Middle District of Florida

A Florida woman was sentenced today to 151 months in federal prison, followed by three years of supervised release, for her work for and support of subscription-based sexually exploitative “child modeling” websites. The court also ordered the defendant to forfeit more than $2.2 million, as well as real property located in Weston, Florida.

According to court documents, Tatiana Power, aka Tanya Power, 41, of Weston, helped run the financial affairs of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power served as Vice President and part owner of Power Trading Inc., a Florida corporation used to control, operate and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) bookkeeper. She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made more than $2.2 million from the Newstar Websites.

According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited, and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. The Newstar Enterprise used the recruited child-victims, to produce more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as six years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims – recruited from Ukraine, Moldova, and other nations in Eastern Europe – were particularly vulnerable due to their age and socio-economic status. Law enforcement officers have disabled the servers hosting the Newstar Websites.

The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the conspiracy. To process, receive and distribute this money, Newstar Enterprise leaders fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company. 

To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case. 

Name

Case Number

Charge(s)

Status

Tatiana Power

8:21-cr-244-MSS-AAS

Conspiracy to commit money laundering

Pleaded guilty, sentenced to 12.5 years in prison

 

Kenneth Power

8:21-cr-00032-SDM-AAS

Conspiracy to advertise child pornography; conspiracy to distribute child pornography

 

Defendant deceased: case dismissed

Plamen Velinov

8:21-cr-342-VMC-SPF

Conspiracy to advertise child pornography; conspiracy to distribute child pornography

 

Indicted

Patrice Wilowski-Mevorah

 

8:21-cr-00206-MSS-TGW

Conspiracy to commit money laundering

63 months in prison

Anthony Lee Kendall

8:21-cr-358-SCB-TGW

Conspiracy to commit money laundering; promotion money laundering; concealment money laundering

 

Defendant deceased

Mary Lou

Bjorkman

8:21-cr-00227-SDM-AAS

Conspiracy to commit money laundering

Pleaded guilty, sentenced to 18 months in prison

 

The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.

These cases were investigated by Homeland Security Investigations (HSI) in Tampa and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by the Criminal Division’s Money Laundering and Asset Recovery Section, HSI offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as IRS Criminal Investigation in Tampa.

Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.

This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided assistance securing foreign evidence and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.

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

Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Monique Elizabeth Carter (35, Middleburg) today pleaded guilty to tampering with a consumer product, specifically, injectable fentanyl.  Carter faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Carter, a registered nurse who previously was employed by a hospital in Jacksonville, worked in a neural intensive care unit (ICU) providing intensive and specialized care to critically ill patients with life-threatening neurological problems. Certain ICU patients were prescribed intravenous doses of fentanyl, which is synthetic opioid used as a pain medication and as anesthesia. 

After Carter’s shift on September 28, 2021, a hospital pharmacist examined the ICU wing’s inventory of fentanyl and found a fentanyl syringe missing a tamper-proof cap, but with some form of foreign adhesive remaining at the tip. A second fentanyl syringe had a cap that appeared to have been glued back onto the syringe.  After reviewing hospital records, a pharmacist supervisor noted a pattern of Carter checking out doses of fentanyl for patients, but then cancelling the transactions and checking syringes back into the hospital’s inventory. Records showed that Carter did so 24 times between August 29 and September 28, 2021. Carter was the only nurse on her ICU wing who persistently engaged in such conduct.

The next day, when Carter arrived for work, hospital representatives interviewed her. Confronted with the pharmacists’ findings, Carter eventually admitted that – to obtain drugs for personal use at home – she had been removing injectable fentanyl from syringes, replacing the drug with saline, and then gluing the plastic tampering caps back onto the syringes with an adhesive that she obtained from the hospital. Carter admitted that she had been tampering with fentanyl syringes since the summer of 2021. Carter denied injecting fentanyl while on duty at the hospital, however, law enforcement later located needles, saline syringes, and adhesive in her bag.

Carter, as a trained healthcare professional, knew that her activities likely resulted in critically ill patients receiving diluted fentanyl that was not safe and effective. Having been deprived of sterile, medically necessary medication, such patients were exposed to possible infection and endured unnecessary pain and suffering. In addition, Carter knew that the failure to anesthetize or control pain in ICU patients can result in increased risks of illness or death, stemming from, among other things, respiratory, cardiovascular, and musculoskeletal complications. 

This case was investigated by the U.S. Food and Drug Administration, Office of Criminal Investigations and the Jacksonville Sheriff’s Office – Pharmaceutical Diversion and Designer Drug Unit attached to the North Florida High Intensity Drug Trafficking Area. It is being prosecuted by Assistant United States Attorney Michael J. Coolican. 

Fort Myers – U.S. District Judge Thomas Barber today sentenced Jarvis Bernard Bowens (35, Lehigh Acres) to 25 years in federal prison for possessing with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine. Bowens had pleaded guilty on January 6, 2022.

According to court documents, in July 2021, DEA agents executed search warrants at Bowens’s residence in Lehigh Acres and at his business in Fort Myers.  Between the locations, agents seized more than one kilogram of fentanyl, more than two-and-a-half kilograms of crystal methamphetamine, quantities of powder cocaine and crack cocaine, and two loaded firearms, all belonging to Bowens. 

This case was investigated by the Drug Enforcement Administration and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Simon R. Eth.

Tampa, Florida – U.S. District Judge James D. Whittemore has sentenced Oscar Marsiglia Barrios (54, Colombia) to 17 years in federal prison for conspiracy to distribute cocaine knowing and intending that it be imported into the United States. Marsiglia Barrios had pleaded guilty on January 12, 2022. Marsiglia Barrios had been arrested in Colombia in August 2019 and extradited to the United States in March 2021.

According to court documents, beginning around February 2015 and continuing until October 26, 2017, Marsiglia Barrios was part of a transnational criminal conspiracy that transported cocaine from Colombia to the United States. Marsiglia Barrios operated out of the Puerto Nuevo region of Colombia and was responsible for recruiting, hiring, and paying individuals to transport cocaine out of Colombia into the United States in cargo ships. Between 2015 and 2018, fifteen of Marsiglia Barrios’s co-conspirators were arrested, indicted, and sentenced to federal prison in the Middle District of Florida.

This case was investigated by the Drug Enforcement Administration and the Federal Bureau of Investigation. The Department of Justice’s Office of International Affairs provided significant assistance with the defendant’s extradition. The U.S. Marshals Service also provided critical assistance by extraditing Marsiglia Barrios from Colombia to the Middle District of Florida. The case was prosecuted by Assistant United States Attorney Diego F. Novaes.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Bridgitte Keim (52, Temple Terrace) to 24 months in federal prison for bank fraud. The Court also ordered Keim to forfeit $7,500, which was traceable to proceeds of the offense. Keim had pleaded guilty on January 5, 2022.

According to court documents, between April and May 2021, Keim defrauded a federally insured financial institution and the U.S. Small Business Administration (“SBA”) by submitting false and fraudulent loan applications and supporting documentation for federally guaranteed Payment Protection Program (“PPP”) loans that were designed to assist businesses suffering adverse economic effects from the COVID-19 pandemic. Keim recruited family members to provide their personal information in exchange for free “COVID money.” Keim prepared and submitted false and fraudulent PPP loan applications to the financial institution on behalf of her relatives in the names of fictitious businesses, knowing that her relatives did not have existing businesses, did not have employees, had no business income, and had no payroll expenses as required by the SBA to qualify for PPP loans. In furtherance of the scheme, Keim also impersonated the family members in communications with the financial institution.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the U.S. Small Business Administration – Office of Inspector General, and the Federal Bureau of Investigation. It was prosecuted by Special Assistant United States Attorney Chris Poor.

Physician Partners of America LLC (PPOA), headquartered in Tampa, Florida, its founder, Rodolfo Gari, and its former chief medical officer, Dr. Abraham Rivera, have agreed to pay $24.5 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for unnecessary medical testing and services, paying unlawful remuneration to its physician employees and making a false statement in connection with a loan obtained through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Certain PPOA affiliated entities are jointly and severally liable for the settlement amount, including the Florida Pain Relief Group, the Texas Pain Relief Group, Physician Partners of America CRNA Holdings LLC, Medical Tox Labs LLC and Medical DNA Labs LLC.

The United States alleged that PPOA caused the submission of claims for medically unnecessary urine drug testing (UDT), by requiring its physician employees to order multiple tests at the same time without determining whether any testing was reasonable and necessary, or even reviewing the results of initial testing (presumptive UDT) to determine whether additional testing (definitive UDT) was warranted. PPOA’s affiliated toxicology lab then billed federal healthcare programs for the highest-level UDT. In addition, PPOA incentivized its physician employees to order presumptive UDT by paying them 40% of the profits from such testing in violation of the Stark Law, which prohibits physicians from referring patients to receive “designated health services” payable to Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.

The United States further alleged that PPOA required patients to submit to genetic and psychological testing before the patients were seen by physicians, without making any determination as to whether the testing was reasonable and necessary, and then billed federal healthcare programs for the tests.

The United States further alleged that when Florida suspended all non-emergency medical procedures to reduce transmission of COVID-19 in March 2020, PPOA sought to compensate for lost revenue by requiring its physician employees to schedule unnecessary evaluation and management (E/M) appointments with patients every 14 days, instead of every month as had been PPOA’s prior practice. PPOA then instructed its physicians to bill these E/M visits using inappropriate high-level procedure codes. Moreover, the United States alleged that at the same time PPOA was engaged in this unlawful overbilling, PPOA falsely represented to the SBA that it was not engaged in unlawful activity in order to obtain a $5.9 million loan through the PPP. The settlement announced today resolves liability under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) arising from the false claims submitted to federal healthcare programs for the E/M visits as well for PPOA’s false statement in connection with its PPP loan.

