Middle District of Florida
Press releases recorded for this federal judicial district.
Spring Hill Man Sentenced to over Four Years in Federal Prison for Pharmacy BurglaryRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday today sentenced William Hennessey (37, Spring Hill) to 51 months in federal prison for distributing Schedule II controlled substances after burglarizing a pharmacy. The court also ordered Hennessey to pay $36,000 in restitution to the pharmacy.
Hennessey had pleaded guilty on July 31, 2019.
According to court documents, on March 23, 2019, Hennessey broke into Suntrust Pharmacy in Port Richey and stole a large safe filled with thousands of highly-addictive Schedule II controlled substances, including oxycodone, morphine, hydromorphone, hydrocodone, fentanyl, and dextroamphetamine. Four days later, law enforcement agents located two plastic containers filled with the stolen oxycodone pills in Hennessey’s car. They also found a glove matching the one found at the pharmacy, at Hennessey’s house. Hennessey had distributed the remaining drugs, which were later recovered by law enforcement, to others.
Hennessey also stole more than $12,000 in cash from the pharmacy. He bought a motorcycle and other items with the stolen money. Hennessey later admitted that he had stolen the safe, cash, and the controlled substances from the pharmacy and had distributed some of the drugs to others.
This case was investigated by Drug Enforcement Administration, the Pasco Sheriff’s Office and the Hernando County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
This case was investigated by the Middle District of Florida Opioid Fraud and Abuse Detection Unit -- one of twelve Department of Justice pilot programs created to help combat the devastating opioid crisis that is ravaging families and communities across America and to prosecute individuals that are contributing to the opioid epidemic.
Miami Man Sentenced to More Than Four Years for Participating in $1.5 Million Apple Pay Fraud ConspiracyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Daniel Butler (30, Miami) to 54 months in federal prison for conspiracy to commit wire fraud and aggravated identity theft.
Butler had pleaded guilty on May 16, 2019.
According to court documents, Butler and others fraudulently obtained access to at least 477 credit card accounts and linked those accounts to the Apple Pay app on their iPhones. Then, using their iPhones, Butler and his coconspirators made purchases using their victims’ credit card accounts without having to present actual credit cards to retailers. The group made more than $1.5 million in fraudulent purchases.
Butler’s sentencing follows the pleas of his three co-conspirators. In December 2018, Johnny Max Wesley (24, Miami) was sentenced to four years in federal prison. Rachel Bishop (27, Miami) and Laurent Pierre Louis (31, Miami) are scheduled to be sentenced in December 2019.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Clearwater Man Sentenced to Prison for Unlawful Possession of Firearms in A School ZoneRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced Gerard Graves (27, Clearwater) to seven years in federal prison for unlawful possession of firearms in a school zone.
Graves had pleaded guilty on July 19, 2019.
According to court documents, on May 27, 2015, the Drug Enforcement Administration learned through a confidential informant (CI) that Graves, a convicted felon, was attempting to sell a shotgun. The CI, under DEA supervision, spoke with Graves and arranged a time and place to purchase the firearm. Graves arrived at the agreed upon location in Clearwater and sold a Mossberg 12-gauge shotgun and ammunition to the CI. On July 9, 2019, Graves contacted the CI and said he had another firearm for sale. The CI, under DEA supervision, met with Graves the next day at another location in Clearwater where Graves sold the CI a Smith & Wesson 9mm pistol and ammunition. Both firearm sales occurred within 1,000 feet of a school.
This case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Michael C. Sinacore.
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 Felon in Rap Video Sentenced for Illegally Possessing FirearmRead the Press Release
Jacksonville, FL – U.S. District Judge Brian J. Davis has sentenced Richard Leroy Douglas (25, Jacksonville) to 41 months in federal prison for possessing a firearm as a convicted felon.
Douglas had pleaded guilty on July 9, 2019.
According to court documents, on October 1, 2018, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) was conducting a YouTube query of firearm-related music videos in the Jacksonville area and found a video titled “Hulio Da Don “KOBK” (Official Music Video).” According to the YouTube webpage, the video was published on September 14, 2018. The KOBK music video depicted several individuals possessing, holding, and pointing numerous suspected firearms of varying types and calibers. Agents identified Douglas as one of the individuals in the KOBK music video who had possessed a Zastava, 7.62x39-mm pistol with a double black taped magazine.
On September 27, 2018, detectives from the Jacksonville Sheriff’s Office (JSO) had executed a narcotics-related search warrant at a residence. During the search of the residence, JSO officers located five firearms, one of which was a Zastava, 7.62x39-mm pistol. That pistol matched the unique characteristic of the Zastava, 7.62x39-mm pistol that Douglas had possessed in the KOBK music video. The residence also matched the KOBK music video shoot location.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney 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.
Pasco County Man Sentenced to More Than Three Years for Stalking, Threatening to Kill Victim and Her ChildRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Nicholas Marinkovic (29, Pasco County) to three years and four months in federal prison for stalking. Marinkovic had pleaded guilty on May 20, 2019.
According to court documents, between March and December 2018, Marinkovic repeatedly harassed and threatened multiple victims, including via numerous interstate telephone calls and hundreds of text messages. In those communications, Marinkovic repeatedly threatened, for example, to kill one of the victims and her child.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Pasco County Sheriff’s Office and other local law enforcement. It was prosecuted by Assistant United States Attorney Colin McDonell.
Inmate-Gang Member Sentenced for Using the Mail to Threaten to Kill Federal Prosecutor and His FamilyRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Dylan Ray Langley (25, Fort Myers) to two years and six months in federal prison for using of the U.S. Mail to threaten to injure an officer of the United States.
Langley had pleaded guilty on June 19, 2019.
According to court documents, while serving a state prison sentence for armed robbery, Langley mailed a letter to an Assistant United States Attorney. In his letter, Langley threatened to kill the prosecutor as revenge for his having prosecuted Langley’s “brother.” He also made serious threats against the prosecutor’s family. When interviewed by federal agents, Langley admitted that he had sent the letter and intended to carry out his threats. He explained that the letter’s mention of a “brother” did not refer to any biological brother, but rather a fellow gang member. Langley changed his story after an agent told him that if a state prisoner commits, and is convicted of, a federal crime, the prisoner must serve his state sentence and then the federal sentence. During a second interview with agents, Langley claimed that he never intended to carry out the threat and mistakenly had believed that threatening a federal official would result in him being moved from state custody into federal custody.
This case was investigated by Federal Bureau of Investigation, the U.S. Marshals Service, and the Florida Department of Corrections. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Former Jacksonville High School Teacher Sentenced to More Than 9 Years for Distributing Child Sexual Abuse Video over the InternetRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Jordan Frederic Schemmel (38, Ormond Beach) to nine years and two months in federal prison for distributing depictions of child sexual abuse over the internet. Schemmel had pleaded guilty on May 22, 2019. Schemmel was also sentenced to a 10-year term of supervised release and ordered to register as a sex offender upon his release.
According to court documents, on September 5, 2018, Schemmel, using the username “Profsunrise15,” responded to a message on an internet bulletin board frequented by individuals with a sexual interest in children and incest. The message had been posted by an undercover FBI agent. Schemmel began an online conversation with the agent using a popular social messaging application. After some conversation about his sexual interest in children between the ages of 9 and 13, Schemmel sent a video to the agent that depicted a young child being sexually assaulted by an adult male, and later sent a photo depicting similar criminal conduct with a child. During this time, Schemmel was a teacher at Terry Parker High School in Jacksonville.
On October 19, 2018, FBI agents and other law enforcement officers executed a search warrant at Schemmel’s residence in Jacksonville. During an interview, Schemmel stated that he was interested in incest and bestiality, that he had sent the child-pornographic video using the app, and that he had tried unsuccessfully to stop viewing child pornography after receiving sexual gratification from it. Forensic examination of Schemmel’s smartphone and a USB thumb drive seized from his residence revealed that he had collected 102 images and 28 videos depicting child pornography, several of which depicted the sadistic sexual abuse of young children.
This case was investigated by the Federal Bureau of Investigation, U.S. Customs and Border Protection, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Heroin-Dealing Jacksonville Pimp Sentenced to 25 Years in Prison for Forcing Five Victims to Engage in ProstitutionRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Richard Anthony Moffett (31, Jacksonville) to 25 years in federal prison for using force, fraud, and coercion to cause multiple victims to engage in prostitution. The court will make a determination as to the amount of restitution Moffett owes to each of his five victims at a later date. Moffett had pleaded guilty on June 7, 2019.
According to court documents and information presented at the sentencing hearing, in the middle of 2016, Moffett relocated from Ohio to Florida. He resided in various hotels in Jacksonville, where he met his first two victims, K.W. and K.D. Moffett began forcing K.W. to engage in prostitution, keeping all of her money, supplying her with drugs, and regularly beating her. Sometime in December 2016, Moffett began selling heroin to D.D., a third victim. D.D. began working for Moffett, providing commercial sex to others, and gave all of the money she made to Moffett. Moffett exploited D.D.’s heroin addiction to coerce her into engaging in commercial sex acts. A few months later, Moffett came to believe that D.D. had stolen $50 from him. Moffett pointed a pistol at D.D., who attempted to flee from the hotel room. K.W., who was present at the time, grabbed D.D. by the hair, and Moffett twice stomped D.D. on the head. D.D. ultimately escaped.
