Middle District of Florida
Press releases recorded for this federal judicial district.
Bradenton Man Sentenced to More Than Seven Years for Drug and Gun OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Quleton Monix (36, Bradenton) to seven years and nine months in federal prison for possessing with the intent to distribute cocaine and for possessing a firearm in furtherance of a drug trafficking crime. The court also ordered Monix to forfeit the firearm and ammunition.
Monix had pleaded guilty on October 24, 2019.
According to court documents, between August 20 and September 12, 2018, Monix sold crack cocaine to an undercover officer on five different occasions. On September 26, 2018, law enforcement officers arrested Monix on multiple warrants for the sale of narcotics. After his arrest, authorities searched Monix and his vehicle and recovered $1,917 from Monix’s pocket, $3,071 from his wallet, 3.9 grams of crack cocaine from the center console of the vehicle, and $18,020, wrapped in stacks of $1,000, from a bag underneath the passenger seat.
That same day, a search warrant was executed at Monix’s residence. Inside the home, law enforcement officers located, among other things, 38 grams of cocaine, a digital scale, a razor blade, two silver pots and a fork that contained cocaine residue, a loaded semi-automatic pistol, and a box of ammunition.
This case was investigated by the Federal Bureau of Investigation and the Manatee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney David C. Waterman.
This case was brought as part of Project Safe Neighborhoods (“PSN”). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 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.
Bradenton Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
Tampa, Florida – Joseph Brice, Jr. (26, Bradenton) has pleaded guilty to distributing heroin and fentanyl, and to possessing a firearm as a convicted felon. He faces a maximum penalty of life in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, Brice sold heroin and fentanyl to an undercover officer on five different occasions. During the fifth drug sale, Brice sold heroin and a firearm to the undercover officer. Brice, who has prior felony convictions for armed burglary and cocaine distribution, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney David C. Waterman.
This case was brought as part of Project Safe Neighborhoods (“PSN”). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 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.
Rural King Robbers Plead Guilty in Federal CourtRead the Press Release
Ocala, Florida – United States Attorney Maria Chapa Lopez announces that three men charged with the 2019 robberies of two central Florida Rural King locations—Carlos Eduardo Hampton, Jr. (22, Tampa), Quintin Eugene Augustus (18, Cocoa), and Jonathan Arthur Floyd (21, Cocoa) have each entered guilty pleas to two counts of interference with commerce by robbery. Hampton also pleaded guilty to possessing a firearm as a convicted felon. Each faces up to 20 years in prison on each of the robbery counts; Hampton also faces up to 10 years’ imprisonment for the firearm offense.
The individuals had been indicted on October 2, 2019.
According to the plea agreements, on July 26 and August 16, 2019, Hampton, Augustus, and Floyd used a sledgehammer to break into two Rural King locations in Ocala and Zephyrhills. The men then used the sledgehammer to smash open display cases and steal a total of 28 firearms. They were apprehended by the Zephyrhills Police Department after the second robbery. Hampton, a convicted felon, is prohibited from possessing firearms or ammunition under federal law.
A fourth individual, Christopher Hooker (24, Orlando), has also been charged in this case. He is currently awaiting trial.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Ocala Police Department, and the Zephyrhills Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, 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.
Jacksonville Man Sentenced to Six Years in Prison for Possessing Child Sex Abuse Videos and ImagesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Jason Ryan Fain (38, Jacksonville) to six years in federal prison for possessing a USB thumb drive that contained videos and images depicting the sexual abuse of young children. Fain was also sentenced to serve a 10-year term of supervised release and ordered to register as a sex offender.
A federal jury had found Fain guilty on October 30, 2019.
According to testimony and evidence presented at trial, on January 9, 2017, an officer with the Jacksonville Sheriff’s Office (JSO) responded to a citizen complaint at Fain’s residence and recovered a USB thumb drive belonging to Fain. A detective from JSO obtained a search warrant for the thumb drive, which contained 3,614 images and 7 videos depicting the sexual abuse of young children, together with “selfie” photos depicting Fain.
On October 27, 2017, Fain was arrested in Youngstown, Florida by investigators from the Bay County Sheriff’s Office. During an interview, Fain admitted that the thumb drive belonged to him and that it contained “hundreds” of pornographic images of children that he had obtained from the internet. A forensic analysis of the thumb drive by the FBI confirmed that it had accessed a particular file-sharing network on the internet. The device also contained a document that advocated the legalization of child pornography possession.
This case was investigated by the Jacksonville Sheriff’s Office, the Bay County Sheriff’s Office, and the Federal Bureau of Investigation. It was 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.
Federal Jury Convicts Colombian National for International Cocaine Smuggling ConspiracyRead the Press Release
Tampa, FL – A federal jury has found Emiro Hinestroza-Newbbooll (48, Colombia) guilty of one count of conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, and one count of possession with the intent to distribute five kilograms or more of cocaine on that vessel. Hinestroza-Newbbooll faces a maximum penalty of life in federal prison. His sentencing is scheduled for April 30, 2020.
According to evidence presented at trial, Hinestroza-Newbbool was part of an international maritime drug smuggling operation involving at least 600 kilograms of cocaine worth approximately $18 million. Hinestroza-Newbbooll was the captain of a four-man, Colombia-based cocaine smuggling crew. Prior to their interdiction by the U.S. Coast Guard (USCG), Hinestroza-Newbbooll and his crew were transporting approximately 30 to 40 bales of cocaine onboard a go-fast vessel from Colombia to Honduras following a known smuggling route known as the “Honduras Rise.”
On December 1, 2018, a USCG HC-130J aircraft deployed from Air Station Elizabeth City, North Carolina spotted and recorded Hinestroza-Newbbooll and his crew onboard a go-fast vessel traveling at a high rate of speed, approximately 110 nautical miles southwest of Jamaica. In an attempt to destroy evidence and evade capture, Hinestroza-Newbbooll and his crew jettisoned all of the cocaine bales onboard the vessel and sank them to the ocean bottom, by tying the bales to their outboard engines and throwing the engines (their only means of propulsion) overboard. The USCG aircrew thwarted that attempt and was able to observe and record the jettison.
Later that day, Hinestroza-Newbbooll, his crew, and their now engine-less vessel were interdicted and boarded by USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific. That boarding yielded crucial evidence consistent with cocaine trafficking, including trace amounts of cocaine present on the smuggling vessel and Hinestroza-Newbbooll and his crew.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Naval Criminal Investigative Service, and 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 Special Assistant United States Attorneys Nicholas DeRenzo and Toni Goodin.
Tampa Woman Sentenced to More Than Three Years in Federal Prison for Tax Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung today sentenced Derraka Reed to three years and six months in federal prison for theft of government funds and access device fraud in connection with filing fraudulent tax returns. The court also ordered Reed to pay $128,740 in restitution to the IRS.
Reed had pleaded guilty on November 30, 2018.
According to court documents, between 2012 and 2014, Reed filed more than 100 fraudulent tax returns with the IRS, using dozens of stolen identities. Altogether, her fraudulent tax returns claimed more than $580,000 in tax refunds. Reed successfully obtained $128,740 in fraudulent tax refunds.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Ocala Convicted Felon Pleads Guilty to Federal Firearm OffenseRead the Press Release
Ocala, Florida – Kwasi Francis (29, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Francis had been indicted on July 10, 2019.
According to court documents, on May 7, 2019, local law enforcement arrested Francis on unrelated criminal charges. While he was being processed at the Marion County Jail, booking staff discovered that Francis had concealed a loaded 9mm firearm between the multiple pairs of pants that he was wearing. Francis, who has prior felony convictions for burglary and heroin distribution, is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 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.
Medical Clinic Worker Pleads Guilty to Aggravated Identity Theft and Wire FraudRead the Press Release
Ocala, FL – Stacey Lavette Hendricks (49, Leesburg) today pleaded guilty to aggravated identity theft and wire fraud. She faces a maximum penalty of 20 years in federal prison for the wire fraud offense, to be followed by a mandatory consecutive term of 2 years’ imprisonment for the identity theft offense. A sentencing date has not yet been set.
According to the plea agreement, Hendricks worked administrative jobs at several Florida medical clinics. She used these jobs to gain access to patient medical records to obtain patients’ birthdates and Social Security numbers. She then sold the stolen identities to others for cash, or used them herself to defraud businesses. In May 2019, Hendricks unwittingly sold stolen patient identities to an undercover law enforcement officer. When agents searched her home and car, they located 113 distinct sets of identities that had been stolen from clinic patients.
This case was investigated by the United States Secret Service. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Jury Finds Florida Man Guilty of Obstructing the IRSRead the Press Release
A federal jury convicted a Florida man today of corruptly obstructing the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Maria Chapa Lopez for the Middle District of Florida.
According to evidence presented at trial, since 1999 Dennis J. Nagle has refused to voluntarily pay federal income taxes. As a result, by 2014, he had an outstanding tax balance of more than $400,000. When the Internal Revenue Service (IRS) attempted to collect Nagle’s unpaid taxes by filing liens and levying his paychecks and pension, Nagle obstructed the IRS collection efforts. Nagle submitted false forms to his employer claiming he was exempt from federal tax withholding, attempted to pay off his tax debts with checks written on a closed bank account, and threatened to file criminal complaints against IRS collection officers. In total, Nagle sent the IRS at least 15 worthless payments, purportedly totaling more than $1.9 million dollars.
