduled for August 5, 2013. Davis was indicted on October 18, 2012.
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. Additionally, he was often described as "flashy and flamboyant," because he used his drug proceeds to fund an extravagant lifestyle with high-end cars, expensive jewelry, and thousand of dollars in cash.
This case was the result of a comprehensive and dedicated effort by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Hillsborough County Sheriff's Office, and the Tampa Police Department, as part of an on-going Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation's drug supply. It is being prosecuted by Assistant United States Attorney Shauna S. Hale.
Former University Community Hospital Staff Member Sentenced for Tax Fraud and Aggravated Identity TheftRead the Press Release
Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington yesterday sentenced Tanya Cullens to three years and three months in federal prison for conspiracy to commit tax fraud and aggravated identity theft. As part of the sentence, the court also entered a forfeiture money judgment in the amount of $44,080.00, which constitutes the proceeds of the tax fraud conspiracy. In addition, the court ordered Cullens to pay $85,055.00 in restitution to the Internal Revenue Service and Jabil Circuit, Inc. for a separate fraud offense. Cullens pleaded guilty on February 12, 2013.
According to court documents, in 2012, Cullens was a member of the cleaning staff at University Community Hospital. On January 17, 2012, she stole a patient list from the hospital. This list contained 48 patient names, dates of birth, and social security numbers of persons treated at University Community Hospital on that same date. Shortly after stealing the patient list from the hospital, Cullens provided the list to her friend and co-conspirator, Alesia Spivey, who used the list to file fraudulent tax returns with the IRS. None of the individuals whose names, dates of birth, and social security numbers appeared on these fraudulent tax returns knew that the conspirators were filing tax returns on their behalf. In total, ten fraudulent tax returns filed by the conspirators claimed approximately $79,204.00 in false tax refunds. Ultimately, the IRS paid out $44,080.00 in refunds to the conspirators.
Alesia Spivey pleaded guilty to her role in the conspiracy in December 2012. She is scheduled to be sentenced on June 19, 2013.
In the year prior to this offense, Cullens was involved in a scheme to defraud Jabil Circuit, Inc. On three occasions during the course of this unrelated fraud conspiracy, Cullens pretended to be an employee of Jabil Circuit for the purposes of convincing Jabil Circuit's relocation benefits contractor to send three lump sum payments to bank accounts controlled by Cullens. These lump sum payments were for false moving expenses that were never incurred by Cullens or any employee of Jabil Circuit. In all, Jabil Circuit suffered a loss of $40,975.00 due to the wire fraud scheme perpetrated by Cullens and Spivey.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Simon Gaugush.
Sanford Brothers Arrested for Conspiring to Steal Government PropertyRead the Press Release
Orlando, Florida - United States Attorney Robert E. O'Neill announces the arrests of Husein Kermali (37) and Sikandar Kermali (33), both from Sanford, Florida, for conspiring to steal government property. If convicted, both men face up to five years in federal prison.
According to the criminal complaint, while employed in the United States Army Active Guard Reserve, co-conspirator Sebastian Stewart Oyegun II, made unauthorized purchases of high-end engineering equipment, computer equipment and power tools. Oyegun charged the goods to the United States Army, and shipped the goods to various addresses. The purchases were made over the Internet using the General Services Administration (GSA) Advantage System website. The site is an ordering mechanism whereby government agencies or contractors can order items from vendors. Oyegun manipulated the purchasing system by fraudulently creating a phony user ID and password, providing phony points of contact and fake approving officials, and adding multiple shipping addresses. Most of the stolen goods were shipped to Oyegun's residence or a warehouse in Sanford, controlled by the Kermali brothers. In furtherance of the conspiracy, the Kermalis would select items they wanted from the GSA Advantage System website and e-mail their requests to Oyegun, paying him a fraction of the advertised price.
After the U.S. Army uncovered the scheme, Oyegun began cooperating with the FBI and participated in a number of controlled meetings with the Kermalis. On at least three occasions, Oyegun delivered stolen goods to the Kermalis at their Sanford warehouse in his U.S. Army Combat Uniform.
The Kermalis requested Surefire weapon sights, EOTech Holographic tactical weapon sights, and Trijicon gun sights from Oyegun and asked him if he could send items to Dubai. Sikandar Kermali also asked Oyegun for armor piecing ammunition and sent Oyegun a text message asking for more "war stuff."
Oyegun pleaded guilty for his role in this case. His sentencing hearing is scheduled for May 28, 2013, before U.S. District Judge Charlene Honeywell.