Around February 2017, Moffett met his fourth victim, S.B., when she began purchasing heroin from him. Moffett invited S.B. and K.D. to travel with him to Ohio, purportedly to meet his two newly-born children. Once in Ohio, Moffett informed S.B. and K.D. that they would need to engage in prostitution in order to make enough money to return to Florida. S.B. and K.D., lacking financial and transportation resources, did so. In March 2017, Moffett transported S.B. and K.D. back to Florida. After returning to Florida, K.D. told Moffett, as a ruse, that she had a commercial sex “date” coming to the hotel, and Moffett left the hotel. K.D. then phoned a friend who came to pick her up. Moffett attempted to coerce K.D. to return to him by calling her multiple times and leaving threatening messages.
Meanwhile, Moffett continued to force K.W. and S.B. to engage in commercial sex acts out of various hotels in Jacksonville. In April 2017, Moffett coerced a fifth victim, S.A., into working for him. S.A. had previously purchased heroin from Moffett and contacted him after she became homeless. Moffett took S.A. in, and, the next day, informed her she would need to engage in prostitution to pay her way. During the time that K.W., S.B., and S.A. were working under Moffett’s control, Moffett would withhold heroin from them so that they would get “dope sick” as a means of coercing them to engage in commercial sex “dates” at his direction. When S.B. informed Moffett that she wanted to leave, Moffett gave her a bill totaling approximately $3,000 that he claimed S.B. needed to pay him for drugs, food, and shelter, before she could leave. Moffett then forced the S.B. to have sex with him and locked her in a bathroom for an entire day as punishment. Ultimately, S.B. and S.A. were able to escape from Moffett when S.A. was arrested by the Jacksonville Sheriff’s Office for a prostitution offense. S.A., who was so terrified of Moffett that she attempted to hide underneath the floor mat of the JSO patrol vehicle in which she was detained, informed detectives that Moffett was her “pimp.” During this time, S.B. was able to escape. Moffett continued to exploit K.W. until he was arrested by JSO in November 2017.
This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the State Attorney’s Office, Fourth Judicial Circuit. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.
Department of Justice Awards More Than $85.3 Million in Grants to Address School ViolenceRead the Press Release
WASHINGTON – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.
“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”
“We are grateful for these additional resources to prevent school violence,” said U.S. Attorney Maria Chapa Lopez. “We are confident that our partners will utilize them to the best of their ability in keeping our schools and students safe from harm.”
The grants award more than $4.1 million in funding to prevent violence in schools in Middle District of Florida. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.
The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:
- Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
- Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
- Train law enforcement to help deter student violence against others and themselves;
- Improve notification to first responders through implementation of technology that expedites emergency notifications;
- Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
- Train school officials to intervene when mentally ill individuals threaten school safety; and
- Provide training and technical assistance to schools and other awardees in helping implement these programs.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.
About the Office of Community Oriented Policing Services:
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
Organizer of Complex Nigerian Fraud and Money Laundering Ring SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Ikechukwu Derek Amadi (38, Mississauga, Ontario) to 15 years and 8 months in federal prison for conspiracy to commit mail and wire fraud. The court also entered an order of forfeiture against Amadi for $10,632,546.36, representing the proceeds of the charged criminal conduct, and ordered him to pay restitution to his victims in the amount of $4,360,740.97.
Amadi had pleaded guilty on July 25, 2019, following his extradition to the United States from Canada.
According to court documents and evidence presented at the trials of his convicted coconspirators, Amadi, a dual citizen of Nigeria and Canada, worked with an international criminal organization based in Nigeria that defrauded dozens of victims across the United States and then laundered the funds through a complex network of bank accounts. The organization, known as the Black Axe Group, or Neo Black Movement of Africa, coordinated fraud and money laundering activity throughout the globe via cells or “zones” in Nigeria, Canada, the United States, and elsewhere.
The fraud schemes took several forms. Conspirators posed as suitors on dating websites, where they befriended widowed or divorced elderly women and then convinced their victims to wire money, often consisting of the victim’s entire retirement savings and cash taken out from home equity, to bank accounts in the United States as part of a purported investment opportunity. The conspirators also defrauded title companies with fake cashier’s checks in phony real estate transactions, leaving the companies on the hook for the losses once the checks bounced. And they targeted businesses using email spoofing and hacking schemes, as well as law firms that they solicited online to perform legal work and then provided fake cashier’s checks for deposit into the firms’ trust accounts.
Victims were instructed to wire their money into numerous funnel accounts held by conspirators in the United States, known as “money mules,” and the funds were then quickly moved to other accounts in the United States and around the world before the victims could discover the fraud. From 2012 to 2015, Amadi was accountable for at least $16.4 million in fraud proceeds that were traceable to the different schemes. Amadi himself recruited more than a dozen individuals in the United States to act as money mules for him and oversaw their activities. He then instructed those individuals to wire most of the victims’ funds overseas, including to Hong Kong, China, Canada and Nigeria, to promote the conspiracy and to conceal the source of the funds.
This case was investigated by the Federal Bureau of Investigation, with assistance from various federal and local law enforcement partners throughout the country, including the Toronto Police Service in Ontario, Canada and the Toronto Strategic Partnership. It was prosecuted by Assistant United States Attorney Patrick Scruggs.
Eighteenth Member of Massive Drug Conspiracy Convicted at TrialRead the Press Release
Fort Myers, Florida – United States Attorney Maria Chapa Lopez announces that a federal jury today found Elizabeth Kuc (47, North Fort Myers) guilty of one count of conspiracy to distribute controlled substances, including cocaine base, fentanyl, and heroin, and two counts of distributing controlled substances. Kuc faces a maximum penalty of 40 years in federal prison for the conspiracy charge and up to 20 years’ imprisonment for each count of distributing controlled substances. Her sentencing hearing has been set for January 13, 2020.
According to court documents and evidence at trial, Kuc, who was known by various other names, including “Auntie,” was a dealer working for a large drug distribution ring operating for years in the Suncoast Estates neighborhood of North Fort Myers. The organization was headed and supplied by Tony Wilson, Jr. (also known as “Big Homie” and “Caine”) and occupied several houses and trailer homes in Suncoast Estates. Inside those residences, dealers worked side-by-side to distribute drugs to customers. During the investigation, law enforcement conducted dozens of undercover drug purchases from dealers at the drug houses. Agents also executed multiple search warrants resulting in the seizure of tens of thousands of dollars, multiple firearms, and large quantities of crack cocaine, heroin, and fentanyl. The evidence showed that the organization often generated more than $10,000 per day in sales. Kuc’s residence in Suncoast Estates was often used to manufacture and store the crack cocaine before it was distributed among the nearby houses.
Seventeen others previously pleaded guilty for their roles in the drug ring:
Name Charge(s) Case StatusTony Wilson, Jr.
(31, Lehigh Acres)
Conspiracy to distribute controlled substances; distribution of controlled substances; and firearms offenses
Pleaded guilty, faces up to life in federal prison.
Monique Moore
(47, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to life in federal prison.
Patrick Graham
(25, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Michael Perez
(38, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
James Estrella
(50, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Danielle Hallmon
(32, Pine Island)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Dorothy Rochford
(27, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Darniel Williams
(24, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Kenneth Tippins
(48, North Fort Myers)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Eileen Smith
(22, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Malik Timbers
(26, St. Petersburg)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Christopher Connor
(30, Labelle)
Conspiracy to distribute controlled substances
Pleaded guilty, faces up to 20 years in federal prison.
William Thomas
(26, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Tyrome Wright
(46, North Fort Myers)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Jeffrey Beard, II
(29, Labelle)
Conspiracy to distribute controlled substances and distribution of controlled substances
Pleaded guilty, faces up to 40 years in federal prison.
Michelle Gladys
(49, North Fort Myers)
Distribution of a controlled substance
Sentenced to 33 months in federal prison.
Samantha Badger
(23, North Fort Myers)
Distribution of a controlled substance
Sentenced to 15 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Michael Leeman and Trent Reichling.
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard today sentenced Jamaal Abu Talib Hameen (59, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. A jury had found Hameen guilty on March 1, 2019.
According to evidence presented at trial and at the sentencing hearing, on February 7, 2018, Hameen was found to be in possession of a loaded .380 caliber pistol, when officers from the Jacksonville Sheriff’s Office arrested him for trespassing at a local motel. At the time, Hameen had numerous prior felony convictions, including for aggravated assault, sale or delivery of cocaine, and sale or delivery of heroin. As a previously convicted felon, Hameen was 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 was prosecuted by Assistant United States Attorneys David B. Mesrobian and Frank Talbot.
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 Repeat Offender Sentenced to More Than Seven Years in Federal Prison for Selling Crack CocaineRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced James Bernard Kennedy (46, Jacksonville) to seven years and four months in federal prison for distributing cocaine base (also known as crack cocaine).
Kennedy had pleaded guilty on June 26, 2019.
According to court documents, Kennedy sold crack cocaine to a confidential informant on one occasion and to an undercover federal agent an additional four times.
In 2013, Kennedy was prosecuted and convicted by the State of Florida for conspiracy to traffic cocaine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael J. Coolican.