“Billing federal healthcare programs for services that providers know are unnecessary or unreasonable undermines the quality of care that patients receive and increases the costs of these taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that healthcare providers base their treatment decisions on their patients’ needs rather than their own financial interests.”

“Holding healthcare providers accountable for inflated claims and false statements helps ensure the integrity of the healthcare system as a whole,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Settlements like this one are an important step in that direction.”

“Since the beginning of the pandemic, the SBA has been focused on providing relief swiftly, equitably and efficiently to millions of struggling small business owners – ensuring that relief has been distributed with the utmost integrity has been central to that mission under Administrator Guzman,” said General Counsel Peggy Delinois Hamilton for the SBA. “The SBA takes fraud seriously and will continue to make it our priority to work alongside the Office of the Inspector General to identify and address any potential fraud to ensure sound administration of relief programs.”

In connection with the settlement, PPOA also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Under the CIA, PPOA agreed to undertake significant compliance efforts, including: maintain a compliance department, medical director and oversight board; retain a compliance expert; provide management certifications; maintain written standards, training and education; obtain multiple annual claims reviews by an Independent Review Organization; establish a risk assessment and internal review process; and implement monitoring of testing referrals. 

“When health care providers bill taxpayer-funded health care programs for medically unnecessary services, they divert government funds designed to assist business owners during this pandemic,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “Our agency will work with our law enforcement partners to thoroughly investigate health care fraud schemes.”

“This settlement allows OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return those funds to the Employees’ Compensation Fund,” said Director Christopher Godfrey of the Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP). “The Department of Labor’s Office of Inspector General, as well as various other agencies’ offices of inspector general (OIG), devote significant investigative resources to detecting cases of possible abuse within the FECA program, and this settlement demonstrates the commitment of the DOL and its OIG in helping to ensure that funds issued through the program are paid appropriately.”

“When actors within our health care system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” said Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work with our investigative partners to protect the funding entrusted to the Defense Health Agency that serves our military members and their families.”

“Veterans Affairs' Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Southeast Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds.”

“When providers submit false claims for medically unnecessary tests, they are not only violating their patients’ trust but also compromising the integrity of the Federal Employees Health Benefits Program (FEHBP),” said Special Agent in Charge Amy K. Parker of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “This settlement demonstrates the OPM OIG’s commitment to protecting patients from tests that are not medically reasonable or necessary and safeguarding the FEHBP from fraudulent claims.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donald Haight, Dawn Baker, Dr. Harold Cho, Dr. Venus Dookwah-Roberts and Dr. Michael Lupi, who are current or former employees of PPOA or its affiliated entities. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Haight v. Physician Partners of Am.; United States ex rel. Baker v. Physician Partners of Am LLC; United States ex rel. Lupi v. Physician Partners of Am. LLC; and United States ex rel. Dookwah-Roberts v. Physician Partners of Am. LLC.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Middle District of Florida; HHS-OIG; VA OIG; DCIS; DOL OIG; and OPM OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The matter was handled by Senior Trial Counsel David W. Tyler of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida.

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

Physician Partners of America LLC (PPOA), headquartered in Tampa, Florida, its founder, Rodolfo Gari, and its former chief medical officer, Dr. Abraham Rivera, have agreed to pay $24.5 million to resolve allegations that they violated the False Claims Act by billing federal healthcare programs for unnecessary medical testing and services, paying unlawful remuneration to its physician employees and making a false statement in connection with a loan obtained through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP). Certain PPOA affiliated entities are jointly and severally liable for the settlement amount, including the Florida Pain Relief Group, the Texas Pain Relief Group, Physician Partners of America CRNA Holdings LLC, Medical Tox Labs LLC and Medical DNA Labs LLC.

The United States alleged that PPOA caused the submission of claims for medically unnecessary urine drug testing (UDT), by requiring its physician employees to order multiple tests at the same time without determining whether any testing was reasonable and necessary, or even reviewing the results of initial testing (presumptive UDT) to determine whether additional testing (definitive UDT) was warranted. PPOA’s affiliated toxicology lab then billed federal healthcare programs for the highest-level UDT. In addition, PPOA incentivized its physician employees to order presumptive UDT by paying them 40% of the profits from such testing in violation of the Stark Law, which prohibits physicians from referring patients to receive “designated health services” payable to Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies.

The United States further alleged that PPOA required patients to submit to genetic and psychological testing before the patients were seen by physicians, without making any determination as to whether the testing was reasonable and necessary, and then billed federal healthcare programs for the tests.

The United States further alleged that when Florida suspended all non-emergency medical procedures to reduce transmission of COVID-19 in March 2020, PPOA sought to compensate for lost revenue by requiring its physician employees to schedule unnecessary evaluation and management (E/M) appointments with patients every 14 days, instead of every month as had been PPOA’s prior practice. PPOA then instructed its physicians to bill these E/M visits using inappropriate high-level procedure codes. Moreover, the United States alleged that at the same time PPOA was engaged in this unlawful overbilling, PPOA falsely represented to the SBA that it was not engaged in unlawful activity in order to obtain a $5.9 million loan through the PPP. The settlement announced today resolves liability under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) arising from the false claims submitted to federal healthcare programs for the E/M visits as well for PPOA’s false statement in connection with its PPP loan.

“Billing federal healthcare programs for services that providers know are unnecessary or unreasonable undermines the quality of care that patients receive and increases the costs of these taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that healthcare providers base their treatment decisions on their patients’ needs rather than their own financial interests.”

“Holding healthcare providers accountable for inflated claims and false statements helps ensure the integrity of the healthcare system as a whole,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Settlements like this one are an important step in that direction.”

“Since the beginning of the pandemic, the SBA has been focused on providing relief swiftly, equitably and efficiently to millions of struggling small business owners – ensuring that relief has been distributed with the utmost integrity has been central to that mission under Administrator Guzman,” said General Counsel Peggy Delinois Hamilton for the SBA. “The SBA takes fraud seriously and will continue to make it our priority to work alongside the Office of the Inspector General to identify and address any potential fraud to ensure sound administration of relief programs.”

In connection with the settlement, PPOA also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Under the CIA, PPOA agreed to undertake significant compliance efforts, including: maintain a compliance department, medical director and oversight board; retain a compliance expert; provide management certifications; maintain written standards, training and education; obtain multiple annual claims reviews by an Independent Review Organization; establish a risk assessment and internal review process; and implement monitoring of testing referrals. 

“When health care providers bill taxpayer-funded health care programs for medically unnecessary services, they divert government funds designed to assist business owners during this pandemic,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “Our agency will work with our law enforcement partners to thoroughly investigate health care fraud schemes.”

“This settlement allows OWCP to recover medical bill payments under the Federal Employees’ Compensation Act and return those funds to the Employees’ Compensation Fund,” said Director Christopher Godfrey of the Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP). “The Department of Labor’s Office of Inspector General, as well as various other agencies’ offices of inspector general (OIG), devote significant investigative resources to detecting cases of possible abuse within the FECA program, and this settlement demonstrates the commitment of the DOL and its OIG in helping to ensure that funds issued through the program are paid appropriately.”

“When actors within our health care system are focused on profit rather than patient care, it undermines the integrity of the medical decision-making process,” said Special Agent in Charge Cynthia A. Bruce of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS will continue to work with our investigative partners to protect the funding entrusted to the Defense Health Agency that serves our military members and their families.”

“Veterans Affairs' Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Southeast Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds.”

“When providers submit false claims for medically unnecessary tests, they are not only violating their patients’ trust but also compromising the integrity of the Federal Employees Health Benefits Program (FEHBP),” said Special Agent in Charge Amy K. Parker of the U.S. Office of Personnel Management, Office of the Inspector General (OPM OIG). “This settlement demonstrates the OPM OIG’s commitment to protecting patients from tests that are not medically reasonable or necessary and safeguarding the FEHBP from fraudulent claims.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Donald Haight, Dawn Baker, Dr. Harold Cho, Dr. Venus Dookwah-Roberts and Dr. Michael Lupi, who are current or former employees of PPOA or its affiliated entities. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Haight v. Physician Partners of Am.; United States ex rel. Baker v. Physician Partners of Am LLC; United States ex rel. Lupi v. Physician Partners of Am. LLC; and United States ex rel. Dookwah-Roberts v. Physician Partners of Am. LLC.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Middle District of Florida; HHS-OIG; VA OIG; DCIS; DOL OIG; and OPM OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The matter was handled by Senior Trial Counsel David W. Tyler of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida.

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

A Florida man was sentenced to 51 months in prison today for his role in a nationwide tax fraud scheme that involved more than 200 participants in at least 19 states.

According to court documents and statements made in court, Aaron Aqueron, of Clermont, recruited clients to the fraud scheme by convincing them that their mortgages and other debts entitled them to tax refunds. Aqueron collected tax and financial information from the clients to send to co-conspirators, who prepared tax returns and other tax documents to submit to the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. In total, the tax returns filed by Aqueron’s clients sought more than $14.6 million in tax refunds and caused the IRS to actually pay out more than $7.6 million.

As part of his plea, Aqueron admitted he and his co-conspirators received fees from his clients ranging from $10,000 to $15,000 each. Aqueron further admitted he did not report on his 2015 individual tax return the income he received from the scheme. Aqueron also personally filed false tax returns for other years on which he fraudulently claimed that he was entitled to tax refunds. In response to one of these false tax returns, the IRS issued Aqueron a refund of $193,347.97.

Aqueron further admitted that, pursuant to the fraud scheme, he attempted to obstruct the IRS’s efforts to collect the tax refunds it issued to his clients. Aqueron and his co-conspirators coached clients on ways to obstruct IRS collection efforts. For example, after learning one client had begun to receive letters from the IRS about collections, Aqueron instructed the client: “Make sure you move money out of your name and out of the banking institutions and be smart.” Aqueron also attempted to obstruct IRS efforts to collect his own fraudulently-obtained refund, including by transferring money into a trust.