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 Federal Bureau of Investigation, the Army Criminal Investigative Command, the General Services Administration, Office of Inspector General, and the Department of Commerce, Office of Export Enforcement. It will be prosecuted by Assistant United States Attorney Daniel W. Eckhart.
Mortgage Agent Pleads Guilty to Mortgage Fraud ConspiracyRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Alexander Ende (35, Boynton Beach) yesterday pleaded guilty to conspiracy to commit bank fraud and mail fraud, and wire fraud affecting a financial institution. Ende faces a maximum penalty of 30 years in federal prison for his involvement in this mortgage fraud conspiracy.
According to the plea agreement, during the time frame of the conspiracy, Ende was a licensed mortgage agent working as a loan officer and branch manager for Apex Mortgage. His day-to-day responsibilities at Apex Mortgage included meeting with and pre-qualifying clients for mortgage loans. In or about late September 2006, Ende and two other individuals decided to purchase three condominium units at The Arbors at Carrollwood (“The Arbors”), a 390-unit condominium complex located at 3939 Ehrlich Road, in Tampa, Florida. Ende, in his role as a mortgage agent, assisted one of his co-conspirators with putting together three loan applications to secure mortgage loans for the purchases. Included in the loan applications, were various material misrepresentations made by Ende to ensure that the co-conspirator qualified for the mortgage loans. These material representations included false employment information, that the borrower intended to occupy all three condos as a primary residence, and the omission of other real estate owned by the borrower. Ende also failed to disclose to the mortgage lenders that the developer of The Arbors was providing tens of thousands of dollars in cash-back incentives to entice the purchase of these condo units.
In reliance on the materially false representations and omissions in the loan applications and the HUD-1 Settlement Statements, the mortgage lenders collectively loaned Ende’s co-conspirator $764,550.00 to purchase the three condo units, all of which have now fallen into foreclosure.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Simon Gaugush.
Members of Miami-Based Crack Cocaine Distribution Organization Sentenced from Three Years to Life in PrisonRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele has sentenced the following individuals to federal prison for their participation in a conspiracy to manufacture, possess with intent to distribute and distribution of cocaine base, also known as “crack cocaine.
Jude Sereme (29, Miami) Life Imprisonment 24 years, four months’ imprisonment Rick Jean (25, Miami) 20 years’ imprisonment Wilmane Jean (22, Miami) 10 years’ imprisonment Jophaney Hyppolite (28, Miami) Life Imprisonment Eric Bonita (25, Miami) Life Imprisonment Rashid Francois (26, Miami) 20 years’ imprisonment Jennifer Sander (30, Fort Myers) 10 years, ten months’ imprisonment Michael Dupin (29, Miami) 3 years, 10 months’ imprisonmentJude Sereme, Neheme Ductant, Rick Jean, Wilmane Jean, Jophaney Hyppolite, and Eric Bonita were found guilty following a three week trial that ended on October 5, 2012. Rashid Francois, Jennifer Sander and Michael Dupin pleaded guilty.
According to court documents, between July 2010 and October 2011, the above individuals operated as a drug trafficking organization (“DTO”), between Miami and Fort Myers. The DTO distributed crack cocaine in the North Fort Myers and South Fort Myers area.
This investigation was the result of a comprehensive and dedicated effort by the Cape Coral Police Department, Collier County Sheriff's Office, Drug Enforcement Administration, Federal Bureau of Investigation, Florida Department of Law Enforcement, Lee County Sheriff's Office and the Miami Police Department. The case was prosecuted by Assistant United States Attorney Jesus M. Casas.
Fugitive U.S. Lawyer Expelled from Nicaragua to Face Chargesof International Investment Fraud and Money LaunderingRead the Press Release
Tampa, Florida - United States Attorney Robert E. O'Neill announces that Lawrence S. Hartman, a/k/a Larry Hartman, a/k/a Larry Hart, a/k/a Lawrence Scott Hartman-Grosser (47, Costa Rica; a U.S. lawyer formerly of New York and Florida), who was arrested on an immigration violation by Nicaraguan authorities last week, was today expelled and deported from Nicaragua and turned over to U.S. authorities in Miami. Hartman faces charges of both conspiracy to commit, and substantive acts of, mail fraud, wire fraud and money laundering arising from an international investment fraud and money laundering scheme that resulted in victim-investor losses in excess of $137 million. If convicted, he faces a maximum penalty of 20 years' imprisonment on each of the three conspiracy and substantive mail and wire fraud offenses, and 10 years in prison on each of the substantive money laundering counts (Counts 4 - 17).