Jacksonville Man Sentenced for Disaster Assistance Fraud Involving Tropical Storm Debby, Hurricane Matthew, and Hurricane IrmaRead the Press Release
Jacksonville, Florida – Senior U.S. District Judge Harvey E. Schlesinger has sentenced Lepoleon Spikes (47, Jacksonville) to 21 months in federal prison for wire fraud involving fraudulently obtained FEMA benefits. Spikes was immediately remanded into the custody of the U.S. Marshals Service. The court also ordered Spikes to pay $57,689.19 in restitution to the United States.
According to court documents, in February 2018, the U.S. Department of Homeland Security, Office of Inspector General (DHS-OIG) received an allegation that Spikes had provided false information to the Federal Emergency Management Agency (FEMA) in order to receive disaster assistance. Upon receipt of the allegation, DHS-OIG determined that Spikes had submitted applications to receive disaster assistance from FEMA involving Tropical Storm Debby, Hurricane Matthew, and Hurricane Irma. A review by DHS-OIG determined that, in each of the applications submitted to FEMA for disaster assistance, Spikes falsely claimed that his primary residence in Jacksonville was damaged due to a storm. Spikes claimed that, due to the storm damage, he had to relocate and was in need of disaster assistance. Based on his applications for disaster assistance, Spikes fraudulently obtained $57,689.19 from FEMA.
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. It was 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.
Illegal Alien Sentenced to Two Years in Federal Prison for Illegally Re-Entering the United StatesRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Samuel Lopez-Lopez (29, Atlanta) to 24 months in federal prison for illegally re-entering the United States after previously being deported. Lopez-Lopez had pleaded guilty on July 2, 2019.
According to the facts described in court, on February 18, 2019, Lopez-Lopez was convicted of battery on a law enforcement officer and grand theft in Columbia County. The charges arose out of an incident at a hotel in Lake City that had occurred on December 28, 2018. After Lopez-Lopez was booked on the charges, immigration agents ran his fingerprints and found that he was a citizen of Honduras who was illegally present in the United States. Lopez-Lopez also had been previously deported from the United States three times.
Lopez-Lopez had previous convictions for domestic battery, use of a controlled substance, transportation of a controlled substance, and possession of a controlled substance. After Lopez-Lopez serves his prison sentence, he will be deported from the United States.
This case was investigated by U.S. Immigration and Customs Enforcement. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Orlando Large-Scale Drug Trafficker Sentenced to Ten Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced Sebastian Denton Zayas (30, Orlando) to 10 years and 10 months in federal prison for possession with the intent to distribute cocaine.
Denton had pleaded guilty on July 22, 2019.
According to court documents and statements made during today’s sentencing hearing, in May 2019, Denton possessed with the intent to distribute approximately 170 kilograms of cocaine, which was delivered to him by mail. In addition, in June 2019, Denton received another mail delivery of three packages that contained approximately 190 kilograms of cocaine.
“This investigation is a great example ATF’s broad investigative expertise,” said ATF Special Agent in Charge Daryl McCrary. “While working with our partners at DEA, this case severely impacted drug trafficking in our continued efforts to protect the public.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
Jacksonville Duo Sentenced to Prison for Selling Methamphetamine in Duval, Nassau, and Baker CountiesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Sabrina Nicole Hoffa (40, Jacksonville) to eight years and four months in federal prison and Jeffrey Allen Mays (38, Jacksonville) to six years and three months in federal prison for distributing methamphetamine. The court also ordered Hoffa and Mays to forfeit $1,265 in U.S. currency, which was proceeds of the offense.
Hoffa and Mays had pleaded guilty on July 11, 2019.
According to court documents, in March 2019, an undercover detective from the Nassau County Sheriff’s Office began purchasing methamphetamine from Hoffa. After two transactions, Hoffa asked the detective to travel to her residence in Jacksonville to conduct future purchases. Hoffa also advised the detective that he should transport the drugs in a locked safe so that law enforcement could not open it without a court order.
The detective, working with the Bureau of Alcohol, Tobacco, Firearms and Explosives, made two additional purchases of methamphetamine from Hoffa at her residence. During one transaction, Hoffa told the detective that she had sold 17 ounces of methamphetamine the previous day for $550 per ounce. During the final transaction, Hoffa and Mays, working together, sold two ounces of methamphetamine to the undercover detective. The Drug Enforcement Administration later determined that the methamphetamine was 98% pure.
On March 27, 2019, Hoffa was arrested in Baker County after she showed up to sell two ounces of methamphetamine to a confidential source who was working with the Baker County Sheriff’s Office. The following day, ATF executed a search warrant at Hoffa and Mays’s home in Jacksonville. Mays was inside of the residence at the time and was arrested. He had two keys to two safes in his possession. Upon searching the safes, ATF located 16.8 grams of 99% pure methamphetamine, MDMA pills, diazepam pills, and other controlled substances.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Nassau County Sheriff’s Office, and the Baker County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
Illegal Alien Sentenced to 41 Months in Federal Prison for Unlawfully Re-Entering the United StatesRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Carlos Humberto Moreno-Hernandez (49, Honduras) to 41 months in federal prison for illegally re-entering the United States after previously being deported. Moreno-Hernandez had pleaded guilty on July 19, 2019.
According to evidence presented in court, on May 17, 2019, deputies from the Orange County Sheriff’s Office arrested Moreno-Hernandez on a state criminal charge of operating a motor vehicle without a valid license. Agents soon discovered that Moreno-Hernandez had previously been deported from the United States on six occasions. Moreno-Hernandez also had three prior felony illegal re-entry convictions, four prior drug-related convictions, and six prior DUI convictions.
This case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (Orlando) and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Florida Residents Arrested for Robberies in Fort Myers, Davenport, and Altamonte SpringsRead the Press Release
Tampa, Florida – John Armstrong Jr. (30, North Fort Myers) has been arrested and charged by a federal criminal complaint with Hobbs Act robbery and attempted bank robbery. In addition, Tanya Legg (43, North Fort Myers) has been arrested and charged by a separate federal criminal complaint with bank robbery. If convicted, Armstrong and Legg each face a maximum penalty of 20 years in federal prison on each count. Both individuals made their initial appearances in federal court today, in Fort Myers, and have been detained.
According to the criminal complaints, on September 26, 2019, Armstrong, an unidentified associate, and Legg allegedly robbed a BB&T Bank in Altamonte Springs. Armstrong and the unidentified associate used firearms to force bank employees to open the bank’s safe. They then stole approximately $22,000 in cash. Legg assisted in purchasing items used to complete the BB&T robbery and then served as the getaway driver.
According the complaint against Armstrong, on June 14, 2019, Armstrong used a firearm to rob a 7-11 convenience store in North Fort Myers. During this robbery, Armstrong struck one of the store employees in the face with his firearm, causing a laceration to the bottom corner of her left eye. On September 25, 2019, Armstrong and an unidentified associate attempted to commit an armed robbery of a PNC Bank in Davenport. Earlier that morning, Armstrong or an associate carjacked a vehicle, and held the victim at gunpoint, after which they used the stolen vehicle as a getaway vehicle for the attempted PNC Bank robbery.
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 investigated by the Federal Bureau of Investigation, with assistance from the Altamonte Springs Police Department, the Fort Myers Police Department, the Lee County Sheriff’s Office, the Orange County Sheriff’s Office, the Osceola County Sheriff’s Office, the Punta Gorda Police Department, and the Seminole County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Clay County Man Sentenced to 4 Years for Possessing Child PornographyRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Joseph Dominic Konegan (56, Fleming Island) to four years in federal prison for possessing child pornography. Konegan was also ordered to serve a 10-year term of supervised release and pay restitution to the victims. He has been detained since his arrest on April 2, 2019.
Konegan had pleaded guilty on May 21, 2019.
According to court documents, in August 2018, detectives from the Clay County Sheriff’s Office (CCSO) received two cyber-tips from the National Center for Missing and Exploited Children reporting the uploading of child sexual abuse material on the internet. On October 24, 2018, CCSO detectives and Homeland Security Investigation agents executed a warrant at Konegan’s residence. A forensic review of two computers used by Konegan yielded more than 1,650 images of child pornography. Konegan admitted to agents that he had viewed images of child pornography, including files depicting infants.
This case was investigated by the Clay County Sheriff’s Office and the U.S. Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
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.
U.S. Attorney Chapa Lopez Announces Progress in Making Communities Safer Through Project Safe NeighborhoodsRead the Press Release
Tampa, FL - Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. 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.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
“We are proud of the dedication and hard work by our law enforcement and community partners as we strive to reduce crime throughout our district,” said U.S. Attorney Maria Chapa Lopez. “Project Safe Neighborhoods only works when we enlist the support, expertise, and perspectives of our law enforcement partners and the community. Together, we will continue to make our communities safer places to live, work, and play.”
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney’s Office continues to work with federal, state, and local partners to implement PSN throughout the Middle District of Florida. These coordinated efforts ensure that federal efforts are focused against the most violent offenders.
- Beginning in December 2018, a long-term investigation of a violent drug trafficking organization known as the “Bird Gang,” operating primarily in Tampa, has culminated in the indictment of 26 individuals charged with various federal firearms and drug offenses. Since the arrests, no reported shootings have occurred in the neighborhood where the gang had operated.