U.S. District Judge Paul G. Byron ordered Nagle to be remanded to the custody of the Bureau of Prisons until his sentencing, which is scheduled for April 22, 2020. At sentencing, Nagle faces a statutory maximum penalty of three years in federal prison. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Karen Gable and Trial Attorney Lauren Archer of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Florida Man Charged for Using A Firearm During and in Relation to A RobberyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the arrest and filing of a complaint charging Michael Nelson Snyder (28, Tampa) with using a firearm during and in relation to the armed robbery of a jewelry store. If convicted, Snyder faces a maximum penalty of life in federal prison.
According to the
complaint , Snyder committed armed robberies of two jewelry stores, a Zales in Hillsborough County on December 31, 2019, and a Helzberg Diamonds in Pasco County on January 19, 2020. During each of the robberies, Snyder stole more than $100,000 in jewelry.On the evening January 27, 2020, during the execution of a search warrant on Snyder’s home and car, federal agents and deputies from the Hillsborough County Sheriff’s Office and the Pasco Sheriff’s Office recovered a firearm and clothing that matched the clothing worn during the robberies. Pursuant to another warrant, law enforcement officers obtained Snyder’s fingerprints, which matched a print recovered following the Zales robbery.
This case is being prosecuted by Assistant United States Attorney Gregory T. Nolan. It is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, and the Hillsborough County Sheriff’s Office.
A criminal complaint is merely an allegation 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 brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
United States Intervenes in Lawsuit Against Surgical Care Affiliates, Inc., Orlando Surgery Center, and Former Orlando Doctor Alleging Fraudulent Billing and Illegal Kickback PaymentsRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announced today that the United States has filed a federal civil lawsuit against Surgical Care Affiliates, Inc., the Orlando Center for Outpatient Surgery, L.P., and Dr. Patrick T. Hunter, alleging that they falsely billed Medicare and TRICARE, over a seven-year period, for unnecessary kidney stone procedures, and engaged in an illegal kickback arrangement in which Dr. Hunter referred patients to the Orlando Center. The complaint alleges that Dr. Hunter violated the federal False Claims Act by performing lithotripsy procedures, which use shockwaves to destroy kidney stones, when there were no kidney stones present. The complaint further alleges that SCA and the Orlando Center knew of Dr. Hunter’s unnecessary lithotripsy procedures, and continued to bill the facility component of Dr. Hunter’s procedures to the federal government.
According to the government’s allegations, SCA and the Orlando Center engaged in multiple peer reviews indicating that Dr. Hunter told patients they had kidney stones when he had not identified any. Despite this, the government alleges, SCA and the Orlando Center continued to pay Dr. Hunter per procedure for each patient he referred to the Orlando Center. The payments were not commensurate with fair market value, resulting in payments of over $5 million for the use of two machines that were valued at less than $40,000. It is further alleged that SCA requested a fair market value analysis, which required an annual cap of less than $800,000 be paid to Dr. Hunter; and that SCA and the Orlando Center then paid Dr. Hunter over $1.3 million, well in excess of what had been required by the fair market value analysis.
The United States’ complaint is filed in a whistleblower lawsuit originally filed in 2016, by Scott Thompson, SCA’s Director of Compliance when the allegations took place. The lawsuit was filed under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the United States for false claims for government funds and to receive a share of any recovery. The Act also allows the government to intervene or take over the lawsuit, as it has done in this case, and to recover treble damages plus civil penalties ranging from $5,500 to $11,000 for each false claim submitted by the defendants.
The United States filed a Suggestion of Death with its complaint, stating that Dr. Hunter died in 2019. A motion filed by the government requests the substitution of the personal representative of Dr. Hunter’s estate as a defendant in the case.
The claims asserted against SCA, the Orlando Center, and Dr. Hunter’s estate are allegations only, and there has been no determination of liability.
This case is being investigated by the Department of Justice, the U.S. Department of Health and Human Services – Office of Inspector General, and the Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.
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).
Tax Preparer Sentenced to over Eight Years in Federal Prison for Tax Fraud SchemeRead the Press Release
Fort Myers, FL – U.S. District Judge Thomas Barber has sentenced Augustin Dalusma to eight years and one month in federal prison for filing false claims and tax fraud. The court also ordered Dalusma to pay $2,170,538.77 to the IRS in restitution.
Dalusma was found guilty by a federal jury on November 1, 2019, after a week-long trial.
According to evidence presented at trial, between 2012 and 2015, Dalusma falsified information in tax returns for at least 630 of his clients, fraudulently qualifying them for thousands of dollars in tax refunds that they were not lawfully entitled to collect. Additionally, Dalusma falsified his own tax returns from 2012 through 2014, significantly underreporting his own income to evade more than $30,000 in personal income tax in each of those years.
This case was investigated by Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Simon R. Eth and Trial Attorney Eyitayo St. Matthew-Daniel of the Justice Department’s Antitrust Division.
St. Petersburg Man Sentenced to over Twelve Years in Prison for Selling CocaineRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Shamon D. Heatly (37, St. Petersburg) to 12 years and 7 months in federal prison for selling cocaine.
Heatly had pleaded guilty on October 28, 2019.
According to court documents, an undercover law enforcement officer met with Heatly, at which time Heatly directed the officer to get into his car. There, Heatly sold the officer cocaine. At the time of the offense, Heatly had been previously convicted of numerous narcotics offenses, including multiple counts of possession and delivery of cocaine.
This case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
This investigation is also 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.
Armed Career Criminal Found Guilty of Firearm and Drug OffensesRead the Press Release
Jacksonville, Florida – A federal jury has found Jimmy Ray Lightsey (39, Jacksonville) guilty of possessing a firearm in furtherance of a drug trafficking crime, possessing controlled substances with the intent to distribute, and possessing a firearm as a convicted felon. Lightsey, who qualifies as an Armed Career Criminal, faces a mandatory minimum sentence of 20 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 27, 2020.
Lightsey had been indicted on November 15, 2018.
According to testimony presented at trial, on June 24, 2018, officers from the Jacksonville Sheriff’s Office arrested Lightsey for driving without a valid license. A 9mm pistol and a bag of marijuana were observed in plain view inside Lightsey’s car. A search of the vehicle revealed additional marijuana, cocaine, crack cocaine, and empty baggies used for packaging narcotics. The pistol was later determined to have been stolen from a home in Jacksonville approximately two weeks earlier.
At the time of the incident, Lightsey had multiple prior felony convictions, including for the sale or delivery of cocaine and attempted armed robbery with a weapon. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorneys David B. Mesrobian and Beatriz Gonzalez.
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.
Suwannee County Woman Pleads Guilty to Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – Deannajo White (39, Suwannee County) has pleaded guilty to disaster assistance fraud. She faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States.
According to
court documents , on September 27, 2017, White made an application for disaster assistance benefits to FEMA over the internet. In the application, White claimed that her primary residence in Branford, Florida had suffered storm damage due to Hurricane Irma, when a tree fell through the roof, forcing her to leave the residence and begin living at a rental property in Branford. White subsequently contacted FEMA and stated that she had moved to a different rental property with a higher rent. White submitted multiple documents to FEMA in support of her application, including rent receipts, leases, and letters.On August 13, 2019, law enforcement agents interviewed White about her disaster assistance application. During the interview, she repeatedly lied to the agents. When confronted with evidence showing that she had lied on the application, White admitted to making false statements. She also admitted to submitting multiple false documents to FEMA, including fraudulent rent receipts and leases.
This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. It was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations, the Suwannee County Sheriff’s Office, and the Gilchrist County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Florida Criminal Defendant to Serve Additional Prison Time for Lying on Pre-Sentencing Financial Disclosure FormRead the Press Release
A currently imprisoned Florida businessman was sentenced to an additional 20 months in prison today for willfully omitting assets from a pre-sentencing financial disclosure form he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez for the Middle District of Florida.
According to documents filed with the court, Casey Padula, 51, formerly of Port Charlotte, Florida, made the false statements on a financial disclosure statement he was required to submit to the government after pleading guilty to tax and bank fraud. On July 17, 2017, in the prior prosecution, Padula was sentenced to 57 months in prison on one count of conspiracy to defraud the United States and to commit bank fraud. Padula admitted he used offshore entities and accounts to commit the tax fraud and carried out the bank fraud by conducting a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage. As part of his plea agreement, Padula was required to provide a full and accurate financial disclosure statement to the government. Instead, Padula submitted a false financial disclosure statement in which he omitted numerous assets, including a boat valued at almost $340,000, at least $80,000 in cash, and a $90,000 Mercedes he had recently purchased for his daughter.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.
Florida Academy Agrees to Pay $512,000 to Resolve Misrepresentation Claims Impacting Veterans’ Post-9/11 Tuition Subsidy ProgramRead the Press Release
Fort Myers, FL – United States Attorney Maria Chapa Lopez announces that Florida Academy has agreed to pay $512,500 to the United States to resolve allegations that it made misrepresentations to the United States Department of Veterans Affairs (VA) in order to maintain its eligibility to receive VA funding under the Post-9/11 GI Bill.
Florida Academy, which is located in Fort Myers, Florida, is a for-profit provider of adult professional education programs in the beauty-and-wellness and skilled trades industries. Beginning in 2012, the VA provided financial assistance for veterans taking classes at Florida Academy as part of the Post-9/11 GI Bill.
