Northern District of Florida

 

GAINESVILLE, FLORIDA –Lawrence Keefe, U.S. Attorney for the Northern District of Florida, today announced the convictions of Erik M. Schabert, 48, a physician, and his ex-wife, Mika Kamissa Harris, 49, both of Gainesville, Florida, on health care fraud and money laundering charges involving more than $8 million. The convictions came after a three-week federal jury trial that involved more than 45 witnesses and over 850 exhibits introduced into evidence.

The jury heard evidence that, while owning and operating Reliant Family Practice in Gainesville, Harris and Schabert attempted to defraud health care benefit programs of more than $8 million by submitting fraudulent claims. Evidence showed that between January 2013 and July 2016, Reliant Family Practice received $4.4 million from Medicare and Blue Cross Blue Shield for chemical peels and dermabrasions following false diagnoses of rosacea and actinic keratosis. The jury heard evidence that Harris engaged in numerous financial transactions in which she laundered approximately $3.1 million dollars in proceeds from the health care fraud scheme.

"Americans struggle every day with the high costs of health care, and they are as much the victims of this kind of fraud scheme as the programs that suffered financial losses," Keefe said. "These convictions were the result of a concerted effort by federal law enforcement, and the United States Attorney’s Office will pursue these types of criminals as aggressively and diligently as possible."

"It’s not every day you see a crime so audacious that it results in a 90-count guilty verdict, but Erik Schabert and Mika Kamissa Harris earned their fate. Through a sizeable fraud scheme, these two offenders cheated federal health care programs and used the ill-gotten proceeds to fund their own lavish lifestyle," said Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General. "Our agents, working diligently with our law enforcement partners, will continue to investigate such costly schemes to bring such criminals to justice."

Schabert was convicted of conspiracy to commit health care or wire fraud and 24 counts of health care fraud. He faces a maximum sentence of 20 years in prison for conspiracy and 10 years in prison for each of the health care fraud convictions.  Harris was convicted of conspiracy to commit health care or wire fraud and 49 counts of health care fraud.  Additionally, she was convicted of 40 counts of money laundering as a result of spending the fraudulently obtained proceeds on such things as paying off her home mortgage, adding a swimming pool and other home improvements, obtaining plastic surgery, and funding an annuity for herself.  Harris faces a maximum sentence of 20 years in prison for conspiracy, 10 years in prison for each of the health care fraud convictions, and 10 years in prison for each of the money laundering convictions.  Sentencing is scheduled for January 27, 2020, at 2:30 p.m. at the United States Courthouse in Gainesville.

"The FBI views health care fraud as a severe problem that impacts every American," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "Fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for everyone. This case is the result of a multi-agency investigation into a complex scheme, and the FBI and our partners will continue to allocate significant resources to investigate these crimes and prosecute those who defraud the American public."

Assistant United States Attorneys Justin M. Keen and Frank T. Williams prosecuted the case, which was jointly investigated by the Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service– Criminal Investigation.

"The jury verdict represents one of the largest convictions of its kind in Gainesville and could have only been accomplished by the tremendous effort of all the agencies involved, to include the extensive cooperation of Blue Cross and Blue Shield," stated Ronald A. Loecker, Acting Special Agent in Charge for IRS Criminal Investigation. "Our agents, who are experts at following the money, provided a financial road map for the jury to see how the defendants profited from their extensive fraud. We will continue to provide our expert financial skills to investigating the most egregious crimes in an effort to protect the taxpayers and victims of fraud."

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced that on Tuesday of this week, Kiondi E. Jones, 36, of Pensacola, was found guilty by a
Pensacola federal jury on multiple charges involving drug trafficking and illegal firearms possession.

Evidence at trial revealed that on November 9, 2018, the Narcotics Unit of the Pensacola Police
Department executed a lawful search warrant at a residence on West Belmont Street in Pensacola.
Upon knocking and announcing their presence to execute the warrant, Jones jumped out of his bedroom window in an attempt to flee capture. Officers with the Pensacola Police Department were stationed as perimeter security and captured Jones as he attempted to make flight. Jones left behind in his bedroom trafficking amounts of heroin, methamphetamine, cocaine, and marijuana. In his bedroom, law enforcement also located a digital scale used to weigh the illicit drugs for distribution, adulterant to volumize the drugs for larger sale quantities, and hundreds of dollars in United
States currency.

The Pensacola Police Department also seized a loaded Colt .45 caliber pistol from Jones’s bedroom that was located next to the drugs and currency. The firearm was being used to protect the drug distribution business Jones was operating from the residence. Jones, who is a multi- convicted felon, did not have the right to lawfully possess this firearm nor the extra boxes of ammunition found in the bedroom. Jones has prior state court convictions for crimes such a drug trafficking, resisting arrest, and tampering with evidence.

“We are grateful for the work of the Pensacola Police Department and the effort of the men and women of the police force who risk their lives executing judicially authorized search warrants in an effort to combat illegal drug trafficking and firearm possession in our community,” said United
States Attorney Keefe. “As demonstrated by this prosecution, federal law enforcement working side-by-side with Pensacola Police Department is making the community safer.”

Assistant United States Attorneys David L. Goldberg and Kaitlin Weiss are prosecuting the case following a joint investigation by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the
Pensacola Police Department.

Based upon his multiple prior state court felony convictions, Jones faces up to thirty years’ imprisonment on the drug trafficking charges and up to life imprisonment on the firearm charges. A sentencing date has been set for January 21, 2020, at 10:30 am at the United States Courthouse in
Pensacola.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.

PENSACOLA, FLORIDA – Ronald Roscoe, 56, of Traverse City, Michigan, was sentenced in federal court today to life in prison for attempted enticement of a minor, travel with intent to engage in illicit sexual conduct, and transporting material involving sexual exploitation of minors. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

“It’s hard to imagine the level of depravity that leads someone to try to entice an adolescent into a sexual encounter,” Keefe said. “The depth of moral corruption behind this scheme is the reason the U.S. Attorney’s Office is unyielding in its prosecution of these predators.”

In September 2018, an undercover Okaloosa County Sheriff’s Office investigator began chatting online to identify individuals interested in exploiting children. An individual, later identified as Roscoe, sent a private message via a social media platform to the investigator, who was posing as a 12-year-old girl. Over the next month, Roscoe discussed engaging in sexual activity with the investigator posing as the girl and about meeting “her” in Florida.

During the week of October 15, 2018, Roscoe informed the “girl” that he had purchased an airplane ticket to fly from Michigan to Florida to engage in sexual activity with her over the upcoming weekend. Law enforcement located a hotel in Destin where Roscoe had reserved a room. Roscoe was arrested at the Destin-Fort Walton Beach Airport. A search of his cellular telephone revealed child pornography images and videos depicting children under age 12.

“This child predator thought he was traveling to Florida to have sex with a child,” said Micah
McCombs, Tampa Assistant Special Agent in Charge with Homeland Security Investigations. “Instead, he was stopped by HSI special agents and our partners at the Okaloosa County Sheriff’s Office, highlighting the important work of the North Florida Internet Crimes Against Children Task Force.”

The case was investigated by Homeland Security Investigations, the Okaloosa County Sheriff’s
Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by First Assistant United States Attorney Jeffrey M. Tharp.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – Robert Thomas Darenberg, 34, of Jacksonville, was sentenced today to forty-eight months in federal prison for possession of child pornography. The Court ordered that
Darenberg pay $15,000.00 in restitution, serve 10 years of supervised release following his prison term, and register as a sex offender upon his release from prison. Lawrence Keefe, United States
Attorney for the Northern District of Florida, announced the sentence this afternoon.

In November 2018, law enforcement officers received information that Darenberg, then employed as an information technology specialist with the Middle District of Florida’s United States Attorney’s
Office, was in possession of child pornography. During the investigation, Darenberg was arrested on a criminal complaint and a federal search warrant was authorized resulting in the seizure of his personal computer and other digital media. A forensic review of Darenberg’s personal computer confirmed his attempts to encrypt and conceal files containing approximately 1,630 images of child pornography, including approximately 270 videos.

“This information technology specialist thought he could outsmart law enforcement, but thanks to the hard work of the Jacksonville Sheriff’s Office, the Northern District of Florida United States
Attorney’s Office, and HSI, he is facing the same consequences as every other criminal,” said HSI
Tampa Special Agent in Charge James C. Spero.

Added U.S. Attorney Keefe: “Those who possess child pornography enable and participate in a despicable practice that preys on the most innocent among us. There is a special place for that kind of deviant mind – and for this defendant, that place is federal prison.”

The case was investigated by Homeland Security Investigations, the Jacksonville Sheriff’s Office and the Department of Justice Office of the Inspector General. The case was prosecuted by Assistant
United States Attorney Jason R. Coody.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.

PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, and Okaloosa County Sheriff Larry Ashley announced today that a federal criminal complaint has been filed against William W. Sims, 23, of Fort Walton Beach. The criminal complaint alleges that Sims surreptitiously entered the vehicle impound lot of the Okaloosa County Sheriff’s Office on or about the early morning hours of September 2, 2019, and broke into a seized Mercedes sports utility vehicle. The complaint alleges that, after retrieving something that was concealed in the seized vehicle, Sims used an accelerant to set the vehicle ablaze in the Sheriff’s Office lot. The fire department was forced to respond to extinguish the blaze.

“Individuals who feel enabled to attack a law enforcement agency present an extreme threat to our communities,” said Sheriff Ashley. “With the arrest of the suspect and the steadfast support of our federal partners and U.S. Attorney Larry Keefe, we are sending a clear message that these individuals will be pursued, apprehended, and ultimately held accountable.”

“When offenders attack a law enforcement agency, they attack the individuals who protect us and help maintain law and order in our community,” said U.S. Attorney Keefe. “The U.S. Attorney’s
Office will use all of the resources at its disposal to vigorously pursue and prosecute those who commit these types of crimes.”