- In May 2019, Jacksonville’s new Crime Gun Intelligence Center (CGIC) officially opened. CGIC is a collaborative effort among the Jacksonville Sheriff’s Office, the State Attorney’s Office for the Fourth Judicial Circuit, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office. Several individuals have already been arrested and indicted as a result of leads generated from CGIC.
- As part of the U.S. Marshals Service’s Operation Triple Beam, Ft. Myers PSN efforts resulted in more than 120 arrests involving firearms, drugs, and violent crime.
Community Partnerships
Community engagement is a critical component in the successful implementation of PSN. The USAO-MDFL frequently engages diverse stakeholders in providing training, prevention, intervention, and reentry strategies and programs. Some recent activities include:
- National Night Out and Coffee with a Cop
- Great American Teach-In
- Preventing Targeted School Violence
- Federal Reentry Courts and Local Networks (Tampa; Orlando; Jacksonville)
- Engagement with more than 10,600 citizens
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
- According to the recently released FBI Uniform Crime Report, the violent crime rate decreased for several cities in the Middle District of Florida. The 2018 statistics show the greater Tampa Bay region’s estimated rate of violent crime was 306 offenses per 100,000 inhabitants. This represents an 8 percent reduction in the violent crime rate when compared with the 2017 rate. Ft Myers saw a reduction of 9 percent and Jacksonville had a reduction of almost 6 percent.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Tarpon Springs Man Pleads Guilty to Violating Endangered Species ActRead the Press Release
Tampa, Florida – Nicholas Skaroulis (58, Tarpon Springs) has pleaded guilty to one count of violating the Endangered Species Act by causing the unlawful export of wildlife. Skaroulis faces a maximum penalty of one year in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Skaroulis owned and operated Sponges Direct, Inc., a business located in Tarpon Springs, Florida. Among other things, the company sold non-living natural sponges to customers, both domestic and foreign. During 2014 through 2018, the company sold and exported non-living sponges to customers outside of the United States. The company failed to disclose the contents of these shipments on U.S. Fish and Wildlife Service Declaration Forms as required by federal regulation. By doing so, the company evaded the payment of inspection and user fees on each shipment.
The United States Fish and Wildlife Service investigated this case. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Owner of Tampa-Area Medical Marketing Company Sentenced to Prison for DNA Testing Fraud SchemeRead the Press Release
The owner of a Tampa, Florida-area medical marketing company was sentenced to 70 months in prison today for his role in a $2.2 million Medicare fraud scheme involving the payment of kickbacks and bribes to fraudulent medical clinics in Miami in exchange for the referral of Medicare beneficiaries for expensive genetic tests that were medically unnecessary, and for his role in the illegal structuring of cash withdrawal transactions.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Maria Chapa Lopez of the Middle District of Florida, Special Agent in Charge Michael McPherson of the FBI’s Tampa Field Office and Assistant Inspector General Omar Perez of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
U.S. District Judge Susan C. Bucklew of the Middle District of Florida, sentenced David Brock Lovelace, 49, of Land o’ Lakes, Florida, the owner of DBL Management LLC in Land o’ Lakes. After a one-week jury trial in July 2019, Lovelace was found guilty of one count of conspiracy to defraud the United States and pay and receive illegal health care kickbacks and one count of structuring cash withdrawals to avoid reporting requirements.
According to the evidence presented at trial, Lovelace was paid by a genetic testing laboratory for each DNA swab that Lovelace arranged to be referred to the laboratory. In order to obtain DNA swabs, Lovelace paid illegal cash kickbacks and bribes to medical clinics in Miami in exchange for the referral of DNA swabs that were obtained from Medicare beneficiaries. Lovelace directed the owners of the medical clinics to collect the DNA of all the patients who visited the clinics, regardless of whether the patients actually had any medical need for DNA testing. In turn, the clinics provided food and other inducements to beneficiaries to get them to visit the clinics where their DNA was collected.
The evidence at trial showed that the test results were never provided to the beneficiaries; rather, co-conspirators at the clinics paid doctors and obtained prescriptions for the DNA testing, frequently without any patient interaction.
From November 2013 to May 2014, the evidence at trial showed that Lovelace paid these kickbacks in the form of cash bribes to Miami clinic owners. From May 2014 to November 2014, after his arrest on other health care fraud charges, the evidence showed that Lovelace established shell companies, including Healthcare Marketing Florida of Melbourne, Florida, and recruited others to help him continue the scheme while he was out on pretrial release awaiting trial in his first criminal case.
Lovelace was previously found guilty by a jury in December 2015 of various health care fraud, money laundering and identity theft charges in a case handled by the Criminal Division’s Fraud Section. He is currently serving 14 years in prison on those charges. The sentence imposed today was ordered to be served consecutively with the 14-year sentence previously imposed.
The FBI and HHS investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. Trial Attorney John Michelich and Assistant Deputy Chief Jacob Foster of the Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Orlando Man Sentenced to Three Years in Federal Prison for Identity Theft and Credit Card Fraud at Universal Orlando Theme ParksRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Ishod Hazell (26, Orlando) to three years in federal prison for committing aggravated identity theft and using unauthorized access devices at Universal Orlando theme parks. The court also ordered Hazell to pay restitution in the amount of $153,598.99, representing the total losses to Universal.
Hazell had pleaded guilty on July 16, 2019.
According to court documents, between June 16, 2018, and February 27, 2019, Hazell used 91 different stolen credit card numbers to purchase theme park tickets and hotel packages from Universal valued at approximately $291,170. Hazell routinely called the Universal call center to make the fraudulent purchases, each time using a different stolen credit card number and identifying himself as the credit card holder. After making the fraudulent purchases, Hazell and his associates used the theme parks’ self-serve kiosks to pick up the tickets. The tickets were then sold to unsuspecting vacationers using an online website.
This case was investigated by the U.S. Secret Service. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt.
Jacksonville Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
Jacksonville, Florida – Joanna Arlean Tukes has pleaded guilty to aiding and assisting others with the filing of fraudulent tax returns. She faces a maximum penalty of three years in federal prison. Tukes has also agreed to pay $366,000 in restitution to the IRS for the tax loss caused by the offenses. A sentencing date has not yet been set.
According to the plea agreement, since 2012, Tukes owned and operated a tax return preparation business in Jacksonville. In preparing income tax returns for others, Tukes reported false information, including false claims for deductible expenses and losses, to reduce the amount owed by, or to increase the amount refunded to, the taxpayers. She then electronically filed the tax returns with the IRS causing the IRS either to issue refunds when taxes would have been owed in the absence of the fraud, or to issue larger refunds than would have been due in the absence of the fraud.
For example, Tukes prepared and filed a 2015 tax return in which she represented that the taxpayer had a business with no income and $99,651 in expenses. She also represented that the taxpayer had incurred medical and dental expenses of $29,600 and unreimbursed employee expenses of $15,600. Tukes subtracted the business “loss” of $99,651 from the taxpayer’s gross income and deducted a portion of the claimed expenses from the taxpayer’s adjusted gross income. When Tukes made these representations, she knew that the taxpayer was a wage-earning employee of a corporation and did not operate a business in 2015, and that the taxpayer had not incurred the claimed expenses. After Tukes filed the tax return, the IRS issued a refund to the taxpayer in the amount of $28,836. In the absence of the false statements, the taxpayer would have owed additional tax in the amount of $12,459. In this instance, the tax loss to the IRS was $41,295.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Jacksonville Man Sentenced to Prison After Selling Fake Heroin While Armed and Holding an InfantRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Kirkland George Lawrence (34, Jacksonville), a/k/a “Killa,” to eight years and nine months in federal prison for attempted distribution of heroin, possessing a firearm in furtherance of a drug trafficking crime, possessing a firearm as a convicted felon, and distribution of cocaine. The court also ordered Lawrence to forfeit the Smith & Wesson pistol that he had used in one of the offenses.
Lawrence had pleaded guilty on June 28, 2019.
According to court documents, in April 2018, Lawrence agreed to sell drugs to a confidential informant (CI) working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. The CI traveled to Lawrence’s apartment in the Arlington area of Jacksonville, where Lawrence sold a powder to the CI that Lawrence had represented to be heroin. It was later determined that the substance did not contain heroin. At the time of the sale, Lawrence was seated at a kitchen table, within reach of a pistol, and holding an infant.
The following day, the CI returned to Lawrence’s apartment after Lawrence agreed to sell a firearm. Inside the apartment, Lawrence brandished a pistol while additional firearms were visible on a sofa and on the floor. Lawrence also retrieved an Uzi pistol from a kitchen cabinet and displayed it to the CI. Lawrence then retrieved a Smith and Wesson pistol from outside of the apartment and sold it to the CI. Approximately two weeks later, following the execution of a search warrant at his apartment, Lawrence was arrested by officers from the Jacksonville Sheriff’s Office. At the time, Lawrence was in possession of another Smith & Wesson pistol.
In October 2018, while on bond for his previous arrest, Lawrence sold cocaine to the CI on three occasions. Lawrence was arrested again and admitted to the officers that he believed that the purported heroin that he had sold in April 2018 was genuine. During these incidents, Lawrence had a prior felony conviction for attempted armed robbery and is therefore prohibited from possessing any firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
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 Pleads Guilty to Transporting North Carolina Woman to Florida for ProstitutionRead the Press Release
Jacksonville, Florida – Richard Ronnie Jenkins (39, Jacksonville) today pleaded guilty to transporting a person in interstate commerce for the purpose of prostitution. He faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Jenkins met the victim (N.J.) on July 14, 2019, after N.J. had posted an online advertisement for prostitution in Fayetteville, North Carolina. Jenkins agreed to pay N.J. $160 for sex, then fraudulently told N.J. that she could make a lot more money by engaging in prostitution in Jacksonville, Florida. N.J. agreed to go to Jacksonville with Jenkins, not knowing that Jenkins intended to keep all of the money that N.J. would make. Jenkins then had sex with N.J. in his car and refused to pay her.