The Post-9/11 GI Bill is a VA educational benefit program for veterans who served on active duty after September 10, 2001. As part of that program, the VA provides tuition and fee payments directly to qualifying schools on behalf of eligible veterans. In order for a school to qualify for the program, it is required to certify to the VA that no more than 85% of the students for any particular course are receiving VA benefits. This requirement, commonly referred to as the “85-15% Rule,” is intended to prevent abuse of Post-9/11 GI Bill funding by ensuring that the VA is paying fair market value tuition rates since at least 15% of the enrolled students would be paying the same rate with private funds. Schools that receive GI Bill funding are required to certify their compliance with this rule and notify the VA in the event they are no longer in compliance.
According to the Settlement Agreement, the United States alleged that, from January 1, 2017, until January 1, 2018, Florida Academy received Post-9/11 GI Bill funding during a time when they knew, or reasonably should have known, that it did not qualify because almost all of the students who were enrolled in the Heating, Ventilation, and Air Conditioning (“HVAC”) Advanced Fundamentals class were veterans, whose tuition was paid for by the VA. The settlement resolves allegations that Florida Academy made misrepresentations to the VA regarding its compliance with the 85-15% Rule.
“The Post-9/11 GI Bill is crucial to providing educational opportunities to our veterans who served following the 9/11 attacks on our country,” said United States Attorney Maria Chapa Lopez. “Our office will continue to vigilantly protect the financial viability of programs designed to serve and honor our veterans.”
“As detailed in the civil settlement, Florida Academy’s actions took advantage of VA’s Post-9/11 education benefits program,” said David Spilker, Special Agent in Charge, VA Office of Inspector General. “VA OIG is committed to protecting and safeguarding the integrity of VA programs intended for the advancement and benefit of veterans."
The investigation was handled by Assistant U.S. Attorney Kyle S. Cohen, with assistance from the VA-OIG.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
False Tax Return Filer Sentenced to 34 Months in PrisonRead the Press Release
Tampa, Florida – U.S. District Judge James S. Moody, Jr. has sentenced Ramon Christopher Blanchett to 34 months in federal prison for theft of government funds. The court also ordered Blanchett to forfeit $980,000, which is traceable to proceeds of the offense.
Blanchett had pleaded guilty on October 1, 2019.
According to court documents, on February 21, 2017, Blanchett electronically filed his 2016 Form 1040, U.S. Individual Income Tax Return, claiming (1) $18,497 in wage income, (2) a state and local income tax deduction of $47,357, and (3) an income tax withholding credit of $1 million. These figures were not accurate. Blanchett attached two Forms W-2 to his return, and one of them contained false and fraudulent information, including an inflated wage amount and inflated amount of tax withheld. Based upon this return, Blanchett falsely claimed that he was due a tax refund of $1 million, and requested that $20,000 of that amount be applied to his 2017 estimated tax.
In April 2017, the IRS mailed a U.S. Treasury check for $980,000 to Blanchett at his residential address in Tampa. Blanchett deposited the check into an account at SunTrust Bank. SunTrust reported the transaction to the IRS, closed Blanchett’s accounts, and held the funds for the IRS.
Ultimately, in 2018, Blanchett received a new official check for $980,000 and deposited it into an account that he opened with Grow Financial Credit Union (GFCU) in Tampa, Florida. Blanchett told GFCU that the funds represented the proceeds of an inheritance he had received from his father’s estate. In fact, Blanchett had not received proceeds from an inheritance. Blanchett used some of the funds to purchase a 2016 Lexus RC350 for $51,617 at a Tampa dealership.
In August 2018, a federal magistrate judge authorized seizure warrants for Blanchett’s Lexus and the money in his GFCU account at the time. Both the vehicle and $919,421.87 were seized.
In April 2018, Blanchett electronically filed another false and fraudulent tax return – this time for tax year 2017 – claiming he was due a refund of $26,477.
In September 2018, Blanchett voluntarily appeared at the IRS office in Tampa, for an appointment that he had made with the Taxpayer Assistance Center. The center alerted IRS-Criminal Investigation agents, who told Blanchett that he was under criminal investigation regarding the $980,000 refund, which he had received. Notwithstanding communications from agents, Blanchett filed a third false and fraudulent income tax return in February 2019 for the 2018 tax year, claiming a refund of $465,734.
With the exception of one Form W-2, Blanchett did not earn wages in the amounts claimed on the Forms W-2 attached to his tax returns. Moreover, he did not make enough wages to have any income tax withheld, and the amounts of tax withheld reported on his tax returns were false. In short, Blanchett knew he was not entitled to a tax refund for tax years 2016, 2017, or 2018.
This case was investigated by the Internal Revenue Service-Criminal Investigation. It was prosecuted by Assistant United States Attorney Rachelle DesVaux Bedke.
Twenty-Two Time Convicted Felon Charged with Being A Felon in Possession of A FirearmRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Michler Gabriel (38, Tampa) with being a convicted felon in possession of a firearm. If convicted, Gabriel faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. The indictment also notifies Gabriel that the United States intends to forfeit the firearm and ammunition used in the offense.
According to the indictment, on September 26, 2019, Gabriel was found to be in possession of a firearm and several rounds of ammunition. Gabriel was previously convicted of 22 felonies, including drug and firearm offenses, child abuse, and forgery. As a previous convicted felon, he is prohibited from possessing a firearm 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 Federal Bureau of Investigation and the Tampa Police Department. It will be prosecuted by Assistant United States Attorney Callan Albritton.
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.
Three Men Indicted for Murder-For-Hire Conspiracy Resulting in Martin Luther King, Jr. Observance Day MurdersRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of a superseding indictment charging Kermon Williams, a/k/a “The General” (42, St. Petersburg), James Higgs, Jr., a/k/a “Hammer” (40, St. Petersburg), and Jhaphre Higgs, a/k/a “Pre,” (35, St. Petersburg) in relation to the murders of Roger Lee Ford Jr. (42), and Tywan Jeremiah Armstrong (39), which occurred in St. Petersburg on January 21, 2019, on Martin Luther King, Jr. Observance Day. The superseding indictment also notifies the defendants that the United States intends to forfeit firearms and ammunition, which are alleged to be involved in certain charged offenses. Attached is a chart summarizing the charges and potential penalties relating to each defendant.
According to the superseding indictment, Williams asked Jhaphre and James Higgs, Jr. to kill Armstrong, who Williams saw as a threat to his drug business. Williams offered to pay them with drugs and money. The indictment alleges that the Higgses shot and attempted to kill Armstrong in September 2018, but Armstrong survived. Then on January 21, 2019, on Martin Luther King, Jr. Observance Day, the Higgses shot and killed Tywan Armstrong and Roger Ford, and injured a third victim. The indictment further alleges that both James and Jhaphre Higgs were convicted felons, who unlawfully possessed the firearms and ammunition used in the murders and that Jhpahre Higgs possessed additional firearms and ammunition on other dates.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Petersburg Police Department. Both agencies have offered a $10,000 reward for information leading to the conviction of the persons responsible for the homicides. This case will be prosecuted by Assistant United States Attorney Natalie Hirt Adams.
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 Man Sentenced for Selling CocaineRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces that U.S. District Judge William F. Jung today sentenced Manuel Alfonso Munoz (48, Tampa) to 9 years and 3 months in federal prison for selling cocaine.
Munoz had pleaded guilty on February 27, 2019.
According to court documents, Munoz sold cocaine to a confidential informant on six occasions. The total amount of cocaine sold by Munoz was over 400 grams.
This case was investigated by the Drug Enforcement Administration and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
Tampa Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Marqui M. Newton (28, Tampa) to 3 years and 10 months in federal prison for being a felon in possession of a firearm. The court also ordered Newton to forfeit the firearm and ammunition used in the offense.
Newton had pleaded guilty on October 18, 2019.
According to court documents, Newton was a passenger in a vehicle that fled from officers during a traffic stop. After the car eventually came to a stop, Newton got out of the car and fled on foot behind a building. Officers in a police helicopter observed Newton drop something, and when officers on the ground went to investigate, they discovered a loaded gun with Newton’s fingerprints on it.
As a previously convicted felon, Newton is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Callan Albritton.
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.
Port St. Lucie Man Charged with Possessing Cocaine with the Intent to DistributeRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Damian Sierra (41, Port St. Lucie) with possessing 500 grams or more of cocaine with the intent to distribute. If convicted, Sierra faces a mandatory minimum sentence of 5 years, up to 40 years, in federal prison.
According to the indictment, on February 21, 2019, Sierra possessed 500 grams or more of cocaine with an intent to distribute it.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Manatee County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Callan Albritton.
Convicted Felon Sentenced to Federal Prison After Attempting to Sell A Firearm to A Licensed Gun DealerRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Zane C. Brassfield (25, Tampa) to two years and four months in federal prison for being a felon in possession of a firearm.
Brassfield had pleaded guilty on October 22, 2019.
According to court documents, Brassfield brought a .50 caliber rifle to a gun store and attempted to sell the firearm to the licensed dealer. However, store employees declined to purchase the firearm from him. Upon leaving the store, Brassfield left the rifle by a trash can outside, where it was recovered. As a previous convicted felon, Brassfield is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Callan Albritton.
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.
Jacksonville Man Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Deontres Javan Taylor (26, Jacksonville) with disaster assistance fraud related to Hurricane Irma. If convicted, Taylor faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States.
According to the indictment, in September 2017, when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma, Taylor falsified records concerning his primary residence in Jacksonville.
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 part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. You may also visit www.justice.gov/usao-mdfl.