Hartman was charged in a Superseding Indictment on March 2009. He is expected to make his initial appearance tomorrow, May 16, 2013, at 1:30 pm in U.S. District Court in Miami.
This apprehension and expulsion was achieved through the joint cooperation of various agencies, including U.S. Immigration and Customs Enforcement's Homeland Security Investigations, the U.S. Secret Service, the U.S. Department of State Bureau of Diplomatic Security, U.S. Embassy Managua, INTERPOL Washington, and the Nicaraguan National Police.
To date, juries have found four of Hartman's co-defendants guilty of the fraud scheme, and another co-defendant pleaded guilty. Specifically, on April 19, 2013, a federal jury found United Kingdom citizens, Paul R. Gunter (64, Odessa, Florida; originally of London), and Simon Andrew Odoni (56, Hertfordshire, UK) guilty of 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. Gunter and Odoni each face a maximum penalty of 20 years in federal prison on each of the conspiracy charges and each of the separate mail and wire fraud charges, and up to 10 years on each of the money laundering charges. Both individuals will also be ordered to forfeit real property, bank accounts, 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. Gunter and Odoni are scheduled to be sentenced on July 23, 2013.
In March 2011, co-defendant Richard Sinclair Pope pleaded guilty to conspiracy to commit wire and mail fraud. Pope faces a maximum sentence of 20 years in prison.
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 was investigated by the U.S. Immigration and Customs Enforcement's Homeland Security Investigations, 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.
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.
The case is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Kelley Howard-Allen.
Southwest Florida Men Sentenced on Federal Bank Robbery ChargesRead the Press Release
Fort Myers, Florida - U.S. District Judge John E. Steele sentenced Michael James Harrell (33, Fort Myers) and Matthew Rollins (27, Fort Myers) yesterday for armed bank robbery, possession of a firearm during a crime of violence, attempted bank robbery, conspiracy to commit armed bank robbery and conspiracy to use firearms during a crime of violence. These crimes relate to a series of bank robberies that took place in Lee County, during the summer and fall of 2011. Harrell was sentenced to 62 years in federal prison. Rollins was sentenced to 42 years in federal prison. A third participant, Maurice Andre Colbert (28, Fort Myers), will be sentenced on June 20, 2013.
According to evidence presented at trial, from June 6, 2011 through October 7, 2011, Harrell, Rollins, Colbert, and another individual conspired to rob area banks with firearms. In addition to the conspiracy, the jury found that the men were guilty of armed robbery and related weapons charges related to robberies of the following financial institutions: Lee County Postal Employees Credit Union (Harrell, Colbert - June 6, 2011); Wells Fargo Bank, Lehigh Acres (Harrell, Rollins - August 12, 2011); Preferred Community Bank, Lehigh Acres (Harrell, Rollins - August 31, 2011).
The jury also found all three men guilty of the attempted robbery of the following financial institutions: Wells Fargo Bank, Bonita Springs (September 14, 2011 - Harrell, Rollins, Colbert); Capital Bank, Fort Myers (October 4, 2011 - Harrell, Rollins, Colbert); Fifth Third Bank, Fort Myers (October 7, 2011 - Harrell, Colbert).
This case was the result of a cooperative investigative effort among the following federal, state, and local law enforcement agencies: the Federal Bureau of Investigation, Lee County Sheriff's Office, Fort Myers Police Department, Florida Department of Law Enforcement, Charlotte County Sheriff's Office, Collier County Sheriff's Office, Cape Coral Police Department, Punta Gorda Police Department, and the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Melbourne Man Sentenced to 20 Years on Federal Child Pornography ChargesRead the Press Release
Orlando, Florida - U.S. District Judge Roy B. Dalton, Jr. today sentenced Jose Manuel Rivera, Jr. (35, Melbourne) to the statutory maximum of 20 years in federal prison for receipt of child pornography. The court also ordered Rivera to serve a 25-year term of supervised release following his release from prison, and to forfeit the computer equipment he used to commit the offense. Rivera pleaded guilty on February 22, 2013.