Last month, the main promoter of the fraud scheme, Iran Backstrom, was sentenced to more than eight years in prison. Backstrom’s second-in-command, Mehef Bey, was sentenced to 11 years in prison.

In addition to the term of imprisonment, the district judge also ordered Aqueron to serve three years of supervised release and pay approximately $5.9 million in restitution to the IRS.

Acting Deputy Assistant Attorney General Stuart M. Goldberg and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

IRS-Criminal Investigation is investigating the case.

“The sentencing handed down today demonstrates the key role Aqueron played in this sophisticated scheme to swindle the government,” said IRS-Criminal Investigation Special Agent in Charge Brian Payne. “Financial fraud of this magnitude and with this degree of trickery, deceit, and dishonesty, deserves to be punished. The IRS and Department of Justice remain determined and vigilant in investigating and prosecuting such schemes to the fullest extent of the law.”

Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Tax Division, and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida are prosecuting the case. 

Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Lonnie Lorenzo Hollingsworth, Jr. (37, Ocala) to three years in federal prison for possessing ammunition as a convicted felon. Hollingsworth had been found guilty following a bench trial on October 15, 2021.

According to court documents, Hollingsworth had previously threatened the Marion County Sheriff, and his deputies, in connection with an event on March 10, 2013, wherein Hollingsworth was shot by an individual Hollingsworth was attempting to rob. The incident resulted in Hollingsworth being arrested and convicted for attempted strong arm robbery. Despite his guilty plea in that case, Hollingsworth blamed the Sheriff’s Office for his prosecution, claiming that he was a victim.

On December 18, 2020, Hollingsworth walked into the Marion County Jail visitation center and handed over a package containing a “manifesto” detailing his desire to retaliate against the Sheriff. Four days later, he taped an identical copy of the manifesto to the doors of the Marion County Courthouse.

Three months later, on April 5, 2021, Hollingsworth called 911 from an Ocala gas station and threatened the Sheriff with violence.  Ocala Police officers responded to the scene and were successful in deescalating the situation with Hollingsworth. A round of ammunition was found in Hollingsworth’s possession, which he is prohibited from possessing under federal law due to his five prior felony convictions.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Ocala Police Department. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Keson Viason Evans, Jr. (30, Eustis) to 11 years and 10 months in federal prison for conspiracy to distribute controlled substances. On December 17, 2021, Judge Antoon sentenced co-defendant George Randolph Morris, Jr. (31, Umatilla) to 10 years of imprisonment and co-defendant Demitric Jovante Blue (25, Ocala) to 7 years and 3 months of imprisonment. All three were convicted following their guilty pleas for the same offense.

According to court documents, Evans, Morris, and Blue conspired with one another between May 11 and 20, 2021, to distribute methamphetamine and fentanyl. An informant, working with the Drug Enforcement Administration placed an order to purchase 1.4 kilograms of methamphetamine and 3 kilograms of fentanyl from Morris. Evans was the source of supply for the fentanyl and Blue was the source of supply for the methamphetamine. When all three men showed up on May 20, 2021, to deliver the drugs to the informant in Leesburg, DEA agents arrested them and seized the drugs.

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.

Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Anthony Wayne Smith (58, Bradenton) to 18 months in federal prison for manufacturing counterfeit currency. The Court also ordered Smith to forfeit a firearm and ammunition found during a search of his house. Smith had pleaded guilty on January 14, 2022.

According to the plea agreement, Smith manufactured U.S. Federal Reserve notes at his home in Bradenton. During the execution of a search warrant at Smith’s residence, law enforcement officers recovered, among other things, a large quantity of counterfeit notes hidden throughout the residence, texturized printing paper, and printers. Additionally, Smith’s laptop computer contained digital images of U.S. Federal Reserve notes that had been used in the production and manufacture of counterfeit currency.

This case was investigated by the United States Secret Service, the Manatee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney David W.A. Chee.

Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Loyd Tomlinson, I (St. Petersburg, 79) to four years and four months in federal prison for defrauding a federally insured financial institution out of more than $20 million. As part of his sentence, the Court also entered a money judgment in the amount of $400,000, the proceeds of the fraud. Tomlinson had pleaded guilty on August 5, 2021.

According to court documents, Tomlinson, I and his son, Loyd Tomlinson II, owned and operated LTA International Global Services LLC (“LTA”), a distribution company. In or around 2015, LTA began to have severe financial problems. In 2016, Tomlinson, I and Tomlinson, II devised a plan to fabricate documents and records to raise money from investors and financial institutions in hopes of salvaging LTA’s business. 

Tomlinson, I instructed others to create fake bank statements, inflated sales, accounts receivable, and inventory documents; borrowed money from private investors (who were often also provided fake documents) as off-the-book loans; used other entities as possible alter egos to raise money or divert sales off the books; and concealed from others the true facts about the financial state of LTA. Based on these false statements and representations, in or around July 2019, a financial institution loaned LTA approximately $21 million, which was not recovered.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Rachel K. Jones. Asset forfeiture and restitution matters were handed by Assistant United States Attorneys Julie A. Simonsen and Suzanne Nebesky.

Tampa, Florida – United States Attorney Roger B. Handberg announces that Eugene Fanfan has pleaded guilty to one count of aiding in the preparation of filing a false tax return. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Fanfan helped to prepare numerous false and fraudulent income tax returns on behalf of clients in 2016. Those tax returns contained false information about clients’ business income and loss, as well as false claims relating to the American Opportunity Credit. As a result of those false entries, Fanfan’s clients were able to claim and receive substantial refunds from the IRS which his clients were not lawfully entitled to receive. Those refunds exceeded $100,000.   

This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Tiffany E. Fields.

Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Samuel Maldonado (48, New York City) to 5 years and 10 months in federal prison for failing to register as a convicted sex offender after absconding from parole in New York and moving to Jacksonville. Maldonado was also ordered to serve a 10-year term of supervised release. Maldonado has been in custody since his arrest on December 15, 2016, in New York City. He had pleaded guilty on February 24, 2022.         

According to court documents and information provided in open court, in 2009, Maldonado was convicted in New York of sexual misconduct with a 16-year-old child. In 2011, Maldonado was convicted in New York of first-degree sexual abuse of a 14-year-old child. After being released from prison in New York in 2014, Maldonado was placed on parole. At that time, he was advised of his ongoing duty to register as a sex offender and signed documentation acknowledging that he understood his obligation to do so, including if he relocated to another state.

On March 4, 2016, authorities in New York issued a warrant for Maldonado's arrest for violating his parole by failing to check in with his parole officer. In January 2016, Maldonado had absconded from supervision, left New York, and moved to Jacksonville. After establishing residence in Florida, he knowingly failed to register as a sex offender as required by both federal and Florida law.

On August 8, 2016, Maldonado was arrested in Jacksonville on a warrant based on his New York parole violation and was extradited back to New York. On December 15, 2016, Maldonado was arrested by the U.S. Marshals Service in New York City on a warrant issued by a Florida state court. During an interview, Maldonado admitted that he had several criminal convictions, including his two prior child sexual offense convictions. He also acknowledged that he did not inform his parole officer that he was moving to Florida, and further that he did not register as a sex offender in the state of Florida.  

On April 5, 2018, Maldonado was convicted in Florida state court of the lewd or lascivious molestation of a minor child based on conduct that had occurred in July and August 2016 in Jacksonville.  

This case was investigated by the U.S. Marshals Service in New York City and Jacksonville, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

The Sex Offender Registration and Notification Act (SORNA) is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in investigating, locating, apprehending, and prosecuting non-compliant sex offenders who fail to register as required by SORNA.

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

WASHINGTON – BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.

The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.  

The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.

“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state, or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”

“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.” 

“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.

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

BayCare Health System Inc. and entities that operate four affiliated Florida hospitals (collectively BayCare) have agreed to pay the United States $20 million to resolve allegations that BayCare violated the False Claims Act by making donations to the Juvenile Welfare Board of Pinellas County (JWB) to improperly fund the state’s share of Medicaid payments to BayCare. The four hospitals are Morton Plant Hospital, Mease Countryside Hospital, Mease Dunedin Hospital and St. Anthony’s Hospital.

The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.  

The United States alleged that between October 2013 and September 2015, BayCare knowingly caused false claims for federal Medicaid matching funds to be submitted to the United States. Specifically, the United States alleged that during this time, BayCare made improper, non-bona fide cash donations to JWB knowing that JWB would and then did transfer a portion of the cash donations to the State of Florida’s Agency for Health Care Administration for Florida’s Medicaid Program. The funds transferred by JWB to the state were “matched” by the federal government before being returned to the BayCare hospitals as Medicaid payments, and BayCare was thus able to recoup its original donations to JWB and also receive federal matching funds, in violation of the federal prohibition on non-bona fide donations. BayCare’s donations to JWB increased Medicaid payments received by BayCare, without any actual expenditure of state or local funds.

“Medicaid is a partnership between the federal government and state governments,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When the federal government provides Medicaid matching funds, there must be a corresponding expenditure by the state or a local unit of government. When private parties make unlawful, non-bona fide donations to state or local governments, they undermine a key safeguard for ensuring the integrity of the Medicaid program.”

“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is committed to protecting the integrity of the Medicaid Program, and we will use all available civil remedies to recover the ill-gotten gains obtained by those who defraud it and other government health care programs.” 

“When health care providers participate in fraud schemes to boost federal payments, they do so at the expense of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agents will continue to coordinate with our law enforcement partners to root out health care fraud and hold bad actors accountable for their actions.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Larry Bomar, a former hospital reimbursement manager in Florida. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Bomar v. Bayfront HMA Medical Center LLC, et al., Civil Action No. 8:16-cv-03310-MSS-JSS (M.D Fla.). Mr. Bomar will receive $5 million as his share of the settlement.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The matter was handled by Civil Division Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie for the Middle District of Florida.