As Jenkins drove through the night from North Carolina to Jacksonville, he instructed N.J. to begin posting advertisements for prostitution in the Jacksonville area using a phone number with an app-generated 904 area code. When they arrived in Jacksonville on July 15, 2019, Jenkins obtained a hotel room and arranged three prostitution “dates” for N.J. The following day, Jenkins arranged a fourth “date” for N.J. Jenkins supervised each of these “dates” from the hotel parking lot. He came to the room after each “date” to collect all of the money, which he refused to share with N.J. N.J. engaged in the “dates” because she was afraid of Jenkins and because she had no funds or other resources that she could use to leave.
On July 16, 2019, Jenkins took N.J. to a hair braiding shop in Jacksonville and instructed the employees to place long braids in N.J.’s hair. Jenkins then left the shop. Believing that the shop employees were associates of Jenkins, N.J. took her phone into the bathroom, contacted a family member, and reported that she was in Jacksonville with a pimp. N.J.’s mother contacted the Jacksonville Sheriff’s Office (JSO) and reported that N.J. had been kidnapped. During the phone call, N.J. can be heard crying and stating that Jenkins was trying to call her and, that if she did not answer, she believed that Jenkins would find her and kill her. A JSO patrol officer responded to the shop and recovered N.J. Shortly thereafter, Jenkins was arrested nearby.
This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson.
Florida Man Sentenced to over 12 Years for Attempting to Entice A Minor to Engage in Sexual ActivityRead the Press Release
Tampa, Florida – U.S. District Judge Elizabeth A. Kovachevich today sentenced Justin Scott Hunt (31, Tampa) to 12 years and 8 months in federal prison for attempting to entice a minor to engage in sexual activity and attempting to transfer obscene material to a minor.
A jury found Hunt guilty on March 21, 2019.
According to court documents, Hunt engaged in six months of online conversation with someone he believed to be a small child and the child’s mother. In reality, he was talking to an undercover agent. On numerous occasions, Hunt requested to meet the child and described, in graphic detail, the sex acts that he planned to engage in with the child.
“This predator intended to rape a young child,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Instead, he was stopped in his tracks by HSI special agents and will now be held accountable for his crimes.”
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Gregory T. Nolan and Candace Garcia Rich.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Two Former Jacksonville City Council Members Convicted of Fraud and Money LaunderingRead the Press Release
Jacksonville, Florida – A federal jury today found Katrina Brown (39, Jacksonville) and Reginald Brown (57, Jacksonville) guilty of conspiracy to commit mail and wire fraud, aiding and abetting mail and wire fraud, and aiding and abetting money laundering. The jury also found Katrina Brown guilty of attempted bank fraud and making false statements to a federally insured financial institution, and Reginald Brown guilty of failure to file an income tax return with the Internal Revenue Service for tax year 2014. Each bank fraud or false statement offense carries a maximum penalty of 30 years in federal prison. Each conspiracy and aiding and abetting mail and wire fraud charge carries a maximum penalty of 20 years’ imprisonment. The money laundering offense carries a maximum sentence of 10 years in federal prison, and the income tax charge carries a penalty of up to a year in prison.
Sentencings are scheduled for January 27, 2020. At sentencing, the United States intends to seek forfeiture from the defendants of at least $754,613.10, which is alleged to be traceable to the offenses.
According to the evidence presented at trial, in late 2013, Katrina Brown was the principal for two businesses (Basic Products, LLC and CoWealth, LLC), which in 2011 obtained a loan in the amount of $2,652,000 from the Small Business Administration (SBA), and a loan of $380,000, and a grant of approximately $260,000 from the City of Jacksonville (COJ), to fund a small business that specialized in the manufacturing, bottling, and selling of barbecue sauce. As a member of the Jacksonville City Council, Reginald Brown was knowledgeable of City Ordinance 2011-290-E, which authorized the COJ loan and grant – proceeds of which he and Katrina Brown would later obtain by fraud.
Katrina Brown’s family had been in the barbecue business in Jacksonville for many years. The $3.2 million in financing was intended to fund an expansion of Basic Products and help create permanent manufacturing jobs in Northwest Jacksonville. Each time Katrina Brown sought money for Basic Products from BizCapital, the SBA-approved lender, she submitted a Loan Reimbursement Form that included the purported business expenses for which Basic Products sought reimbursement.
In late 2013, when the barbecue business was not meeting financial projections, Katrina Brown assisted Jacksonville City Councilman Reginald Brown in incorporating two businesses (A Plus Training and Consultants, LLC and RB Packaging, LLC) with the Florida Division of Corporations. A Plus Training and RB Packaging, however, never performed any legitimate business. Instead of properly notifying BizCapital that Basic Products was in financial distress, Katrina Brown worked with Reginald Brown to submit fake invoices from A Plus Training and RB Packaging to the SBA lender, BizCapital, claiming that the businesses performed work for Basic Products, when they businesses did not.
BizCapital sent checks, at times larger than $60,000, to RB Packaging and A Plus Training, which, on paper, were headquartered at Reginald Brown’s home and his mother’s home, respectively. Reginald Brown deposited those checks into the bank accounts for A Plus Training and RB Packaging, then withdrew a significant portion of the money and provided it to Katrina Brown, who either kept the cash or laundered the money by depositing it back into the Basic Products bank account so that she could control the funds. During this time, from late 2013 to early 2015, Reginald Brown, A Plus Training, and RB Packaging served as a conduit to receive $264,419.04 in proceeds from the SBA loan and the COJ grant, then funneled at least $166,500 back to Basic Products. Reginald Brown kept money not provided to Katrina Brown, despite performing no legitimate work or services for Basic Products, and used the majority of the money for personal expenses. Reginald Brown never filed a tax return for tax year 2014, the period of these primary occurrences, and failed to disclose to the IRS that he had received tens of thousands of dollars from the SBA.
In December 2014, BizCapital sent all loan draw information to the City of Jacksonville, which included the numerous fraudulent A Plus Training and RB Packaging invoices. The loan draw information, including the fraudulently induced payments to A Plus Training and RB Packaging, was relied upon by the COJ before it wired $210,549.99 in taxpayer-funded grant money to BizCapital for the intended use of Basic Products. Before the money was sent to BizCapital, neither Katrina Brown nor Reginald Brown informed BizCapital or the city that Basic Products had fraudulently obtained loan payments to Reginald Brown’s shell companies (A Plus Training and RB Packaging).
After BizCapital informed Katrina Brown that the SBA loan was in default status in January 2015, she then attempted to obtain two bank loans in 2015 and 2016 by submitting doctored and false bank statements to loan brokers, seeking loans from WebBank to infuse cash into her and her family’s businesses. Instead of providing the actual bank statements of the businesses, Katrina Brown falsified the businesses’ bank statements in an attempt to make it appear to the lender that the businesses were credit worthy, when in fact they were not.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Tysen Duva and Michael J. Coolican.
Jury Convicts Honduran National for Illegal Reentry to the United States After DeportationRead the Press Release
Orlando, FL – United States Attorney Maria Chapa Lopez announces that a federal jury today found Fredy David Ramos (44, Orlando) guilty of illegal reentry to the United States after deportation. Ramos faces a maximum penalty of two years in federal prison. His sentencing hearing is scheduled for December 18, 2019.
According to testimony and evidence presented at trial, as well as other court documents, Ramos was deported to Honduras by U.S. Immigration and Customs Enforcement (ICE) in 2011. Ramos subsequently illegally reentered the United States on an unknown date. On October 27, 2018, Ramos was arrested and convicted for possession of cocaine and a firearm in Orlando. After his state criminal proceeding concluded, ICE arrested Ramos for his illegal reentry into the United States.
“This case highlights ICE’s commitment to targeting criminals and threats to public safety as we enforce our nation’s immigration laws,” said Miami Field Office Director Michael W. Meade.
This case was investigated by Immigration and Customs Enforcement – Enforcement and Removal Operations (ERO). It is being prosecuted by Special Assistant United States Attorney Brandon Bayliss.
Former Police Officer with Bay Pines VA Health Center Indicted for Obstruction and Civil Rights ViolationsRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the return of an indictment charging Norman Nicholson (56, Largo) with one count of making false records in a federal investigation and one count of depriving an individual of their rights under color of law. If convicted, Nicholson faces a maximum penalty of 20 years’ imprisonment for the obstruction charge and up to one year in federal prison for the civil rights violation.
According to the indictment, while employed as a police officer with the Bay Pines Veterans Affairs facility, Nicholson used excessive and unreasonable force during the arrest of a United States Army veteran. Nicholson then authored two false arrest affidavits and a police report in which he attempted to cover up the incident.