Federal Jury Convicts Deltona Man of Theft of Government FundsRead the Press Release
Orlando, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Bobby Morlen (54, Deltona) guilty of two counts of theft of government funds. Morlen faces a maximum penalty of 10 years in federal prison on each count. His sentencing hearing is scheduled for April 8, 2020.
Morlen had been indicted on September 11, 2019.
According to evidence presented at trial, Morlen’s mother was receiving benefits from the Social Security Administration (SSA) and the U.S. Department of Veterans Affairs (VA). She died on August 18, 2014. The death of Morlen’s mother was not reported to the SSA or the VA, and the agencies continued to make benefit payments into her bank account. Morlen was a joint account holder on the account into which his mother’s benefits were being deposited. He used the funds deposited by the SSA and the VA after her death for his own personal expenses.
The total loss the SSA and the VA in this case is approximately $140,670.
This case was investigated by the Social Security Administration Office of the Inspector General and the Department of Veterans Affairs Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Jacksonville Woman Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Bernita Willette Carswell (36, Jacksonville) with disaster assistance fraud related to Hurricane Irma. If convicted, Carswell faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States. Carswell made her initial appearance in federal court on January 15, 2020. Her arraignment is set for January 22, 2020.
According to the indictment, in September 2017, when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma, Carswell falsified records concerning damage to her primary residence and the need to move to a rental property in Jacksonville.
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 part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] . You may also visit www.justice.gov/usao-mdfl.
Jacksonville Man Pleads Guilty to Firearms Theft ConspiracyRead the Press Release
Jacksonville, Florida – Jamarius Tillie (28, Jacksonville) today pleaded guilty to aiding and abetting the theft of firearms from federally licensed firearms dealers and conspiring to steal firearms from such dealers. He faces a maximum penalty of 10 years in federal prison for the theft charge and up to 5 years in federal prison for the conspiracy charge. A sentencing date has not yet been set.
According to the plea agreement, members of Tillie’s theft ring stole more than 10 firearms from at least 4 licensed firearms dealers in Jacksonville. While Tillie and others distracted the sales staff in these stores, another member of the ring would sneak behind the counters and steal firearms. Tillie kept some guns for himself, but sold the majority of them to a local drug dealer. For assisting Tillie, members of the theft ring were sometimes paid with crack cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
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.
Federal Judge Sentences Six Individuals for Marijuana ConspiracyRead the Press Release
Jacksonville, FL – U.S. District Judge Marcia Morales Howard has sentenced six individuals in connection with a conspiracy to distribute marijuana and, with respect to four of the defendants, conspiracy to commit money laundering. Bao The Khuong (47, San Jose, CA) was sentenced to 5 years in federal prison, Hai Phi Tran (28, Jacksonville) was sentenced to 3 years in federal prison, Tantai Vo (30, Jacksonville) was sentenced to 26 months in federal prison, Phuc Nguyen Hoang (28, Jacksonville) was sentenced to 23 months in federal prison, Ray Thomas Balintucas (31, Jacksonville) was sentenced to 20 months in federal prison, and Hoi Nguyen (38, Orlando) was sentenced to 16 months in federal prison. Tantai Vo was also sentenced for the unlawful possession of a firearm and was ordered to forfeit his firearm and ammunition. In addition, Khuong was ordered to forfeit at least $1 million in proceeds, and Tran was ordered to forfeit assets of up to $500,000, all of which are traceable to proceeds of the offenses.
All of the defendants had previously pleaded guilty.
According to court documents, beginning as early as April 2014, Khuong served as the source of supply for marijuana from California to Jacksonville. He received approximately $30,000 in marijuana proceeds from Tran, and Tran’s associates in Jacksonville, several times a week for at least 18 months. Hoang assisted Khuong and Tran in moving marijuana and marijuana proceeds between California and Jacksonville, and with packaging marijuana in California for shipment to Tran in Jacksonville. Khuong also supplied Vo with marijuana from California, which he sent to Vo in Jacksonville. Nguyen served as a secondary source of supply of marijuana to Vo. Vo sold at least 700 pounds of marijuana to Balintucas during the course of the conspiracy. At the time of Vo’s arrest, he was delivering 4 pounds of marijuana to Balintucas, and was carrying a loaded 9mm semi-automatic pistol.
“This sentencing is another example of how strong law enforcement partnerships impacted both violence and drug trafficking in our continued efforts to protect the public,” said ATF Special Agent in Charge Daryl McCrary. “Being one of the cornerstones of our Project Safe Neighborhoods Initiative, our strong law enforcement partnerships continue to mitigate nefarious individuals from committing further acts of drug trafficking and violence in communities.”
“Dismantling this organization is a big win for the people of Northern Florida,” stated Special Agent in Charge Mary Hammond of IRS Criminal Investigation’s Tampa Field Office. “This case took drugs, guns, and dirty money off our streets and out of the hands of criminals. We take our commitment to fighting narcotics and related financial crimes seriously, and we will continue to work with our law enforcement partners to track down and prosecute offenders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Marshals Service, Homeland Security Investigations, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Bonnie Glober.
Colombian Female Sentenced to 15 Years for International Cocaine Smuggling and PerjuryRead the Press Release
Tampa, Florida– U.S. District Judge Susan C. Bucklew has sentenced Lelia Vanessa Perdomo Zapata (26, Colombia, South America) to 15 years in federal prison for conspiracy to distribute and to possess with the intent to distribute five kilograms or more of cocaine while onboard a vessel subject to the jurisdiction of the United States, for possession with the intent to distribute five kilograms or more of cocaine on that vessel, and for perjury.
A federal jury had found Zapata guilty on September 3, 2019.
According to trial evidence, Zapata was the Colombian load guard for a Cartagena, Colombia-based cocaine smuggling crew and part of an international maritime drug smuggling operation involving at least 440 kilograms of cocaine, worth approximately $13 million. Prior to their interdiction by the U.S. Coast Guard (USCG), Zapata and one of her co-conspirators were transporting 18 bales of cocaine onboard a 60-foot sailing vessel from Cartagena to Cancun, Mexico. Ultimately, USCG law enforcement officers from Tactical Law Enforcement Team (TACLET) Pacific boarded the sailing vessel and discovered 18 bales of cocaine and multiple electronic devices consistent with cocaine trafficking. Subsequent analyses of these devices yielded crucial digital evidence of the cocaine smuggling operation.
During trial, Zapata testified under oath for nearly seven hours and made numerous statements that were demonstrably false.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Naval Criminal Investigative Service, and 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 Diego F. Novaes and Special Assistant United States Attorney Nicholas DeRenzo.
Suwannee County Woman Arrested for Submitting False Claim for FEMA Benefits Related to Hurricane IrmaRead the Press Release
Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Deannajo White (39, Suwannee County) with disaster assistance fraud related to Hurricane Irma. If convicted, White faces a maximum penalty of 30 years in federal prison, plus payment of restitution to the United States.
According to the indictment, in September 2017, White falsified records concerning her primary residence when submitting an application for assistance to the Federal Emergency Management Agency’s (FEMA) Individuals and Households Program for Hurricane Irma.
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 part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017. This case was investigated by the Department of Homeland Security - Office of Inspector General with assistance from Homeland Security Investigations, the Suwannee County Sheriff’s Office, and the Gilchrist County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator 24 hours a day, 7 days a week staffs the telephone line. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] . You may also visit www.justice.gov/usao-mdfl.
Florida Couple Pleads Guilty to Trafficking Indonesian WildlifeRead the Press Release
A Florida couple pleaded guilty yesterday in federal court to violating the Lacey Act for their role in trafficking protected wildlife, announced Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division.
In a plea agreement with the government, Novita Indah, 49, and Larry Malugin, 52, admitted to illegally importing wildlife from Indonesia to their Port Richey home and reselling the wildlife across the country and internationally.
A grand jury indicted the defendants in June 2019 on charges of conspiracy, smuggling, and Lacey Act violations. The defendants admitted that from Oct. 4, 2011, through Jan. 12, 2017, they imported and resold Southeast Asian wildlife in the forms of taxidermy mounts, bones, skins, belts and wallets. The wildlife species included slow loris, babirusa (a rare Indonesian pig prized for its distinctive curving tusks), leopard cat, macaque, lutung, langur, spitting cobra, krait snake, monitor lizard, barn owl and reticulated python. The defendants did not sell any live animals.
Indah and Malugin sold approximately 3,100 wildlife items using eBay to buyers across the United States and the world valued at a total of $211,212. They began trafficking while living in Indonesia and continued to do so as they moved to Puerto Rico and ultimately Florida in 2013. They smuggled the items to purchasers in the United States in packages falsely labeled to conceal their contents.
The U.S. Fish and Wildlife Service (USFWS) seized approximately 369 wildlife articles from the defendants’ home during a Jan. 12, 2017, search warrant. The agents recovered four spitting cobra mounts, one python mount, one krait snake mount, 156 assorted snakeskins, 99 monitor lizard skins, 87 snakeskin and lizard skin wallets, 20 belts with snake heads and a babirusa skull.
All of the wildlife was protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). The United States, Indonesia, and approximately 181 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by trade. The Lacey Act is the nation’s oldest wildlife trafficking law and, among other things, prohibits selling wildlife that had been illegally brought into the country.
USFWS and U.S. Customs inspectors repeatedly seized packages shipped by Indah and Malugin, but they continued to sell wildlife using multiple eBay and PayPal accounts. This investigation was part of Operation Global Reach, a USFWS long-term taskforce into the flow of illegal wildlife from Indonesia to the United States.