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

Tampa, FL — A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.

A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims. 

This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.

A woman in Florida pleaded guilty today to a federal racketeering conspiracy that victimized Mexican agricultural workers admitted into the United States under the H-2A temporary visa program. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

According to the plea agreement, Christina Gamez, 43, from March 2016 through August 2017, while working as a bookkeeper, manager, and supervisor for Los Villatoros Harvesting (LVH), a labor contracting company employing Mexican H-2A workers harvesting fruits and vegetables in Florida, Kentucky, Indiana, Georgia and North Carolina, conspired with LVH’s owner and others to commit racketeering offenses, including subjecting LVH’s H-2A workers to forced labor, harboring LVH’s H-2A workers in the United States after their visas had expired for financial gain, and committing visa fraud and fraud in foreign labor contracting. Gamez admitted that she and her co-conspirators used coercive means to obtain thousands of hours of physically demanding agricultural labor from the victimized H-2A workers, all for de minimis pay. The coercive means used included confiscating the workers’ passports; subjecting the workers to crowded, unsanitary and degrading living conditions; isolating the workers and limiting their ability to interact with anyone other than LVH employees; and subjecting the workers to debt manipulation. Gamez also admitted that, while working for LVH, she knowingly prepared and sent falsified records to federal investigators to conceal aspects of the criminal enterprise.

A date for Gamez’s sentencing hearing has not yet been set. Gamez faces a maximum penalty of 20 years in federal prison and a fine of up to $250,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of her plea agreement, Gamez has agreed to pay more than $9,000 in restitution to the victims. 

This case was investigated by the Palm Beach County Human Trafficking Task Force (including the FBI, Homeland Security Investigations and the Palm Beach County Sheriff's Office), with assistance from the Department of Labor Office of the Inspector General and the Department of State Diplomatic Security Service. Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Justice Department’s Civil Rights Division are prosecuting the case.

Tampa, Florida – United States Attorney Roger B. Handberg announces that Abdul Aziz has pleaded guilty to one count of aiding in the preparation and filing of a false tax return. He faces a maximum penalty of three years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Aziz helped to prepare numerous false and fraudulent income tax returns on behalf of clients in 2016. Those tax returns contained false information about clients’ income and their tax withholding status. The false entries in those returns related to residential mortgage loan repayments that the returns falsely represented as being held on their behalf by financial institutions and were claimed as income. As a result of those false entries, Aziz’s clients were able to claim and receive substantial refunds from the IRS which his clients were not lawfully entitled to receive. Those refunds exceeded $1,500,000.

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

WASHINGTON – TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).  

Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.

The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.

“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”

“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”

“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”

“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”

Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.

The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay.  As part of the resolution, Mr. Gordon will receive $462,500.

The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).

TracFone Wireless Inc. (TracFone) has agreed to pay $13.4 million as part of a civil settlement to resolve allegations that TracFone violated the False Claims Act by signing up more than 175,000 ineligible customers in connection with the Federal Communications Commission’s (FCC) Lifeline Program (Lifeline).  

Lifeline, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs. In many cases, this consists of a free cell phone (provided by the carrier) and free monthly cell phone service (provided by the government). In order to qualify for Lifeline, a consumer’s income must be at or below 135% of the Federal Poverty Guidelines or the consumer must receive benefits from certain specified federal assistance programs.

The United States alleged that between 2012 and 2015, TracFone, a telecommunications carrier based in Miami, impermissibly signed up more than 175,000 subscribers who were ineligible for the program. TracFone hired independent third-party sales agents, including agents hired by Elite Promotional Marketing Inc. (Elite), to enroll these customers. These agents learned that TracFone’s computer software contained a glitch that allowed ineligible persons to enroll in Lifeline. Some agents in Florida then exploited the glitch to increase their consumer enrollments and commission payments. The government alleged that TracFone failed to adequately review the applications and did not properly investigate reports of clearly ineligible subscribers enrolled in the program that would have revealed the glitch. After TracFone eventually discovered the software glitch in August 2015, it repaid more than $10.9 million to Lifeline, an amount that was credited as part of the $13.4 million settlement.

“Lifeline providers have a duty to ensure that only eligible subscribers are enrolled in the Lifeline Program,” said Deputy Assistant Attorney General Michael D. Granston of the Civil Division’s Commercial Litigation Branch. “Today’s settlement demonstrates our commitment to ensure that those participating in government funded programs exercise appropriate vigilance to prevent the misuse of taxpayer dollars.”

“The U.S. Attorney’s Office is committed to protecting taxpayer funds and safeguarding federal programs from false claims,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our law enforcement partners to identify and eliminate practices that defraud Lifeline and other federal programs.”

“Today’s settlement reflects the FCC’s ongoing commitment to root out waste, fraud and abuse in its universal service programs,” said Chairwoman Jessica Rosenworcel of the FCC. “Especially during these unprecedented times, the Universal Service Fund provides a key lifeline for many families, and our careful stewardship of the program ensures that low-income households can access the telecommunications services they so critically need. Let today’s action serve as a warning to others that we will do everything we can to ensure strict compliance with the rules of the road.”

“The FCC Office of Inspector General (OIG) is committed to eliminating fraud, waste and abuse in the Lifeline and other FCC programs, and appreciates its strong partnership with the U.S. Department of Justice,” said Inspector General David Hunt of the FCC OIG. “We will continue to work with our law enforcement partners to ensure these funds are safeguarded from false claims by fund recipients.”

Contemporaneous with the civil settlement, TracFone has agreed to enter into a corporate compliance plan with the FCC. Based upon TracFone’s disclosure, assistance with the government’s investigation, and early repayment in connection with the allegations, TracFone also received a credit for cooperation in connection with the settlement announced today.

The settlement with TracFone resolves a lawsuit filed under the whistleblower provisions of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The civil lawsuit was filed in September 2015 by Farrell Gordon, formerly a Lifeline sales representative at Elite. Elite previously settled with the United States for $95,000 based on ability to pay.  As part of the resolution, Mr. Gordon will receive $462,500.

The settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of Florida, the Civil Division’s Commercial Litigation Branch, Fraud Section, the FCC OIG and FCC Office of General Counsel.

The claims resolved by the settlement are allegations only, and there has been no determination of liability. The lawsuit resolved by the settlement is captioned United States ex rel. Gordon v. TracFone Wireless, Inc., et al., No. 6:15-cv-1457 (M.D. Fla.).

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Joshua Wade McGinnis (27, Fort Myers) to 10 years in federal prison for multiple counts of distributing cocaine and possessing a firearm during a drug trafficking offense. McGinnis had pleaded guilty on December 27, 2021.

According to court documents, between February and August 2021, McGinnis distributed cocaine to an undercover DEA agent and confidential source on multiple occasions in Fort Myers. During the last transaction before his arrest, McGinnis agreed to sell the source more than a pound of cocaine for $20,000.  Fearing that he might be robbed during the transaction, McGinnis enlisted the assistance of his co-defendant, John Olvera-Salinas (20, Fort Myers). McGinnis asked Olvera-Salinas to accompany him to the transaction location and provided Olvera-Salinas with a loaded AK-47. When the two arrived at the location, they were promptly arrested by the DEA. At the time of the arrests, McGinnis possessed the cocaine and Olvera-Salinas possessed the loaded gun.

A subsequent search of McGinnis’s residence revealed a heavily fortified apartment, with security bars covering the windows and an extensive video surveillance system. The DEA agents recovered more than 14 firearms, nearly a pound of additional cocaine, 8 pounds of marijuana, approximately 3 ounces of oxycodone, and approximately one ounce of MDMA from the apartment.

Olvera-Salinas previously pleaded guilty to possessing a firearm in furtherance of a drug trafficking offense. His sentencing hearing is scheduled for May 9, 2022.

This case was investigated by the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Michael V. Leeman.

Fort Myers, Florida –United States Attorney Roger B. Handberg announces the unsealing of indictments charging Daniel Aguilar-Roblero (40, Fort Myers) and Cornelio Perez Gonzalez Arellano (29, Fort Myers) with possessing counterfeit immigration documents and transferring false identification documents. If convicted on all counts, Aguilar-Roblero faces a maximum penalty of 50 years in federal prison and Gonzalez Arellano faces a maximum penalty of 25 years in federal prison. 

According to the indictments and court proceedings held in their cases, Aguilar-Roblero and Gonzalez Arellano sold fraudulent Permanent Resident cards (also known as “Green Cards”) and fraudulent Social Security cards to undercover law enforcement officers, believing they were intended to be used by individuals unlawfully present in the United States. Neither Aguilar-Roblero nor Gonzalez Arellano are citizens or nationals of the United States, and both are subject to deportation and removal proceedings at the conclusion of their federal criminal cases.

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

These cases were investigated by the Florida Department of Law Enforcement and Homeland Security Investigations. They will be prosecuted by Assistant United States Attorney Simon R. Eth.

Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Alejandro Alvarado (30, Crescent City), Miguel Angel Perez (29, Deland), and Jose Martinez (43, Crescent City) for their roles in a conspiracy to distribute methamphetamine. Alvarado, who was the head of the Drug Trafficking Organization (DTO), was sentenced to 25 years in federal prison, and Perez and Martinez were each sentenced to 11 years in federal prison. All three had previously pleaded guilty.