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. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
Florida Criminal Defendant Pleads Guilty to Lying on Pre-Sentencing Financial Disclosure FormRead the Press Release
Fort Myers, FL - A currently imprisoned Florida businessman pleaded guilty today to making false statements on a financial disclosure statement he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Casey Padula, age 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 commit bank fraud. Padula admitted using offshore entities and accounts to commit the tax fraud. Padula also committed bank fraud by carrying out a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage at Bank of America. Pursuant to 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 failed to disclose 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.
Padula faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.
Florida Criminal Defendant Pleads Guilty to Lying on Pre-Sentencing Financial Disclosure FormRead the Press Release
A currently imprisoned Florida businessman pleaded guilty today to making false statements on a financial disclosure statement he provided to the Justice Department, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Casey Padula, age 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 commit bank fraud. Padula admitted using offshore entities and accounts to commit the tax fraud. Padula also committed bank fraud by carrying out a fraudulent short-sale transaction designed to reduce or eliminate his $1.5 million mortgage at Bank of America. Pursuant to 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 failed to disclose 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.
Padula faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez thanked special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division, who is prosecuting the case.
Convicted Felon Sentenced to Two Years in Federal Prison for Unlawfully Possessing FirearmRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Robinson Jason Resto (40, Orlando) to two years in federal prison for possessing a firearm, after having been previously convicted of a felony. Resto had pleaded guilty on July 25, 2019.
According to court documents, on March 25, 2019, Resto began communicating with an individual who was cooperating with law enforcement via text messages about firearms that the individual had for sale. The two eventually arranged for Resto to obtain a 9 mm Ruger Model P95DC firearm in exchange for a cash payment and a “throwaway” gun that Resto had in his possession. In arranging the trade/purchase, and when the two met in a parking lot to consummate the deal on April 4, 2019, Resto also expressed interest in obtaining an AK-47 assault rifle. At the time, Resto had been convicted of multiple felony offenses, including one prior state conviction for possession of a firearm by a convicted felon. As such, 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, with assistance from the Orlando Police Department. It is being prosecuted by Assistant United States Attorney Dana E. Hill.
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.
Jury Convicts Massachusetts Resident for Failure to Register as A Sex Offender in FloridaRead the Press Release
Orlando, Florida – A federal jury has found William Tosca (35, Kissimmee) guilty of failing to register and update a registration as required by the Sex Offender Registration and Notification Act (SORNA). He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for December 16, 2019.
According to testimony and evidence presented at trial, in January 2013, Tosca was convicted by a jury in Massachusetts of a qualifying sex offense. While incarcerated in Massachusetts, the state’s sex offender registry board notified Tosca of his need to register as a sex offender. In October 2015, after being informed of his need to update his registration, Tosca failed to register in Massachusetts. In October 2016, he then moved to Florida and again failed to update his registration.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Osceola County Sherriff’s Office, the Florida Department of Law Enforcement, and the Massachusetts Sex Offender Registry Board. It is being prosecuted by Assistant United States Attorney Sean P. Shecter.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
International Arms Trafficker Sentenced to More Than Eight Years in Federal PrisonRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Jose Mario Moreno Parada (37, Naples) to eight years and four months in federal prison for smuggling goods from the United States, possessing firearms with obliterated serial numbers, and making false statements to federal agents. The court also ordered Parada to forfeit the firearms involved in the offenses.
Parada had pleaded guilty on May 10, 2019.
According to court documents, Parada and his coconspirators purchased rifles in southwest Florida, obliterated their serial numbers, concealed them in vehicles, and then arranged to export the loaded vehicles to South America. In 2018, in connection with this case, 133 firearms, concealed in three vehicles and destined for Bolivia, were intercepted by law enforcement in south Florida.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the Collier County Sheriff’s Office, and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney Simon R. Eth.
Atlantic Beach Man Sentenced to More Than Three Years in Federal Prison for Failing to Register as A Two-Time Convicted Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Jimmie Dwight Whitfield (43, Atlantic Beach) to 37 months in federal prison for failing to register as a sex offender after absconding from supervision in Georgia and establishing residence in Florida. Whitfield was also sentenced to a 5-year term of supervised release and required to register as a sex offender. He has been in custody since his arrest on October 25, 2018.
According to court documents, in 1995, Whitfield was convicted of sexually assaulting a 4-year-old child in Jacksonville. In 2006, he was convicted of sexual battery and sodomy against a mentally challenged adult in Valdosta, Georgia. Following his release from prison, Whitfield resided at a motel in Valdosta while serving a term of supervised probation. In March 2018, he cut off his ankle monitor, fled to Florida, and established a residence in Atlantic Beach. Whitfield failed to register as a sex offender in Florida as required by federal and state law. On October 25, 2018, he was arrested at his home in Atlantic Beach for violating his probation. During an interview with law enforcement, he admitted that he had cut off his ankle monitor and that he knew he was not allowed to leave Georgia without permission.
The Sex Offender Registration and Notification Act is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in locating and apprehending non-compliant sex offenders.
This case was investigated by the United States Marshals Service, the Lowndes County (Georgia) Sheriff’s Office, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. 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.
Two Men Sentenced on Lake County Heroin ChargeRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Cesar Osiris DeLeon-Castillo (36, Clermont) and Jefry Agustin Valerio-Perez (39, Orlando) to 5 years and 4 years and nine months in federal prison, respectively, for possession with the intent to distribute one kilogram of heroin. DeLeon-Castillo and Valerio-Perez had pleaded guilty in June 2019.
According to court documents, DeLeon-Castillo and Valerio-Perez were arrested on March 14, 2019, in the parking lot outside a barber shop in Clermont, where DeLeon-Castillo had worked. At the time, the men were attempting to complete a drug transaction involving $56,000 in exchange for a kilogram of heroin that they had in their possession. DeLeon-Castillo and Valerio-Perez were taken into custody at the scene.
This case was investigated by the Drug Enforcement Administration with support from the Volusia County Sheriff’s Office and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
Repeat Offender Sentenced to Prison for Defrauding Social SecurityRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Malik Mustafa Al-Ameen (57, Summerfield) to 20 months in federal prison for theft of government funds. He was also ordered to pay the government $77,178 in restitution. Al-Ameen had pleaded guilty on July 1, 2019.
According to court records, Al-Ameen stole more than $77,000 from the Social Security Administration by submitting false documents regarding his eligibility for Supplemental Security Income (SSI) benefits. Al-Ameen had falsely claimed that he was single and owned no properties when, in fact, he was married and owned a rental property in West Palm Beach. Al-Ameen has more than 60 criminal state convictions in Florida, spanning 40 years, many of which involve fraud or stealing. This is his first federal conviction.
This case was investigated by the Social Security Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.
St. Petersburg Man Sentenced for Distribution of Synthetic OpioidRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday today sentenced Mario Marquez Roberson (28, St. Petersburg) to 15 years and 8 months in federal prison for distribution of 4-flouroisobutyrl fentanyl, a synthetic opioid.
Roberson had pleaded guilty on April 2, 2019.
According to court documents, Roberson engaged in six transactions with an undercover officer during which he sold the officer hydromorphone pills and an approximate total of 52 grams of a synthetic opioid.
This case was investigated by the Drug Enforcement Administration 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.
Nepalese Citizen Arrested and Charged with Attempting to Entice and Meet A 12-Year-Old Child to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – Sanjay Lama (29, Jacksonville) has been arrested and charged with using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Lama is a citizen of Nepal who is legally residing in Jacksonville. If convicted, he faces a mandatory minimum penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Lama has been detained pending a detention hearing scheduled for October 1, 2019.
According to court documents, on September 25, 2019, an undercover FBI agent, who was posing online as a 12-year-old child, was contacted by the user “Awesome_Jack,” who was later identified as Lama. On that day, during an online conversation between Lama and the undercover agent, Lama expressed his desire to meet the “child” to engage in sexual activity. Lama further provided the undercover agent with details about the sexual acts that he wished to perform on the “child.” Later that day, Lama rode his motorcycle to a prearranged location in Jacksonville to meet the “child” and was arrested by FBI agents.
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jacksonville Woman Sentenced to over 13 Years for Committing Aggravated Identity Theft and Fraud While on Federal Supervised ReleaseRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Jaceta Anya Streeter (39, Jacksonville) to 13 years and 4 months in federal prison for committing aggravated identity theft and wire fraud while on federal supervised release. Streeter, a 19-time convicted felon, was also ordered to pay restitution to the victims she defrauded.
According to court documents, in 2006, after being found guilty at trial for participating in a scheme involving the passing of counterfeit checks, Streeter was sentenced to seven years in federal prison, followed by three years of supervised release. Following her release from prison, and while on federal supervised release, the court issued a warrant for Streeter, as her whereabouts were unknown and she was considered a fugitive. When the U.S. Marshals Service eventually located and arrested Streeter in Orlando, she had multiple counterfeit forms of identification in her possession.
Further investigation determined that Streeter had engaged in a scheme involving credit card fraud and identity theft. She had obtained credit card account numbers for various victims, along with the victims’ personal identifiable information. Using this information, Streeter then went to various merchants, including home improvement and clothing stores, and fraudulently purchased large quantities of merchandise.