Sentencing has not yet been scheduled. The defendants agreed to forfeit the wildlife seized from their house.
The USFWS Office of Law Enforcement in Redmond, Washington, led the investigation, with the aid of USFWS agents and inspectors in California and Florida and the support of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorneys Ryan Connors and Matthew Evans of the Environmental Crimes Section represent the government, with assistance from Assistant U.S. Attorney Kelley Howard-Allen of the Middle District of Florida.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fort Myers Felon Sentenced to More Than Four Years in Federal Prison for Firearms OffenseRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Johnny Lee Thornton, Jr. (27, Fort Myers) to four years and seven months in federal prison for possessing a firearm as a convicted felon. The court also ordered him to forfeit the firearm used in the offense. Thornton had pleaded guilty on October 23, 2019.
According to court documents, on February 8, 2019, officers from the Fort Myers Police Department located a loaded firearm under a parked vehicle that Thornton had been standing near. Subsequent forensic analysis of the firearm linked it to Thornton. As a previously convicted felon, Thornton is prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Trent Reichling.
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.
Cape Coral Man Sentenced for Fraudulent Scheme to Overharvest More Than 50,000 Pounds of Gulf Reef Fish from Southwest Florida WatersRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Mark Edward Zywotko (47, Cape Coral) to 60 days in federal prison, followed by 3 years of supervised release, for committing mail fraud in the perpetration of a fraudulent scheme to overharvest more than 50,000 pounds of Gulf reef fish from the waters off Southwest Florida. As part of his sentence, the court also ordered Zywotko to forfeit $286,260.74, representing the amount of proceeds he obtained as a result of the offenses, and to pay $291,884.69 in restitution to the National Oceanic and Atmospheric Administration (NOAA) National Marine Fisheries Service (NMFS).
Zywotko had pleaded guilty on August 2, 2019.
According to court documents, Zywotko was the captain of the Pine Island-based fishing vessel Little Z. From January 2013 through December 2017, Zywotko illegally overfished and sold at least 50,971 pounds of federally-regulated Gulf reef fish, including Red Grouper and Red Snapper, having a wholesale value of approximately $286,260.74. Zywotko then submitted false documents to state and federal agencies, including the NOAA’s NMFS, in order to conceal his overfishing.
“The prosecution of this case and the court's sentencing underscores the severity of this violation to our nation's marine resources and the businesses that depend on them,” said Tracy Dunn, Assistant Director, NOAA Office of Law Enforcement. “NOAA OLE will continue to pursue violations of the Individual Fishing Quota (IFQ) program and encourages the reporting of suspected IFQ violations to law enforcement.”
This case was investigated by National Oceanic and Atmospheric Administration National Marine Fisheries Service’s Office of Law Enforcement, Southeast Division and the Florida Fish and Wildlife Conservation Commission. It was prosecuted by Assistant United States Attorney Jeffrey F. Michelland.
Orlando Man Sentenced to 10 Years in Federal Prison for Orchestrating Multi-Million Dollar Investment Fraud SchemeRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell today sentenced Andres Fernandez (38, Orlando) to 10 years in federal prison for wire fraud. As part of his sentence, the court also entered a money judgment of $14.98 million, representing the losses suffered by the victims of Fernandez’s fraud scheme. Fernandez had pleaded guilty to 12 counts of wire fraud on August 6, 2019.
According to court documents, Fernandez orchestrated an investment scheme that defrauded at least 81 victims out of millions of dollars. Fernandez solicited individuals to invest in concert events that he claimed were being produced by his companies – Kadaae Entertainment Corporation and Kadaae LLC. He told his victims that their investment would be used to fund specific concert events for artists including Julio Iglesias, Pitbull, Nicky Jam, Garth Brooks, Ana Gabriel, and Drake, and promised a return of up to 100 percent on the investments. As part of the scheme, Fernandez used fake contracts and other false documents to convince victims that he and his companies were under contract to produce the events. In fact, neither Fernandez nor his companies were involved in most of the events he had solicited to his victims.
Fernandez used the funds sent by investors for his own personal use and to pay fraudulent investment returns to earlier investors.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Holiday Woman Indicted on Fraud and Money Laundering ChargesRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces the unsealing of an indictment charging Lori Owen (48, Holiday) with 14 counts of fraud, 4 counts of money laundering, and 2 counts of aggravated identity theft. If convicted, Owens faces a maximum penalty of 20 years in federal prison for each fraud count, 10 years in federal prison for each money laundering count, and 2 years’ consecutive imprisonment for the identity theft counts. The indictment also notifies Owen that the United States is seeking a money judgment of at least $264,260, the proceeds of the alleged offenses.
According to the indictment, Owen, and others, recruited individual “straw account owners” to open bank accounts for the purpose of depositing money that had been extorted from victims of tax impersonation calls.
The victims in the scheme were contacted by callers who falsely represented themselves as officials with the Internal Revenue Service, the Canadian tax authorities, or local law enforcement officers demanding payment for federal income taxes, or other financial obligations. The fraudulent callers told the victims that, if they failed to pay these purported obligations, they, or their family members, would face arrest, prosecution, or other legal consequences. Owen, and others, monitored the straw bank accounts in order to verify the victims’ deposits and ensure timely withdrawals by the straw account owners. The straw account owners withdrew the funds in cash and turned them over to Owen (and others), often less a payment to the straw account owner for opening the account or conducting the transaction.
As to the telemarketing fraud scheme, Owen and others recruited an individual to be the owner of a Florida business and open bank accounts in the business name, for the purpose of depositing the proceeds of a sweepstakes fraud. Owen’s conspirators called elderly victims and falsely represented that they were with the Publisher’s Clearing House lottery and that the victim had won millions of dollars. The callers induced the victims to provide financial information and to send large cashier’s checks to this company in Florida, by falsely claiming that advance taxes had to be paid in order to collect the full amount of the alleged lottery winnings. Owen, and others, then laundered the proceeds of this fraud scheme.
In 2018, Owen’s former husband, David Owen, and son, Andrew Corrigan, were convicted and sentenced to 130 and 120 months’ imprisonment, respectively, for the same criminal conduct.
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 Internal Revenue Service – Criminal Investigation, the Treasury Inspector General for Tax Administration (TIGTA), the Federal Bureau of Investigation, United States Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, and the Royal Canadian Mounted Police. It will be prosecuted by Assistant United States Attorneys Kelley Howard-Allen and Rachel Jones.
Convicted Felon Sentenced to Federal Prison for Shooting into HomeRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced Lamont Guinyard (30, Gulfport) to four years and three months in federal prison for possessing a firearm as a convicted felon. Guinyard had pleaded guilty on April 8, 2019.
According to testimony and evidence presented at today’s sentencing hearing, in October 2018, Guinyard fired a gun into an occupied residence. Several individuals were inside the home at the time. One bullet entered, and was recovered from, a young child’s room. The child was not harmed.
At the time, Guinyard had multiple prior felony convictions and is, therefore, prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Appeals Court Upholds Former Congresswoman Corrine Brown’s ConvictionsRead the Press Release
Tampa, Florida – The United States Court of Appeals for the Eleventh Circuit in Atlanta has affirmed the convictions of former United States Congresswoman Corrine Brown for various fraud and tax offenses. The Court also upheld the district court’s order that Brown forfeit more than $600,000 in proceeds she obtained from her crimes.
In 2017, a jury in Jacksonville found Brown guilty of 14 separate fraud crimes related to her One Door for Education charitable organization, as well as 4 income tax crimes. Brown’s co-conspirators (Elias “Ronnie” Simmons, her long-time Chief of Staff and Carla Wiley, the president of the fraudulent charity) pleaded guilty to their roles in the scheme. The district court sentenced Brown to serve 60 months in prison and to forfeit and pay restitution of $664,292.39. Brown appealed her convictions and the forfeiture order to the United States Court of Appeals for the Eleventh Circuit. The Court heard oral argument in February 2019.
In a lengthy opinion, the Court of Appeals affirmed all of Brown’s convictions and the forfeiture order. Brown had challenged her convictions based on the district court’s dismissal of a juror who, during deliberations, had said that the Holy Spirit told him that Brown was not guilty on all counts. In upholding Brown’s convictions, the Court of Appeals held that the district court had not clearly erred in finding that the juror, “despite his best intentions,” “was not capable of rendering a verdict rooted in the evidence presented at trial.” And the Court of Appeals concluded, therefore, that “the district court certainly did not abuse its discretion in dismissing [the juror] from the jury.” The Court added, “Though here, the juror’s perceived divine revelation might have worked in the criminal defendant’s favor had the district court not learned of it mid-deliberations, a contrary holding would allow criminal defendants to be convicted based on a divine revelation divorced from the evidence, rather than the evidence presented at trial—a troubling result, to say the least.” One judge on the panel, the Honorable William Pryor, dissented from the Court’s opinion.