According to court documents, Rivera downloaded and collected over a dozen movies depicting the sexual exploitation and abuse of prepubescent children, some as young as three years old. Rivera also admitted to molesting a toddler on two separate occasions when the child had previously lived in his family's home. “Homeland Security Investigations special agents identified Rivera as a child predator during Operation Sunflower, a nationwide operation focused on identifying sexual predators and rescuing victims,” said Susan McCormick, special agent in charge of Homeland Security Investigations Tampa. “As a result of our agents’ investigative work, Rivera can no longer prey on innocent children. He will spend the next two decades behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement's Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Joseph M. Schuster.Homeland Security Investigations launched Operation Sunflower in November 2012 to commemorate the one-year anniversary in which the identification of a sunflower-shaped highway road sign led to the rescue of an 11-year-old girl in Kansas. The operation identified 123 victims of child exploitation. Of that number, 44 were directly rescued from their abusers and 79 were identified as either being exploited by others outside their home or are now adults who were victimized as children.
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 Attorney's 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. For more information about internet safety education, please visit www.projectsafechildhood.gov and click on the tab "other resources."
Child Pornography Producer and Distributor Sentenced to Federal PrisonRead the Press Release
Fort Myers, FL - U.S. District Judge John Steele today sentenced Raymond Lugo (38, Punta Gorda) to 22 years in federal prison, to be followed by lifetime supervised release, for producing child pornography. The court also ordered Lugo to forfeit his computers and camera, which are traceable to proceeds of the offense. Lugo pleaded guilty on October 31, 2012.
According to court documents, Lugo victimized an approximately 2 year-old child on multiple occasions, for the purpose of producing child pornography photographs. Lugo photographed himself sexually molesting the child. He then traded those images with others for the purpose of obtaining other child pornography images.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Tama Koss Caldarone.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
New Port Richey Man Sentenced to 15 Years in Prison for Transportation of Child PornographyRead the Press Release
Tampa, Florida - U.S. District Judge Mary S. Scriven sentenced Christopher Brian Mott (52, New Port Richey) to 15 years in federal prison for transportation of child pornography. The court also ordered Mott to forfeit a computer involved in the offense. Mott pleaded guilty on January 30, 2013.
According to court documents, an undercover agent downloaded multiple video files depicting child pornography from Mott in September 2012. On November 7, 2012, federal agents executed a search warrant at Mott's residence. Mott agreed to an interview and confessed to using his computer to access the internet to obtain child pornography and to those files then being available for others to download from him. During the search, agents seized Mott's computer. Subsequent forensics review found that it contained images of child pornography.
In addition, during the sentencing hearing, the Court found that Mott had previously engaged in a pattern of activity involving the sexual abuse or exploitation of a minor. The Court heard testimony from two witnesses who recounted instances of sexual abuse or exploitation perpetrated by Mott while they were minors.
This case was investigated by the Federal Bureau of Investigation and the Largo Police Department, as part of the FBI's Violent Crimes Against Children Task Force. It was prosecuted by Assistant United States Attorney Joseph W. Swanson.
It is another case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
South Bay Man Sentenced to More Than 2 Years in Prison for Stealing Government Money in Tax Fraud SchemeRead the Press Release
Tampa, FL - U.S. District Judge Mary S. Scriven sentenced Larry Lee Northern, Jr. to 32 months in federal prison for theft of government funds and aggravated identity theft. Northern pleaded guilty on January 19, 2013.
According to court documents, on October 6, 2011, Northern was stopped by law enforcement for excessive speeding. During the stop, he was found to be in possession of illegal narcotics and various prepaid debit cards. Specifically, Northern possessed 15 prepaid debit cards in the names of various individuals, as well as 17 Wal-Mart Money Cards. In addition, Northern had internal corporate documents from a local healthcare company. The documents contained the personal identification information of numerous individuals. The individuals were later identified as current or former clients of a healthcare company. Northern also had $15,700.00 in cash.
Subsequent investigation determined that 12 of the 15 prepaid debit were credited with U.S. Treasury income tax refunds. The refunds on the prepaid cards, totaling $93,879.00, were obtained as a result of the filing of fraudulent income tax returns. The fraudulent returns were filed in the names of individuals who had not given Northern permission to file the returns for them. Of the 17 Wal-Mart Money Cards possessed by Northern, nine of the cards had a total of $65,463.00 loaded onto them. These were also determined to be the proceeds of fraudulently filed income tax returns.
This case was investigated by the Internal Revenue Service Criminal Investigation, the U. S. Department of Health and Human Services, Office of the Inspector General, and the United States Postal Inspection Service. It was prosecuted by Assistant United States Attorney Amanda C. Kaiser.