According to court documents, Alvarado worked to distribute methamphetamine and cocaine along with a number of intermediaries – including Martinez, Perez, Jonathan Arroyo Ontiveros (25, Crescent City), Noel Bueno Jr. (27, Crescent City) and others – all of whom lived in close proximity to one another in Crescent City. Miguel Angel Ortiz (29, Crescent City) also served as a courier to deliver multi-kilogram shipments of methamphetamine from Texas, North Carolina, and Georgia to the Crescent City neighborhood in which Alvarado and the others operated. Alvarado, through his intermediaries, would deliver ounces and pounds of methamphetamine primarily to Robert Wayne Watson (59, Seville), who operated out of his home. Watson, in turn, redistributed ounces of methamphetamine to mid-level dealers located throughout central Florida, including George Edward Sykes (46, Bunnell), Danny Wayne Holmes (61, Kathleen), Dina Dynnette Kempher (38, Satsuma), and David John Doerr (56, Astor).

On July 17, 2021, FBI agents arrested Alvarado, Martinez, Ontiveros, Ortiz and Watson. At the time of his arrest, Alvarado had nearly five kilograms of methamphetamine and nearly two kilograms of cocaine in his possession along with more than $13,000 in U.S. currency, two loaded handguns, and a drum magazine for an AK-47 assault rifle containing 172 rounds of ammunition.  

Eleven charged conspirators have pleaded guilty for their roles in this case. See below for details.

Defendant

Date of Guilty Plea

Sentenced or Hearing Date:

Incarceration:

Alejandro Alvarado (30, Crescent City)

11/2/21

3/31/22

300 months

Miguel Angel Perez (29, Deland)

12/14/21

3/31/22

135 months

Jose Martinez (43, Crescent City)

11/16/21

3/31/22

135 months

Miguel Angel Ortiz (39, Crescent City)

11/30/21

2/15/22

70 months

Jonathan Arroyo Ontiveros (25, Crescent City)

11/30/21

2/16/22

71 months

Noel Bueno Jr. (27, Crescent City)

8/24/21

11/16/21

36 months

Robert Wayne Watson (59, Seville)

3/29/21

TBD

TBD

David John Doerr (56, Astor)

11/16/21

2/16/22

57 months

Dina Dynnette Kempher (38, Satsuma)

11/30/21

2/15/22

24 months

George Edward Sykes (46, Bunnell)

11/16/21

4/7/22

TBD

Danny Wayne Holmes (61, Kathleen)

2/23/22

5/12/22

TBD

 

This case was investigated by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the Putnam County Sheriff’s Office, the Clay County Sheriff’s Office, and the Volusia County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Dana E. Hill.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Fort Myers, Florida – United States Attorney Roger B. Handberg announces the arrest and unsealing of a criminal complaint charging Daniel Joseph Tisone (34, Naples) with wire fraud, bank fraud, and illegal monetary transactions. If convicted, he faces a maximum penalty of 30 years in prison on each of the fraud charges and up to 10 years in federal prison for the illegal monetary transaction offense.

According to the complaint, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration, as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone. In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease.

Tisone’s false and fraudulent representations caused the SBA, PPP and MSLP lenders to approve and fund one MSLP, three EIDL, and five PPP loans, totaling approximately $2,523,954.17. Tisone then unlawfully used the funds to purchase more than $1 million in stocks and investment securities, as well as the purchase of a residence in the Naples, Florida area.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds. 

The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies that were in sound financial condition prior to the onset of the pandemic maintain their operations and payroll until conditions normalized.

A criminal complaint is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by the Federal Bureau of Investigation, Special Inspector General for Pandemic Recovery (SIGPR), and IRS – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.

Ocala, Florida –United States Attorney Roger B. Handberg announces the arrest of Marques Young (22, Ocala) on a criminal complaint charging him with one count of knowingly causing a Federal Firearms Licensee (FFL) to maintain false information in its official records. If convicted, Young faces up to five years in federal prison.

According to the complaint, between October 27, 2020, and March 9, 2022, Young purchased multiple handguns and a rifle from a Marion County gun dealer. Many of the firearms were identical. While purchasing the firearms, Young certified on each ATF Form 4473 (Firearm Transaction Record) that he was the “actual transferee/buyer” of the firearms. Young then quickly resold the firearms. Many of the firearms have since been recovered from Marion County crime scenes. For example, on March 3, 2022, Young purchased a Taurus pistol and signed an ATF Form 4473 certifying that he was the actual transferee/buyer. However, video from the transaction showed that Young walked to the back of the store to get cash from a convicted felon to pay for the firearm. Law enforcement found the convicted felon on March 23, 2022, with the Taurus pistol that Young had purchased.

A criminal complaint is merely an allegation that a defendant has committed a federal criminal offense. Every defendant is presumed innocent unless, and until, proven guilty.

This case is being investigated by the Ocala Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Ocala, Florida –United States Attorney Roger B. Handberg announces that David O. Isagba today pleaded guilty to one count of mail fraud and one count of conspiring to defraud the United States with respect to tax claims. Isagba faces a maximum penalty of 30 years in federal prison. A federal grand jury had indicted Isagba and his wife, Joyce Isagba, on May 27, 2020. Her portion of the case is set for trial in May 2022 before Senior U.S. District Judge John Antoon II.  

According to the plea agreement and other court documents, between 2009 and 2019, David Isagba submitted 227 fraudulent claims to the IRS falsely claiming to be entitled to more than $2.9 billion in tax refunds on behalf of nonexistent trusts. David Isagba subsequently received a total of $5,815,723.65 from the IRS as a result of this fraudulent scheme. He used the money to purchase a home and multiple luxury vehicles.

This case was investigated by the Internal Revenue Service - Criminal Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.

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

Tampa, Florida – U.S. District Judge William F. Jung today sentenced Frank Anthony Pezzuto (73, Venice) to 15 months in federal prison for transmitting in interstate commerce communications threatening to injure certain members of Congress. The Court also ordered Pezzuto to pay a fine of $7,500. A federal jury found Pezzuto guilty on November 9, 2021.

According to evidence presented at trial, Pezzuto made three threatening phone calls from his home in Venice to certain congressional offices in Washington, D.C.  The first call took place on January 25, 2020, when Pezzuto left a voicemail at Congressman E.S.’s office in which Pezzuto said that he was coming to kill E.S. Pezzuto subsequently left a voicemail at Congressman A.S.’s office on January 30, 2020, stating that he was a worker for MS-13 and that MS-13 was coming to cut off A.S.’s head. Then, on February 3, 2020, Pezzuto called Congresswoman I.O.’s office and stated to the person who answered the phone: “tell her I’m going to kill her today.”

Each time Pezzuto made these threatening calls, he used his cellphone but concealed his phone number and attempted to disguise his voice. United States Capitol Police were able to identify Pezzuto as the caller and confirm that the calls had been routed through a cell tower near Pezzuto’s home in Florida.

This case was investigated by United States Capitol Police. It was prosecuted by Assistant United States Attorneys Patrick Scruggs and Risha Asokan.

Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Jy’Quale Samari Grable (20, Tampa) and Aquavious Smith (19, Palmetto) with conspiracy and interference with commerce by robbery. Grable was also charged with using a firearm in relation to a crime of violence causing the death of two victims. If convicted on all counts, Grable faces a maximum penalty of life in federal prison, and Smith faces a maximum penalty of 20 years’ imprisonment.

According to court documents, on December 22, 2020, Grable and Smith committed an armed robbery at an apartment complex in Valrico. During the robbery, Grable shot and killed B.B. and M.M on the back patio of the apartment.

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

This case was investigated by the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.

Orlando, Florida – United States Attorney Roger B. Handberg announces that Theresea Walker (30, Fairburn) has pleaded guilty to wire fraud. Walker faces up to 20 years in federal prison. The sentencing hearing is scheduled for June 15, 2022.

According to court documents, from at least October 2019 and continuing through May 21, 2021, Walker was employed as an accounts payable processor with a technology company, defense contractor, and information technology services provider headquartered in Melbourne, Florida. In this role, Walker's responsibilities included accessing her employer's payment software systems for the purpose of entering vendor and supplier invoices and scheduling those invoices for payment. Walker’s employer conducted an audit of accounts serviced by Walker. The audit  revealed that Walker had made false entries into the employer's accounts payable system to conduct nine wire transactions through which Walker caused the transfer of funds from the employer's bank account to accounts controlled by Walker. As part of her scheme, Walker also edited the payment terms and accounts of actual existing vendors with the employer, so that new invoices entered under that vendor name would be paid directly to the accounts designated by Walker. During the course of the scheme, in an attempt to hide her fraudulent activity, Walker created multiple fictitious invoices and fraudulent credit memos. In total, as a result of her scheme, Walker caused a total loss of $1,757,082.73 to the employer, which also represents the proceeds received by her from her scheme.  

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.

Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Kenneth Douglas (24, Daytona Beach), a/k/a “One Way,” to 16 years in federal prison followed for conspiracy to distribute 50 grams or more of methamphetamine. Douglas had pleaded guilty on October 7, 2021.

According to court documents, beginning on March 1, 2021, and continuing through March 24, 2021, Douglas and a co-defendant conspired with each other to distribute 50 grams or more of methamphetamine. During the investigation, an undercover law enforcement officer purchased controlled substances from Douglas and his co-defendant, who Douglas had been supplying. Douglas was held responsible for more than 1.4 kilograms of methamphetamine that he had conspired to distribute in the Brevard and Volusia County areas.

On May 17, 2021, agents with the Drug Enforcement Administration executed a search warrant at Douglas’s residence and located fentanyl, four digital scales, ammunition, and a stolen Glock 9mm pistol. Douglas fled from the residence on foot but was quickly apprehended by pursuing agents.

Douglas’s co-defendant, Tom Thompson, a/k/a “China,” previously pleaded guilty for his role in this case. On December 27, 2021, Thompson was sentenced to 11 years and 4 months in federal prison.

This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Cocoa Police Department, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Beatriz Gonzalez.

Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Jeffrey Davis (24, Tampa) to 24 years in federal prison and Tyee Spike (19, Tampa) to 26 years and 3 months for robbing multiple stores at gunpoint. Spike was sentenced on January 13, 2022, and Davis was sentenced on March 23, 2022. Davis had pleaded guilty on March 4, 2021, and Spike had pleaded guilty on August 12, 2021.

