Middle District of Florida

Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Edison Denizard (41, Orlando) to four years and nine months in federal prison for participating in a conspiracy to commit wire fraud. As part of Denizard’s sentence, the court also ordered him to forfeit the real property located at 7617 Toscana Boulevard in Orlando, which is traceable to proceeds of the offense. In addition, the court entered a $1,677,794.57 money judgment against Denizard, which represents the proceeds that Denizard received as part of the offense.

Denizard had pleaded guilty on October 19, 2020.

According to court documents, between March 2016 and June 2017, Denizard raised millions of dollars from dozens of victims who believed that they were investing in specific music concerts through legitimate businesses owned by Denizard and a co-conspirator, Andres Fernandez. Fernandez and Denizard lured investors by guaranteeing them large monetary returns and promising that all of the funds that they provided would be invested in events by top artists, including Drake, Garth Brooks, Pitbull, The Weeknd, and Maná. In fact, neither Denizard nor Fernandez was involved in most of the events.

Denizard used most of the funds that he had received from investors to pay fraudulent “investment returns” to earlier investors and for his own personal use, including to purchase a new lakefront residence, to make payments on his new luxury vehicle, and to stay in luxury hotels. The total amount of victims’ losses attributable to Denizard are $7,479,453.

Fernandez, who was the instigator of the scheme, previously pleaded guilty to 12 counts of wire fraud and was sentenced last year to 10 years in federal prison.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt. The forfeiture was handled by Assistant United States Attorney Nicole Andrejko.

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Tyrone Lee Jones (33, Jacksonville) to eight years and four months in federal prison for possessing a firearm as a convicted felon. Jones had pleaded guilty on March 4, 2020.

According to court documents, in July 2019, a confidential source (“CS”) working for the Bureau of Alcohol, Tobacco, Firearms and Explosives met with Jones at a residence where Jones showed the CS a cooler bag containing at least five firearms with an additional firearm tucked underneath the bag. The CS left the residence and returned later the same day to purchase one of the firearms from Jones. An associate of Jones handed the CS a .357 caliber revolver and an ounce of cocaine. That evening, the CS met with Jones at a hotel in Jacksonville to discuss payment for the revolver. During this meeting, Jones displayed a Glock-style pistol on a table next to him. 

In September 2019, Jones was arrested at the same Jacksonville hotel by the Jacksonville Sheriff’s Office. At the time, Jones was the only occupant of a hotel room where a lockbox containing three firearms, one of which was a stolen Glock pistol; drugs; and more than $10,000 in cash was recovered. The key to the lockbox was attached to Jones’s shorts.

Prior to these events, Jones had been convicted of three felonies, including sale or delivery of cocaine, and was therefore prohibited from possessing firearms or ammunition under federal law.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Levi Ta’shae Goodman (33, Jacksonville) to 10 years in federal prison for selling drugs and possessing a firearm in furtherance of his drug trafficking. Goodman had pleaded guilty on September 22, 2020.

According to court documents, Goodman sold drugs and guns to undercover detectives with the Jacksonville Sheriff’s Office (“JSO”) on multiple occasions during 2019. In May 2019, Goodman sold methamphetamine. On July 10, 2019, Goodman sold heroin and crack cocaine and stated that he had shot someone two weeks earlier. Two days later, Goodman sold a 9mm pistol and heroin and, the following day, he sold crack cocaine and fentanyl. On July 19, 2019, Goodman sold a loaded .38 caliber revolver, fentanyl, and crack cocaine to JSO detectives. On July 23, 2019, Goodman, who was armed with a Glock pistol, sold methamphetamine to the detectives. Later that month, he sold detectives crack cocaine and while armed with a Glock pistol, Goodman sold methamphetamine and fentanyl, and remarked that he was a known “gun-toter, gun slinger.” On August 1, 2019, Goodman sold a 9mm pistol and an AK-47 style rifle, as well as a mixture of heroin and fentanyl to JSO detectives. The next day, he was arrested while in possession of his Glock pistol.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Yolanda Herrera (43, Rex, GA) to 22 years in federal prison for conspiracy to distribute methamphetamine and heroin, and attempted possession with the intent to distribute methamphetamine and heroin.

Herrera had pleaded guilty on June 4, 2020.

According to court documents, between October 24, 2018, and March 18, 2019, Herrera organized and coordinated the shipment of numerous containers of methamphetamine and heroin aboard the cargo ship Leticia, which repeatedly traveled from Altamira, Mexico, to the Port of Tampa.

On or about March 11, 2019, U.S. Customs and Border Protection (CBP) agents at the Port of Tampa inspected a container onboard the Leticia that, according to the ship’s manifest, contained stone blocks, typically used for the building of stone fountains. Agents from Homeland Security Investigations (“HSI”) imaged the blocks and observed that several of them contained anomalies. After breaching the blocks, the agents uncovered 14 large packages that had been shrink-wrapped with black carbon paper, which contained more than 50 kilograms of methamphetamine and 3 kilograms of heroin.

On March 15, 2019, HSI agents observed the blocks being loaded into a yellow rental truck. They then followed the truck as it exited the Port of Tampa and continued to Atlanta, Georgia. On March 16, 2019, at approximately 10:00 a.m., agents arrested two Mexican nationals, Nestor Vazquez-Morales and Adan Martinez-Onofre, as they attempted to offload the truck outside a residential home.

Agents searched Vazquez-Morales’s residence in Georgia and seized approximately two kilograms of heroin, three firearms (including a rifle), $12,725 in U.S. currency, and one stone block that was identical to the blocks discovered in the Port of Tampa. Next to the stone block, agents found some clear plastic wrapping that contained a square white sticker with black letters displaying the message “Hecho en Mexico” (Made in Mexico). This same sticker was also found on the narcotics from March 11, 2019.

Cellphones obtained from the individuals showed that Herrera, who flew from Tampa to Atlanta after the shipment arrived in Tampa, was actively planning and coordinating the pickup of the narcotics from the port to their eventual destination.

Between October 2018 and March 2019, Herrera rented six other trucks. During that time, Herrera’s co-conspirators completed seven shipments on the Leticia, all of which departed from Mexico, arrived in Tampa, and were identified as stone fountains in the cargo manifest. GPS data obtained from the rental trucks show that the trucks were all rented in Tampa, and dropped off in Atlanta, with stops at the same Atlanta residence.

On September 18, 2019, Herrera was arrested in Atlanta. During an interview with law enforcement, she admitted that she had been hired and paid to coordinate, supervise, and organize the transportation of narcotics sent from Mexico to Tampa, and deliver them to Georgia. Federal agents searched Herrera’s home and found a stone block in her backyard. That stone block contained the same “Hecho en Mexico” sticker as the stone blocks shipped on the Leticia.

In July 2020, Nestor Vazquez-Morales and Adan Martinez-Onofre were sentenced to federal prison terms of 15 years and 8 months and 5 years and 10 months, respectively, for their roles in this case.

“Narcotics trafficking poses a deadly threat, bringing in dangerous and addictive drugs and related criminal activity to our communities,” said HSI Tampa acting Special Agent in Charge Kevin Sibley. “Our HSI special agents are deeply committed to working with our law enforcement partners to disrupt and dismantle drug trafficking efforts in our communities.”

This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Diego F. Novaes.

Tampa, Florida – Kevin Hohn (65, Brooksville) has been arrested and charged by federal criminal complaint with possession and distribution of images depicting the sexual abuse of children. If convicted, he faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release.

According to the criminal complaint, in September and December 2020, investigators identified a certain internet protocol address as having distributed images and a video depicting child pornography. Further investigation traced the IP address used to distribute the files to Hohn’s residence in Brooksville. Investigators determined that Hohn is a retired Special Agent with the Internal Revenue Service - Criminal Investigation, and former mayor of the City of Brooksville.

On February 19, 2021, investigators executed a search warrant at Hohn’s residence. Upon entry into the home, they found Hohn sitting in his office at a computer that was connected to an external hard drive. An examination of the external hard drive revealed more than 100 images depicting minors engaging in sexually explicit conduct. Within these images, investigators discovered images of apparent child pornography that had been covertly recorded inside of Hohn’s home.

A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.

This case was investigated by Homeland Security Investigations, with assistance from the Hernando County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Erin C. Favorit.

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.

Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Avinash Singh (38, Orlando) with 10 counts of wire fraud and 6 counts of money laundering. Singh faces a maximum penalty of 20 years in federal prison for each wire fraud count, and up to 10 years’ imprisonment for each money laundering count. 

According to court documents, Singh operated a local company by the name of Highrise Advantage, LLC. From February 2013 to September 2020, Singh received more than $57 million, from over 1,100 victims, that was to be invested in retail foreign currency contracts (“forex”) through Highrise. To induce his victims to invest, Singh claimed that he had a proven track record of success as a forex trader, that he was going to use the funds for investments in forex, and that he would “guarantee” that his victims would not lose any funds for any trading losses. Those representations were not true. Rather than invest his victims’ funds in forex trading as he had promised, Singh used funds from one investor to pay amounts owed to other investors. Singh did not invest the funds that he had promised but instead misappropriated at least $45 million in the form of payments to other investors and millions of dollars in personal expenses. Singh invested less than 5% of the funds that he had received in actual forex trading.

To cover up his scheme, Singh issued monthly statements that falsely represented that he had invested the funds in forex as he had promised and that he was making large profits. In fact, Singh’s investments, when he made them, often lost significant amounts of money, which Singh attempted to cover up by creating false monthly statements.

In connection with this criminal prosecution, the Asset Recovery Division of the U.S. Attorney’s Office has filed a civil complaint seeking the forfeiture of a residence purchased with move than $920,000 in wire fraud proceeds. Per Department of Justice policy, the United States will seek permission to use the funds forfeited in that action to remit back to the victims at a later date. The amount of restitution due to the victims will be determined at a later date.

The U.S. Attorney’s Office and the investigative agencies recognize the U.S. Commodities Futures Trading Commission (CFTC) for its assistance. The CFTC has filed a civil complaint in federal court against Singh, Highrise, and others (Commodity Futures Trading Commission v. Highrise Advantage, LLC, Case No. 6:20-cv-1657-Orl-41GJK). 