This case was investigated by the Jacksonville Sheriff’s Office, the U.S. Department of Treasury – Office of Inspector General (Jacksonville Field Office), the U.S. Marshals Service, and the United States Secret Service (Jacksonville Field Office). It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
WASHINGTON – A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approx. 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of 1 billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
*********
In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (“Lotus Health”), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Ga., for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories, LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
# # #
19-1039
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation," said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today's law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
*********
In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, M.D., 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
Sekhar Rao, M.D., 48 of Austin, Texas, and Vinay Parameswara, M.D., 46, of Austin, Texas, were charged for their role in alleged referrals of TRICARE beneficiaries for medically unnecessary “cancer screening” genetic tests and toxicology tests. Rao and Parameswara did not examine or speak with the beneficiaries they signed testing orders for and there was no physician-patient relationship between the physicians and these beneficiaries. Tests were repeated many times and beneficiaries often did not receive the results of their tests. From in or about May 2014 and until in or about June 2016, Rao, Parameswara and others caused the submission of over $36 million in false and fraudulent claims to TRICARE. The case is being prosecuted by Assistant Chief Adrienne Frazior of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
In addition, as part of the Northeast Regional Takedown announced on Sept. 26, the District of New Jersey announced charges against the following:
Matthew S. Ellis, MD, 53, of Gainesville, Florida; Edward B. Kostishion, 59, of Lakeland, Florida; Kyle D. Mclean, 36, of Arlington Heights, Illinois; Kacey C. Plaisance, 38, of Altamonte Springs, Florida; Jeremy Richey, 39, of Mars, Pennsylvania; and Jeffrey Tamulski, 46, of Tampa, Florida. Kostishion, Plaisance, and Richey operated Ark Laboratory Network LLC (Ark), a company that purported to operate a network of laboratories that facilitated genetic testing. Ark partnered with Privy Health, Inc., a company that McLean operated, and another company to acquire DNA samples and Medicare information from hundreds of patients through various methods, including offering $75 gift cards to patients, all without the involvement of a treating health care professional. Ellis, a physician based in Gainesville, served as the ordering physician who authorized genetic testing for hundreds of patients across the country that he never saw, examined, or treated. These included patients from New Jersey and various other states where Ellis was not licensed to practice medicine. Through this process, Ellis, Kostishion, Plaisance, and McLean submitted and caused to be submitted fraudulent orders for genetic tests to numerous clinical laboratories. These orders falsely certified that Ellis was the patients’ treating physician and, in many cases, contained false information indicating that a patient had a personal or family history of cancer, when, in fact, the patient had no cancer history whatsoever. In 2018 alone, Medicare paid clinical laboratories at least approximately $4.6 million for genetic tests that Ellis ordered in this manner. In addition, Kostishion, Plaisance, Richey, and Tamulski entered into kickback agreements with certain clinical laboratories under which the laboratories would pay Ark a bribe in exchange for delivering DNA samples and orders for genetic tests. The bribe payments were based on the percentage of Medicare revenue that the laboratories received in connection with the tests. Among other things, Kostishion, Plaisance, Richey, and Tamulski concealed these kickback arrangements through issuing sham invoices to laboratories that purportedly reflected services provided at an hourly rate even though the parties had already agreed upon the bribe amount, which was based on the revenue the laboratories received. In 2018, the clinical laboratories paid Ark at least approximately $1.8 million in bribes. The case is being prosecuted by Assistant U.S. Attorney Bernard Cooney of the District of New Jersey.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Tampa Man Sentenced to Nearly Four Years and Ordered to Pay over $1.2 Million to Victims of Dialing-For-Dollars Fraud SchemeRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Richard Buffington (49, Clearwater) to 46 months in federal prison for committing wire fraud. The court also ordered Buffington to forfeit more than $1.2 million, which is traceable to the proceeds of the offense, and to pay more than $1.2 million in restitution to the victims of his fraud scheme.
Buffington had pleaded guilty on April 30, 2019.
According to court documents, from at least January 2013 through August 29, 2018, Buffington defrauded approximately 28 investors, from Florida and across the United States, out of more than $1.2 million by selling unregistered, non-exempt securities in the form of preferred shares. He made false and fraudulent representations to victim-investors about the need for funding for Green Street Equities (“GSE”). Buffington, GSE’s listed Chairman and President, pitched GSE as a company focused on investing in “green companies” (i.e., environmentally friendly projects). Buffington’s misrepresentations to investors included that: (1) GSE would go public soon after the investors’ stock purchase, and (2) that GSE would use investor money to acquire ownership interests in various companies in the “green energy” sector. Based on Buffington’s misrepresentations, victim-investors sent funds believing that that Buffington would use such money to fund GSE and its investments or acquisitions. Investors accepted Buffington’s misrepresentations about GSE because prior to 2013, he had successfully raised funds for a company that had gone public and from which investors had profited.
Buffington also made fraudulent representations to “green sector” companies, which he included on GSE’s website and in its Private Placement Memoranda. Some of those companies appear to have been paper companies; others were legitimate companies towards which Buffington had promised any GSE-raised investor funding would be directed to fund their respective “green sector” projects.
In the end, although Buffington marketed GSE as a company making meaningful investments or acquisitions in “green companies,” neither GSE nor Buffington ever made any such investments or acquisitions. Instead, Buffington used any monies that he raised, including money wired by an undercover agent, for his personal benefit, which included drinking, gambling, and drug use.
This case was investigated by the Federal Bureau of Investigation and the Florida Office of Financial Regulation. It was prosecuted by Assistant United States Attorney Kaitlin R. O’Donnell.
Jacksonville Career Criminal Sentenced to Ten Years for Drugs and GunsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced James Edward Phillips, III (45, Jacksonville) to 10 years in federal prison for selling cocaine and possessing a firearm as a convicted felon. Phillips had pleaded guilty on June 11, 2019.
According to court documents, on four occasions during the summer of 2018, Phillips sold cocaine to a confidential informant working at the direction of the Bureau of Alcohol, Tobacco, Firearms and Explosives. On two of those occasions, Phillips also sold a total of three firearms, one of which was a rifle equipped with a 50-round drum magazine. At the time, Phillips was a 15-time convicted felon and therefore prohibited from possessing firearms or ammunition under federal law. His previous convictions include kidnapping with a firearm, armed burglary with assault or battery, armed burglary, battery on a law enforcement officer, possession of a firearm by a convicted felon, burglary, and grand theft.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.
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.
Health Care Fraud and Opioid Enforcement Action Brings Multiple Charges Across the Middle District of FloridaRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces a significant health care fraud and opioid enforcement operation across the Middle District of Florida, involving charges against seven individuals for their alleged involvement in various schemes to defraud Medicare, Medicaid, and other federal health care benefit programs, and in various conspiracies to illicitly obtain and distribute oxycodone and other controlled substances.
Among those charged in partnership with the Justice Department’s Medicare Fraud Strike Force are the following:
United States v. Teresa Johnson
Teresa Johnson (53, Lecanto) is charged in a one-count Information with conspiracy to commit health care fraud. She faces a maximum penalty of 10 years in federal prison. According to the Information, from November 2016 through October 2018, Johnson owned and operated Tri-County Medical Billing and submitted false and fraudulent claims to Medicare, Medicaid, Tricare, and ChampVA, on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill, and Celebration, Florida. The case is being investigated by the Health and Human Services - Office of Inspector General (HHS-OIG), the FBI, the Department of Defense - Office of Inspector General (DoD-OIG), the Department of Veterans’ Affairs - Office of Inspector General (VA-OIG), and the Florida Office of Attorney General’s Medicaid Fraud Control Unit (MFCU). The case will be prosecuted by Assistant U.S. Attorney Kelley Howard-Allen.
United States v. Hong Truong
Hong Truong (54, Dunedin) is charged in a 16-count indictment with conspiracy to unlawfully distribute and dispense Schedule II controlled substances, unlawful distribution and dispensing of Schedule II controlled substances, and using a place for unlawful drug distribution of the Schedule II controlled substances oxycodone 30 mg and hydromorphone 8mg in return for cash. Truong faces a maximum penalty of 20 years in federal prison on each of the counts. According to the indictment, Truong is a licensed pharmacist who owned and operated HP Pharmacy in Pinellas Park. From May 2015 through August 2016, Truong used her pharmacy to distribute and dispense Schedule II controlled substance prescriptions outside the scope of usual professional practice and for no legitimate medical purpose. This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Jessica Evans
Jessica Evans (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Evans, who worked as a pharmacy technician at HP Pharmacy, faces a maximum penalty of 20 years in federal prison. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Lucretia Mullan
Lucretia Mullan (34, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Mullan was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Robin Lloyd
Robin Lloyd (37, St. Petersburg) is charged by Information with conspiracy to unlawfully distribute and dispense the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. She faces a maximum penalty of 20 years in federal prison. Lloyd was employed as a medical assistant at a pain management clinic where she generated the fraudulent opiate prescriptions. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Patrice Jackson
Patrice Jackson (37, Bradenton) is charged by Information with conspiracy to unlawfully distribute the Schedule II controlled substances oxycodone, methadone, and hydromorphone using forged and fraudulent prescriptions. Shen faces a maximum penalty of 20 years in federal prison. Jackson obtained the fraudulent opiate prescriptions from Mullan and Lloyd and then obtained the Schedule II controlled substances from Truong and Evans at HP Pharmacy for distribution. This case was investigated by the DEA and is being prosecuted by Assistant U.S. Attorneys Kelley Howard-Allen and Greg Pizzo.