According to court documents, between October 13 and 19, 2020, Davis and Spike committed a series of commercial armed robberies in Tampa, Fishhawk, and Riverview. Firearms were brandished during each robbery. During the first robbery, an individual confronted Spike, and Spike shot him in the stomach. The victim remained hospitalized for 12 days but survived. Prior to the robbery spree, Spike committed a carjacking to obtain the getaway vehicle the men used for the robberies. The robbery spree ended with a high-speed chase, in which the defendants crashed the getaway vehicle before being apprehended. At the time of the defendants’ arrests, their getaway vehicle contained a “list of criminal achievements and/or ambitions,” which itemized various houses and personal possessions, and under the heading “Licks,” included the names and locations of several commercial establishments.

In the year prior to the robbery spree, Spike had been convicted of battery on a law enforcement officer with a deadly weapon, resisting an officer with violence, grand theft motor vehicle, two counts of robbery, and burglary of an unoccupied conveyance. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton and former Assistant United States Attorney Natalie Adams.

Orlando, Florida – United States Attorney Roger B. Handberg announces that Luis Raul Perez Rodriguez (50, Orlando) today pleaded guilty to conspiracy to possess with the intent to distribute controlled substances. Perez Rodriguez faces a maximum penalty of life in federal prison. A sentencing date has not yet been set.

According to the plea agreement, on January 21, 2022, Perez Rodriguez had arranged to receive a shipment of three parcels containing 19 kilograms of cocaine, valued at an estimated $570,000, through a delivery service from an address in Puerto Rico to an apartment in Orlando. On January 19, 2022, security specialists at the delivery service company had detected the cocaine shipment and reported the parcels to the Drug Enforcement Administration. On January 21, 2022, an undercover officer working with the DEA posed as a delivery driver and delivered a fake package to the address on the shipment. Perez Rodriguez was in the parking lot of his apartment and identified himself with the fake name associated with the parcels and showed the delivery driver that he was tracking the progress of the shipment on his phone. Perez Rodriguez was apprehended as the driver loaded two out of the three packages into Perez Rodriguez’s vehicle. Additional investigation linked Perez Rodriguez to a series of cocaine shipments from Puerto Rico to Orlando in 2018 and 2019.     

This case was investigated by the Drug Enforcement Administration with assistance from the Orange County Sheriff’s Office and the U.S. Postal Service. It is being prosecuted by Assistant United States Attorney Dana E. Hill.

Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Thomas Mollick (79, Odessa) and Martin Krytus (55, Windemere) with conspiracy to solicit and receive, and a substantive count of soliciting and receiving, illegal remunerations (kickbacks and bribes). If convicted on all counts, Mollick and Krytus each face a maximum penalty of 15 years in federal prison. The indictment also notifies Mollick and Krytus that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.

According to the indictment, Mollick co-founded and served as President of RX Development (“RXD”), and as President and Director of Mollick Enterprises, Inc. (“MEI”). Between January 2012 and March 2017, Mollick, who was responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, selected the company’s wholesale drug supplier, Business #1, and solicited and caused the supplier to make kickback payments to MEI. Krytus co-founded and served as Vice President of RXD, and as President, Secretary, Treasurer, and Director of Eastwood & Assoc., Inc. (“EW”). Krytus, who was also responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, received a portion of kickback payments made by Business #1 to MEI.

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

This case was investigated by the U.S. Department of Labor - Office of Inspector General, the U.S. Postal Service - Office of Inspector General, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Rachelle DesVaux Bedke.

Tampa, Florida – U.S. District Judge William F. Jung has sentenced Victor Ricardo Grant (40, Brandon) to 21 years and 10 months in federal prison for possessing ammunition as convicted felon. A federal jury had found Grant, who is a career criminal under the Armed Career Criminal Act, guilty on December 15, 2021.

According to court records and testimony presented at trial, the FBI obtained a search warrant for Grant’s residence as part of an investigation into a series of credit union robberies and carjackings that had been committed in Hillsborough and Pinellas Counties in 2019. Investigators found approximately 400 rounds of 7.62 caliber ammunition inside backpacks kept in Grant’s bedroom closet and in the attic of his home. Ammunition drum magazines and loaded magazine clips for an AK-47 rifle were also found in the backpack hidden in the attic. Grant, having previously been convicted of several felony offenses, is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Clearwater Police Department. It was prosecuted by Assistant United States Attorneys Michael Sinacore and Diego Novaes.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Steven Abboud (58, Davenport) to 5 months’ imprisonment and his codefendant, Diana Robinson (54, Davenport), to 21 days in federal prison for criminal contempt. The court also ordered them to each serve one year of supervised release following their incarceration. The defendant company, Phazzer Electronics, Inc., was sentenced to 2 years’ probation and fined $10,000. The defendants had been found guilty on December 27, 2021, after a 2-day bench trial.

According to court documents, the case originated from a civil case in which Phazzer Electronics, Inc. was being sued for patent and trademark infringement, false advertising, and unfair competition. In that case, the Court ordered Phazzer Electronics, Inc. to stop selling certain products that violated patent and trademark laws. The company was first held in civil contempt for violating the court’s order and was warned that continued violations could result in criminal contempt proceedings.  Abboud was an officer of the company and de facto owner, and Robinson was an employee and agent of the company. During the criminal proceedings, the court found that Abboud and Robinson, acting as agents of Phazzer Electronics, engaged in a pattern of activity that continued to violate the court order and that the defendants took conscious steps to circumvent the order.

This case was prosecuted by Assistant United States Attorney John Gardella.

Ocala, Florida – Senior U.S. District Judge John Antoon II has sentenced Robert Joseph Miller (46, Homosassa) to 10 years in federal prison for possession of firearms and ammunition by a convicted felon and possession of unregistered National Firearms Act (NFA) firearms – sawed-off shotguns. The Court also ordered Miller to forfeit approximately 50 firearms and more than 8,400 rounds of ammunition linked to the offenses. Miller had been indicted on May 4, 2021. He entered guilty pleas to the charges on November 19, 2021.

According to the evidence presented in court, Miller is a three-time convicted felon prohibited from possessing firearms and ammunition under federal law. On March 10, 2021, agents arrested Miller on a felony theft warrant after finding him in possession of several spools and barrels of industrial metals (nickel, cobalt, etc.). Agents then executed a search warrant at Miller’s Citrus County residence that resulted in the recovery of more than $50,000 worth of stolen property, approximately 50 firearms, and over 8,400 rounds of assorted ammunition. The firearms consisted of rifles, shotguns, and handguns, including at least three stolen weapons and an AK-47 rifle equipped with a bump stock. Two of the firearms (sawed-off shotguns) were not registered to Miller in the National Firearms Registration and Transfer Record, as required under federal law. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and the Citrus County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Orlando, FL – Two men were sentenced to prison yesterday for conspiring to defraud the United States by promoting a nationwide tax fraud scheme to more than 200 participants in at least 19 states.

Iran V. Backstrom, aka Shariyf Noble, of Milledgeville, Georgia, was sentenced to 105 months in prison. His second-in-command, Mehef Bey, aka Arthur Daniels, of Charlotte, North Carolina, was sentenced to 11 years in prison.

According to court documents and statements made in court, Backstrom was the main promoter of the scheme and Bey was one of his co-conspirators. Their scheme involved recruiting clients and preparing false tax returns on the clients’ behalf by convincing them their mortgages and other debts entitled them to tax refunds. Between 2014 and 2016, Backstrom and Bey held seminars across the county to publicize the scheme. As part of the scheme, Backstrom, Bey and their co-conspirators helped prepare and file tax returns for the participants that sought more than $64 million refunds from the IRS. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the participants, thereby entitling the clients to a refund. In reality, the financial institutions had not paid any income to, or withheld any taxes from, these individuals. To make the refund claims appear legitimate, however, Backstrom, Bey and their co-conspirators filed fraudulent tax documents with the IRS that matched the withholding information listed on the tax returns, making them appear as if they had been issued by the banks.

As part of his plea, Backstrom admitted he gave orders to others as part of the scheme. Backstrom and Bey both admitted they and their co-conspirators concealed their roles in the scheme by, among other things, indicating the false tax returns had been “self-prepared,” submitting false IRS forms designed to appear as if they were created by the participants’ financial institutions, and coaching the participants on how to conceal the scheme from the IRS. Backstrom and Bey further admitted they and their co-conspirators charged participants approximately $10,000 to $15,000 in fees for the preparation of each tax return.

Two of Backstrom and Bey’s co-conspirators, Aaron Aqueron and Yomarie Febres, have also pleaded guilty and will be sentenced at a later date. 

“Backstrom and Bey marketed a tax refund scheme throughout the country, costing the government millions of dollars,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “They have now received substantial sentences for their criminal conduct. Others contemplating promoting similar schemes should recognize that they too will be identified and face significant time in prison.”

“Tax fraud is a serious crime,” stated U.S. Attorney Roger Handberg for the Middle District of Florida. “The defendants in this case employed a complex scheme to defraud the IRS out of millions of dollars. We encourage consumers to be vigilant in selecting legitimate tax preparers as we continue to work with our law enforcement partners to prosecute those who willfully violate our nation’s tax laws.”

“With tax season in full swing, the significant sentencings of the defendants is a timely reminder of the consequences awaiting those who file fraudulent returns,” said Special Agent in Charge Brian Payne of IRS-Criminal Investigation. “Dishonest return preparers use a variety of methods to cheat the government. If it seems too good to be true, it is very likely too good to be true. Remember, it is your responsibility to know what is on your income tax return. Taxpayers are encouraged to visit the IRS.gov website for tips on selecting a reputable return preparer.”