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

This case was investigated by the Federal Deposit Insurance Corporation – Office of Inspector General, the Internal Revenue Service Criminal Investigation, the St. Cloud IRS Federal Financial Crimes Task Force, and the State of Florida Office of Financial Regulation, with assistance from the U.S. Marshals Service. It will be prosecuted by Assistant United States Attorney Roger B. Handberg, and asset recovery will be handled by Assistant United States Attorney Nicole M. Andrejko.

Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced William Nobles (61, LaBelle) to five years in federal prison for possession of images and videos depicting the sexual abuse of children. Nobles was also sentenced to a 20-year term of supervised release and was ordered to register as a sex offender.

Nobles was found guilty following a bench trial on January 16, 2020.

According to court documents, FBI agents began an undercover investigation to identify individuals who were using a particular website on the dark web to access and download images and videos depicting the sexual abuse of children. From February 20, 2015 to March 3, 2015, Nobles accessed visual images of children engaging in sexually explicit conduct. FBI agents executed a federal search warrant at Nobles’s residence. During an interview with law enforcement, Nobles admitted to accessing and viewing child pornography on the website. A subsequent forensic examination of Nobles’s computer, CDs, and thumb drive revealed images and videos depicting children being sexually abused that Nobles had accessed and downloaded using the dark web.

This case was investigated by the Federal Bureau of Investigation, Fort Myers Child Exploitation and Human Trafficking Task Force, which includes the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.

The United States filed a civil complaint seeking to permanently enjoin the owners of a Tampa-area clinic and pharmacy from unlawfully dispensing opioids and other controlled substances, the Department of Justice announced today.

In a complaint filed in U.S. District Court for the Middle District of Florida, the government alleges that Dr. Tobias Bacaner, Theodore Ferguson II, and Timothy Ferguson used Paragon Community Healthcare Inc., to unlawfully issue controlled substance prescriptions, and Cobalt Pharmacy Inc., to unlawfully fill controlled substance prescriptions, all in violation of the Controlled Substances Act. The complaint alleges that the defendants ignored obvious signs of abuse or diversion when issuing and filling opioid prescriptions. The complaint also alleges that drug toxicity played a role in the deaths of several individuals who received controlled substances from the defendants.

“The opioid addiction epidemic continues to devastate communities,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice and its law enforcement partners will hold accountable those who illegally distribute and dispense opioids.”

“The illicit proliferation and abuse of opioids, by any means, remains a growing threat to communities across the country,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When these means include the breach of trust and illegal conduct of medical professionals, for profit, it is even more disturbing. The U.S. Attorney’s Office will continue to work with its partners to investigate and prosecute those who violate their oath and put the public at risk.”

“DEA will not tolerate individuals who seek to profit from addiction and prey on vulnerable populations,” said Acting Administrator D. Christopher Evans of the Drug Enforcement Administration (DEA). “We will use every tool at our disposal to stop and bring to justice those who willfully endanger others and exacerbate the opioid epidemic.”

The complaint alleges that Bacaner, a medical doctor licensed in Florida, wrote prescriptions for potent and dangerous opioids outside the usual course of professional practice. The complaint alleges that Bacaner and his business partners, Theodore and Timothy Ferguson, profited from unlawful prescribing at the Fergusons’ cash-only pain clinic, Paragon Community Healthcare, and that patients from Paragon often took those same prescriptions to the defendants’ jointly owned pharmacy, Cobalt Pharmacy. The complaint seeks civil penalties as well as a permanent injunction against the defendants.  

A civil complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case is being handled by Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.

Tampa, FL – The United States filed a civil complaint seeking to permanently enjoin the owners of a Tampa-area clinic and pharmacy from unlawfully dispensing opioids and other controlled substances, the Department of Justice announced today.

In a complaint filed in U.S. District Court for the Middle District of Florida, the government alleges that Dr. Tobias Bacaner, Theodore Ferguson II, and Timothy Ferguson used Paragon Community Healthcare Inc., to unlawfully issue controlled substance prescriptions, and Cobalt Pharmacy Inc., to unlawfully fill controlled substance prescriptions, all in violation of the Controlled Substances Act. The complaint alleges that the defendants ignored obvious signs of abuse or diversion when issuing and filling opioid prescriptions. The complaint also alleges that drug toxicity played a role in the deaths of several individuals who received controlled substances from the defendants.

“The opioid addiction epidemic continues to devastate communities,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice and its law enforcement partners will hold accountable those who illegally distribute and dispense opioids.”

“The illicit proliferation and abuse of opioids, by any means, remains a growing threat to communities across the country,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “When these means include the breach of trust and illegal conduct of medical professionals, for profit, it is even more disturbing. The U.S. Attorney’s Office will continue to work with its partners to investigate and prosecute those who violate their oath and put the public at risk.”

“DEA will not tolerate individuals who seek to profit from addiction and prey on vulnerable populations,” said Acting Administrator D. Christopher Evans of the Drug Enforcement Administration (DEA). “We will use every tool at our disposal to stop and bring to justice those who willfully endanger others and exacerbate the opioid epidemic.”

The complaint alleges that Bacaner, a medical doctor licensed in Florida, wrote prescriptions for potent and dangerous opioids outside the usual course of professional practice. The complaint alleges that Bacaner and his business partners, Theodore and Timothy Ferguson, profited from unlawful prescribing at the Fergusons’ cash-only pain clinic, Paragon Community Healthcare, and that patients from Paragon often took those same prescriptions to the defendants’ jointly owned pharmacy, Cobalt Pharmacy. The complaint seeks civil penalties as well as a permanent injunction against the defendants.  

The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.

The case is being handled by Assistant U.S. Attorney Lindsay S. Griffin, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.

Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Adam Lee Hollis (42, Polk County) to 45 years in federal prison for producing sexually explicit photographs of a seven-year-old child in his custody, and for having committed that offense while being required to register as a sex offender. Hollis was also ordered to serve a 20-year term of supervised release following his incarceration.   

Hollis had pleaded guilty on November 30, 2020.

According to court documents, in January 2013, Hollis advertised, produced, and distributed sexually explicit images of a deaf, seven-year-old child to whom he had access. Hollis also molested that child, in addition to sexually abusing another eight-year-old child. For years, Hollis groomed these children by forcing them to watch pornography with him, threatening their relatives, and threatening that their mother would lose custody of them if they reported his abuse. Hollis advertised, created, and traded these child sex-abuse images using the internet, in part, so that he could add to his personal collection of child exploitation materials, which consisted of more than 250 images and more than 80 videos.

In 2014, Hollis was convicted in Polk County for sexual battery on a child. Hollis was in violation of his sex offender registration requirements when law enforcement officers approached him in 2013. Before the offense conduct, in 2000, Hollis had been convicted of directing/promoting the sexual performance of a child by distributing child-exploitative images using America Online (“AOL”).

“This criminal deviant committed the most horrible atrocities on young, helpless children,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “This sentencing ensures this repeat child predator will spend the rest of his natural life in prison.”

This case was investigated by Homeland Security Investigations, with assistance from the Polk County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.

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

Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Douglas V. Oakes (62, Lake County) to 30 months in federal prison for tax evasion, to be followed by three years of supervised release. Oakes had pleaded guilty on November 18, 2020.

According to court documents, Oakes tried to evade and defeat the payment of federal income taxes that he owed for tax years 2002 to 2005. In August 2015, after the IRS initiated collection actions, Oakes submitted a signed statement to the IRS in which he represented that he was not employed or self-employed, earned no income, and did not have a financial interest in any business entities. In fact, at that time, Oakes was working for Dealerindustry.com, LLC (“DI”) d/b/a Automotive Capital Corporation, a company in which he had a significant financial interest and from which he was earning approximately $400,000 per year. To conceal from the IRS his financial interest in DI, Oakes registered his daughters as DI’s managing members with the Florida Department of State, removed his name from DI’s website and bank account, and removed his profile from the website LinkedIn.

In addition, in September 2015, Oakes submitted a sham rent agreement to the IRS representing that he and his wife were renting their 4,321 sq. ft. lakefront home in Orlando from DI for $1 per month. In November 2015, Oakes further attempted to conceal his assets from the IRS by purchasing a new beachfront home in Merritt Island for $1 million in the name of a nominee. 

In July 2017, following the death of his daughter, Oakes caused posthumous tax returns to be prepared for Oakes’s deceased daughter in which DI’s income from 2010 through 2015 was falsely claimed to be entirely his deceased daughter’s income. In fact, between 2010 and 2015, Oakes earned approximately $2.2 million in income from DI, including payments that Oakes caused to be made from DI’s business bank account for credit card payments, luxury car payments, and the rent for his lakefront home.

The total tax loss to the United States in this case was $1,112,651.

“We teach our kids that lying is often what gets them in the most trouble.  That does not change when we become adults,” stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Mr. Oakes broke the law when he failed to uphold his duty to pay an honest tax, but then he made his situation worse by spinning a tangled web of lies. IRS Special Agents take great pride in persistently uncovering the truth, and that’s what they did in this case. This tax filing season, I am putting would-be tax evaders on notice that cheating does not pay.”

This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Chauncey A. Bratt and Assistant United States Attorney Jennifer M. Harrington.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that Samuel Lawrence and Julee Lawrence have pleaded guilty to one count of conspiracy to defraud the United States and to impede and impair the ability of the Internal Revenue Service to ascertain and collect employment tax revenue. Each faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

According to the plea agreement, Samuel Lawrence owned and managed Innovative Marine Structures, LLC, a marine construction company operating in the Middle District of Florida. His wife, Julee Lawrence, handled payroll and other duties for the company. Beginning in January 2014 and continuing through September 2016, the couple engaged in a conspiracy to impede the IRS by cashing large corporate checks at a local bank and using those funds to pay certain employees of their company in cash and by failing to report the employment of those employees on federal tax forms. As a result of those actions, the couple caused their payroll company to fail to report and pay to the IRS the required federal employment taxes due from the payment of those employees’ wages. The total amount of employment taxes that the company should have paid to the IRS on those employees’ wages was approximately $238,483.