Sims appeared in the United States District Court in Pensacola yesterday and was detained by the
United States Marshals Service pending further proceedings. Assistant United States Attorney David
L. Goldberg is prosecuting the case following a joint investigation by the Okaloosa County
Sheriff’s Office, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury in Tallahassee returned an indictment charging former
Holmes County, Florida, Clerk of Court, Kyle Martin Hudson, 39, of Westville, Florida, with wire fraud. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern
District of Florida.

“A public office at all levels of government is a sacred public trust and anyone who breaches or betrays that trust will be held accountable,” said U.S. Attorney Keefe. “As the people expect and deserve leaders who do their jobs with honesty and integrity, we will vigorously pursue and prosecute those few who commit crimes and place their self-interest above the public interest.”

The indictment alleges that, between October 2017 and August 2018, Hudson, while employed as the elected Clerk of Court for Holmes County, Florida, fraudulently obtained more than
$6,800 in taxpayer funds through the submission of fraudulent travel reimbursement claims.

Hudson will be arraigned in federal court on the charges on October 7, 2019, at 1:30 p.m. before
United States Magistrate Judge Michael Frank at the United States Courthouse in Pensacola, Florida.

Hudson faces the following potential penalty: •    Wire Fraud: a maximum of 20 years’ imprisonment and a $250,000 fine

This case resulted from an investigation by the Florida Department of Law Enforcement. Assistant
United States Attorney Jason R. Coody is prosecuting the case.

This case arose from an extensive investigation by the U.S. Attorney’s Public Trust Unit, a comprehensive anti-corruption initiative designed to target and hold accountable elected, appointed, and employed public officials who abuse the sacred trust placed in them by citizens.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government's burden to prove guilty beyond a reasonable doubt in a court of law.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – Federal prosecutors in the Northern District of Florida this week secured convictions in two separate trials involving child exploitation, including charges of production of child pornography and attempted enticement of a minor. The guilty verdicts, from trials in
Tallahassee and Gainesville, were announced by Lawrence Keefe, United States Attorney for the
Northern District of Florida.

“I am extremely proud of the Assistant United States Attorneys whose efforts made sure these two criminals receive severe and just punishment under the law,” said Keefe.

After a two-day trial, a Tallahassee jury convicted Brennon Kyle Holley, 41, of Pensacola, of attempted enticement of a minor. Holley came to the attention of law enforcement after he placed a
Craigslist.com advertisement seeking sex that said “age, relationship doesn’t matter.” A law enforcement officer posing as a 13-year-old Panama City girl named “Rhea” responded to the ad, and
Holley then engaged in sexually explicit phone and text conversations with Rhea. He also sent sexually explicit photographs in an attempt to entice and persuade her to engage in sexual activity with him. After four days of communication, and believing Rhea’s parents were out of town, Holley
“convinced” the girl to let him come to her house when he got off work in Pensacola in order to engage in sexual activity. Holley began the trip, but never arrived because his car broke down near
Fort Walton Beach.

Holley faces a mandatory minimum 10 years and up to life imprisonment. The sentencing hearing is scheduled for December 13 at 1:30 pm at the United States Courthouse in Tallahassee. The case was investigated by the Florida Department of Law Enforcement and prosecuted by Assistant United States
Attorney Aine Ahmed.

In the second case, Joseph Donald Roberts, 43, of Branford, Florida, was convicted of production, receipt, and possession of child pornography in the U.S. District Court in
Gainesville.

After a two-day trial, the jury convicted Roberts of using file sharing software to receive and share videos of child pornography. The trial jury made a special finding that the images included children younger than 12 years of age. In addition, Roberts was convicted of using his cell phone to create pornographic videos of a minor child.

Roberts faces a mandatory minimum 15 years up to 30 years in prison. The sentencing hearing is scheduled for December 16 at 2:30 pm at the United States Courthouse in Gainesville. The case was investigated by the Florida Department of Law Enforcement and Homeland Security Investigations, and was prosecuted by the district’s Child Exploitation and Human Trafficking Coordinator, Assistant
United States Attorney Frank Williams.

“This child predator represents the very worst of our society,” said HSI Tampa Assistant Special
Agent in Charge Micah McCombs. “We hope that this verdict offers another step forward in the healing process for his young victims.”

The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury has returned a nine-count superseding indictment, unsealed today, against John Thomas Burnette, 42, of Tallahassee, Florida.

United States Attorney Lawrence Keefe of the Northern District of Florida, Assistant Attorney
General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in
Charge Rachel Rojas of the FBI’s Jacksonville Field Office made the announcement.

In December 2018, a federal grand jury charged Tallahassee City Commissioner Scott Maddox and Paige
Carter-Smith in a forty-four count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery. That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS, and filing false tax returns.

In May 2019, the grand jury returned a forty-seven count superseding indictment adding Burnette as a defendant and charging him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery, and making false statements to federal officers. Maddox and Carter-Smith subsequently pleaded guilty to two counts of honest-services fraud and one count of conspiring to interfere with the lawful function of the IRS. The Government agreed at sentencing to dismiss other charges filed against
Maddox and Carter-Smith in that first superseding indictment.

The grand jury returned a nine-count second superseding indictment against Burnette only. The charges in the first superseding indictment to which Maddox and Carter-Smith pleaded guilty are undisturbed by the return of the second superseding indictment against Burnette. The second superseding indictment does not include any new counts against Burnette; the nine counts from the first superseding indictment are renumbered Counts One through Nine.

However, the second superseding indictment alleges additional acts of racketeering conspiracy.
Specifically, the second superseding indictment alleges that, in early 2014, Burnette caused a company to pay $110,000 in exchange for Maddox declaring a conflict and not voting at a Tallahassee
City Commission meeting. At that meeting, the Commission was slated to vote on an extension sought by a hotel development group to allow more time to meet certain City requirements to build a hotel close to a downtown hotel owned by Burnette. Maddox’s failure to participate resulted in a 2-2 tie vote by the Commission that denied the hotel development group the extension it sought and ended its project Burnette has waived arraignment on the second superseding indictment. The trial of this case is scheduled for November 4, 2019.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue
Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Stephen
M. Kunz, Gary K. Milligan, and Andrew J. Grogan of the Northern District of Florida’s Public Trust
Unit, and Trial Attorneys Simon J. Cataldo, Peter M. Nothstein, and Rosaleen O’Gara of the
Department of Justice, Criminal Division’s Public Integrity Section.

The maximum terms of imprisonment for the offenses are as follows:

•    20 years: Racketeering Conspiracy, Extortion, and Honest Services Fraud
•  5 years:   Use of Interstate Facilities in Furtherance of Bribery, Making False Statements to a
Federal Officer

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern a, visit http://www.justice.gov/usao/fln/index.html.

GAINESVILLE, FLORIDA – United States Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of Caron Griffis, 44, of Melrose, Florida, after she pleaded guilty in U.S. District Court in Gainesville to a charge of theft of government money.

Griffis, who was employed by the U.S. Department of Veterans Affairs (VA) as a supply technician at the Gainesville VA Medical Center, was responsible for purchasing supplies for the center from outside vendors. Griffis’ responsibilities required that government purchase cards be issued in her name. She was also responsible for completing internal purchase orders and reconciliation documents for each transaction that would be charged to her VA purchase cards.
For over a year, Griffis utilized her VA-issued purchase cards to obtain unauthorized items from retail stores, including Walmart and Office Depot, both in person and online. She also created false reconciliation forms in the VA computer system in an attempt to justify the transactions and avoid being caught.

In addition to receiving a sentence of one month in federal prison, five months home detention, and two-half years supervised release, Griffis was ordered to pay restitution to the VA in the amount of $26,456.11, to Office Depot in the amount of $6,260.47, and to Walmart in the amount of
$3,310.08.

Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the
Department of Veterans Affairs Office of Inspector General (VA-OIG). David Spilker, Special Agent in Charge with VA-OIG, said, "Griffis’ deceitful actions violated the public’s trust and stole from
VA’s limited resources, which are needed to care for our nation’s veterans. The Inspector General’s
Office is committed to safeguarding the integrity of VA’s procurement programs."

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of

Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

PENSACOLA, FLORIDA – United States Attorney for the Northern District of Florida Lawrence Keefe today announced a criminal complaint against Robert Odom, a crew member on a commercial fishing vessel who allegedly attacked and wounded the vessel’s captain with a pellet gun and long-blade knife as the vessel was underway in the Gulf of Mexico off Pensacola. The criminal complaint against Odom, 46, was lodged by the United States Coast Guard Investigative Service.

Odom is being held by the United States Marshals Service pending a detention and probable cause hearing on Thursday, October 3, 2019, at 2:30 pm CST at the United States Courthouse in Pensacola.

According to the complaint, the vessel was at sea approximately 20-26 nautical miles south-southeast of Perdido Pass, with a captain and two crew members. While fishing shortly before 9:30 pm on Friday, September 27, Odom allegedly shot the captain in the chest with a pellet rifle and then, after a struggle, stabbed the captain twice, causing "immediate, profuse bleeding." Coast Guard and Florida Fish and Wildlife Conservation Commission officers responded to a call for help, and Coast Guard personnel administered first aid to the captain. The captain was taken by helicopter to Sacred Heart Hospital in Pensacola. Odom was taken into custody by the United States Coast Guard Investigative Service.

A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

This case was investigated by the United States Coast Guard Investigative Service. Assistant United States Attorney Ryan Love is prosecuting the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
 

PENSACOLA, FLORIDA – Robert Patrick Jensen, 49, and Michael T. Harris, 44, both of Gulf Breeze, Florida, appeared in federal court this week for their initial appearances after they were indicted by a federal grand jury in Pensacola on charges of acquiring controlled substances by fraud and identity theft. The indictments against the two doctors were announced by Lawrence Keefe, United
States Attorney for the Northern District of Florida.

“These indictments show how pervasive our nation’s drug abuse problem is and how it can ravage any part of our society,” Keefe said. “The U.S. Attorney’s Office will continue to vigorously pursue drug crimes, wherever they occur.”

The indictment charging Jensen alleges that between December 3, 2014, and July 7, 2016, he knowingly acquired and obtained controlled substances – namely tramadol and dextroamphetamine – by misrepresentation, fraud, forgery, deception, and subterfuge. The indictment also alleges that between those same dates, Jensen knowingly and unlawfully used another person’s identification to acquire the controlled substances by fraud.