In addition to the term of imprisonment, the district judge also ordered both defendants to serve three years of supervised release and pay approximately $26,350,630 in restitution to the United States.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Handberg made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Tax Division, and Assistant U.S. Attorney Chauncey A. Bratt for the Middle District of Florida, are prosecuting the case.

Orlando, Florida – United States Attorney Roger B. Handberg announces today that a federal grand jury has returned an indictment charging Justin Dwayne Johnson, Sr. (47, Sanford) with 12 counts of production and attempted production of child sexual abuse images and videos and one count of possession of these materials. If convicted on all counts, Johnson faces a minimum mandatory penalty of 15 years, and up 30 years, in federal prison on each count, and a potential life term of supervised release. The indictment also notifies Johnson that the United States intends to forfeit his electronic devices which are alleged to have been used to commit these offenses.

According to court documents, this investigation began in January 2022 after Seminole County Child Protective Services had been alerted that Johnson was secretly recording his foster children. A forensic examination of Johnson’s cellphone revealed several sexually explicit images and videos depicting minor children, including several children under Johnson’s care that had been photographed or video-recorded in Johnson’s home. The FBI has identified at least 12 child victims who were either under his care or to whom he had access in his home. Additionally, Johnson’s cellphone contained numerous visual depictions of other children being sexually abused. 

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

This case was investigated by the Sanford Police Department, the Seminole County Sheriff’s Office, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Courtney Richardson-Jones and Ilianys Rivera Miranda.

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

Fort Myers, FL – U.S. District Judge Sheri Polster Chappell today sentenced Raynaldo Ray Quiroga (37, LaBelle) to 40 years in federal prison for robbery, brandishing a firearm during a crime of violence, possessing stolen firearms, and possessing a firearm as a convicted felon. A federal jury had found Quiroga guilty on December 16, 2021.

According to evidence presented at trial, Quiroga, a seven-time convicted felon, entered Capital Pawn in LaBelle on the morning of May 19, 2021, falsely impersonating a law enforcement officer by wearing a green sheriff’s deputy uniform, a black tactical vest, a badge, and a duty belt equipped with a firearm. While in the shop, Quiroga brandished his firearm and zip-tied the store’s two employees before stealing six firearms and fleeing the scene. Law enforcement agents quickly identified Quiroga as a suspect and later found multiple pieces of evidence at his residence and in his car connecting him to the robbery.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hendry County Sheriff’s Office, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Simon R. Eth and Jesus M. Casas.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Tampa, Florida – United States District Judge Thomas P. Barber today sentenced Keon Moore (30, Tampa) to 17 years and 6 months in federal prison for possessing a firearm or ammunition as a convicted felon and possessing controlled substances with the intent to distribute them. Moore had been indicted on June 4, 2020. A jury found him guilty on October 21, 2021.

According to testimony and evidence presented during sentencing and the four-day trial, Moore is a convicted felon and a high-ranking member of Money Power Respect (MPR)—a violent and rapidly growing prison and street gang that operates throughout the greater Tampa Bay area. Prior to being apprehended and convicted in this case, Moore stored guns and drugs for use by himself and others, sold guns and drugs, and threatened violence to collect drug debts. In one of Moore’s private Facebook communications, a person to whom Moore had provided drugs on consignment, but who failed to pay on time, begged Moore not to kill him via drive-by shooting over the $90 he owed Moore.

The charges brought in this case revolved around a Public Storage unit rented by Moore. After a law enforcement drug-detecting dog alerted to Moore’s unit, law enforcement officers executed a search warrant of the unit. Inside the otherwise empty 50 square-foot unit, officers located seven guns, including two rifles; ammunition; approximately 45 grams of pure methamphetamine; 34 grams of cocaine; 53 grams of Eutylone; and 1.6 kilograms of marijuana, among other drugs; and a clothing item containing Moore’s DNA. Ballistics analysis linked one of the guns to five unsolved shootings.

This case was investigated by the FBI, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Michael M. Gordon. This case is part of an ongoing effort to disrupt and dismantle the MPR gang.

This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge William F. Jung has sentenced Antonio Nunez III (34, Palmetto) to 20 years and 10 months in federal prison for conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl. Nunez had pleaded guilty on October 31, 2019.

According to court documents, beginning no later than March 2016 and continuing through May 2019, Nunez and his co-defendant, Antoine Waiters, conspired to possess heroin, fentanyl, and other controlled substances and sell the drugs from a trap house located in Palmetto, Florida. Over the course of the conspiracy, Nunez and Waiters distributed at least one kilogram of heroin and at least 400 grams of fentanyl and sold fentanyl to confidential sources on multiple occasions. More than $30,000 in U.S. currency, assorted jewelry, and two vehicles were forfeited as proceeds of the conspiracy. 

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

This case was investigated by the Drug Enforcement Administration, the Manatee County Sheriff’s Office, and the Bradenton Police Department. It was prosecuted by Assistant United States Attorney Michael Sinacore.

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Marvin Harris, Jr., aka “Mesh” (23, Fort Myers), to 24 years and 5 months in federal prison for conspiring to distribute fentanyl, cocaine base (crack cocaine), and cocaine. The Court also ordered Harris to forfeit his Mercedes-Benz, $58,217 in seized cash, an 18k gold Datejust Rolex, and multiple gold Cuban link chains, all of which were traceable proceeds of his drug trafficking organization.    

According to court documents, Harris led a drug trafficking organization (DTO) which operated in neighborhoods off Palm Beach Boulevard in Fort Myers.  Harris recruited dealers to work for him and provided them with housing, with those houses serving as the main distribution points for the DTO.

On August 14, 2020, Harris was jailed for contempt of court in connection with a homicide investigation. He continued to run his organization while incarcerated, enlisting his girlfriend, co-defendant Destiny Molina, to supply his dealers with drugs and collect the revenue generated by the business. Recorded phone calls between Harris and Molina captured him teaching Molina how to mix fentanyl with adulterants to increase the profit potential of his product along with other instructions necessary to keep his illegal enterprise afloat.

On October 15, 2020, the FBI executed simultaneous search warrants at Molina’s residence located on Gaillard Avenue in North Port, and Harris’s main drug house located on New York Drive in Fort Myers. Inside Molina’s residence, law enforcement recovered more than $53,000 in cash, multiple pieces of expensive jewelry, over 100 grams of fentanyl and cocaine, and a firearm. At the drug house, law enforcement recovered nearly $5,000 in cash, more fentanyl and cocaine, and another firearm.

Four other members of the conspiracy had previously pleaded guilty in connection with his case:

Name

Charge

Status

Destiny Molina

(20, Fort Myers)

Conspiracy to distribute controlled substances

Faces 5-40 years in prison, sentencing scheduled for 6/6/22

Bradly Griffin, aka “Jit”

(20, Fort Myers)

Conspiracy to distribute controlled substances

Sentenced to 7 years, 3 months in federal prison

Robert Rosado, aka “Drew”

(24, Fort Myers)

Conspiracy to distribute controlled substances; Distribution of a controlled substance

Sentenced to 12 years, 7 months in federal prison

Fabian Kelly, aka “Bob”

(20, Fort Myers)

Conspiracy to distribute controlled substances, possession with intent to distribute a controlled substance; Possession of a firearm in furtherance of a drug trafficking offense

Sentenced to 9 years, 3 months in federal prison

This case was investigated by the Federal Bureau of Investigation, the Lee County Sheriff’s Office, and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.

Tampa, Florida – U.S. District Judge Thomas Barber has sentenced James Lee Clark (61, Wilton Manors) to 48 months in federal prison for conspiracy to commit bankruptcy fraud and wire fraud.  Clark had pleaded guilty on December 14, 2021.

According to court documents, from January 2010 through February 2017, Clark, who was a licensed attorney, conspired with his paralegal, Eric Liebman, to defraud mortgage creditors and guarantors holding notes on properties in foreclosure. Clark and Liebman falsely and fraudulently represented to distressed homeowners that they would negotiate with creditors and guarantors to prevent foreclosures in exchange for the homeowners’ execution of quitclaim or warranty deeds for the properties to an entity controlled by Liebman. Clark and Liebman also convinced the homeowners to pay rent or agree to sell their houses.  In order to continue collecting ill-gotten rents and/or profit from the property sales, Clark filed fraudulent bankruptcy petitions in the names of the homeowners to prevent the mortgage creditors from lawfully foreclosing and taking title to the properties.

Additionally, from January 2012 to February 2017, Clark defrauded his clients out of approximately $1.3 million. As part of his practice, Clark acted as a trustee for clients and held their money in various bank accounts.  Instead of using the funds for the purpose intended by his clients, Clark diverted the money into his law firm’s bank accounts, and used it for personal expenses, like gambling, travel, and automobiles. 

Liebman previously pleaded guilty to conspiracy to commit bankruptcy fraud. He was sentenced to 15 months’ imprisonment.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the Federal Bureau of Investigation. The Office of the United States Trustee for the Middle District of Florida (Tampa Division) provided substantial investigative support. It was prosecuted by Special Assistant United States Attorney Chris Poor.

Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has convicted Luis Elias Angulo Leones (Ecuador, 29), Jhonis Alexis Landazuri Arboleda (Colombia, 33), and Dilson Daniel Arboleda Quinones (Colombia, 25) of possessing and conspiring to possess with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States.  Each defendant faces a mandatory minimum sentence of 10 years, and up to life, in federal prison. Their sentencing hearings have been scheduled for June 15, 2022.  All three individuals were indicted on March 19, 2020.