This case was investigated by the IRS - Criminal Investigation. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Tampa, FL – U.S. Senior District Judge Susan C. Bucklew has sentenced Mario Mitchell Pereira (43), Olario Mitchell Palacio (49), and Mike Mitchell Palacio (52), for conspiring to distribute cocaine on board a vessel subject to the jurisdiction of the United States. In October 2020, Mario Mitchell Pereira was sentenced to 19 years and 7 months’ imprisonment. On February 11, 2021, Olario Mitchell Palacio was sentenced to 17 years and 6 months in federal prison. In November 2020, Mike Mitchell Palacio was sentenced to 21 years and 10 months in federal prison. Senior District Judge Virginia M. Hernandez Covington also sentenced Mike Mitchell Palacio to an additional consecutive sentence of two years’ imprisonment for violation of his federal supervised release.

According to court records, in November 2015 the brothers, all Colombian nationals, conspired to have 1,280 kilograms of cocaine smuggled from La Guajira, Colombia via a go-fast vessel. They arranged this venture after a previous trip that Mario Mitchell Pereira had organized but ultimately had to be aborted due to the suspected presence of a patrol aircraft in the Caribbean Sea. Olario Mitchell Palacio and Mike Mitchell Palacio forced co-conspirators to work without payment in sending the second shipment to its destination. However, a Dutch vessel carrying a law enforcement detachment of U.S. Coast Guard personnel stopped the vessel and its crewmen while in international waters approximately 60 miles north of the coast of Colombia. The Coast Guard personnel recovered 1,280 kilograms of cocaine.

The three men were arrested in Colombia in November 2017, following the return of the indictment in this case. They were subsequently extradited to the United States. The Justice Department’s Office of International Affairs provided critical assistance in securing the defendants’ extradition from Colombia.  

This case was investigated by the Panama Express Strike Force, a standing Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s 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. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case was prosecuted by Assistant United States Attorney Dan Baeza.

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announced today that George Thomas Griffiths, Jr. (41, Ponte Vedra Beach) has been arrested and charged by federal criminal complaint with distributing child pornography. Griffiths faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison, and a potential life term of supervised release. Griffiths was arrested on February 10, 2021, and is detained pending a hearing on February 12, 2021 at 11:00 a.m., in Jacksonville.

According to the

On November 19, 2020, SJSO detectives, together with agents from Homeland Security Investigations, executed a search warrant at Griffiths’s residence and seized an Apple iPhone belonging to Griffiths. During an interview with law enforcement, Griffiths stated that he used this particular app to talk to people and that it was “possible” that he had exchanged pictures and videos on the app. An examination of Griffiths’s iPhone revealed that it contained at least 2,000 images, and at least 10 videos, depicting child sexual abuse. Many of these images and videos depicted infants, toddlers, and prepubescent children engaged in sexually explicit conduct. 

A criminal complaint is only an allegation and every defendant is presumed innocent until proven guilty.

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

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.  

Orlando, Florida – Matthew Zachariah Humphrey (26, Daytona Beach) has pleaded guilty to conspiracy to distribute controlled substances and possessing a firearm in furtherance of that offense. He faces a minimum penalty of 5 years, and up to 40 years, in federal prison for the drug conspiracy and an additional 5 years’ imprisonment for possessing the firearm in furtherance of the conspiracy offense. Humphrey’s sentencing hearing is scheduled for April 27, 2021.  

According to court documents, Humphrey, his co-defendant Janee Reve Najee Kelly, and others worked together to distribute heroin, fentanyl, and cocaine in the Daytona Beach area. On June 17, 2020, Humphrey and Kelly were detained at the same time in an area of Daytona Beach. At the time of their arrests, Humphrey possessed cocaine, fentanyl, and a stolen, loaded firearm and Kelly possessed fentanyl and a firearm as well. The two conspirators collectively possessed more than 88 grams of fentanyl. 

On December 8, 2020, Kelly pleaded guilty to conspiracy to distribute controlled substances, as well as possessing a firearm in furtherance of her offense. Her sentencing is scheduled for March 15, 2021. Humphrey will be sentenced on April 27, 2021.   

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

Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Louis Farmer, Jr. (24, Orlando) to 3 years and 10 months in federal prison for possessing a firearm as a convicted felon. Farmer had been found guilty on November 13, 2020, following a bench trial.

According to court documents, on September 30, 2019, at approximately 2:00 a.m., following a traffic accident in downtown Orlando, law enforcement officers observed a loaded AR-15 rifle in Farmer’s vehicle. As law enforcement officers began investigating the traffic accident, Farmer stepped out his car and attempted to flee from the officers. He was apprehended a short time later. Further investigation revealed that Farmer also had in his possession a second firearm, as well as heroin. At the time of the incident, Farmer was on state supervised release, following a 36-month state prison sentence for robbery with a firearm and aggravated battery with a firearm, and therefore, is prohibited from possessing firearms or ammunition.

This case was investigated by the Federal Bureau of Investigation and the Orlando Police Department. It was prosecuted by Assistant United States Attorneys Shawn P. Napier and Amanda Daniels.

This is another case 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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Ocala, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Dominique Lamar Oliver (31, Ocala) to 12 years in federal prison for conspiracy to distribute methamphetamine. Oliver had pleaded guilty on October 2, 2020.

According to court records, in July 2019, Oliver collided with a Marion County fire truck that had stopped for an accident on County Road 326. Moments after the collision, firemen observed Oliver attempt to conceal a backpack in the high grass of the median. A Florida Highway Patrol trooper subsequently recovered the backpack that contained marijuana, cocaine, various prescription pills, and several baggies used to distribute drugs. Investigators found a package addressed to Oliver containing 447 grams of methamphetamine (valued at between $25,000 and $35,000) inside Oliver’s disabled vehicle.

After his arrest, federal agents with the United States Postal Service, Office of Inspector General began investigating Oliver. Agents discovered that in the year leading up to the collision, Oliver had received 112 packages from source states including California, Washington, and Nevada. Oliver eventually admitted to the agents that he had been ordering marijuana, pills, and methamphetamine from the “dark web” and distributing the drugs in the Middle District of Florida.

This case was investigated by the United States Postal Service, Office of Inspector General and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Kevin Jonathan Canty (33, West Palm Beach) with violating national defense airspace. If convicted, Canty faces a maximum penalty of one year in federal prison.

According to the complaint, on February 6, 2021, the Federal Aviation Administration (FAA) issued a temporary flight restriction (TFR) covering an area extending outward from downtown Tampa. This TFR, along with others, was issued as part of a comprehensive security plan designed to protect and secure the events leading up to, and including, Super Bowl LV. That day, FBI agents saw an unmanned aircraft system (UAS), commonly referred to as a “drone,” flying near the USF Health CAMLS building—an area within the TFR. FBI agents later located Canty, the operator of the drone, nearby in downtown Tampa. Canty stated that he is an FAA-licensed remote pilot drone operator and that he was aware that a TFR was in place for the Super Bowl. A review of his drone’s flight path showed that it had traveled through downtown Tampa, which was hosting public events related to the Super Bowl. Furthermore, according to the flight path, Canty had flown his drone over people and moving vehicles.

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

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.

Orlando, Florida – U.S. District Judge Roy B. Dalton has sentenced Angel Roberto Lopez (35, Honduras) to 21 months in federal prison for illegal reentry into the United States after deportation. Roberto Lopez had pleaded guilty on November 16, 2020.

According to court documents, Roberto Lopez had previously been deported from the United States to Honduras on five occasions. On September 4, 2015, Roberto Lopez was convicted of felony battery with great bodily harm after deportation, a felony offense. Following his conviction, Roberto Lopez illegally reentered the United States. 

This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Terry B. Livanos.

Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Bretton Howard Osborne (29, Punta Gorda) to 3 years and 8 months in federal prison for stalking and conspiracy to commit stalking. He was also ordered to complete 300 hours of community service.

Osborne’s co-defendant, Ian Douglas McGuire (30, Port Charlotte), was previously sentenced to 5 years in federal prison for the same offenses. Osborne and McGuire have also been ordered to pay victim restitution. 

Osborne and McGuire had previously pleaded guilty.

According to court documents, between March 8, 2019, and June 27, 2019, McGuire and Osborne conspired together to stalk and harass victim “A.G.W.” Together they committed multiple acts of stalking using the U.S. Mail and the internet with the intent to injure, harass, and intimidate the victim, causing the victim to fear serious bodily injury. They also caused substantial emotional distress to the victim. Among other things, McGuire and Osborne posted videos of the victim on McGuire’s YouTube channel and pinned to those videos personal information of the victim. They also mailed items, including fecal matter and a dead kitten to the victim and ordered services, food, and materials to be delivered to her home that she did not authorize.

This case was investigated by the Charlotte County Sheriff’s Office, the Punta Gorda Police Department, the North Port Police Department, the Federal Bureau of Investigation, and the United States Postal Inspection Service. It was prosecuted by Chief Assistant United States Attorney Jesus M. Casas.    

Orlando, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Don V. Cisternino (45, Chuluota) with two counts of wire fraud, three counts of aggravated identity theft, and three counts of illegal monetary transactions. If convicted, Cisternino faces a maximum penalty of 20 years in federal prison for each wire fraud count, up to 10 years’ imprisonment for each illegal monetary transaction count, and a mandatory consecutive term of two years for the aggravated identity theft counts.

According to the

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 potentially 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 towards qualifying business expenses.

Cisternino’s PPP loan application falsely claimed that Cisternino’s New York business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo, had few, if any, employees other than Cisternino and his girlfriend, and MagnifiCo did not report any wages to the IRS for 2019. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and Social Security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.

Once Cisternino obtained the emergency loan of $7.2 million, he did not use these funds for qualifying expenses. Instead, he spent the funds for unauthorized purposes and for his own personal enrichment, including the purchase of Lincoln Navigator, Maserati, and Mercedes-Benz vehicles, and an approximately 12,579 sq. ft. residence in Seminole County.