The indictment charging Harris alleges that between November 4, 2015, and August 11, 2016, he knowingly acquired and obtained controlled substances – methadone, morphine sulfate, oxycodone, and alprazolam – by misrepresentation, fraud, forgery, deception, and subterfuge.
The indictment also alleges that between those same dates, Harris knowingly and unlawfully used another person’s identification to acquire the controlled substances by fraud.

Jensen and Harris each face the following potential penalties: •    Acquiring controlled substances by fraud: a maximum of 4 years in prison; •    Identity theft: a maximum of 20 years in prison.

This case resulted from an investigation by the Drug Enforcement Administration, the Santa Rosa
County Sheriff’s Office, and the Gulf Breeze Police Department. Assistant United States Attorney J.
Ryan Love is prosecuting the case.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website. For more information about the United States Attorney’s Office, Northern
District of Florida, visit http://www.justice.gov/usao/fln/index.html.

Five individuals were arrested yesterday on a 44-count federal indictment charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit those violations.  

Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray, 38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted a the case involving C Wood Kennels in Pensacola, Florida.

The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked in fighting dogs with defendant Moser and others outside of Florida, including through an underground dogfighting website.  The indictment further alleges that defendant Peek acted as a source to supply fighting dogs to C Wood Kennels.

According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C Wood Kennels.  Although Murph at no time possessed a veterinary license, she offered to and did perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny of a licensed veterinarian.  The defendant also possessed veterinary equipment used to treat injured fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels, and injectable animal steroids.

“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division.  “We thank our federal and local law enforcement partners who made this operation possible.”

“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or anywhere else,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida.  “We will continue to work with federal and local law enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG).  “Animal fighting is an investigative priority for USDA-OIG, and together with the Department of Justice we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”

The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal fighting venture and to possess, train, sell, purchase, transport, deliver or receive an animal for purposes of having the animal participate in an animal fighting venture.

This matter continues to be investigated by the USDA-OIG. Department of Justice Trial Attorney Ethan Eddy and Assistant U.S. Attorney Ryan Love are prosecuting the 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.

PENSACOLA, FLORIDA – Five individuals were arrested yesterday on a 44-count federal indictment charging violations of the dogfighting prohibitions of the federal Animal Welfare Act, and conspiracy to commit those violations. The arrests were announced by U.S. Attorney Lawrence Keefe of the Northern District of Florida and Assistant Attorney General Jeffrey Bossert Clark for the
U.S. Department of Justice Environment and Natural Resources Division.

Shane Patrick Sprague, 35, of Pensacola, Florida, Derek Jedidiah Golson, aka Derek Jedidiah Murray, 38, of Pensacola, Florida, Haley Cook Murph, 24, of Milton, Florida, David Lee Moser, 36, of
Waynesboro, Tennessee, and James “Tommy” Peek, 67, of Milton, Florida were indicted in the case involving C Wood Kennels.

The indictment alleges that defendants Sprague and Golson operated C Wood Kennels, a dogfighting operation that arranged dogfights, allowed fighting dogs to attack “bait” animals, and trafficked in fighting dogs with defendant Moser and others outside of Florida, including through an underground dogfighting website. The indictment further alleges that defendant Peek acted as a source to supply fighting dogs to C Wood Kennels.

According to the indictment, defendant Murph’s role was that of a makeshift “veterinarian” for C
Wood Kennels. Although Murph at no time possessed a veterinary license, she offered to and did perform veterinary and surgical procedures on fighting dogs so the kennel could avoid the scrutiny of a licensed veterinarian. The defendant also possessed veterinary equipment used to treat injured fighting dogs, including skin staplers, sutures, intravenous bags and lines, scalpels, and injectable animal steroids.

“Dogfighting is a blight on humanity, one that has no place in the Northern District of Florida or anywhere else,” said U.S. Attorney Keefe. “We will continue to work with federal and local law enforcement agencies to root out this barbaric blood sport, in Florida and beyond.”

“As this case demonstrates, we are aggressively prosecuting dogfighters and those who support their inhumane criminal enterprises – including unscrupulous veterinarians or veterinary poseurs,” said
Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and
Natural Resources Division. “We thank our federal and local law enforcement partners who made this operation possible.”

“The provisions of the Animal Welfare Act were designed to protect animals from being used in illegal fighting ventures, which often entail other forms of criminal activity involving drugs, firearms, and gambling,” said Special Agent in Charge Bethanne M. Dinkins of the U.S. Department of
Agriculture-Office of Inspector General. “Animal fighting is an investigative priority for
USDA-OIG, and together with the Department of Justice, we will work with our law enforcement partners to investigate and assist in the criminal prosecution of those who participate in animal fighting ventures.”

The federal Animal Welfare Act makes it a felony to sponsor or exhibit an animal in an animal fighting venture and to possess, train, sell, purchase, transport, deliver, or receive an animal for purposes of having the animal participate in an animal fighting venture.

This matter continues to be investigated by the U.S. Department of Agriculture, Office of the
Inspector General. Assistant United States Attorney Ryan Love and Department of Justice Trial
Attorney Ethan Eddy are prosecuting the case. If convicted, each defendant faces up to five years in prison and a $250,000 fine per count.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website.  For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.

WASHINGTON – Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud.  The conduct allegedly resulted in more than $515 million in fraudulent billings.  Those charged included physicians, licensed social workers, as well as other medical and business professionals.  In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).

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, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).  In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.  

The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.

“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”

“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry.  “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”

“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community.  As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems.  Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud.  I want to commend the hard work of all who have been instrumental in this nationwide effort.”

“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.  “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”

“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida.  “This indictment is the next step in holding these two defendants accountable for their actions.”

“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed.  These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office.  “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”

“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region.  “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”

“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office.  “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI.  The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”

“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office.  “Our agency is stepping up our efforts to combat the opioid problem facing our nation.  These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”

                                                                       *********

Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:

In the Southern District of Mississippi, three defendants have been charged.

Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme.  The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million.  The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.  

Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes.  The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE.  The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.

In the Middle District of Louisiana, four defendants have been charged.

J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship.  According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted.  The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare.  The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.

Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid.  Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not.  According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million.  The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana. 

In the Eastern District of Louisiana, three defendants have been charged.  

Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market.  The case is being prosecuted by Trial Attorney Jared Hasten.

Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills.  The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.

In the Northern District of Florida, two defendants have been charged.

Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided.  According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid.  The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.

                                                                       *********

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.

 

                                                                         # # #

 

19-1029

 

 

 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud.  The conduct allegedly resulted in more than $515 million in fraudulent billings.  Those charged included physicians, licensed social workers, as well as other medical and business professionals.  In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).

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, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).  In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.  

The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.

“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”

“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community.  As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems.  Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud.  I want to commend the hard work of all who have been instrumental in this nationwide effort.”

“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.  “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”

“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida.  “This indictment is the next step in holding these two defendants accountable for their actions.”

“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi.  "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”

“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”

“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed.  These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office.  “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”

“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region.  “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”

“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office.  “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI.  The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”

“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office.  “Our agency is stepping up our efforts to combat the opioid problem facing our nation.  These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”

*********

Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:

In the Southern District of Mississippi, three defendants have been charged.

Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme.  The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million.  The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.  

Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes.  The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE.  The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.

In the Middle District of Louisiana, four defendants have been charged.

J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship.  According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted.  The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare.  The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.

Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid.  Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not.  According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million.  The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana. 

In the Eastern District of Louisiana, three defendants have been charged.  

Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market.  The case is being prosecuted by Trial Attorney Jared Hasten.

Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills.  The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.

In the Northern District of Florida, two defendants have been charged.

Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided.  According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid.  The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.

*********

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.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today an expansive health care fraud enforcement operation across the Gulf Coast, involving charges against a total of 11 individuals across four federal districts for their alleged involvement in various schemes to defraud Medicare, Medicaid and TRICARE and to obtain oxycodone and other controlled substances by fraud.  The conduct allegedly resulted in more than $515 million in fraudulent billings.  Those charged included physicians, licensed social workers, as well as other medical and business professionals.  In addition, in the state of Louisiana, 22 defendants, including 19 certified mental and home health professionals, have been charged with defrauding Medicaid out of approximately $300,000. These cases were investigated by Louisiana’s Medicaid Fraud Control Unit (MFCU).

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, the Drug Enforcement Administration (DEA), and U.S. Health and Human Services-Office of Inspector General (HHS-OIG).  In addition, the operation includes the participation of IRS-Criminal Investigations (IRS-CI), Mississippi Bureau of Narcotics (MBN) and various other federal law enforcement agencies and state MFCUs.  

The charges announced today aggressively target alleged schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families) and private insurance companies for medically unnecessary services, such as psychotherapy and other behavioral health services, and items, including durable medical equipment and compounded medications.

“Fraud against our nation’s vital federal health care programs amounts to theft from American taxpayers,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “The Department of Justice, together with our law enforcement partners, will continue to investigate and prosecute aggressively those who bill these programs for medically unnecessary services, whether in the Gulf Coast or elsewhere in the United States.”

“Health care fraud steals valuable resources from those truly in need and tarnishes the hard-earned respect of honest health care providers who deliver legitimate health care for their fellow Americans every day,” said U.S. Attorney Brandon J. Fremin of the Middle District of Louisiana. “It is especially egregious when carried out by health care professionals who are betraying the trust given them by the community.  As demonstrated by this takedown, this office remains committed to working with our outstanding partners in the Strike Force including federal, state, and local law enforcement and prosecutors in Louisiana and throughout the country to aggressively pursue those who defraud our health care systems.  Our message is consistent: we will bring every available resource to bear in seeking justice through investigations and convictions of those who commit health care fraud.  I want to commend the hard work of all who have been instrumental in this nationwide effort.”