The appeal was handled by Assistant United States Attorney David Rhodes. The underlying case—including an eight-day trial—was prosecuted by Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican, and Eric G. Olshan, then of the Criminal Division’s Public Integrity Section and now an Assistant U.S. Attorney in the Western District of Pennsylvania. The FBI and IRS-Criminal Investigation investigated the case.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Punch It Performance and Tuning Agrees to Stop Selling Illegal Devices That Defeat Emissions Control Systems of Vehicles in the Wake of Clean Air Act Enforcement ActionRead the Press Release
Orlando, FL – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Punch It Performance and Tuning and Michael Paul Schimmack — and other companies and individuals close to Schimmack (Defendants) — resolving alleged violations of the Clean Air Act (CAA) associated with the manufacture and sale of aftermarket products that defeat the emissions control systems of motor vehicles. The complaint also alleged that certain defendants fraudulently transferred assets after learning of the EPA claims in an effort to avoid payment of penalties in the case.
Under the settlement, lodged today with the U.S. District Court for the Middle District of Florida, defendants, who have stopped manufacturing and selling defeat device products, will pay a civil penalty of $850,000. The defendants also agree to stay out of the business of selling the illegal products, to surrender the computer code used in the products and to stop providing technical and warranty support for the defeat devices already sold.
“Companies and individuals who deal in aftermarket defeat devices are threatening the public’s health and violating federal law,” said Assistant Attorney General Jeffrey Bossert Clark. “The Department of Justice is committed to ending this illegal trade, seeking justice for those harmed from this fraudulent activity, and encouraging compliance in the automotive industry through strong enforcement.”
“EPA will vigorously pursue and prosecute companies who attempt to circumvent emission controls that are required to reduce air pollution,” said EPA Assistant Administrator for Enforcement and Compliance Assurance Susan Bodine. “This case illustrates why stopping the manufacture, sale, and installation of aftermarket defeat devices is an EPA National Compliance Initiative.”
“The Middle District of Florida remains committed to enforcing the Clean Air Act,” said U.S. Attorney Maria Chapa Lopez. “The settlement announced today is a clear statement of our office’s commitment to protect our citizens and the environment.”
The defendants manufactured and/or sold more than 20,000 aftermarket defeat devices. These products were designed for a range of certified motor vehicles and motor vehicle engines including vehicles manufactured by Ford, General Motors, and Fiat Chrysler. The aftermarket products sold by defendants included hardware components and electronic tuning software, known as “tunes,” that hack into and reprogram a motor vehicle’s electronic control module to alter engine performance and enable the removal of filters, catalysts and other critical emissions controls that reduce air pollution.
Under the CAA, it is illegal to manufacture or sell parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine original equipment manufacturer to comply with CAA emission standards. The complaint filed in the case alleges that each act of manufacturing and each sale constitutes a violation of the CAA.
In addition, the complaint asserts that after EPA notified the defendants in 2016 of its intent to take enforcement action, the corporate defendants transferred real estate and large sums of money to one or more of the individual defendants in their personal capacities. The U.S. alleges these were fraudulent transfers under the Federal Debt Collection Procedures Act.
In addition to their civil penalty of $850,000, defendants will also do the following:
- Surrender all intellectual property to EPA, including programming, files, software, source code, design, instructions, or other information that could be used to manufacture tunes;
- Certify that no products have been manufactured or sold since March 2017;
- Certify that no intellectual property has been transferred to any party other than EPA; and
- Refuse to provide technical support or honor warranty claims for products subject to the consent decree.
EPA has recently begun a National Compliance Initiative on Stopping Aftermarket Defeat Devices for Vehicles and Engines. To read about EPA’s National Compliance Initiative visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The proposed settlement is subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website.
To learn more about today’s settlement click here.
Members of the public can help protect our environment by identifying and reporting environmental violations. Learn more here: https://echo.epa.gov/report-environmental-violations.
Operators of U.S. Coin Bullion Sentenced to Prison for More Than $9.3 Million in FraudRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced brothers Salvatore Esposito (47, Orlando) and Joseph Esposito (43, Orlando) to federal prison terms for their roles in defrauding more than 150 victims out of more than $9.3 million in connection with the operation of their business, U.S. Coin Bullion LLC. Salvatore Esposito was sentenced to 7 years and 3 months in federal prison, and Joseph Esposito was sentenced to 5 years and 11 months in federal prison. Both were also ordered to serve 3 years of supervised release and to pay more than $9.3 in restitution.
The Espositos had pleaded guilty on October 2, 2019.
According to court documents, the Espositos operated U.S. Coin Bullion, a local Orlando company formed in 2012. From 2014 to July 2019, the Espositos engaged in a conspiracy to defraud U.S. Coin Bullion’s customers. Instead of using the customers’ funds to purchase precious metals as had been promised, the Espositos caused U.S. Coin Bullion to use customer funds to pay other customers, to pay commissions and other business expenses, and to purchase silver for the company itself.
U.S. Coin Bullion used its customers’ funds to purchase silver on “margin,” or “leverage,” by which it acquired an interest in the silver by paying only a portion of its full price. The company took out loans to purchase the silver on margin and then used more customer funds to pay the interest associated with those loans, as well as storage fees for the silver. And, because it was buying on margin, U.S. Coin Bullion was subject to “margin calls.” If the market price for silver declined, the company might immediately have to deposit more (customer) funds into its accounts to maintain its interest in the silver.
U.S. Coin Bullion never told its customers that their funds were being used in this way. By at least 2016, it was regularly using its customers’ funds to buy millions of dollars worth of silver. When the price for silver fell from more than $35 an ounce (in 2012) to less than $15 an ounce during the conspiracy, the company experienced massive losses and had to spend customer funds due to margin calls.
To cover up U.S. Coin Bullion’s losses, the Espositos provided customers with false account statements making it appear that the company had purchased the silver for the customers (not itself) and that their accounts maintained value despite any drop in the market price of silver. Ultimately, U.S. Coin Bullion’s margin purchases resulted in a loss of nearly all the market value of the silver that its customers believed they had purchased and held.
This case was investigated by the U.S. Secret Service, with assistance from the Florida Attorney General's Office of Citizen Services – Consumer Assistance Program, which has provided invaluable assistance with the victims. It was prosecuted by Assistant United States Attorney Roger B. Handberg.
Colombian National Sentenced to More Than 24 Years for Conspiring to Send More Than 12,000 Kilograms of Cocaine to the Sinaloa CartelRead the Press Release
Tampa, FL – U.S. District Judge Richard A. Lazzara today sentenced Jimmy Riascos-Riascos (44) to 24 years and 4 months in federal prison for conspiring to distribute cocaine on board vessels subject to the jurisdiction of the United States.
Riascos-Riascos had pleaded guilty on July 18, 2019.
According to court records, Riascos-Riascos was a member of a transnational criminal organization that dispatched self-propelled semi-submersible (SPSS) vessels from Colombia into the Pacific Ocean, destined for Sinaloa Cartel members in Oaxaca, Mexico. Riascos-Riascos was involved in installing the engines on these SPSS vessels, recruiting mechanics to travel onboard, and providing instructions to crewmembers on how to operate the engines. Two of these SPSS vessels were interdicted in international waters resulting in the seizure of more than 12,000 kilograms of cocaine and the prosecution of the crewmembers in the Middle District of Florida.
Riascos-Rascos further admitted to being a crewmember on an SPSS that successfully reached its destination in Mexico, in May 2015.
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.
Jury Finds Florida Felon Guilty of Armed Drug Trafficking and Other OffensesRead the Press Release
Tampa, Florida – A federal jury today found Robert Christopher Sunmonu (22, St. Petersburg) guilty of possessing a firearm in furtherance of a drug trafficking crime, possessing crack cocaine with the intent to distribute it, and possessing a firearm as a convicted felon. Sunmonu faces a mandatory minimum penalty of five years, and up to life, in federal prison. His sentencing hearing has not yet been scheduled.
Sunmonu was indicted on September 24, 2019.
According to testimony presented at trial, on August 2, 2019, officers from the St. Petersburg Police Department attempted to stop Sunmonu, who was driving a stolen car. Instead of stopping, Sunmonu fled and led officers on a chase through St. Petersburg, ending in an apartment complex, where Sunmonu then fled on foot. Sunmonu jumped a concrete wall and was attempting to hop a fence when an officer grabbed him. Sunmonu continued to try and break free as a second officer pried Sunmonu from the fence and got him to the ground. As officers tried to gain control of Sunmonu’s hands, he resisted and reached for his waist. The officers eventually handcuffed Sunmonu and found a loaded firearm in his pants pocket. In retracing Sunmonu’s steps, the officers recovered trafficking amounts of crack cocaine, marijuana, and Xanax.
At the time of the incident, Sunmonu had multiple prior felony convictions. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Gregory T. Nolan.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. 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.
Florida Man Pleads Guilty to Trafficking in CITES-Protected Water Monitor LizardsRead the Press Release
Akbar Akram, a resident of Holiday, Florida, pleaded guilty today to illegally trafficking live water monitor lizards from the Philippines.
Akram, 44, pleaded guilty in Tampa before U.S. District Judge William F. Jung to one count of wildlife trafficking in violation of the Lacey Act.
According to plea documents, Akram admitted to illegally importing more than 20 live water monitor lizards from the Philippines between January and December 2016, in violation of United States law and the Convention on International Trade in Endangered Species (CITES) Treaty. To avoid detection by U.S. customs authorities, the lizards were placed in socks, which were sealed closed with tape, and then concealed inside electronic equipment and shipped under a false label. The equipment was then shipped via commercial carriers to Akram’s associate, who resided in Massachusetts.
As part of his plea, Akram admitted that he knew the monitor lizards he received had been taken in violation of Philippine law, and that the import violated U.S. law. Akram also admitted that upon receiving the monitor lizards, he sold some of them to customers, including customers in Colorado, Connecticut, and Massachusetts.