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 is being investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It is being prosecuted by Assistant United States Attorney Chauncey A. Bratt.

Our deepest condolences to our FBI family and to the family and friends of FBI Special Agents Dan Alfin and Laura Schwartzenberger in the wake of their deaths on February 2, 2021, in Sunrise, Florida.   We especially feel the loss here in the Middle District of Florida, as we were fortunate to have worked with SA Alfin during our recent Operation Pacifier cases.  SA Alfin and SA Schwartzenberger are heroes.  They devoted their lives and careers to protecting our most vulnerable citizens, our children.  They worked tirelessly to protect our State, our District, and our communities from these horrible predators.   We are grateful for their service and their ultimate sacrifice.  We will never forget them, and, to honor them, here in the MDFL USAO, we will continue with our commitment to keep our children safe from those who seek to harm and exploit them.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the filing of a criminal complaint charging Henry Alejandro Jimenez (33, Orlando) with violating national defense airspace. If convicted, Jimenez faces a maximum penalty of one year in federal prison.

According to the complaint, on February 3, 2021, the Federal Aviation Administration (FAA) issued a temporary flight restriction (TFR) covering an area extending outward from downtown Tampa. This TFR, along with others, was issued as part of a comprehensive security plan designed to protect and secure the events leading up to, and including, Super Bowl LV. That day, FBI agents saw an unmanned aircraft system (UAS), commonly referred to as a “drone,” flying near the Barrymore Hotel Tampa Riverwalk—an area within the TFR. The FBI agents then located Jiminez, the operator of the drone, nearby in downtown Tampa. Jimenez stated that he is an FAA-licensed remote pilot UAS operator and that he was aware that a TFR was in place for the Super Bowl. A review of his drone’s flight path showed that it had traveled over Julian B. Lane Waterfront Park, which was hosting public events related to the Super Bowl. Jimenez also appears to have operated his drone without maintaining an uninterrupted visual line of sight for the entire flight, as required by FAA regulations. Furthermore, Jimenez flew his drone over people and moving vehicles.

“This is a perfect example of the serious consequences drone operators face when they choose to ignore the temporary flight restrictions,” said FBI Tampa Special Agent in Charge Michael McPherson. “The TFRs are in place for your safety during Super Bowl week. Be aware of the NO DRONE ZONES and report any suspicious activity to the FBI or local law enforcement.”

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

This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Patrick Scruggs.

Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Jesse Bernard Robinson, Jr. (34, Brevard County) to 15 years and 8 months in federal prison for conspiracy to possess with the intent to distribute fentanyl. Robinson had pleaded guilty on November 9, 2020.

According to court documents, during a three-month period in 2020, Robinson sold approximately 115 grams of fentanyl to a law enforcement confidential source. In addition, at the time of his arrest, Robinson had the following drugs in his possession: 7 grams of fentanyl, 14 grams of a mixture of heroin and fentanyl, 15 grams of cocaine, and 23 grams of crack cocaine. Each of these narcotics were packaged for distribution.

This case was investigated by the Drug Enforcement Administration and the Palm Bay Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier.

Tampa, FL - United States Attorney Maria Chapa Lopez announces efforts, in partnership with federal, state, and local agencies, to prevent and combat human trafficking in the Middle District of Florida during National Slavery and Human Trafficking month and in preparation for Super Bowl LV in Tampa. The United States Attorney’s Human Trafficking Task Force stands at the forefront of law enforcement’s combined efforts to inform and protect communities across the district every day, and it is especially vigilant in preparation for large interstate events.

“Here in the Middle District of Florida, we are committed to protecting our most vulnerable citizens from becoming human trafficking victims,” said United States Attorney Chapa Lopez. “Human trafficking is a multi-billion dollar industry. It is our responsibility to aggressively prosecute those who endeavor to exploit it for their financial gain and to educate our community to be on the lookout for the signs of human trafficking.”

During the 31 days of National Slavery and Human Trafficking month (January), the Human Trafficking Task Force, headed by AUSA Lisa Thelwell and with the support of the USAO-MDFL community outreach coordinators, assisted in the coordination and safe delivery of various virtual events to enable broader participation in joint human trafficking efforts, while preventing the spread of COVID-19. These presentations included:

• The Threat of Human Trafficking presentation to more than 500 Brevard County law enforcement partners during the Space Coast Human Trafficking Task Force Symposium

• A collaborative workshop with the Department of Juvenile Justice, the St. Petersburg College, and the City of St. Petersburg involving more than 200 community members from Hillsborough, Lee, Pasco, Polk, and Pinellas counties concerning human trafficking and its effects on communities 

• A partnership with the Tampa Bay Human Trafficking Task Force training law enforcement officers from 35 different agencies and prosecutors from 8 different prosecutorial offices regarding the detection, victim assistance, and prosecution of human trafficking crimes

• Trained the Freedom 7 Human Trafficking Task Force consisting of more than 200 members from Volusia, Flagler, Putnam, St. Johns, Hernando, Hillsborough, Lee, Manatee, Pasco, and Pinellas counties on how to deter and pursue human traffickers 

• Trained the Gateway to Freedom Human Trafficking Task Force, including 168 law enforcement officers, public safety officials, educators, and social service providers in Columbia, Suwannee, and Hamilton counties on a multidisciplinary approach to eliminate human trafficking

• Panel discussion facilitated by the Federal Bureau of Investigation, including over 400 law enforcement and community members, concerning the priority of human trafficking detection and prosecution

• Distributed emergency supply kits and resources to at-risk trafficking individuals

These efforts follow the USAO-MDFL Human Trafficking Task Force’s preparations throughout the last year to maintain vigilance and further reduce the opportunities for human trafficking in preparation for Super Bowl LV, including a focused training in August 2020, hosted by the International Association of Human Trafficking Investigators, regarding combating human trafficking during large-scale events. The United States Attorney also has assigned a team that stands ready to respond to human trafficking threats during the national event.

In addition to providing education, prevention, and technical and training assistance, the USAO-MDFL also vigorously prosecutes human trafficking crimes. Some of the most recent cases include:

United States v. Christopher John Streeter – In January 2021, Streeter was sentenced to life in federal prison for sex trafficking minors. Streeter participated in a scheme that sexually exploited children in the Philippines in order to produce child sex-abuse videos of children as young as 12 and 13 years old, who were particularly vulnerable due to poverty and illness. This case was investigated by Homeland Security Investigations (Tampa and Manila), with assistance from the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.

United States v. David Alan Quarles – In January 2021, Quarles was indicted and charged with conspiracy, sex trafficking by force, fraud, or coercion; importation of an alien for the purpose of prostitution; transportation of an individual in interstate commerce for the purpose of prostitution, and using a facility of interstate commerce in aid of prostitution. If convicted on all counts, Quarles faces a maximum penalty of life in federal prison. This case was investigated by Homeland Security Investigations and the U.S. Coast Guard Investigative Service. It is being prosecuted by Assistant United States Attorney Colin McDonell.

United States v. Gregory Thomas Garcia – In October 2020, Garcia was charged with sex trafficking a minor. If convicted, Garcia faces a minimum mandatory penalty of 10 years, and up to life, in federal prison. This case was investigated by Homeland Security Investigations and the Clay County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.

United States v. Luis Berrios-Trinidad – In July 2020, Berrios-Trinidad was sentenced to 11 years and 3 months in federal prison for sex trafficking minors. Berrios-Trinidad arranged to bring female children to a hotel for a “sex party” with adult men. Berrios-Trinidad was arrested and the victims he had brought, ages 14 and 17, were rescued. This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.

United States v. Edward Alan Hardin – In July 2020, Hardin was charged with two counts of sex trafficking minors and four counts of using a cellular phone to entice children to engage in unlawful sex acts. Hardin faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. This case was investigated by Homeland Security Investigations, the Clay County Sheriff’s Office, and the Putnam County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.

Tampa, FL – United States Attorney Maria Chapa Lopez announces that Alina Pollan (56, Pinellas County) has pleaded guilty to one count of distributing oxycodone for no legitimate medical purpose and not in the usual course of professional practice, and to one count of tax evasion. Pollan faces a maximum penalty of 20 years in federal prison for the illegal drug distribution and 5 years’ imprisonment for the tax evasion count.

According to the plea agreement, Pollan, a Florida-licensed physician and DEA registrant, worked at Pain and Wellness Clinic (“PWC”) for approximately three years. Pollan prescribed large quantities of controlled substances to nearly all of the PWC patients. On February 7, 2018, Pollan interacted with an undercover DEA agent who had been posing as a patient during multiple visits to Pollan at PWC. Despite many red flags raised by the undercover agent during her medical appointments with Pollan—a reported history of drug abuse, failed drug urinalysis screenings, vague medical history, and the acknowledged ability to perform athletic activities—Pollan prescribed oxycodone to the agent for no legitimate medical purpose and outside the usual course of professional practice.

In addition, Pollan filed, or caused to filed, false and fraudulent tax returns with the IRS that understated the true and complete amount of her reportable income from PWC for the tax years 2017 and 2018.

Tom Wynne, the former owner and operator of PWC, previously pleaded guilty to related criminal charges.

This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Internal Revenue Service – Criminal Investigation, and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. The case is being prosecuted by Assistant United States Attorneys Greg Pizzo and Kelley Howard-Allen.

Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Jeffrey Aronofsky (55, Orlando) to 20 years in federal prison, followed by a lifetime of supervised release, for attempted enticement of a child to engage in sexual activity.

Aronofsky had pleaded guilty on August 4, 2020.

According to court documents, in October 2019, Aronofsky engaged in an extensive online chat with an FBI agent who was acting in an undercover capacity and posing as the father of an eight-year-old boy. During the online conversation, Aronofsky expressed interest in meeting with the father in order to sexually assault his minor son. Aronofsky also discussed gang-raping the child. Furthermore, Aronofsky told the father that he had previously sexually assaulted several other children (including a five-year-old) in the Dominican Republic. Aronofsky was arrested when he traveled to meet the father at a prearranged meeting place so that he could have sex with the eight-year-old boy.