“The charges announced today reinforce The U.S. Department of Justice’s mission to aggressively pursue those individuals and medical providers who attempt to prey on our most vulnerable citizens,” said U.S. Attorney Peter G. Strasser of the Eastern District of Louisiana.  “Our office, along with our law enforcement partners, will continue to seek justice for those impacted by Health Care Fraud schemes.”

“Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds,” said U.S. Attorney Lawrence Keefe of the Northern District of Florida.  “This indictment is the next step in holding these two defendants accountable for their actions.”

“Healthcare fraud harms us all," said U.S. Attorney Mike Hurst of the Southern District of Mississippi.  "When individuals put their greed above the interests and well-being of our men and women in uniform and our veterans, this office will be there to swiftly bring them to justice.”

“Medicaid welfare fraud not only jeopardizes resources from our most needy but it also steals from our taxpayers,” said Louisiana Attorney General Jeff Landry. “So I applaud my Medicaid Fraud Control Unit and our law enforcement partners for their efforts to find, arrest and prosecute Medicaid welfare fraudsters.”

“Healthcare Fraud continues to impact the cost of healthcare in America and is amplified when trusted professionals abandon their ethical code in the name of greed.  These unethical practices are damaging the lives of individuals and families throughout this country,” said Special Agent in Charge Thomas J. Holloman for the IRS-CI Atlanta Field Office.  “Medical professionals who illegally dispense prescription narcotics are no better than street level drug dealers and must be held accountable for their actions, therefore IRS-CI will continue to work with our law enforcement partners and the US Attorney's Office to address these public challenges.”

“Healthcare fraud harms patients and diverts taxpayer funds from vitally important federal healthcare programs that exist for the sole purpose of providing care to beneficiaries with medical needs,” said Special Agent in Charge C.J. Porter of the HHS-OIG Dallas Region.  “As this takedown demonstrates, we will continue to work with our law enforcement partners to crack down on and bring to justice those who disregard the medical needs of patients and betray the public’s trust for their own personal enrichment.”

“Along with our partners, the FBI has dedicated significant time, manpower, and resources toward investigating criminal enterprises engaged in defrauding Medicare, Medicaid, private insurance companies and prescription drug schemes,” said Special Agent in Charge Bryan Vorndran of the FBI’s New Orleans Field Office.  “Organizations or individuals providing dangerous and unnecessary medical services to any citizen and billing fraudulently is unacceptable and will continue to be high priority investigations of the FBI.  The illegal prescribing and dispensing of oxycodone and other controlled substances for distribution to citizens who battle addiction will not be tolerated and adds to the escalating opioid epidemic in this country.”

“The Defense Criminal Investigative Service, with our investigative partners, is committed to thoroughly investigate and bring to justice anyone who defrauds TRICARE or endangers our nation's brave soldiers, sailors, airmen, marines, retirees and military families,” said Special Agent in Charge Cynthia Bruce of the DCIS Southeast Field Office.  “Our agency is stepping up our efforts to combat the opioid problem facing our nation.  These complex and expansive fraud schemes diverted significant taxpayer funds that should be spent on critical medical care.”

*********

Among those charged in partnership between Strike Force attorneys and U.S. Attorney’s Offices are the following:

In the Southern District of Mississippi, three defendants have been charged.

Wade Ashley Walters, 52, of Hattiesburg, Mississippi, a co-owner of numerous compounding pharmacies and pharmaceutical marketing companies, was charged for his alleged role in a scheme to defraud TRICARE and other private health insurance companies by paying kickbacks to practitioners and marketers for the prescribing and referring of fraudulent prescriptions for medically unnecessary compounded medications that were ultimately dispensed by his pharmacies, as well as for his alleged role in a scheme to launder the proceeds of the fraud scheme.  The indictment alleges that, based on these fraudulent prescriptions, Walters caused TRICARE and other health care benefit programs to reimburse his and other compounding pharmacies more than $510 million.  The case is being prosecuted by Assistant Deputy Chief Dustin Davis and Trial Attorney Sara Porter of the Fraud Section, Trial Attorneys Amanda Wick and Stephanie Williamson of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Mary Helen Wall of the Southern District of Mississippi.  

Gregory Auzenne, M.D., 49, of Meridian, Mississippi, and Tiffany Clark, 45, of Meridian, Mississippi, were charged for their alleged participation in a scheme to defraud TRICARE and other private health insurance companies by prescribing medically unnecessary compounded medications in exchange for kickbacks and bribes.  The indictment alleges that Auzenne and Clark caused the submission of over $1.6 million in fraudulent claims to TRICARE.  The case is being prosecuted by Trial Attorneys Jared Hasten and Sara Porter of the Fraud Section and Assistant U.S. Attorney Mary Helen Wall.

In the Middle District of Louisiana, four defendants have been charged.

J. Foster Chapman, D.O., 40, of Alexandria, Louisiana, was charged for his alleged participation in a scheme to prescribe medically unnecessary durable medical equipment, namely orthotics, to Medicare beneficiaries whom he never examined and in the absence of any doctor-patient relationship.  According to the indictment, Chapman concealed the fraud with falsified orders that stated, among other things, that he consulted with the beneficiaries and conducted diagnostic tests, which were not conducted.  The indictment alleges that Chapman caused the submission of over $4.8 million in fraudulent claims to Medicare.  The case is being prosecuted by Trial Attorney Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristen L. Craig of the Middle District of Louisiana.

Victor Clark Kirk, 70, of Baton Rouge, Louisiana, and Marilyn Brown Antwine, 51, of Baton Rouge, Louisiana, the former CEO and COO, respectively, of a federally qualified health center, were charged for their alleged roles in a scheme to defraud Medicaid.  Specifically, the indictment alleges that Kirk and Antwine directed employees to falsely diagnose students with significant mental health disorders and subsequently submit false claims to Medicaid falsely claiming that psychotherapy services were provided, when in fact they were not.  According to the indictment, during the relevant time period, the health center’s claims for purported group psychotherapy services totaled more than $1.8 million.  The case is being prosecuted by Trial Attorney Justin M. Woodard and Assistant U.S. Attorney Jessica M.P. Thornhill of the Middle District of Louisiana. 

In the Eastern District of Louisiana, three defendants have been charged.  

Aaron Denn, 34, of Metairie, Louisiana, was charged for his alleged role in a scheme to obtain and divert oxycodone pills to the black market.  The case is being prosecuted by Trial Attorney Jared Hasten.

Christie Lynn Browning, 40, of Metairie, Louisiana, was charged for her alleged role in a conspiracy to obtain oxycodone by fraud and to then distribute those oxycodone pills.  The case is being prosecuted by Trial Attorney Jared Hasten and Assistant U.S. Attorney Myles Ranier of the Eastern District of Louisiana.

In the Northern District of Florida, two defendants have been charged.

Helen Elizabeth Storey, 37, of Tallahassee, Florida, and Stephanie Lynn Fleming, 42, of Tallahassee, Florida, the owner of, and a licensed mental health counselor at, a Tallahassee-based counseling center, were charged for their alleged participation in a scheme to defraud Medicaid by submitting false and fraudulent claims for purported behavioral health services, including psychotherapy, that were not provided.  According to the indictment, Fleming and Storey submitted approximately $250,000 in false and fraudulent claims to Medicaid.  The case is being prosecuted by Assistant U.S. Attorney Justin Keen of the Northern District of Florida.

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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.

 

PENSACOLA, FLORIDA – A federal grand jury returned an indictment, charging five defendants with federal drug trafficking offenses. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The defendants are:

• Kadeem Ingram, 29, DeFuniak Springs, Florida;

• Kenneth Ingram, 59, DeFuniak Springs, Florida;

• Terrell Burdette, 63, DeFuniak Springs, Florida;

• Sidney McGhee, 30, DeFuniak Springs, Florida; and

• Francis Muldowney, 59, Santa Rosa Beach, Florida

The indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force Operation which targeted a drug trafficking organization alleged to be responsible for the distribution of cocaine and cocaine base throughout the northcentral panhandle of Florida since the beginning of 2019.

The charged defendants face penalties ranging up to 40 years imprisonment and fines up to $10,000,000.

The case was investigated by the Drug Enforcement Administration, the Walton County Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Washington County Sheriff’s Office, the Lynn Haven Police Department, the Panama City Police Department, and the Panama City Beach Police Department. The case is being prosecuted by Assistant United States Attorney Michelle Daffin.

The prosecution, part of an extensive investigation by the Organized Crime Drug Enforcement Trask Force (OCDETF) OCDETF, is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA - Kevin Robert Lee, 35, of Tallahassee, was sentenced yesterdayto 66 months in federal prison after he pleaded guilty to 20 counts of bank fraud, aggravated identity theft, and theft from a lending institution, as well as three counts of filing a false tax return. The crimes involved more than $800,000 in theft. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Between June 2014 and November 2017, Lee was the lending director of FSU Credit Union (FSUCU), a Tallahassee-based credit union. As lending director, Lee’s position allowed him to open new customer accounts and approve lines of credit. He also served as treasurer of the Tallahassee Chapter of Credit Unions (TCCU), a non-profit organization that advocates legislation favorable to credit unions. In 2014, Lee used the name, date of birth, and social security number of the President of TCCU to create a second fraudulent account for that organization. Lee used the original TCCU account for fraudulent activity while leaving the new account for legitimate TCCU transactions. Lee also created two accounts using the names, dates of birth, and social security numbers of his college roommates and used them as "intermediary accounts" into which funds stolen from FSUCU customers were deposited. Lee transferred funds from inactive customer accounts to pay down the lines of credit to the intermediary accounts he created or deposited them into TCCU’s original bank account. He also used the stolen funds to pay off personal credit cards, make mortgage and car payments, and pay for his children’s private school tuition. In total, Lee stole over $800,000 from the FSUCU. Additionally, in February 2016, March 2017, and March 2018, Lee filed tax returns in which he failed to claim as income the funds he stole from FSUCU.

"One of the most important assets of American financial institutions is customers’ faith in their integrity, and this defendant used his position of trust to steal their funds and the credit union’s reputation," Keefe said. "This sentence should send a clear message that anyone who tries to violate the public’s trust will end up paying severe consequences."