United States v. Marcus Anderson
Marcus Anderson (34, St. Petersburg) is charged in a 13-count indictment with health care fraud and aggravated identity theft for stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. He faces a maximum penalty of 10 years in federal prison for each of the seven health care fraud counts and a consecutive two years in prison for the six aggravated identity counts. The case is being investigated by HHS-OIG, the Florida Office of Attorney General/MFCU, and the St. Petersburg Police Department. This case will be prosecuted by Assistant U.S. Attorney Kristen A. Fiore.
An indictment and information are merely formal charges that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Two Men Charged for Double Homicide and Armed Robbery of Brooksville, Florida CoupleRead the Press Release
Ft. Myers, Florida – United States Attorney Maria Chapa Lopez announces the return by a grand jury of an indictment charging Alex Jared Zwiefelhofer (22, Wisconsin) and Craig Austin Lang (29, Arizona and North Carolina) with conspiracy to commit robbery affecting commerce and to discharge a firearm during and in relation to a crime of violence, robbery interfering in commerce, and discharging a firearm during and in relation to a crime of violence, resulting in death. The statutory penalties for these offenses include up to life imprisonment and death.
According to court documents, on April 10, 2018, two individuals, S.L., Jr. and D.L., were found dead in Estero, Florida from multiple gunshot wounds to the head and body. Further investigation revealed that the couple had traveled to Estero from Brooksville, Florida to complete the purchase of several firearms from an individual that had listed them for sale on a website known as Armslist. As a result of the investigation, Zwiefelhofer and Lang, were identified as the individuals who were believed to have murdered the couple during the course of an armed robbery for $3,000 that the couple intended to use to purchase the firearms.
Zwiefelhofer made his initial appearance in Madison, Wisconsin, and was detained pending his return to the Middle District of Florida in Ft. Myers. Lang is currently in custody, in Ukraine, pursuant to a provisional arrest request from the United States.
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 Lee County Sheriff’s Office. It will be prosecuted by Ft. Myers Assistant United States Attorneys Jesus M. Casas and Josephine W. Thomas.
Registered Sex Offender Sentenced to Life in Federal Prison for Enticing Two ChildrenRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Romeo Valentin Sanchez (32, Cape Coral) to life in federal prison for producing child pornography, enticing a minor to engage in sexual conduct, and possessing child pornography. The court also ordered Sanchez to forfeit two cellphones that he had used to receive and store the images.
Sanchez was found guilty by a jury on February 25, 2019, after a five-day trial.
According to testimony and evidence presented at trial, Sanchez, a convicted sex offender, lured a 14-year-old victim into a sexual relationship that lasted several months. In addition to engaging in sex acts with the victim, Sanchez also induced the victim to make and send him pornographic videos.
After officers from the Cape Coral Police Department seized Sanchez’s phone and informed him that he was under investigation for his sexual exploitation of the first victim, Sanchez obtained a second cellphone and attempted to entice a second middle-school-aged child into a sexual relationship. Sanchez lured the victim by creating a fraudulent social media profile of a 13-year-old boy in an attempt to trick the victim into a sexual relationship. Although no in-person encounter occurred with the second victim, Sanchez was able to induce the victim to send him child pornography.
This case was investigated by the Federal Bureau of Investigation’s Innocent Images Task Force and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Charles Schmitz.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida and Georgia Health Care Fraud Law Enforcement Action Results in Charges against 67 IndividualsRead the Press Release
The Justice Department announced today a significant health care fraud enforcement operation across Florida and Georgia, involving charges against a total of 67 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare and Medicaid. The conduct allegedly resulted in more than $160 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals. In addition, in the state of Florida, 16 defendants, including one licensed mental health professionals, have been charged with defrauding the Medicaid program out of over $1.2 million. Florida’s Medicaid Fraud Control Unit (MFCU) investigated these cases.
The charges announced today aggressively target schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs and durable medical equipment.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI and U.S. Health and Human Services-Office of Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal law enforcement agencies and state MFCUs. The Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI) also announced today that all appropriate administrative actions would be taken based on these charges.
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“Anyone who seeks to exploit our federal healthcare programs for personal gain and illicit profit should know that we will prosecute them to the fullest extent of the law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “The American people must have confidence in the healthcare services for which they pay and receive, and trust in those who administer them.”
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The drug dealer stereotype involves violent gang members peddling poison in our streets, but often the illicit dealers wear white coats and work in medical offices,” said U.S. Attorney Bobby L. Christine for the Southern District of Georgia. “People who violate medical oaths and ethical codes to turn illegal profits by fueling the opioid crisis will find prosecutors and investigators working tirelessly to swap their lab coats for prison uniforms.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s arrests put corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“FBI Atlanta and its Savannah Resident Agency are proud to have participated in this nationwide effort to help protect the much needed federal funds that Medicare provides,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “When providers are driven by greed and abuse the Medicare program, every tax paying citizen is a victim, especially those who use the federal funds for their health care needs. Improper billing inflates costs and the FBI and its law enforcement partners are determined to hold those who do it accountable.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami field office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
“We commend the law enforcement partnerships for this operation and pledge to continue our commitment to protecting the nation's federally funded healthcare system and the people who depend on it," said Special Agent in Charge Michael McPherson of the FBI’s Tampa Division.
*********
Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:
In the Northern District of Georgia, one defendant was charged.
Donald Graham, 49, of Smyrna, Georgia, a former employee of a metro Atlanta hospital, has been charged for allegedly stealing and selling individually identifiable health information that was used to submit fraudulent claims to Medicaid. Assistant U.S. Attorney Jeffrey A. Brown of the Northern District of Georgia and Assistant Attorney General Elizabeth Grofic of the Georgia Medicaid Fraud Control Unit are handling the case.
In the Southern District of Georgia, six defendants were charged and one civil complaint was filed.
Jenna Savage, 26 of Port Wentworth, Georgia; Norman Lee Burnsed, 27 of Port Wentworth, Georgia; Tucker Chambers, 21 of Ellabell, Georgia; Macaila Brown, 22 of Rincon, Georgia; and Cameron Hilliard, 26 of Savannah, Georgia, were indicted by a federal grand jury in Savannah with conspiracy charges under the Controlled Substances Act relating to the distribution of oxycodone, Adderall, alprazolam, and clonazepam. Assistant U.S. Attorneys Katelyn Semales and Marcela Mateo are prosecuting the case.
David L. Williford, 59, of Rincon, Georgia, a pharmacist, was charged by information with one count of acquiring a controlled substance (oxycodone) by misrepresentation, fraud, or forgery. Assistant U.S. Attorney Jonathan A. Porter is prosecuting the case.
Darien Pharmacy and Janice Ann Colter, 62, of Darien, Georgia, a pharmacist, were named in a civil complaint filed in federal court that accused Darien Pharmacy and Colter of filling prescriptions for controlled substances that the defendants knew or should have known were not issued for legitimate medical reasons, and by a provider not acting with the regular course of professional practice. Assistant U.S. Attorneys Bradford C. Patrick and Jonathan A. Porter are prosecuting the case.
In the Middle District of Florida, two defendants were charged.
Teresa Johnson, 53, of Lecanto, Florida, was charged by information with one count of conspiracy to commit health care fraud and submit fraudulent claims to Medicare, Medicaid, Tricare and ChampaVA. According to the indictment, Johnson owned and operated Tri-County Medical Billing and, from November 2016 through October 2018, knowingly submitted false and fraudulent claims on behalf of a medical doctor who owned clinics in Crystal River, Spring Hill and Celebration, Florida. HHS-OIG, FBI, DoD-OIG, VA-OIG and the Florida Office of Attorney General Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kelley Howard-Allen is prosecuting the case.
Marcus Anderson, 34, of St. Petersburg, Florida, was charged in a thirteen-count indictment with health care fraud and aggravated identity theft for allegedly stealing rendering providers’ identities to submit more than $1.2 million in false and fraudulent claims to Medicaid. HHS-OIG and the Florida Office of Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorney Kristen A. Fiore will prosecute the case.
In the Southern District of Florida, 42 defendants were charged.
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida is prosecuting this case.
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. This case was investigated by HHS-OIG and the FBI. The case is being handled by Assistant U.S. Attorney Kevin Larsen of the Southern District of Florida.
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). This case was investigated by the FBI. This case is being prosecuted by Assistant U.S. Attorney Shannon Shaw of the Southern District of Florida.
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Anne P. McNamara of the Southern District of Florida is prosecuting this case.
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. This case was investigated by HHS-OIG and the FBI. This case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham of the Southern District of Florida.
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. This case was investigated by HHS-OIG and the FBI. Assistant U.S. Attorney Christopher J. Clark of the Southern District of Florida is prosecuting this case.
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken of the Southern District of Florida is prosecuting this case.
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Tim Loper of the Fraud Section.
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. This case was investigated by HHS-OIG and the FBI. The case is being prosecuted by Trial Attorneys Sara Clingan and Catherine Wagner of the Fraud Section.
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. This case was investigated by HHS-OIG, the FBI, and United States Secret Service. The case is being prosecuted by Trial Attorney Alexander Pogozelski of the Fraud Section.
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. This case was investigated by the FBI. This case is being handled by Trial Attorney David A. Snider of the Fraud Section.
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. HHS-OIG and the FBI investigated this case. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
*********
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.