This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

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

Tampa, FL – United States Attorney Maria Chapa Lopez announces that Kelly Wolfe (49, Indian Rocks Beach) has pleaded guilty to conspiracy to commit health care fraud and filing a false tax return. She faces a maximum penalty of 13 years in federal prison. A sentencing date has not yet been set. 

In addition to her criminal charges, Wolfe and her company, Regency, Inc. (“Regency”) have agreed to pay up to $20,332,516, to resolve allegations that Wolfe and Regency violated the False Claims Act in a number of ways, including falsifying documentation in order to fraudulently establish durable medical equipment (“DME”) corporations to bill for medically unnecessary DME equipment, and engaging in improper marketing practices that violate the Anti-Kickback Statute. The civil settlement amount is based on Wolfe and Regency’s ability to pay.

According to court documents, Wolfe and her conspirators used Regency to establish dozens of DME supply companies—or, rather, DME fronts—using trickery and deception. The scheme involved placing the DME fronts in the names of straw owners. By concealing the true ownership of the fronts, Wolfe’s conspirators secretly gained control of multiple companies. With such control, they collectively submitted well over $400 million in illegal DME claims to Medicare and CHAMPVA (i.e., the Civilian Health and Medical Program of the Department of Veterans). The conspirators relied on the guise of “telemedicine” to explain the unusually high volume of claims, when, in fact, they had simply bribed doctors to approve them. Almost always, the doctors had no interaction, including telehealth interaction, with the beneficiaries. Wolfe further admitted that, for tax year 2017, she had purchased numerous personal items and services using Regency’s funds. Rather than properly report this as income to the Internal Revenue Service, Wolfe falsely classified her personal spending as purported business expenditures.

This prosecution, arising out of the nationwide “Operation Brace Yourself” takedown, involves one of the largest health care fraud schemes in United States history. The Middle District of Florida is playing a significant role in these historic and nationwide enforcement actions. Collaborative efforts among federal, state, and local partners have resulted in criminal charges against 12 defendants in the MDFL.

“The Department is committed to ensuring that federal health care program providers do not place their own financial gain over patients’ clinical needs,” said Acting Assistant Attorney General Brian Boynton of the Department of Justice’s Civil Division. “When medical professionals and companies knowingly commit fraud to maximize their profits, we will hold them accountable for their unlawful conduct.”

“Fraud and deceit in our nation’s healthcare system is not only unacceptable, it is illegal,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The U.S. Attorney’s Office will continue to aggressively work with our investigative partners in rooting out these illicit practices to ensure that patients receive the optimum care they deserve.”

 “This pernicious telefraud scheme’s ambitions were cut short by the exceptional partnership of our law enforcement partners” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General. “This guilty plea and the forfeiture of tens of millions of dollars back to the U.S. Treasury show our determination to stop such damaging fraud schemes and to bring fraudsters to justice.”

"The FBI is laser-focused on exposing those who cheat our government healthcare programs," said Special Agent in Charge of the FBI Tampa Division Michael McPherson. "American taxpayers can be assured the FBI and its law enforcement partners are working vigorously to protect federally funded healthcare programs from deception and greed."

“Honest and law-abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets," stated Special Agent in Charge Brian Payne of IRS Criminal Investigation. "Fleecing the health care industry effectively robs us all, and tax fraud undermines the integrity of our nation’s tax system. Those who engage in these swindles should know they will not go undetected and will be held accountable."

“The VA OIG’s continued oversight of CHAMPVA, which provides community care to family members of disabled veterans, is one of the agency’s highest priorities because it safeguards the integrity of VA’s health care programs,” stated David Spilker, Special Agent in Charge at the Department of Veterans Affairs Office of Inspector General (VA OIG). “As detailed in the charging documents, the defendant’s criminal actions resulted in a massive fraud being committed against both CHAMPVA and Medicare, ultimately impacting the beneficiaries of those programs. The VA OIG commends the extensive cooperation between our law enforcement partners in this important investigation.”

This case is being prosecuted criminally by Assistant United States Attorneys Kristen Fiore and James Muench, and pursued civilly by Assistant United States Attorney Carolyn B. Tapie and Department of Justice, Civil Division, Commercial Litigation Branch Trial Attorney Daniel A. Schiffer, with assistance from the Department of Health and Human Services – Office of Inspector General, the FBI, the Department of Veterans Affairs – Office of Inspector General, and the Internal Revenue Service – Criminal Investigation. The United States previously obtained an emergency temporary restraining order and preliminary injunction enjoining the conduct and assets of Wolfe, Regency, and several of their co-conspirators, in a civil injunctive action prosecuted by Assistant United States Attorneys Carolyn B. Tapie and Sean P. Keefe. The injunctive action is captioned United States v. Regency, Inc., et al., No. 8:19-cv-803-T-33AEP.

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Wolfe and Regency by Condra Albright, a former Regency employee. As a result of the settlement, Albright will receive 23% of the civil recovery as her statutory reward. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The qui tam case is captioned United States and the State of Florida ex rel. Albright v. Regency, Inc., et al., No. 8:19-cv-686-T-30AEP.

Jacksonville, Florida – Charles Cornelius Smith (36, Jacksonville) has pleaded guilty to charges of aggravated identity theft and conspiracy to commit bank fraud. Smith faces up to 30 years in federal prison on the conspiracy charge, and a 2-year mandatory minimum term of imprisonment on the aggravated identity theft charge. Smith made his initial appearance in federal court on August 27, 2020 and was detained. Smith’s co-defendant, Zipporan Carmel Peters, is scheduled for trial on March 1, 2021.

According to court documents, Smith obtained the personal identification information to include the name, date of birth, and Social Security number of the victim. Using this information, he provided Peters with a counterfeit South Carolina driver license in the name and identity of the victim, but with Peters’s picture on it. Smith then drove Peters to different branches of the Navy Federal Credit Union in Clay and Duval Counties. Using the victim’s identity, Peters subsequently made various fraudulent transactions involving the withdrawal of large amounts of cash and the purchase of multiple $500 gift cards, utilizing the victim’s account. Smith and Peters also went to multiple cell phone stores in Clay and Duval Counties. Using the victim’s identity, they obtained several thousand dollars of cell phones and accompanying merchandise.

Smith, without the involvement of Peters, also was involved with a check fraud scheme. As part of the scheme, Smith would deposit fraudulent checks into various VyStar Credit Union accounts and subsequently make ATM withdrawals before it was determined the deposited check was fraudulent.  

This case was investigated by United States Secret Service - Jacksonville Field Office, the Clay County Sheriff’s Office, and the Orange Park Police Department. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.

Orlando, Florida – Maxwell Garvice Johnson (29, Ormand Beach) today pleaded guilty to one count of conspiracy to distribute controlled substances. Johnson faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. His sentencing hearing is currently scheduled for March 16, 2021.

According to court documents, Johnson worked with multiple conspirators to distribute methamphetamine, heroin, fentanyl-laced heroin, and cocaine, in the Daytona Beach area, from April 3, 2020 through July 30, 2020. During the investigation, law enforcement seized over 2 kilograms of fentanyl-laced heroin, over 500 grams of cocaine, and over 140 grams of methamphetamine being distributed by members of Johnson’s organization, along with tens of thousands of dollars in drug proceeds.

Eight of nine of Johnson’s named co-conspirators have pleaded guilty to co-conspiracy to distribute and possess with intent to distribute controlled substances, such as methamphetamines, heroin, and cocaine and face the following penalties for their roles in this conspiracy:

Defendant

Pleaded Guilty

Statutory Penalties

Sentencing Date

Robert Lee Hamilton, Jr.

12/01/20

15 years to life

03/09/21

Jeniver Sebastian Scott, Jr.

01/13/21

10 years to life

03/16/21

Jeremy Rashan Tarrand

12/01/20

10 years to life

03/09/21

Shakia Monique Flagler

01/13/21

10 years to life

03/16/21

Sharodd Solomon Favors

12/28/20

5 years to 40 years

03/16/21

Dawnte Dequine Benjamin Davis

12/28/20

5 years to 40 years

03/16/21

Felicia Mae Riley

12/01/20

0-20 years

03/09/21

A final defendant, Gena Marie Walker, of Ormand Beach, is scheduled for trial during the March 2021 trial term. 

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

Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Michael David Harrison (52, Sparks, NV) to 24 years and 4 months in federal prison for transportation of child pornography. 

Harrison was found guilty by a federal jury on September 15, 2020.

According to court documents and evidence presented at trial, Harrison transported numerous videos that depicted the sexual abuse of children from his home in Nevada, to Florida, and to the Bahamas, while on a cruise in November 2019. In 2009, Harrison was convicted in California of sexually abusing several children, including a 14-year-old.

“This repeat child predator continued his abhorrent behavior, even after being convicted of the same crime,” said HSI Tampa acting Deputy Special Agent in Charge David Pezzutti. “Thanks to the work of HSI special agents and the Brevard County Sheriff’s Office, he is being held accountable for his crimes.”

This case was investigated by Homeland Security Investigations and the Brevard County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

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

Tampa, Florida – United States Attorney Maria Chapa Lopez announces today that Vistapharm, Inc. has agreed to pay the United States $325,000 to resolve allegations that Vistapharm violated the Controlled Substances Act (CSA) by failing to maintain records required by the CSA. In addition to paying a civil penalty, Vistapharm has agreed to sign separately a Memorandum of Agreement with the Drug Enforcement Administration.

The United States alleges that Vistapharm failed to make available or to maintain in a readily retrievable format more than nine hundred copies of DEA 222 Forms, which are a required record for purchases and sales of Schedule II controlled substances. The United States also alleges that Vistapharm failed to maintain adequate records for six categories of controlled substances handled by its distribution facility in Largo, Florida, which led to overages or shortages in Vistapharm’s expected inventory.