Lee was sentenced to 66 months years in federal prison, followed by 5 years supervised release. Additionally, he was ordered to pay $979,839.49 in restitution to the FSUCU and its insurance company, and to the United States Internal Revenue Service. Additionally, Lee was also ordered to pay $11,589.48 in prosecution costs to the United States Internal Revenue Service.

Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Florida Department of Law Enforcement and the Internal Revenue Service – Criminal Investigation, after being alerted by FSU Credit Union. Mary Hammond, Special Agent in Charge, IRS-CI, Tampa Field Office said, "This case was an outstanding example of the kind of state and federal cooperation that puts criminals behind bars. The agents of the IRS will not allow criminals to undermine the public’s confidence in upstanding institutions through their abuse of positions of trust."

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

 

TALLAHASSEE, FLORIDA – Stephanie Lynn Fleming, 42, and Helen Elizabeth Storey, 37, both of Waldorf, Maryland (and formerly of Tallahassee, Florida), were arrested in Maryland after a federal grand jury in Tallahassee returned an indictment charging them with conspiracy to commit health care fraud, 75 counts of health care fraud, false statements in connection with a health care matter, and two counts of aggravated identity theft. The offenses are alleged to have been committed in the Northern District of Florida. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The indictment alleges that Storey was the owner of North Florida Mental Health (NFMH), a Tallahassee-based counseling center that employed Fleming as one of its licensed mental health counselors. The indictment further alleges that beginning on or about April 15, 2016, Fleming and Storey submitted and caused to be submitted false and fictitious claims for payment and reimbursement to Florida Medicaid and its managed care organizations (MCOs) for psychotherapy, psychiatric diagnostic evaluations, and therapeutic behavioral services. In total, it is alleged that Fleming and Storey improperly obtained or attempted to obtain more than $250,000 from Florida Medicaid.

The indictment also alleges that in order for Fleming and NFMH to receive Florida Medicaid claim reimbursements:

• In or about February 2016, Storey made and submitted a materially false Florida Medicaid Provider Enrollment Application in which she falsely attested that Fleming (1) had not pled guilty or nolo contendere to a felony, (2) had no disciplinary action taken against any of her business or professional licenses held in Florida or any other state, and (3) had not surrendered a business or professional license in Florida or any other state.

• From about March 2016 to about March 2017, Fleming made and submitted a materially false Provider Agreement and a materially false Practitioner Network Application, in which she falsely attested that she had not pled guilty or nolo contendere to illegal conduct within the past ten years, and that she had not pled guilty or nolo contendere to a felony.

Fleming and Storey face the following potential penalties:

• Conspiracy to commit health care fraud: a maximum of 20 years prison;

• Health care fraud: a maximum of 10 years in prison per count;

• False statements in connection to health care matters: a maximum of 5 years in prison per count; and

• Aggravated identity theft: a 2-year mandatory minimum prison sentence per count, consecutive to any other sentence imposed.

This case resulted from an investigation by the Florida Attorney General’s Office – Medicaid Fraud Control Unit and the United States Department of Health and Human Services Office of Inspector General. Assistant United States Attorney Justin M. Keen is prosecuting the case.

"Law enforcement works tirelessly to detect health care fraud, and we will continue to use every lawful tool at our disposal to prosecute those who defraud public programs of their limited funds," U.S. Attorney Keefe said. "This indictment is the next step in holding these two defendants accountable for their actions."

Florida Attorney General Ashley Moody said, "Providing health care services without a valid license is not just a safety concern, it is illegal. Our Medicaid Fraud Control Unit worked closely with federal officials on this case to stop health care fraud and protect patients. Fraud of any kind will not be tolerated in Florida, and we will continue to work with our federal partners to protect the integrity of the Medicaid program."

Special Agent in Charge Omar Perez Aybar of the U.S. Department of Health and Human Services, Office of Inspector General said "Medicaid recipients deserve to receive services from licensed health care professionals. Those who submit materially false information on Medicaid agreements and applications, and enrich themselves through the submission of false claims, will be investigated and held accountable by our state and federal law enforcement partners."

The arraignment of Fleming and Storey is scheduled for September 26, 2019, at 1:30 p.m. at the United States Courthouse in Tallahassee.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PENSACOLA, FLORIDA – Bryan S. Gaines, 46, of Milton, Florida, was sentenced today to 3 years’ probation and ordered to repay the government more than a quarter-million dollars after pleading guilty to theft of government money and making false statements. The sentence, handed down in the U.S. District Court in Pensacola, was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Gaines received disability benefits from the Department of Veterans Affairs (VA). Between at least 2011 and 2018, he falsely reported to the VA that he was not working and was unable to work, so he could receive benefits to which he was not entitled. In fact, Gaines had been working at an automotive repair business during that time. For this fraud, Gaines was sentenced to 3 years’ probation and ordered to pay $243,243.05 in restitution to the VA.

"Stealing from the VA is tantamount to stealing from each of the brave men and women who have served our nation in times of war and times of peace. Today’s sentence should serve as a strong reminder that this kind of contemptible behavior will not be tolerated, and will in fact be prosecuted to the full extent of the law," Keefe said.

David Spilker, Special Agent in Charge, VA OIG, stated, "Gaines stole VA’s resources from eligible veterans deserving of the financial assistance earned through their military service. VA OIG is committed to safeguarding the integrity of VA’s disability benefits programs."

Assistant United States Attorney Alicia H. Forbes prosecuted the case following an investigation by the Department of Veterans Affairs-Office of the Inspector General.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

 

GAINESVILLE, FLORIDA – United States Attorney Lawrence Keefe for the Northern District of Florida today announced the indictment and arraignment of Dustin Lee Norman, 23, of Trenton, Florida, after a federal grand jury in Gainesville returned an indictment charging him with Sexual Exploitation of a Child, Receiving Child Pornography, Possessing Child Pornography, and Sending Interstate Transmissions of Extortionate Communications.

The indictment alleges that between September 19, 2018, and October 19, 2018, Norman knowingly and intentionally used, persuaded, induced, or enticed a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. The indictment also alleges that during the same time period, Norman knowingly used a cell phone and the internet to transmit communications containing threats to injure the reputation of the minor female, who resided in the state of Washington, intending to extort images and videos of the minor female in various stages of undress, while naked, and while engaging in sexually explicit conduct.

Norman faces the following penalties:

• Sexual exploitation of a child: a maximum of 30 years in prison and a 15-year mandatory minimum in prison;

• Receipt of child pornography: a maximum of 20 years in prison and a 5-year mandatory minimum in prison;

• Possession of child pornography: a maximum of 10 years in prison;

• Sending interstate transmissions of extortionate communications: a maximum of 2 years in prison.

This case resulted from an investigation by the Federal Bureau of Investigation and the Levy County Sheriff’s Office. Assistant United States Attorney Justin M. Keen is prosecuting the case.

Trial is scheduled for October 29, 2019, at 8:30 a.m. at the United States Courthouse in Gainesville.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA – Kenneth Alexander, 46, of Tallahassee, was sentenced to 54 months in federal prison after pleading guilty to charges of preparing false tax returns, theft of government funds, and aggravated identity theft. Alexander, a former linebacker on Florida State University’s 1993 national championship team, was also ordered to pay $1,057,753.40 in restitution to the Internal Revenue Service. The sentence was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Between 2012 and 2016, Alexander, the sole shareholder of Wizard Business Center tax preparation business in Tallahassee, prepared and filed false tax returns with the Internal Revenue Service for various individuals. Alexander falsely represented the taxpayers’ Schedule A itemized deductions, Schedule C and E losses, and marital status.

"The integrity of our system of taxation lies at the heart of what we do as a nation, and those who try to defraud the system will pay the price," Keefe said. "The trust of the American people relies on fair administration of our tax laws, and this defendant violated that trust and will now face the consequences."

"Mr. Alexander used his position as a trusted accountant and well-known FSU football player to file false tax returns as part of a complicated scheme involving obtaining false solar power credits and false deductions for his clients," said Special Agent in Charge Mary Hammond of IRS Criminal Investigation, Tampa Field Office. "Additionally, he represented these clients before the IRS regarding the false returns in furtherance of the scheme. This conduct undermines the credible professionals in the tax community and damages the many individuals who sought his counsel. The prison sentence of 54 months and restitution of more than $1 million underlines the significant consequences of failing to follow the law. The special agents of IRS Criminal Investigation will continue to hold accountable those unscrupulous tax professionals who attempt to manipulate clients and the tax system."

Assistant United States Attorney Gary Milligan prosecuted the case following an investigation by the Internal Revenue Service-Criminal Investigation and the Emerald Coast Financial Crimes Task Force, which includes IRS Criminal Investigation and the Leon County Sheriff’s Office, with the assistance of the Treasury Inspector General’s Office for Tax Administration.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced today that a federal arrest warrant was executed on a Pensacola business owner for using interstate facilities for purposes of racketeering, money laundering conspiracy, and the harboring of illegal aliens for commercial advantage or private financial gain. The three count criminal complaint alleges that Pensacola resident David C. Williams, 41, was arrested in connection with his operation of multiple Asian massage parlors in Florida, Virginia, and Pennsylvania. Along with the arrest of Williams on these federal charges, over a dozen search warrants were executed at massage parlors linked to Williams in these three states. This included multiple federal search warrants in Pensacola, Gulf Breeze, and Gainesville, all of which are located in the Northern District of Florida. Over half a dozen seizure warrants were also executed on bank accounts linked to the allegations against Williams.

Assistant United States Attorney David L. Goldberg is prosecuting the case following a joint investigation by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, Homeland Security Investigations, the Florida Department of Law Enforcement, the Pennsylvania State Police, the Okaloosa County Sheriff’s Office, the Santa Rosa County Sheriff’s Office, the Gainesville Police Department, the Clearwater Police Department, the Florida State Attorney’s Office and the Office of the Attorney General for the State of Pennsylvania.

A detention hearing for Williams has been set for August 20, 2019, at 2:00 p.m. at the United States Courthouse in Pensacola.