“Akram violated Philippine law and U.S. law by illegally trafficking live water monitor lizards,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to prosecute those who flout federal laws and seek to profit from trafficking protected species.”
“The illegal trafficking of protected species is a violation of federal law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “We will continue to work with our partners, nationally and internationally, to thwart these crimes.”
Monitor lizard is the common name for lizards comprising the genus Varanus. Monitor lizard species (there are approximately 70) are characterized by elongated necks, heavy bodies, long-forked tongues, strong claws, and long tails. Monitor lizards have a vast geographical range and are native to Africa, Asia, and Oceania. Water monitor lizards are semi-aquatic monitor lizards endemic to South and Southeastern Asia. Water monitor lizards, as their name suggests, are water dependent and easily swim long distances. This ability has allowed them to inhabit many remote islands. Some species of water monitor lizard are common and abundant in the pet trade, while others are extremely rare and are found only on specific islands. In addition to suffering increasing habitat loss due to rainforest destruction, water monitor lizards are often illegally collected from the wild and killed for bush meat, traditional medicine, or for their skins. Water monitor lizards are also targeted for their popularity in the international exotic pet trade. Exotic pet traders seek these water monitor lizards due to their attractive patterns, unique colors, intelligence, and rarity. The yellow-headed water monitor (Varanus cumingi), the white-headed water monitor (Varanus nuchalis), and the marbled water monitor (Varanus marmoratus), are species of large monitor lizards endemic to the Philippines.
This case is part of Operation Sound of Silence, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice, to prosecute those involved in the illegal taking and trafficking in protected species, including water monitor lizards.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the United States Attorney’s Office for the Middle District of Florida, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Colin McDonell and Environmental Crimes Section Trial Attorney Gary N. Donner.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Florida Man Pleads Guilty to Trafficking in Cites-Protected Water Monitor LizardsRead the Press Release
Tampa, FL – Akbar Akram, a resident of Holiday, Florida, pleaded guilty today to illegally trafficking live water monitor lizards from the Philippines.
Akram, 44, pleaded guilty in Tampa before U.S. District Judge William F. Jung to one count of wildlife trafficking in violation of the Lacey Act.
According to plea documents, Akram admitted to illegally importing more than 20 live water monitor lizards from the Philippines between January and December 2016, in violation of United States law and the Convention on International Trade in Endangered Species (CITES) Treaty. To avoid detection by U.S. customs authorities, the lizards were placed in socks, which were sealed closed with tape, and then concealed inside electronic equipment and shipped under a false label. The equipment was then shipped via commercial carriers to Akram’s associate, who resided in Massachusetts.
As part of his plea, Akram admitted that he knew the monitor lizards he received had been taken in violation of Philippine law, and that the import violated U.S. law. Akram also admitted that upon receiving the monitor lizards, he sold some of them to customers, including customers in Colorado, Connecticut, and Massachusetts.
“Akram violated Philippine law and U.S. law by illegally trafficking live water monitor lizards,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to prosecute those who flout federal laws and seek to profit from trafficking protected species.”
“The illegal trafficking of protected species is a violation of federal law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “We will continue to work with our partners, nationally and internationally, to thwart these crimes.”
Monitor lizard is the common name for lizards comprising the genus Varanus. Monitor lizard species (there are approximately 70) are characterized by elongated necks, heavy bodies, long-forked tongues, strong claws, and long tails. Monitor lizards have a vast geographical range and are native to Africa, Asia, and Oceania. Water monitor lizards are semi-aquatic monitor lizards endemic to South and Southeastern Asia. Water monitor lizards, as their name suggests, are water dependent and easily swim long distances. This ability has allowed them to inhabit many remote islands. Some species of water monitor lizard are common and abundant in the pet trade, while others are extremely rare and are found only on specific islands. In addition to suffering increasing habitat loss due to rainforest destruction, water monitor lizards are often illegally collected from the wild and killed for bush meat, traditional medicine, or for their skins. Water monitor lizards are also targeted for their popularity in the international exotic pet trade. Exotic pet traders seek these water monitor lizards due to their attractive patterns, unique colors, intelligence, and rarity. The yellow-headed water monitor (Varanus cumingi), the white-headed water monitor (Varanus nuchalis), and the marbled water monitor (Varanus marmoratus), are species of large monitor lizards endemic to the Philippines.
This case is part of Operation Sounds of Silence, an ongoing effort by the Department of the Interior’s Fish and Wildlife Service, in coordination with the Department of Justice, to prosecute those involved in the illegal taking and trafficking in protected species, including water monitor lizards.
The investigation was handled by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the United States Attorney’s Office for the Middle District of Florida, and the Justice Department’s Environmental Crimes Section. The government is represented by Assistant U.S. Attorney Colin McDonell and Environmental Crimes Section Trial Attorney Gary N. Donner.
Convicted Felon Pleads Guilty to Possessing 23 Firearms and More Than 3,000 Rounds of AmmunitionRead the Press Release
Ocala, Florida – Nicholas Allen Groves (35, Ocala) today pleaded guilty to possessing a firearm as a convicted felon. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
Groves had been indicted on November 20, 2019.
According to the plea agreement, on November 6, 2019, federal agents executed a search warrant at Groves’s residence and seized 25 firearms (revolvers, pistols, rifles and shotguns), 3,171 rounds of ammunition, a homemade firearm silencer, and several 40 mm grenade shells. Experts later determined that 23 of the firearms had crossed state lines, making them the subject of federal prosecution. Groves, who has a previous felony conviction for assault-first degree (Maryland), is prohibited from possessing firearms or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Marion County Sheriff’s Office, and the City of Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, 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.
Armed Career Criminal Pleads Guilty to Possessing A Firearm and AmmunitionRead the Press Release
Ocala, Florida – Shelley Devaughn Cook (42, Ocala) today pleaded guilty to possessing a firearm and ammunition as a convicted felon. He faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
Cook had been indicted on August 19, 2019.
According to the facts presented in court, detectives from the City of Ocala Police Department observed Cook with an open alcoholic beverage container in a public area, in violation of a city ordinance. Cook ignored repeated requests from the detectives to pour out his drink, then fled on foot as the detectives approached him. Once apprehended, the detectives discovered a loaded semi-automatic pistol in Cook’s waistband. Cook also had quantities of MDMA (ecstasy), heroin, fentanyl, and marijuana in his possession.
Cook has eight prior state felony convictions, including robbery with a deadly weapon (firearm), aggravated battery, felony battery, fleeing and eluding law enforcement, and illegal drug possession, and is 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 Ocala Police Department. It is being prosecuted by Assistant United States Attorney Robert E. Bodnar, 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 Bay Autism Service Provider Agrees to Pay $675,000 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Behavioral Consulting of Tampa Bay (“BCOTB”) has agreed to pay the United States $675,000 to resolve allegations that BCOTB violated the False Claims Act by submitting false or fraudulent claims to the TRICARE program, a health care program for uniformed service members, retirees, and their families.
The United States initiated an investigation after an audit by TRICARE’s managed care support contractor (Humana Military Program Integrity) revealed alleged false or fraudulent claims to TRICARE for applied behavior analysis therapy (“ABA”) and other services to TRICARE beneficiaries with autism spectrum disorder. Today’s settlement resolves allegations that BCOTB submitted claims to TRICARE that (1) misrepresented the identity of the rendering provider, (2) misrepresented the service provided, (3) requested payment for more units of time than supported by the medical record, and (4) were not substantiated by a medical record, and therefore requested payment for services that were not rendered.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time in their development, should be held accountable for their actions,” said U.S. Attorney Maria Chapa Lopez. “Our Office is committed to protecting our military service members and their families and the programs that make it possible for their children with special needs to receive these vital services.”
"In this case, the provider's overbilling cheated TRICARE out of money meant for children's therapeutic services," stated Special Agent-in-Charge Cynthia Bruce of the Defense Criminal Investigative Service (DCIS) Southeast Field Office. "DCIS will aggressively pursue those who exploit government programs intended to help our military service members, veterans, and their families and will dedicate all needed resources to bring them to justice."
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Defense Criminal Investigative Service and Humana Military Program Integrity. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Middle District of Florida U.S. Attorney’s Office Collects More Than $98 Million in Locally Handled Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
Tampa – United States Attorney Maria Chapa Lopez announced today that the Middle District of Florida (MDFL) collected $98,607,097 in locally handled criminal and civil actions in the fiscal year ending September 30, 2019 (FY 2019). Of this amount, $79,862,063 was collected in local civil actions and $18,745,043 was collected in criminal actions.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $268,562,280 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $188,700,217 in these high profile, jointly handled cases. This represents the second largest recovery amount for a single year in the history of the district.
Additionally, the Office’s Asset Recovery Division, led by Chief Anita Cream, recovered $28,791,743 in asset forfeiture actions last fiscal year. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2019, nearly $10 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and more than $2.8 million was shared with federal, state, and local law enforcement agencies.
“The coordinated efforts between federal, state, and local partners have resulted in the recovery of millions of dollars from those who have used fraud and other means to violate federal laws,” said U.S. Attorney Chapa Lopez. “These recovered funds will serve to hold those responsible accountable for their misconduct and offenses, help victims recover from their losses, and assist law enforcement in pursuing justice.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
CIVIL HEALTHCARE FRAUD ENFORCEMENT CASE SUMMARIES
United States v. Regency, Inc., Case No. 8:19-civ-903 (M.D. Fla.)