According to testimony presented at trial, a U.S. Coast Guard (USCG) helicopter spotted a 35-foot open-hull motorboat in the Eastern Pacific Ocean, about 100 miles from the nearest point of land.  The vessel was suspected of drug smuggling because it had multiple engines, multiple fuel containers on deck, was operating without navigational lights at dusk, and was operating in a location where maritime drug smuggling by similar vessels is common.  The USCG Cutter Mohawk launched a small boat to investigate, found the three defendants on board, and determined the vessel to be without nationality, and therefore subject to U.S. jurisdiction.  A search of the motorboat revealed 430 kilograms of cocaine, worth $12.9 million, hidden underneath the vessel’s deck.

This case was investigated by the United States Coast Guard and the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) Strike Force comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Coast Guard Investigative Service, the Naval Criminal Investigative Service, and the U.S. Southern Command's Joint Interagency Task Force South. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

The case was prosecuted by Special Assistant United States Attorney Tereza Ohley and Assistant United States Attorney Lauren Stoia.

A Florida man was sentenced today to four years in prison followed by three years of supervised release for conspiring to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms, and making false written statements as part of a security clearance background investigation.

Fan Yang, 37, of Jacksonville, was convicted by a federal jury on Nov. 12, 2021. According to court documents, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare. As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.

“Fan Yang held a position of trust with the U.S. government working on anti-submarine warfare,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, the court held him accountable for violating that trust by lying to the government about significant foreign relationships.”

“This case is about more than federal firearms law. It’s about a former Naval flight officer with top-secret security clearance and trained in anti-submarine warfare, who lied about his connections to the People’s Republic of China on U.S. government employment forms,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “To ensure only the most trustworthy people have access to sensitive information and military technology, U.S. Government employees have a duty to be truthful in their background investigations. The FBI is grateful to its partners who were instrumental in investigating this case. “

“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Special Agent in Charge Sherri E. Onks of the FBI’s Jacksonville Field Office. “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active-duty status as an officer in the U.S. Navy. The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”

“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the Naval Criminal Investigative Service (NCIS) Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”

Prior to becoming a commissioned naval officer, Fan Yang formed a relationship online with Songtao Ge, a citizen of the People’s Republic of China. Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola. In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge’s company headquartered in Shanghai, China. That company purchased in the United States and exported to China maritime equipment designed for law enforcement and military missions.

From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge’s executive assistant and co-defendant, Zheng Yan. The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the United States, and for goods that Ge Songtao ordered the Yangs to purchase. The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.

In 2017 and again in 2018, acting on Ge’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9 mm pistol and a Glock 9mm pistol. Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.” Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge.

The evidence at trial showed that although Ge employed Yang Yang, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy. For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.

Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Fan Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance. That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals. Yang failed to disclose the extent of his contacts with Ge, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.

On Nov. 2, 2020, Ge pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. On July 14, 2021, he was sentenced to three years and six months years in federal prison. On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge had pleaded guilty, and on Dec. 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment. On Aug. 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately six months’ imprisonment and 11 months’ home-detention.

This case was investigated by the FBI, NCIS, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Michael J. Coolican and Kirwinn Mike for the Middle District of Florida, as well as Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger today sentenced Fan Yang (37, Jacksonville) to 48 months in federal prison, followed by 3 years’ supervised release, for conspiring with his co-defendants Ge Songtao (52, Nanjing, People’s Republic of China) and Yang Yang (36, Jacksonville) to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms and making false written statements as part of a security clearance background investigation.  The Court also ordered Yang to forfeit the firearms that he purchased as a part of the conspiracy, specifically, a Sig Sauer 9mm pistol and a Glock 9mm pistol.  A federal jury found Yang guilty on November 12, 2021.

According to evidence presented at trial, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare.  As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.

Prior to becoming a commissioned naval officer, Yang formed a relationship online with Ge Songtao, a citizen of the People’s Republic of China.  Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola.  In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge Songtao hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge Songtao’s company headquartered in Shanghai, China.  That company purchased in the U.S. and exported to China maritime equipment designed for law enforcement and military missions.

From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge Songtao’s executive assistant and co-defendant, Zheng Yan.  The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the U.S., and for goods that Ge Songtao ordered the Yangs to purchase.  The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.

In 2017 and again in 2018, acting on Ge Songtao’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9mm pistol and a Glock 9mm pistol.  Ge Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.”  Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge Songtao.The evidence at trial showed that although Ge Songtao employed Yang’s wife, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy.  For example, in July 2018, Yang asked for time off from his Navy chain of command, claiming that he was travelling with his family to “Disney” when in fact, he and his wife secretly travelled to Nebraska and met with Ge.

Then, in January 2019, while assigned as a tactics instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance.  That questionnaire (called an SF-86 or eQIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals.  Yang failed to disclose the extent of his contacts with Ge Songtao, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.

On November 2, 2020, Ge Songtao pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law.  On July 14, 2021, he was sentenced to three years and six months years in federal prison.  On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao had pleaded guilty, and on December 9, 2020, was sentenced to time-served, or the equivalent of approximately 14 months’ imprisonment.  On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention.

“Lt. Fan Yang swore an oath to protect this country, but instead he posed a significant risk to U.S. national security when he failed to report his contact with the head of a Chinese Defense Contracting firm,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division.  “This act was even more egregious considering Lt. Yang’s Top Secret security clearance and active duty status as an officer in the U.S. Navy.  The FBI and our law enforcement partners will continue to use our full investigative capabilities to investigate, expose, and prevent further threats to U.S. national security posed by foreign competitors and adversaries.”

“Lt. Yang brought discredit to the Navy and threatened military operational readiness when he decided to make straw purchases of firearms for a foreign national and lie about that relationship during his security clearance background investigation,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “This sentence should serve as a warning that NCIS and our law enforcement partners are committed to rooting out criminality that jeopardizes U.S. warfighter superiority. We sincerely thank the NCIS Southeast Field Office and the FBI for their substantial efforts during this investigation.”

This case was investigated by the Federal Bureau of Investigation, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It was prosecuted by Assistant United States Attorneys Michael J. Coolican and Kirwinn Mike, as well as Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.

Fort Myers, Florida –United States Attorney Roger B. Handberg announces that Amber Rewis Bruey (35, Lehigh Acres) today pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. Her husband and co-conspirator, Anthony James Bruey, previously pleaded guilty to the same charges on February 4, 2022. A sentencing date has not yet been set.

Defendant

Charge

Maximum Penalty per Count

Amber Rewis Bruey

Conspiracy to Commit Wire Fraud

30 years in federal prison

Wire Fraud (10 Counts)

30 years in federal prison

Conspiracy to Commit Money Laundering

10 years in federal prison

Illegal Monetary Transactions (4 Counts)

10 years in federal prison

Anthony James Bruey

Conspiracy to Commit Wire Fraud

30 years in federal prison

Wire Fraud (2 Counts)

30 years in federal prison

Conspiracy to Commit Money Laundering

10 years in federal prison

Illegal Monetary Transactions (2 Counts)

10 years in federal prison

 

According to court documents, between April 2020 and June 2020, the Brueys conspired to submit a total of 26 fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications to Small Business Administration (SBA) approved lenders, loan processing companies, and the SBA. The applications contained numerous false and fraudulent representations, including the applicant’s dates of operation, payroll, gross revenues, total number of employees, and the criminal histories of the applicants or business owners.

The Brueys’ false and fraudulent representations caused PPP lenders and the SBA to approve 12 of the loans and disburse a total of $881,058.35 in PPP and EIDL funds. The Brueys then unlawfully used the funds to purchase a $211,457 residence in North Carolina, a 2019 GMC Yukon SUV, a 2020 Honda Talon, and to make a $23,566 restitution payment as a condition of probation in a criminal court case for Amber Bruey.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.

The EIDL program is designed to provide economic relied to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds. 

This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.

Tampa, FL – U.S. District Judge Mary S. Scriven today sentenced Dr. Zachary Bird (51, Tampa) to 24 months in federal prison, followed by 1 year of supervised release, for structuring cash transactions to evade bank reporting requirements. As part of his sentence, the Court also entered a money judgment in the amount of $481,526.76, which represents the total amount of cash illegally structured in the case.  A federal jury found Bird guilty of the offense on May 21, 2021. He was acquitted on other counts.

According to court documents, Bird operated Physicians Wellness and Pain Specialists, a pain management clinic, from May 2014 until it shuttered in June 2018. Bird used the proceeds he earned as a doctor to structure cash deposits for the purchase of a piece of real property in LaBelle, Florida. From February 6 through February 12, 2015, Bird structured 22 cash deposits, each under $10,000 and often occurring on the same day and minutes apart, totaling $193,175.76. Between March 10 and October 26, 2015, Bird structured another 38 cash deposits amounting to $288,351. In total, Bird structured $481,526.76 in cash deposits.

This case was investigated by the Drug Enforcement Administration—Tampa District Office. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.

Tampa, Florida–United States Attorney Roger B. Handberg announces that Eurich Z. Griffin III has pleaded guilty to conspiracy to defraud the United States by promoting a tax fraud scheme and helping others prepare and file false tax returns with the Internal Revenue Service (IRS). Griffin faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, between 2013 and 2018, Griffin offered tax-preparation and consulting services to clients for a fee and recruited clients by convincing them that their mortgage debt payments entitled them to tax refunds, and helped to prepare and present false tax returns on their behalf. These tax returns falsely claimed that banks and other financial institutions had withheld large amounts of income tax from the clients, thereby entitling them to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from these individuals. To make the refund claims appear legitimate, however, Griffin and the conspirators filed tax documents with the IRS that matched the withholding information listed on the tax returns. These tax returns collectively sought $5,231,749.15 from the IRS. As part of the conspiracy, Griffin also independently submitted six fictitious instruments totaling $1,354,809.21 to the IRS.

This case was investigated by IRS-Criminal Investigation. The IRS-CI investigates those who willfully and intentionally violate their known legal duty of filing and paying their fair share of taxes. It is being prosecuted by Assistant United States Attorney Jennifer L. Peresie.