A criminal complaint is merely an allegation by law enforcement that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA – Suspended Tallahassee City Commissioner Scott Charles Maddox and business associate Janice Paige Carter-Smith today each pleaded guilty to two honest services fraud counts and one tax fraud conspiracy count arising from a 47-count indictment. Maddox and Carter-Smith face up to 45 years in federal prison followed by supervised release, as well as $750,000 in fines. In addition, Maddox and Carter-Smith agreed to forfeit all interest in any property which was derived from proceeds of the crimes to which the defendants pled guilty and to a forfeiture money judgment in an amount to be determined by the Court.

The plea agreements were negotiated by the office of United States Attorney for the Northern District of Florida Lawrence Keefe and the Public Integrity Section of the United States Department of Justice, and accepted by Senior United States District Judge Robert Hinkle. Maddox and Carter-Smith will be sentenced on November 19, 2019, at 10:00 a.m. at the U.S. Courthouse in Tallahassee.

"Public office is the highest form of public trust, and the pattern of criminal activity by these defendants violated the sacred trust of the people. When Maddox should have been looking out for the best interest of the citizens of Tallahassee, he was instead lining his own pocket with Carter-Smith’s help. This U.S. Attorney’s Office places the utmost priority on rooting out and pursuing public corruption, and will continue to do so in order to restore the public’s trust in its government and elected officials," Keefe said.

Maddox and Carter-Smith pleaded guilty to one count each of honest services wire fraud, honest services mail fraud, and conspiracy to defraud the United States. In the statement of facts filed in support of his plea agreement, Maddox admits to having taken large sums of money in exchange for favorable actions on various issues that came before the City of Tallahassee. He participated in a scheme to defraud and deprive the City of Tallahassee and its citizens of its right to honest services through bribery. Carter-Smith admitted to participating with Maddox in these criminal acts.

A federal grand jury indicted Maddox and Carter-Smith in December, and a superseding indictment in May added defendant John Thomas Burnette in various counts.

"Abusing one's position for personal gain is a blatant disregard to the oath that every government employee takes," said Rachel L. Rojas of the FBI Jacksonville Division. "Corrupt public officials undermine the integrity of our government and violate the public’s trust, and rooting them out is among the most complex, tedious and significant work that the FBI does for the American public. The FBI and our law enforcement partners will continue to work together to ensure those who commit fraud and corruption are brought to justice."

The guilty plea acknowledges the allegations contained in the indictment that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as "Governance." Governance was part of a racketeering enterprise that accepted bribes and extorted money from Governance clients under color of Maddox’s office through fear of the economic harm Maddox could inflict through his influential position as a City Commissioner. Maddox and Carter-Smith pleaded guilty to charges of defrauding a bank of more than $250,000 through two fraudulent short sales of real property, lying to federal agents about Governance and other matters, and violating federal tax laws by conspiring to interfere with the IRS and filing false tax returns.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case against Maddox and Carter-Smith was prosecuted by Assistant U.S. Attorneys Stephen M. Kunz, Gary K. Milligan, and Andrew J. Grogan of the Northern District of Florida, and Trial Attorneys Simon J. Cataldo, Peter M. Nothstein, and Rosaleen T. O’Gara of the Department of Justice, Criminal Division’s Public Integrity Section.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

TALLAHASSEE, FLORIDA – Lawrence Keefe, United States Attorney for the Northern District of Florida, today announced the appointment of three new Assistant United States Attorneys: Lazaro Fields, Meredith Steer, and Kaitlin Weiss, assigned to the Tallahassee Criminal Division; and the additional appointment of Corey Aittama to serve as the Law Enforcement Coordinator for the Northern District of Florida.

Mr. Fields graduated magna cum laude and Order of the Coif from the Florida State University College of Law, and magna cum laude from the Florida State University College of Education. Prior to joining the U.S. Attorney’s Office, Mr. Fields was a litigation associate at Colson Hicks Eidson, P.A., where his practice focused primarily on complex commercial litigation and personal injury, products liability, and class action matters. Mr. Fields also clerked for United States District Judge Federico A. Moreno in the Southern District of Florida.

Ms. Steer earned her undergraduate degree from Penn State University and her law degree from George Mason University. After law school, Ms. Steer joined the United States Air Force JAG Corps, where she served on active duty for over 11 years. She began her career at Eglin Air Force Base, where she served as a Special Assistant U.S. Attorney in the Northern District of Florida. For the last two years, Ms. Steer was assigned as the Deputy Chief Counsel at Charleston AFB.

Ms. Weiss received a B.A. in International Studies from American University before obtaining her J.D. from Georgetown University Law Center. Prior to joining the U.S. Attorney’s Office, Ms. Weiss was an Assistant Attorney General practicing in the Criminal Appeals Division of the Florida Attorney General’s Office. While at the Attorney General’s Office, Ms. Weiss handled direct criminal appeals and post-conviction motions in the First District Court of Appeal and the Florida Supreme Court. Ms. Weiss began her legal career as an Assistant State Attorney in the Miami-Dade State Attorney’s Office.

Mr. Aittama is a law enforcement veteran with 26 years of experience in local, state, federal, and military law enforcement. Prior to joining the U.S. Attorney's Office, Mr. Aittama was a Law Enforcement Captain with the Florida Department of Agriculture and Consumer Services, Office of Inspector General. He has held positions on various task forces in Pensacola, Fort Walton Beach, Panama City, and Tallahassee, including the DEA Task Force, North Florida Healthcare Task Force, and Okaloosa Multi-Agency Drug Task Force. He begin his law enforcement career in the United States Air Force as a Security Forces officer at Eglin Air Force Base.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

PENSACOLA, FLORIDA – Michael Scott Burton, 52, of Decatur, Georgia, was sentenced to 96 months in federal prison yesterday after he pleaded guilty to charges of conspiracy to commit health care fraud and wire fraud, conspiracy to commit money laundering, and money laundering. The sentence was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Between January 2014 and December 2015, Burton conspired with others to defraud TRICARE and other insurance companies out of more than $6.5 million in fraudulent claims for prescriptions for compounded pain cream, scar cream, and wellness capsules. Burton agreed that co-defendant Brad T. Hodgson would forge prescriptions for compounded drugs for individuals who Burton knew were not patients of the Georgia doctor’s practice where Hodgson worked. Burton recruited sales representatives, including co-defendants Bradley D. Pounds and Heather E. Pounds, to obtain and provide Burton with the personal identifying information and insurance cards of individuals for whom the prescriptions could be issued in exchange for commission payments. Burton would forward that information to Hodgson, who would issue the prescriptions – even though he was not licensed to write prescriptions – and send them to Physician Specialty Pharmacy in Pensacola without the individuals ever seeing or speaking with a doctor. Burton also recruited co-defendant Marie Ann Smith to assist Hodgson with processing and submitting prescriptions. Physician Specialty Pharmacy then caused TRICARE and other insurance companies to be billed and paid Burton a 50% commission for each compounded drug prescription that was paid by insurance. By this conduct, Burton earned over $1.4 million in commissions from fraudulent prescriptions.

"Health care fraud is a crime that affects all Americans – but to perpetrate a scam that victimizes a program for our nation’s service members and their families is beyond appalling," Keefe said. "This conspiracy stole money meant to help those who have given so much to our nation, and the criminals behind it deserve the punishment they receive."

"The wide-spread corruption uncovered in this complex and multistate fraud scheme wasted millions of American taxpayer dollars, and furthermore, deprived U.S. military members and their families of legitimate prescription medications and other needed medical care," said Cynthia A. Bruce, Special Agent in Charge, DCIS-Southeast Field Office. "DCIS is committed to working with our investigative partners and the U.S. Attorney's Office to identify, investigate and bringing to justice anyone who defrauds the DoD and the American taxpayer."

For his role in the scheme, Burton was sentenced to 96 months in prison. He was also ordered to pay $$6,540,348.48 in restitution to TRICARE and pay a forfeiture money judgment of $1,480,931.74. In February, Bradley Pounds was sentenced to 21 months in prison, and Smith and Heather Pounds were sentenced to probation. In separate related cases, Hodgson is awaiting sentencing after pleading guilty, and Andrew E. Fisher, the president and part-owner of Physician Specialty Pharmacy, is awaiting trial scheduled for September 3rd.

"Crimes like this increase the costs we all pay for healthcare and prescription drugs," said FDLE Commissioner Rick Swearingen. "I thank our FDLE Pensacola office for spearheading this complex investigation and our U.S. Attorney’s Office for prosecuting this case."

Assistant United States Attorney Alicia H. Forbes prosecuted these cases following an investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Bureau of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit https://www.justice.gov/usao-ndfl

 

TALLAHASSEE, FLORIDA – A second round of concentrated and coordinated federal, state, and local law enforcement activity has produced 29 arrests of wanted suspects and the seizure of eight weapons, significant quantities of drugs, more than $7,500 in cash, and two stolen vehicles, United States Attorney Lawrence Keefe and Sheriff Walt McNeil announced today. The arrests and seizures were the result of ongoing work by a multi-agency strike force led by United States Marshals and the Leon County Sheriff’s Office under the ALLinLEON initiative.

"When we launched this operation last month, we knew it would not take long for our efforts to bear fruit. These most recent arrests are the result, and we know they will, in turn, lead to even bigger outcomes in the future," said Keefe, who is the U.S. Attorney for the Northern District of Florida. "The hard work of so many dedicated law enforcement professionals have made the streets of Leon County safer now than they were a month ago."

Agencies participating in the latest round of arrests include the U.S. Marshals Florida/Caribbean Regional Fugitive Task Force, Leon County Sheriff’s Office – including the vice, SPIDER, K-9, aviation, and traffic units – Florida Department of Law Enforcement, State Attorney’s Office, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The strike force launched with a large and visible operation in June, and has continued with lower profile activities leading up to last week’s coordinated operation.

"It’s multi-agency operations like this one that are driving the enforcement portion of ALLinLEON. Working together, with our law enforcement partners, is the only way we can rid our community of those who don’t want to contribute in a positive way," Sheriff McNeil said.