The MDFL Civil Division, working in parallel with its Asset Recovery Division and Criminal Division, obtained an emergency temporary restraining order and preliminary injunctions that secured a historic $50 million in cash and other valuable property owned by 13 criminal healthcare fraud targets, pending resolution of criminal claims. The asset freeze is the largest of its kind on record. The defendants in this civil case are alleged to have engaged in a vast healthcare fraud scheme that generated a deluge of false claims for unnecessary orthotic braces that were shipped to Medicare beneficiaries. Boiler room call centers “cold called” Medicare beneficiaries and generated leads for store front durable medical equipment companies to exploit. The medical need for the orthotics was certified by internet doctors who had no relationship with the beneficiaries receiving the equipment.
United States v. Jayam Iyer, MD, Case No. 8:19-civ-446 (M.D. Fla.)
This civil case was worked in parallel with a criminal prosecution of a Clearwater anesthesiologist who was a national outlier prescriber of opiate medications. The parallel investigation resulted in an indictment and guilty plea for health care fraud that brought a six month prison sentence for the physician. Dr. Iyer also surrendered her DEA registration that permitted her to prescribe controlled substances, and her Florida medical license. She was excluded from participation in Medicare and Florida Medicaid programs, and has agreed to pay $102,126 to resolve civil claims under the False Claims Act.
Press releases: https://www.justice.gov/usao-mdfl/pr/clearwater-doctor-sentenced-prison-health-care-fraud
https://www.justice.gov/usao-mdfl/pr/former-clearwater-anesthesiologist-agrees-pay-102126-resolve-civil-healthcare-fraud
United States ex rel. Heaphy v. Miraca Life Sciences, Case No. 8:16-civ-3328 (M.D. Fla.)
A nationwide pathology group paid $63.5 million to resolve claims by two separate whistleblowers that it had provided kickbacks to referring physicians in the form of subsidies for electronic health records and technology consulting.
Press release: https://www.justice.gov/opa/pr/pathology-laboratory-agrees-pay-635-million-providing-illegal-inducements-referring
United States ex rel. Simon v. HealthSouth, Inc., Case No. 8:12-civ-236 (M.D. Fla.)
A nationwide provider of rehabilitation services paid $48 million to settle allegations by whistleblowers in six separate qui tam cases that the provider had defrauded the Medicare program through false information that distorted the medical conditions of patients in order to gain higher reimbursement from the program.
Press release: https://www.justice.gov/opa/pr/encompass-health-agrees-pay-48-million-resolve-false-claims-act-allegations-relating-its
Fagron Holding USA, LLC
A supplier of ingredients used in compounded pain cream medications created by specialty pharmacies agreed to pay $22.05 million to resolve allegations in two qui tam cases that it had defrauded the Department of Defense’s TRICARE program and the federal Workers’ Compensation program through a scheme that falsely inflated the average wholesale price of the ingredients. Because reimbursement depends upon the pricing reported to price listing agencies, the scheme permitted the supplier’s pharmacy customers to bill federal programs for thousands of dollars per prescription more than they were entitled to claim.
Press release: https://www.justice.gov/usao-mdfl/pr/compound-ingredient-supplier-fagron-holding-usa-llc-pay-2205-million-resolve
Celink
A Michigan based reverse mortgage loan servicer paid $4.25 million to resolve claims that it had improperly claimed interest payments from the Department of Housing and Urban Development’s Federal Housing Administration insurance program. HUD regulations impose specific requirements upon servicers claiming interest, and Celink’s claims to the agency failed to disclose facts that defeated its claims.
Press release: https://www.justice.gov/usao-mdfl/pr/celink-agrees-pay-425-million-resolve-its-alleged-liability-relating-its-servicing
United States ex rel. Webb v. Advanced Biohealing, Case No. 8:14-civ-1055 (M.D. Fla.)
Kevin Rakin, the CEO of a medical device manufacturer, paid $2.5 million to resolve allegations by a qui tam relator that he had conceived and implemented a nationwide kickback scheme that incentivized overutilization of a wound care medical device. In 2017, the manufacturer had settled kickback allegations against it in return for $350 million.
Press release: https://www.justice.gov/usao-mdfl/pr/former-advanced-biohealing-ceo-pay-25-million-settle-false-claims-act-allegations
United States ex rel. Hawks v. Heart & Vascular Inst. of Florida, Case No. 8:16-civ-1574 (M.D. Fla.)
An Orlando area vascular surgeon, Irfan Siddiqui, paid $2.23 million to resolve allegations by one of his patients that he had defrauded Medicare through false claims for medically unnecessary vein ablation services and up-coded evaluation and management services. He also had allegedly falsified patient records to justify claims for reimbursement.
Press release: https://www.justice.gov/usao-mdfl/pr/davenport-vascular-surgeon-agrees-pay-223-million-settle-health-care-fraud-claims
United States ex rel. Oha v. Advanced Pain Management and Spine Specialists, Case No. 2:15-civ-350 (M.D. Fla.)
The co-owner of the largest pain management practice in southwest Florida, Dr. Jonathan Daitch, paid $1.7 million to resolve civil fraud claims against him individually, that alleged he had submitted false claims to Medicare for medically unnecessary urine drug testing services. The co-owner of the practice, Dr. Michael Frey, earlier pleaded guilty to having received kickbacks from a local durable medical equipment provider and paid $2.8 million in a separate settlement to resolve civil fraud claims against him arising from kickback practices and for ordering medically unnecessary lab tests.
Press releases: https://www.justice.gov/usao-mdfl/pr/fort-myers-doctor-agrees-pay-more-17-million-resolve-allegations-fraud
https://www.justice.gov/usao-mdfl/pr/fort-myers-pain-management-physician-sentenced-eighteen-months-prison-kickback-scheme
United States ex rel. de Oca v. Conway Lakes NC, LLC, Case no. 6:16-civ-1374 (M.D. Fla.)
An Orlando skilled nursing facility, Conway Lakes NC, LLC, along with its former Administrator, Matthew File, its management company, Clear Choice Health Care, LLC, Clear Choice’s part-owner and President, Jeffrey Cleveland, Clear Choice’s part-owner and Senior Vice President, Geoffrey Fraser, and an Orlando-area orthopedic surgeon, Dr. Kenneth Krumins, agreed to pay $1.5 million to resolve a qui tam relator’s allegations that they had engaged in a kickback scheme concerning the referral of Medicare and TRICARE patients. Dr. Krumins received payments under a sham “medical director” agreement to induce him to illegally refer Medicare and TRICARE patients to Conway Lakes for rehabilitation services that were billed to the United States. Dr. Krumins’s settlement agreement also resolves allegations that he engaged in a similar kickback scheme with a related home health agency.
Press release: https://www.justice.gov/usao-mdfl/pr/orlando-skilled-nursing-facility-physician-and-related-providers-agree-pay-15-million
Former Clearwater Anesthesiologist Agrees to Pay $102,126 to Resolve Civil Healthcare Fraud AllegationsRead the Press Release
Tampa, FL – United States Attorney Maria Chapa Lopez announces today that Dr. Jayam Krishna Iyer has agreed to pay the United States $102,126.98 to resolve allegations that she violated the False Claims Act while practicing as a pain management physician. These civil claims are related to Iyer’s guilty plea to criminal health care fraud in 2018, which involved her billing Medicare for office visits when the patient was not present for the visit and for issuing prescriptions for Schedule II controlled substances.
The settlement arises from a lawsuit filed by the United States styled United States v. Jayam Krishna Iyer, M.D., et al., Case No. 8:18-cv-446-WFJ-JSS (M.D. Fla.).
In 2017, the United States Attorney’s Office’s Civil Division opened a civil investigation into whether Iyer had prescribed medically unnecessary prescriptions for opioids in violation of the False Claims Act. Separately, on August 24, 2018, Iyer pleaded guilty to one count of criminal health care fraud based on her fraudulent claims for office visits. As part of the criminal plea agreement, Iyer agreed to forfeit $51,521 paid by Medicare as a result of the fraud and to pay restitution. She was sentenced to serve six months in federal prison. Iyer also agreed to surrender her Florida medical license, as well as the DEA registration which had permitted her to prescribe controlled substances for her patients, and to not reapply for a DEA registration for 20 years. Iyer further agreed to permanent exclusion from Medicare, Medicaid, and all other federal healthcare programs. On February 20, 2019, the United States sued Iyer under the False Claims Act to collect civil damages and penalties based on her admissions as part of her criminal plea.
“By using all of the tools available to law enforcement, including civil enforcement, we in the Middle District of Florida will continue to target medical professionals who flood our streets with dangerous opioids without regard for the health and welfare of their patients,” said U. S. Attorney Maria Chapa Lopez.
“Writing prescriptions for controlled substances without examining patients – as alleged in this case – indicates that a health care professional is more concerned with profits than patients,” said Special Agent in Charge Omar Pérez Aybar of the Office of Inspector General of the U.S. Department of Health and Human Services. “Today’s settlement reaffirms our commitment to ensuring that physicians fulfill their professional obligation to serve their patients’ health needs as well as appropriately bill government health care programs.”
Today’s settlement results from a coordinated effort by the U.S. Attorney’s Office for the Middle District of Florida, assisted by the Department of Health & Human Services, Office of Inspector General, and the Federal Bureau of Investigation. Assistant United States Attorney Lindsay Saxe Griffin led the civil investigation.