“Scrupulous recordkeeping is essential to maintaining the CSA’s closed system of distribution and preventing dangerous drugs from being diverted and falling into the wrong hands,” said U.S. Attorney Chapa Lopez. “We expect all DEA registrants, regardless of the size of their organization, to be especially meticulous in their recordkeeping because the CSA and the welfare of the public demand it.”

“Pharmaceutical distributors are responsible for helping to ensure that controlled substances are not diverted.” said DEA Miami Field Division’s Special Agent in Charge Keith Weis. “In addition to monitoring employees and customers, distributors are required to inventory their controlled substances, to verify their receipt and distribution, and to maintain complete and accurate records. When one or more of these responsibilities break down, diversion can occur with the consequence of controlled substances potentially falling into the wrong hands.”

This settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida and the Tampa District Office of the Drug Enforcement Administration’s Miami Field Division. Assistant United States Attorneys Lindsay Saxe Griffin and Christopher Emden pursued this civil settlement on behalf of the United States.

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

Orlando, Florida – United States District Judge Roy B. Dalton, Jr. has sentenced Willie Humes (65, Orlando) to nine years in federal prison for receiving images over the internet depicting children being sexually abused. Humes was also ordered to serve a lifetime term of supervised release and to register as a sex offender upon his release from prison. Humes had pleaded guilty on August 17, 2020.   

According to court documents, Humes was identified during an undercover investigation when FBI agents discovered that he was using peer-to-peer networks to download child sex abuse materials. During an interview with law enforcement, Humes admitted to viewing child exploitation materials for many years. Humes was arrested after a search warrant was executed at his residence and a subsequent search of his electronic devices revealed multiple images of child exploitation materials.

According to evidence and testimony presented at sentencing, Humes had sexually abused a family member when the individual was a child. After learning about the current investigation and Humes’s arrest, the victim provided a statement during the sentencing hearing describing Humes’s prior sexual abuse.    

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

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 – United States Attorney Maria Chapa Lopez announces that Collier Anesthesia Pain, LLC, a pain management clinic located in Fort Myers, Florida, and Tampa Pain Relief Center, Inc., have agreed to pay $1,665,000 to resolve allegations that they violated the False Claims Act and Anti-Kickback Statute. As part of the settlement, the United States contends that Collier Anesthesia and Tampa Pain engaged in an illegal kickback scheme by causing affiliated surgery centers to waive copayments for surgical facility fees in order to induce patients to receive injection procedures. Additionally, the United States contends that Collier Anesthesia and Tampa Pain knowingly submitted false claims by improperly billing for evaluation and management services and psychological testing services.       

“Kickback arrangements have no place in federal healthcare programs,” said United States Attorney Chapa Lopez. “This settlement reflects our continuing efforts to target improper payment schemes and our intention to advocate for the proper care of government-funded healthcare program beneficiaries.”    

“Providers that submit false claims squander Federal health care funds and compromise the integrity of the Federal health care program,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General, OPM OIG. “This settlement demonstrates our commitment to ensuring that all taxpayer funds are spent appropriately.”

This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the Defense Criminal Investigative Service, the U.S. Department of Health and Human Services Office of Inspector General, and the U.S. Office of Personnel Management Office of the Inspector General. The investigation was led by Assistant U.S. Attorneys Randy Harwell and David P. Sullivan.

The claims resolved by the settlement are allegations only and there has been no determination of liability.  The civil settlement resolves the following captioned case: United States, et al. v. Wayne Isaacson, M.D., et al., 2:17-cv-352-TPB-NPM.

Orlando, Florida – U.S. District Judge Roy B. Dalton today sentenced Layce Owens (43, Michigan) to 12 months and a day in federal prison for failing to register as a sex offender in Florida. Owens had pleaded guilty on October 28, 2020. 

According to court documents, Owens was convicted of sodomizing a 13-year-old child in Michigan in 2001. As a result, he was required to register as a sex offender when he moved to New Smyrna Beach, Florida in 2019, but he failed to do so.

This case was investigated by the United States Marshals Service, the Volusia County Sheriff’s Office, and the Allegan County Sheriff’s Office (Michigan). It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.

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.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Julio Gonzalez (45, Lakeland) with four counts of theft of public money and two counts of aggravated identity theft. If convicted, Gonzalez faces a maximum penalty of 10 years’ imprisonment for each of the theft of public money counts and a mandatory minimum penalty of 2 years in federal prison for the aggravated identity theft counts. The indictment also notifies Gonzalez that the United States is seeking a money judgment of $110,102.90, the proceeds of the alleged offense.

According to the indictment, Gonzalez used the identity of another individual to commit Social Security fraud and theft of government funds. The indictment also alleges that between approximately February 2014 and February 2018, Gonzalez stole Social Security benefits being paid out on behalf of four different individuals. 

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 Social Security Administration, Office of the Inspector General. It will be prosecuted by Special Assistant United States Attorney Suzanne Huyler and Assistant United States Attorney James Muench.

Tampa, FL – A federal court in Florida issued a temporary restraining order enjoining a Tampa pharmacy and two of its employees from dispensing opioids and other controlled substances, the Department of Justice announced today.

In a civil complaint unsealed in the Middle District of Florida, the United States alleges that WeCare Pharmacy, its pharmacist owner Qingping Zhang, and pharmacy technician Li Yang, and another related corporate entity, L&Y Holdings LLC, repeatedly dispensed opioids in violation of the Controlled Substances Act. The complaint alleges that over a period of several years, the defendants dispensed highly addictive and highly abused prescription opioids while ignoring “red flags” — that is, obvious indications of drug diversion and drug-seeking behavior. U.S. District Judge Mary Scriven granted the government’s request for a temporary restraining order, which was filed along with the complaint.

“Pharmacists have an important role in ensuring that prescriptions for controlled substances are legitimate,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice will work with its partners to enforce the law where evidence shows pharmacists abdicated their responsibilities when dispensing these powerful drugs.”

“Medical professionals, including pharmacists, must utilize the best methods of efficacy and accountability when dispensing and distributing dangerous medications,” said U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. “Failure to comply with our federal laws and standards places the public at great risk and cannot be tolerated. We intend to work with our law enforcement partners to hold responsible parties accountable for their actions and keep our citizens safe.”

“Pharmacies and their pharmacists have the responsibility to flag suspicious prescriptions written by doctors for highly sought after opioid medications, in order to prevent them from being dispensed,” said DEA’s Miami Field Division Special Agent in Charge Keith Weis. “When they fail to carry out this important responsibility, the dispensing of opioid medication becomes a real threat to the health of legitimate patients, and also gives pill seekers a steady supply to either fuel their addiction or illegally distribute them in our communities.”

The complaint alleges that the defendants failed to take steps required to resolve red flags and ensure the legitimacy of prescriptions before filling them. According to court documents, the prescriptions dispensed by the defendants often involved highly abused opioid painkillers such as oxycodone and hydromorphone, almost always in the highest-strength formulations generally available. The complaint alleges that the defendants repeatedly filled prescriptions written by a particular doctor without examining the red flags those prescriptions presented. The complaint seeks civil penalties as well as a permanent injunction against the defendants.   

The claims made in the complaint are merely allegations that the United States must prove if the case proceeds to trial.

The United States is represented by Assistant U.S. Attorney Sean P. Keefe, and Trial Attorney Scott Dahlquist of the Justice Department’s Consumer Protection Branch. The investigation is being conducted by the DEA.

Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Raymond Lee Kelly (53, Cocoa) to 19 years and 7 months in federal prison for possessing a firearm as a convicted felon. Because of his extensive criminal record, which includes drug trafficking, resisting arrest with violence, battery on a law enforcement officer, and possession of a firearm in furtherance of a drug trafficking offense, Kelly qualified as an Armed Career Criminal and faced a 15-year minimum mandatory sentence. Kelly was also on supervised release from a federal prison sentence when he committed the recent offense. A federal jury had found Kelly guilty on September 1, 2020.

According to testimony and evidence presented at trial, Kelly, a convicted felon, fled from a traffic stop in Cocoa Beach—first in a car that he crashed shortly after fleeing—then on foot toward the beach. As he fled, he left behind cannabis, a digital scale, a Ruger semi-automatic handgun, and 16 rounds of ammunition. As a previously convicted felon, Kelly is prohibited from possessing a firearm or ammunition under federal law.

This case was investigated by the Federal Bureau of Investigation and the Cocoa Beach Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.

This is another case 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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Edward Morgan (49), a/k/a Edward Croce, a/k/a Edward Carrera, to six years and six months in federal prison for theft of government funds. As part of his sentence, the court also entered a money judgment of $405,935.76, the proceeds of the theft.

Morgan had pleaded guilty on September 27, 2019.

According to court documents, beginning in November 2016 and continuing through the date of his arrest in May 2019, Morgan used fictitious checks at hundreds of United States Post Office locations in Florida and other states—Alabama, Arizona, California, Connecticut, Georgia, Illinois, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Virginia—to purchase stamps. Morgan then converted the stamps to cash by reselling them to unsuspecting third parties, usually businesses or stamp traders. To further the scheme, Morgan often posed as a business professional during his visits to the post offices, wearing business attire and referencing his “job.” During the course of the scheme, Morgan used the personal identifying information of a real person, P.T. (now deceased), as well as the fictitious names Edward Carrera and Edward Croce. He stole more than $400,000 in stamps and other services from the United States Post Office.

This case was investigated by United States Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Rachel K. Jones and Suzanne Nebesky.

United States Attorney Maria Chapa Lopez announces that the government has filed a civil lawsuit against Mihir Taneja alleging that Taneja conspired with Larry Smith, the owner of Z Stat Medical, LLC d/b/a Oldsmar Pharmacy, to enter into a kickback arrangement with a marketing company (Centurion Compounding, Inc.), which led to millions of dollars in TRICARE reimbursement for compounding prescriptions. Specifically, the lawsuit alleges that Taneja and Smith negotiated an arrangement with Centurion in which Centurion was paid a percentage of profits from TRICARE claims that Centurion referred to Oldsmar Pharmacy. As a result, from November 2014 to February 2015, Oldsmar Pharmacy submitted thousands of claims for reimbursement to TRICARE for compounded drugs that were tainted by kickbacks and, therefore, were false. 