Results of last week’s joint operation include 29 total arrests; 8 firearms seized, including 3 listed as stolen weapons; the seizure of 136.5 grams of cannabis, 28.5 grams of cocaine powder, 38 grams of cocaine rock, 7 grams of meth, 499 grams of synthetic drugs, and $7,551.86 in currency; and the recovery of two stolen vehicles.

Among the individuals arrested in the operation are:

- Brandon Wolf, who was wanted by the State Attorney’s Office on multiple counts of aggravated possession of child pornography and fled to Alabama before being arrested by U.S. Marshals;

- Casey Goodson, who was wanted for multiple burglaries, grand theft, stolen property, and narcotics, and is now facing additional charges of aggravated assault on two law enforcement officers, as well as fleeing/eluding and grand theft;

- Nicholas Cofer, who was wanted by the Wakulla County Sheriff’s Office for sexual assault on an incapacitate person;

- Kewon Bruce and Quinterry Hale, who were arrested when a warrant was served and officers discovered five firearms, cash, and several types of drugs.

The joint federal, state, and local strike force is a concerted effort to crack down on violent crime under the Sheriff’s ALLinLEON umbrella. That initiative has also engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills, and substance abuse treatment.

All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

PENSACOLA, FLORIDA – United States Attorney Lawrence Keefe, of the Northern District of Florida, announced today that a federal grand jury has indicted a Pensacola business owner for conspiring to sell and export power generating equipment to a recipient in Iran, and concealing the scheme, as well as having payments routed to him via another foreign country. The five- count indictment alleges that Pensacola resident James P. Meharg, 59, CEO and president of Turbine Resources International, LLC, conspired with citizens of the United Kingdom and Iran to export a large turbine and parts from the United States to an Iranian recipient, in violation of the Iranian Transactions and Sanctions Regulations as well as federal criminal law.

According to the indictment, Meharg, a citizen of the United States, conspired from October 1, 2017, to June 12, 2019, to violate the embargo by attempting to export a Solar Mars 90 S turbine core engine and parts from the United States, for delivery to an end user in Iran. On April 25, 2018, the indictment alleges, Meharg sent an invoice for $500,000 to a conspirator in the United Kingdom and received two partial payments of $124,950 each, on May 7 and May 24, 2018, at least one of which was routed through a company in Dubai.

“The security of the United States depends on protecting our nation from threats, whether those threats originate with foreign nationals or with American citizens who put their own profits ahead of the national interest,” U.S. Attorney Keefe said. “For decades, American presidents have declared the government of Iran to be a threat to our national security and thereby imposed sanctions, and this office is deeply committed to protecting the integrity of the United States in all ways.”

Assistant United States Attorney David L. Goldberg, who is a National Security Cyber Specialist, is prosecuting the case following a joint investigation by the United States Department of Commerce’s Bureau of Industry and Security along with the Federal Bureau of Investigation.

Meharg is charged with conspiring to export the turbine and its parts to Iran, submitting false and misleading export information, and defrauding the federal government by deceitfully obstructing the enforcement of laws against the export of goods to Iran. He is also charged with substantive offenses involving exporting items to Iran, filing false Electronic Export Information paperwork, and transporting funds from the United Arab Emirates with the intent to conduct the illegal activity. The defendant faces up to 20 years’ imprisonment each for the charges related to violating the International Emergency Economic Powers Act and money laundering, and he faces up to 5 years’ imprisonment each for the conspiracy and filing false paperwork charges. A trial date has been set for September 3, 2019, at 9:00 a.m. at the United States Courthouse in Pensacola.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

 

PENSACOLA, FLORIDA – Andrew E. Fisher, 33, of Gulf Breeze, Florida, was arraigned yesterday in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with conspiracy to commit health care fraud and wire fraud and conspiracy to commit money laundering. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The indictment alleges that between October 2014 and December 2015, Fisher, the president and part-owner of Physician Specialty Pharmacy, conspired with others to defraud TRICARE and other insurance companies through more than $4.8 million in fraudulent claims for prescriptions for compounded pain cream, scar cream, and wellness capsules. According to the indictment, Fisher agreed to fill prescriptions at his pharmacy knowing they were not based on legitimate doctor-patient relationships. In exchange, Fisher allegedly paid commissions to the marketing representatives who recruited individuals to receive the compounded drug prescriptions. Fisher, who is not a licensed pharmacist, also allegedly directed his employees to use ingredient formulations for the drugs that would maximize the amount his pharmacy could bill to TRICARE and other companies, without regard to what was medically necessary.

Five co-conspirators named in the indictment have previously pleaded guilty in two related cases. Bradley D. Pounds was sentenced to 21 months in prison, and Marie Ann Smith and Heather E. Pounds were sentenced to probation. Michael Scott Burton and Brad T. Hodgson are awaiting sentencing.

The maximum penalty for conspiracy to commit health care fraud and wire fraud is 20 years imprisonment, and the maximum penalty for conspiracy to commit money laundering is 10 years imprisonment. Fisher’s trial is scheduled for September 3, 2019, at 9:00 a.m. at the United States Courthouse in Pensacola.

Assistant United States Attorney Alicia H. Forbes is prosecuting the case following an investigation by the Federal Bureau of Investigation, Defense Criminal Investigative Service, Florida Department of Law Enforcement, Florida Department of Financial Services-Division of Insurance Fraud, Florida Department of Health, Naval Criminal Investigative Service, and Army Criminal Investigative Command.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of
Florida website.  For more information about the U.S. Attorney’s Office, Northern District of
Florida, visit http://www.justice.gov/usao/fln/index.html.

 

PENSACOLA, FLORIDA –Justin B. Lane, 35, was sentenced to 10 years in federal prison today after pleading guilty to mailing threatening communications to state prosecutors in Central Florida and threatening to use a weapon of mass destruction. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

In August 2017, while incarcerated on other matters in the Santa Rosa Correctional Institution in Milton, Florida, Lane mailed two letters to the Polk County State Attorney’s Office threatening to use anthrax. The two letters contained a white powdery substance that Lane claimed to be anthrax, and the letters stated that whoever opened the letters was going to die. The letters were opened by support staff in the state prosecutor’s office and biothreat protocols were initiated for fear of danger to life. Lane was sentenced as a career offender based on previous convictions, including a prior conviction for engaging in similar acts in West Palm Beach. The federal sentence imposed on Lane today will be served consecutively to all sentences Lane is currently serving.

"This office takes seriously any threat against citizens, and especially against those who are sworn to uphold the law," U.S. Attorney Keefe said.

This case resulted from an investigation by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. Assistant United States Attorney David L. Goldberg prosecuted the case.

"While we determined that the mailings did not contain harmful substances, both of these incidents required significant law enforcement response, which comes at a cost to taxpayers and limits resources for actual emergencies," said Rachel Rojas, Special Agent in Charge of the FBI Jacksonville Division. "This case demonstrates the commitment of the FBI and our law enforcement partners to fully investigate threatening behavior directed toward disrupting the justice system."

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA – Barney Crutchfield, of Tallahassee, was sentenced Thursday, July 11, to 120 months in federal prison after pleading guilty to drug conspiracy and firearms charges stemming from conspiracy to distribute narcotics throughout Northwest Florida. Crutchfield, 58, pleaded guilty in April 2018 to conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine, as well as possession of firearms and ammunition by a convicted felon. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Law enforcement began a wiretap investigation into the drug activities of Crutchfield and several co-defendants in 2017. Through the wiretap and other investigative means, federal agents and officers discovered that Crutchfield was distributing large quantities of cocaine and methamphetamine in Northwest Florida. Crutchfield and his co-defendants were obtaining cocaine from sources in Jacksonville and Miami, as well as methamphetamine from sources in Southern Georgia. Crutchfield was using his residence to store and sell the narcotics. A search of Crutchfield’s residence in Tallahassee resulted in the recovery of over 50 grams of methamphetamine, approximately 6 ounces of cocaine, approximately $29,134 in United States currency, and more than a thousand rounds of ammunition. At Crutchfield’s business, agents located approximately $254,460 in United States currency in a safe, along with an Intratec 9 mm pistol. Agents also searched a co-defendant’s residence, where they located another 30 firearms that Crutchfield had moved during the wiretap.

"This sentence sends a serious criminal to prison for years, and it would not have been possible without the outstanding cooperation and work by law enforcement and prosecutors at the federal, state, and local levels," U.S. Attorney Keefe said. "Cocaine and methamphetamine remain a scourge in many communities in Northwest Florida, and this case sends a message to criminals that we will find you and put you out of business."

Five co-defendants have previously been sentenced, and three others are still pending sentencing. One co-defendant has been charged by the State of Florida, and one other co-defendant was charged in a separate federal indictment and is pending trial.

This case resulted from a joint prosecution with the State Attorney’s Office for the Second Judicial Circuit, and an investigation by the Drug Enforcement Administration, the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Florida Highway Patrol, the Leon County Sheriff’s Office, the Wakulla County Sheriff’s Office, the Madison County Sheriff’s Office, and the Tallahassee Police Department. Assistant United States Attorney Gary Milligan prosecuted the case.

The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PENSACOLA, FLORIDA – Former financial planner James A. Young III, 49, of Milton, Florida, was arraigned today in the U.S. District Court in Pensacola after a federal grand jury returned an indictment charging him with two counts of wire fraud and three counts of failure to file tax returns over a three-year period. The indictment was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The indictment alleges that between 2010 and 2014, while working as a financial planner, Young solicited his clients and others to invest money in false "side investments" in real estate and natural resource rights. The indictment also alleges that Young presented false documents to potential investors and falsely told them he was also personally invested to convince them to invest.

The indictment further alleges that Young then pocketed the money, which totaled over $500,000, and used it for his own personal use. Further, in some instances, Young is alleged to have used money obtained from investors to pay back other investors, fraudulently representing the funds were returns or interest on their investments in order to keep the scheme going. Young also allegedly failed to file his federal tax returns for 2012, 2013, and 2014.

The maximum penalty for wire fraud is twenty years’ imprisonment. The maximum penalty for failure to file tax returns is one year imprisonment. The trial is scheduled for September 3, 2019, at 9:00 a.m. at the United States Courthouse in Pensacola.