The actions of Taneja and his co-conspirators contributed to a larger fraud trend against TRICARE involving compounded prescriptions. TRICARE’s costs for compounded drugs skyrocketed during this period, rising from $5 million in 2004 to $514 million in 2014, before reaching a high water mark of $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has diligently pursued fraud associated with compounding pharmacy claims, resulting in over $50 million in recoveries. 

“Kickback arrangements skew the judgment of medical providers and threaten the integrity and viability of our healthcare programs,” said U.S. Attorney Chapa Lopez. “The TRICARE program has been particularly vulnerable to these schemes in recent years. We will use every remedy at our disposal, including the civil False Claims Act, to eradicate this kind of fraud from our district.”

The lawsuit is filed under the False Claims Act, which makes a person liable to the United States if he presents, or causes another to present, false or fraudulent claims for payments. The Anti-Kickback Statute prohibits anyone from offering or paying remuneration in order to induce or reward referrals for services paid for under federal healthcare systems.

The case is captioned United States v. Mihir Taneja, Case No. 8:21-cv-102-T-24AEP. The claims asserted by the government are allegations only, and there has been no determination of liability. The United States previously filed suit against Smith and Oldsmar Pharmacy arising out of the same conduct. That case is captioned U.S. ex rel. Silva, et al. v. Z Stat Medical, LLC, et al., No. 8:15-cv-00444-T-33TGW (M.D. Fla.). 

The government’s complaint in this action illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips 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 case is being handled by Assistant U.S. Attorney Michael R. Kenneth of the U.S. Attorney’s Office for the Middle District of Florida, with assistance of the Department of Defense Office of Inspector General. 

Jacksonville, Florida – Darius Jondi Edwards (42, Tampa) has pleaded guilty to manufacturing counterfeit Federal Reserve notes. He faces up to 20 years in federal prison and payment of restitution to the victims he defrauded. Edwards is currently on federal supervised release and faces an additional 2 years in federal prison for violating the terms of his supervision. On September 23, 2020, Edwards appeared in federal court for violating his federal supervised release, and was detained. A sentencing date has not yet been set.

According to court documents, after pleading guilty in federal court in Jacksonville, in 2015, for manufacturing counterfeit Federal Reserve notes, Edwards was sentenced to 33 months in federal prison, followed by 3 years of supervised release. After printing the counterfeit currency, Edwards and others passed the currency throughout the Jacksonville area. After his release from prison, and while on federal supervised release, Edwards was arrested by officers from the Pinellas Park Police Department while in possession of counterfeit currency, partially completed counterfeit currency, and computer media used to manufacture counterfeit Federal Reserve notes. Further investigation by law enforcement determined that Edwards had purchased the computer media used to manufacture the counterfeit notes in Duval County. He then transported the computer media to Pinellas County and began manufacturing counterfeit Federal Reserve notes.

This case was investigated by the Pinellas Park Police Department and the United States Secret Service (Jacksonville Field Office). It is being prosecuted by Assistant United States Attorney Kevin C. Frein.

Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Ryan Rusty Rodriguez (45, Orlando) to 18 years in federal prison for distributing, receiving, and possessing images and videos depicting children being sexually abused. Rodriguez was also ordered to serve a 10-year term of supervised release upon the completion of his prison sentence and to register as a sex offender.

A federal jury had found Rodriguez guilty on October 29, 2020.    

According to testimony and evidence presented at trial, during an undercover online investigation, FBI agents discovered that Rodriguez was using peer-to-peer networks to download and distribute child sex abuse materials over the internet. When agents executed a search warrant at Rodriguez’s home, he attempted to hide a hard drive as the agents were knocking on his door. Rodriguez also used his training in computers and specialized software to attempt to erase the evidence of his offenses. A subsequent forensic examination of Rodriguez’s computer media revealed evidence of thousands of images and videos depicting the sexual abuse of children.

 This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys John Gardella, Shawn Napier, 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.

Orlando, Florida – U.S. District Judge Carlos Mendoza today sentenced Antonio Walthour (28, Clarksville, TN) to three years and six months in federal prison for conspiracy to distribute controlled substances. Walthour had pleaded guilty on January 16, 2020. 

According to court documents, this investigation began in February 2016 in response to a fatal drug overdose occurring at the home of Eric and Holly Falkowski, who were running a counterfeit prescription pill operation out of their home in Kissimmee. The Falkowskis were using fentanyl to make pills and pressing them to look like legitimate pharmaceutical controlled substances with markings such as “Xanax,” “Lortab,” “Percocet,” or “Watson.” In the summer of 2015, Walthour agreed to receive these pills and resell them for a profit. Walthour received and sold thousands of the pills in Tennessee before being arrested for this activity in August 2015. In 2017, Eric and Holly Falkowski were sentenced for their roles in the conspiracy to 188 months and 36 months, respectively.   

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Dana E. Hill.

The Department of Justice today announced a coordinated international law enforcement action to disrupt a sophisticated form of ransomware known as NetWalker.

NetWalker ransomware has impacted numerous victims, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.

“We are striking back against the growing threat of ransomware by not only bringing criminal charges against the responsible actors, but also disrupting criminal online infrastructure and, wherever possible, recovering ransom payments extorted from victims,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.  “Ransomware victims should know that coming forward to law enforcement as soon as possible after an attack can lead to significant results like those achieved in today’s multi-faceted operation.”

The NetWalker action includes charges against a Canadian national in relation to NetWalker ransomware attacks in which tens of millions of dollars were allegedly obtained, the seizure of approximately $454,530.19 in cryptocurrency from ransom payments, and the disablement of a dark web hidden resource used to communicate with NetWalker ransomware victims.

“This action reflects the resolve of the U.S. Attorney’s Office for the Middle District of Florida to target and disrupt sophisticated, international cybercrime schemes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.  “While these individuals believe they operate anonymously in the digital space, we have the skill and tenacity to identify and prosecute these actors to the full extent of the law and seize their criminal proceeds.”

According to court documents, NetWalker operates as a so-called ransomware-as-a-service model, featuring “developers” and “affiliates.” Developers are responsible for creating and updating the ransomware and making it available to affiliates. Affiliates are responsible for identifying and attacking high-value victims with the ransomware, according to the affidavit. After a victim pays, developers and affiliates split the ransom.

“This case illustrates the FBI’s capabilities and global partnerships in tracking ransomware attackers, unmasking them, and holding them accountable for their alleged criminal actions,” said Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office. “If you are a victim of ransomware, contact your local FBI field office or submit a tip to tips.fbi.gov. You can also file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”

According to the affidavit, once a victim’s computer network is compromised and data is encrypted, actors that deploy NetWalker deliver a file, or ransom note, to the victim. Using Tor, a computer network designed to facilitate anonymous communication over the internet, the victim is then provided with the amount of ransom demanded and instructions for payment.

Actors that deploy NetWalker commonly gain unauthorized access to a victim’s computer network days or weeks prior to the delivery of the ransom note. During this time, they surreptitiously elevate their privileges within the network while spreading the ransomware from workstation to workstation. They then send the ransom note only once they are satisfied that they have sufficiently infiltrated the victim’s network to extort payment, according to the affidavit.

According to an indictment unsealed today, Sebastien Vachon-Desjardins of Gatineau, a Canadian national, was charged in the Middle District of Florida. Vachon-Desjardins is alleged to have obtained at least over $27.6 million as a result of the offenses charged in the indictment.

The Justice Department further announced that on Jan. 10, law enforcement seized approximately $454,530.19 in cryptocurrency, which was comprised of ransom payments made by victims of three separate NetWalker ransomware attacks.

This week, authorities in Bulgaria also seized a dark web hidden resource used by NetWalker ransomware affiliates to provide payment instructions and communicate with victims. Visitors to the resource will now find a seizure banner that notifies them that it has been seized by law enforcement authorities.

The investigation was led by the FBI’s Tampa field office.

Trial Attorneys S. Riane Harper and Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case against Vachon-Desjardins.

Substantial assistance was provided by the Department of Justice’s Office of International Affairs. Additionally, the Bulgarian National Investigation Service and General Directorate Combating Organized Crime provided substantial assistance in the seizure of the dark web hidden resource.

An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Tampa, FL – The Department of Justice today announced a coordinated international law enforcement action to disrupt a sophisticated form of ransomware known as NetWalker.

NetWalker ransomware has impacted numerous victims, including companies, municipalities, hospitals, law enforcement, emergency services, school districts, colleges, and universities. Attacks have specifically targeted the healthcare sector during the COVID-19 pandemic, taking advantage of the global crisis to extort victims.

“We are striking back against the growing threat of ransomware by not only bringing criminal charges against the responsible actors, but also disrupting criminal online infrastructure and, wherever possible, recovering ransom payments extorted from victims,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division.  “Ransomware victims should know that coming forward to law enforcement as soon as possible after an attack can lead to significant results like those achieved in today’s multi-faceted operation.”

The NetWalker action includes charges against a Canadian national in relation to NetWalker ransomware attacks in which tens of millions of dollars were allegedly obtained, the seizure of approximately $454,530.19 in cryptocurrency from ransom payments, and the disablement of a dark web hidden resource used to communicate with NetWalker ransomware victims.

“This action reflects the resolve of the U.S. Attorney’s Office for the Middle District of Florida to target and disrupt sophisticated, international cybercrime schemes,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.  “While these individuals believe they operate anonymously in the digital space, we have the skill and tenacity to identify and prosecute these actors to the full extent of the law and seize their criminal proceeds.”

According to court documents, NetWalker operates as a so-called ransomware-as-a-service model, featuring “developers” and “affiliates.” Developers are responsible for creating and updating the ransomware and making it available to affiliates. Affiliates are responsible for identifying and attacking high-value victims with the ransomware, according to the affidavit. After a victim pays, developers and affiliates split the ransom.

“This case illustrates the FBI’s capabilities and global partnerships in tracking ransomware attackers, unmasking them, and holding them accountable for their alleged criminal actions,” said Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office. “If you are a victim of ransomware, contact your local FBI field office or submit a tip to tips.fbi.gov. You can also file a complaint with the FBI’s Internet Crime Complaint Center at www.ic3.gov.”

According to the affidavit, once a victim’s computer network is compromised and data is encrypted, actors that deploy NetWalker deliver a file, or ransom note, to the victim. Using Tor, a computer network designed to facilitate anonymous communication over the internet, the victim is then provided with the amount of ransom demanded and instructions for payment.

Actors that deploy NetWalker commonly gain unauthorized access to a victim’s computer network days or weeks prior to the delivery of the ransom note. During this time, they surreptitiously elevate their privileges within the network while spreading the ransomware from workstation to workstation. They then send the ransom note only once they are satisfied that they have sufficiently infiltrated the victim’s network to extort payment, according to the affidavit.

According to an indictment unsealed today, Sebastien Vachon-Desjardins of Gatineau, a Canadian national, was charged in the Middle District of Florida. Vachon-Desjardins is alleged to have obtained at least over $27.6 million as a result of the offenses charged in the indictment. 

The Justice Department further announced that on Jan. 10, law enforcement seized approximately $454,530.19 in cryptocurrency, which was comprised of ransom payments made by victims of three separate NetWalker ransomware attacks.

This week, authorities in Bulgaria also seized a dark web hidden resource used by NetWalker ransomware affiliates to provide payment instructions and communicate with victims. Visitors to the resource will now find a seizure banner that notifies them that it has been seized by law enforcement authorities.

The investigation was led by the FBI’s Tampa field office.

Assistant U.S. Attorneys Carlton C. Gammons and Suzanne Nebesky of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case against Vachon-Desjardins, along with Trial Attorneys S. Riane Harper and Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section.

Substantial assistance was provided by the Department of Justice’s Office of International Affairs. Additionally, the Bulgarian National Investigation Service and General Directorate Combating Organized Crime provided substantial assistance in the seizure of the dark web hidden resource.

An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Tampa, Florida – Keith Nicoletta (48, Dade City) has pleaded guilty to a conspiracy to launder stolen COVID relief funds. He faces a maximum penalty of 20 years in federal prison. Nicoletta also agreed to forfeit more than $1.9 million, a 2020 Mercedes, a 2020 Ford F-250, real property located in Pasco County, and other funds and assets that are traceable proceeds of the offense.

According to the plea agreement, in May 2020, Nicoletta and his conspirators stole more than $1.9 million in emergency loan funds from the Paycheck Protection Program (“PPP”), which were guaranteed by the Small Business Administration. The fraudulent PPP loan application claimed that Nicoletta’s local business had 69 employees with a purported monthly payroll exceeding $760,000—or more than $9 million annually. In fact, the business had no employees and its address was actually Nicoletta’s home.

Once the emergency loan was secured, the PPP funds were not used for qualified expenses. Instead, the conspirators immediately began laundering the money through several different financial institutions. Nicoletta also withdrew more than $100,000 in cash. In October 2020, more than $40,000 in cash was recovered during a search of Nicoletta’s home. After laundering the PPP funds, Nicoletta spent lavishly, including the purchase of a 2020 Mercedes for more than $100,000, a 2020 special edition Ford F-250 pickup valued at more than $66,000, jewelry, and the installation of a pool at his home costing approximately $63,000. None of the money, however, was used for payroll, as Congress had intended.

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.

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation, Tampa Field Office. It is being prosecuted by Assistant United States Attorneys Kristen A. Fiore and Suzanne Nebesky.

Ocala, FL – United States Attorney Maria Chapa Lopez announces the return of a two-count indictment charging Brandon Barnes (29, Lecanto) with possessing a firearm and ammunition as a convicted felon and possessing an unregistered National Firearms Act weapon (sawed-off shotgun). If convicted, Barnes faces a maximum penalty of 10 years in federal prison on each count. The indictment also notifies Barnes that the United States intends to forfeit the firearm and ammunition.

According to court documents, on June 10, 2020, a state search warrant was executed at a Citrus County residence known for illegal drug sales. Barnes was found at the residence with a loaded, sawed-off shotgun on his bed. The shotgun had an overall length of less than 26 inches, making it subject to registration in the National Firearms Registration and Transfer Record. The gun had not been registered.

Barnes is a five-time convicted felon for fraud and illegal drug possession. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.

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 Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Tyrie Boyer.

This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.

Orlando, Florida – United States Attorney Maria Chapa Lopez, along with federal and state law enforcement partners, announces that six individuals have been charged by federal criminal complaints, as part of a joint investigation – “Operation Paydirt” – targeting firearms and drug trafficking in in Daytona Beach, Florida. (See chart for details).

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

This investigation is the result of a partnership between the United States Attorney’s Office for the Middle District of Florida, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Daytona Beach Police Department. The cases will be prosecuted by Assistant United States Attorneys E. Jackson Boggs, Jr., Amanda Daniels, Daniel Jancha, and Terry Livanos.

These cases prosecuted will be 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 Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

SUMMARY CHART

Name

(Age, Residence)

Charges

Maximum Penalties

Paris Aviles

(28, Daytona Beach)

Possession of a firearm in furtherance of a drug trafficking crime

Mandatory minimum of 5 years, up to life, in federal prison

Elton Jones

(48, Daytona Beach)

Possession of a firearm in furtherance of a drug trafficking crime

Mandatory minimum of 5 years, up to life, in federal prison

Lascelles Francis

(29, Daytona Beach)

Possession of a firearm in furtherance of a drug trafficking crime

Mandatory minimum of 5 years, up to life, in federal prison

Diven McClure

(56, Daytona Beach)

Possession of a firearm in furtherance of a drug trafficking crime

Mandatory minimum of 5 years, up to life, in federal prison

Marcus Rubin

(40, Daytona Beach)

Conspiracy to distribute a controlled substance

Distribution of a controlled substance

20 years in federal prison

20 years in federal prison

Leven Reynaldo Render, Jr.

(26, Daytona Beach)

Possession of a firearm in furtherance of a drug trafficking crime

Mandatory minimum of 5 years, up to life, in federal prison

Tampa, Florida – U.S. District Judge William F. Jung has sentenced William Johnson (31, Holiday) to 12 years and 7 months in federal prison for participating in a conspiracy to possess with the intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl and for possessing 400 grams or more of fentanyl with the intent to distribute it. 

Johnson had pleaded guilty on November 4, 2020.

According to court documents, Johnson traveled with a co-conspirator to deliver approximately 5 kilograms of fentanyl. Johnson, driven by his companion, fled the meet location when law enforcement moved in to arrest the two. Johnson led officers on a chase for more than 20 miles, sometimes traveling in excess of 100 miles per hour. During the chase, Johnson attempted to dump the fentanyl out of the car. He also dumped a gallon of chainsaw bar oil out of the window to interfere with the police pursuit. Law enforcement ultimately disabled Johnson’s vehicle with spike strips, but not before Johnson’s vehicle had struck a bystander’s vehicle.

This case was investigated by the Drug Enforcement Administration, the Florida Highway Patrol, and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton.

This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

Orlando, FL – United States Attorney Maria Chapa Lopez announces today that the Estate of Dr. Patrick T. Hunter has paid the United States $1.75 million to resolve allegations that Dr. Hunter violated the False Claims Act by submitting claims for kidney stone procedures that were not medically justified and for engaging in an illegal kickback arrangement. Dr. Hunter passed away in March 2019.

The settlement relates to Dr. Hunter’s submission of claims for extracorporeal shock wave lithotripsy, a procedure used to break up kidney stones. According to the settlement agreement, between January 2010 and April of 2016, Dr. Hunter performed lithotripsy procedures on Medicare and TRICARE patients that were medically unnecessary because the procedures were not medically indicated or because there were no kidney stones in those patients. 

The settlement agreement also resolves allegations that Dr. Hunter engaged in an illegal kickback arrangement with the Orlando Center for Outpatient Surgery, LP, where he performed the lithotripsy procedures. Dr. Hunter and the Orlando Center allegedly entered into an illegal kickback arrangement where Dr. Hunter agreed to perform his lithotripsy procedures at the Orlando Center in exchange for payments from the Orlando Center, in violation of the Anti-Kickback Statute. These procedures were then billed to and paid by Medicare and TRICARE in violation of the False Claims Act.

“Physicians that perform illegal and baseless procedures violate the sanctity of the doctor-patient relationship,” said U.S. Attorney Chapa Lopez. “The U.S. Attorney’s Office remains committed to pursuing providers who perform unnecessary procedures and engage in illegal kickback agreements that violate the law.”

“Health care fraud impacts both Medicare beneficiaries and taxpayers alike. Fraud schemes are especially insidious when unscrupulous medical professionals try to enrich themselves by performing unnecessary procedures and engaging in kickback arrangements with others in the health care community,” said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our law enforcement partners, our agency will continue to investigate individuals who commit health care fraud.”

The settlement resulted from a lawsuit originally filed in the United States District Court for the Middle District of Florida by Scott Thompson. Mr. Thompson sued under the qui tam, or whistleblower, provisions of the False Claims Act permitting a private citizen to sue on behalf of the United States for false claims and to share in the recovery. The Act also allows the United States to intervene and prosecute the action. Mr. Thompson will receive $385,000 of the proceeds from the settlement with Dr. Hunter’s Estate.

The United States’ intervention in this matter illustrates its emphasis on combating health care 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). 

This settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, the HHS Office of Inspector General, and the Defense Health Agency. Assistant United States Attorneys Jeremy R. Bloor and Sean Keefe led the investigation.

The case is captioned United States ex rel. Thompson v. Surgical Care Affiliates et al., Case No. 6:16-cv-2189-Orl-22KRS. The settlement resolves the United States’ claims against Dr. Hunter’s Estate in that case. The case remains pending against the other defendants. The claims resolved by the settlement are allegations only, and there has been no determination of liability.