Assistant United States Attorney Alicia H. Forbes is prosecuting the case following an investigation by the Emerald Coast Financial Crimes Task Force consisting of the Internal Revenue Service-Criminal Investigation and the Okaloosa County Sheriff’s Office. This case is part of the Department of Justice’s Elder Justice Initiative, which combats elder abuse and financial fraud targeted at seniors and is a key priority of the Department of Justice and the United States Attorney’s Office for the Northern District of Florida.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA – Ongoing efforts by the U.S. Marshals Florida/Caribbean Regional Fugitive Task Force (FCRFTF) have produced numerous arrests in Leon County following the recent launch of a multi-agency strike force, including three in the past week of individuals sought in cases that involved stolen weapons and other weapons charges, kidnapping, aggravated assault against law enforcement, auto theft, and probation violations. The arrests by United States Marshals, working in conjunction with the Leon County Sheriff's Office under the ALLinLEON initiative, were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

U.S. Marshals arrested Torrieo Monte Johnson on July 3, 2019, at a family member’s residence in Tallahassee.  During the arrest, Task Force members seized a semi-automatic Taurus handgun and rifle. Johnson was wanted by the Thomasville Police Department after fleeing a June 26 traffic stop during which Thomasville Police located two stolen rifles, including an AR15, and a 9mm handgun in Johnson’s vehicle.  Johnson was charged with Felon in Possession of a Firearm (x3) and Grand Theft Firearm.  He awaits extradition back to the State of Georgia on his felony charges.

Six days later, on July 9, Task Force members arrested 20-year-old Etavious Janquis Milton in Tallahassee.  Milton was wanted by the Leon County Sheriff’s Office (LCSO) for a kidnapping that occurred on June 27, after Milton fled on foot from LCSO patrol deputies during a routine traffic stop on Crawfordville Highway and stole a car with an elderly woman inside it, finally abandoning the car and its passenger on the outskirts of Quincy. LCSO detectives charged Milton with Kidnapping, Aggravated.

Assault on Law Enforcement, Flee/Elude, Grand Theft of Vehicle, and Resisting Officer with Violence.  Milton was also wanted on charges of Violation of Probation stemming from earlier charges of Aggravated Assault with Deadly Weapon, Carrying a Concealed Firearm, Burglary, and Grand Theft Motor Vehicle.

Federal task force members also responded that day to a request for assistance from the Tallahassee Police Department (TPD) for help in apprehending Jontavius Monroe, who was being sought by TPD investigators for Violation of Pretrial Conditions for a May 12 incident in which Monroe was arrested for Firing a Weapon in Public, Possession of Weapon by a Convicted Felon, Grand Theft of Firearm, and Possession of Marijuana.  Monroe was also charged with Resisting Arrest without Violence.

The Tallahassee Division of the FRFTF consists of state and local law enforcement officers from the Leon County Sheriff’s Office, Leon County State Attorney’s Office, Madison County Sheriff’s Office, Wakulla County Sheriff’s Office, Perry Police Department, Taylor County Sheriff’s Office, and the Gadsden County Sheriff’s Office.  These officers are sworn in as Special Deputy U.S. Marshals and, working alongside U.S. Marshals, target the most violent offenders in the Tallahassee area.

Federal, state, and local authorities last month launched a concerted effort to crack down on violent crime under LCSO’s ALLinLEON umbrella. That initiative has also engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills and substance abuse treatment.

All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

GAINESVILLE, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of William Larry Johns, 69, of Gainesville, after he was sentenced on June 24 in the United States District Court in Gainesville to a federal grand jury indictment that charged him with one count of theft of government money.

Johns served in the United States Marine Corps for less than a year in 1967, and years later applied for the United States Department of Veterans Affairs (“VA”) Disability Pension claiming to be unable to work due to a non-service connected disability.  Johns failed to regularly report his employment history, net worth, and income received from all sources as he was required to do. Further, during visits to the VA Medical Center, Johns falsely indicated that he was retired and failed to report to the VA the income he was earning through his plumbing and drain cleaning businesses between 2004 and 2017.

In addition to receiving a sentence of incarceration in federal prison and supervised release, Johns was ordered to pay restitution to the Department of Veterans Affairs in the amount of $157,949.

Assistant United States Attorney Justin M. Keen prosecuted the case, which was investigated by the Department of Veterans Affairs Office of Inspector General (VA-OIG). David Spilker, Special Agent in Charge, VA-OIG, stated, "The defendant’s deceitful actions stole VA’s limited resources from eligible veterans deserving of the financial assistance they earned through military service.  VA-OIG is committed to safeguarding the integrity of VA’s healthcare and benefits programs." 

United States Attorney Keefe added, “Military benefits exist for those who truly earned them, individuals who need the help of a public on whose behalf they sacrificed so much. Not only should these benefits be denied to those who do not earn them, but we owe it to the real heroes to prosecute anyone who seeks to benefit unjustly at their expense.”

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

PENSACOLA, FLORIDA – Son Chu Gilliam, 51, of Pensacola, Florida, pleaded guilty today to misdemeanor charges of receipt of adulterated and misbranded devices, and sale of prescription devices without a prescription -- those devices being contact lenses.  Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty plea.

Her sentencing hearing is currently set for September 10, 2019.

In May 2015, law enforcement seized approximately 600 counterfeit contact lenses that were being imported from China by Gilliam to her place of business, All about Ink, a tattoo shop in Pensacola, Florida.  A number of the contact lenses seized were tested by the U.S. Food and Drug Administration (FDA), and determined to contain microbial contamination.  FDA has determined that the types of bacteria found in the contact lenses can be hazardous.

Between July 2015, and October 2015, law enforcement made a number of undercover purchases of contact lenses from Gilliam and others working for Gilliam at All about Ink.  Following the undercover purchases, a federal search warrant was executed at All about Ink, and approximately 200 pairs of contact lenses were seized.  Samples of both the contact lenses purchased by undercover agents, and the contact lenses seized were tested by FDA, and a number of those also contained microbial contamination.  In addition to agents determining that a number of the contact lenses were counterfeit and FDA determining that a number of the contact lenses were contaminated and that none of the contact lenses should have been sold without a prescription.

“American consumers rely on FDA oversight to ensure the safety of their medical devices, including contact lenses.  Selling counterfeit contact lenses without a valid prescription puts patients’ health – and their vision – at risk,” said Acting Special Agent in Charge, H. Peter Kuehl, FDA Office of Criminal Investigations Miami Field Office. “The FDA is committed to working with our law enforcement partners to keep such products out of the U.S. marketplace.”

“This criminal was selling substandard, dangerous counterfeit contact lenses with no regard for the health and safety of consumers,” said HSI Tampa Deputy Special Agent in Charge Kevin D. Sibley. “Our agents are committed to collaborating with partner agencies, like U.S. Customs and Border Protection, the U.S. Food and Drug Administration and the Florida Department of Health, to conduct aggressive investigations into the distribution of fake goods that threaten the safety of our public.”

The case resulted from the investigation by the Homeland Security Investigations, the U.S. Food and Drug Administration Office of Criminal Investigations, U.S. Customs and Border Protection, and the Florida Department of Health.  It was prosecuted by Assistant United States Attorney J. Ryan Love.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

PENSACOLA, FLORIDA – U.S. Attorney Lawrence Keefe for the Northern District of Florida today announced the sentencing of Larry L. Masino, 69, of Gulf Breeze, and Dixie L. Masino, 66, of Pensacola. A jury found both guilty of conspiracy and money laundering charges related to their ownership and operation of Racetrack Bingo in Fort Walton Beach.

The Masinos, through Racetrack Bingo, illegally conducted bingo games by keeping a substantial amount of the bingo proceeds for themselves rather than returning all proceeds to players in the form of prizes, as required by law.  The Masinos received and laundered $5,813,584 in profit between 2006 and 2015.  Larry Masino, the original orchestrator of the illegal bingo scheme, was sentenced to twelve months and one day in prison, followed by two years of supervised release.  His ex-wife Dixie Masino, who took over as the face of the operation in 2010 after Larry was prosecuted in Tallahassee for running illegal bingo games there, was sentenced to four months of house arrest as a part of a five-year probation term.

“These individuals were preying upon the citizens of Fort Walton Beach,” said Special Agent in Charge Jack Massey at FDLE’s Pensacola Regional Operations Center. “We appreciate the diligent investigative work of our agents and our partners at the IRS, FBI and the Okaloosa County Sheriff’s Office and thank the U.S. Attorney’s Office, Northern District of Florida for bringing this case to a successful resolution for justice.“ 

In addition to receiving sentences of incarceration, house arrest, and probation, the Masinos were jointly ordered to pay a forfeiture money judgment of $5,813,584.  The government has already seized more than $1.5 million from the Masinos’ bank accounts and forfeited three properties, the proceeds of which will be applied toward the court-ordered money judgment.

"With today's sentencing, the Masinos will pay a high price for defrauding unsuspecting charities whose sole mission was to help others," U.S. Attorney Keefe said. "This office has zero tolerance for illegal gambling schemes, especially those that target charitable organizations. We will prosecute operators to the fullest extent of the law."

Assistant United States Attorney Alicia H. Forbes prosecuted the case, which was investigated by the Florida Department of Law Enforcement, the Internal Revenue Service-Criminal Investigation, the Federal Bureau of Investigation, and the Okaloosa County Sheriff’s Office.  

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

PANAMA CITY, FLORIDA – Ravi Babu Kolla, 47, an Indian foreign national residing in Panama City, was sentenced to 84 months in prison for conspiracy to commit marriage and visa fraud and conspiracy to commit money laundering. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Homeland Security Investigations (HSI) Panama City received information from the Bay County Sheriff’s Office during November 2017 that an unusually large number of marriages were occurring in rural Alabama counties. The marriages almost always involved male Indian nationals from throughout the United States and local women from Bay County, Florida. The evidence established that Kolla organized over 80 fraudulent marriages, and the majority of the Indian nationals involved had overstayed their visas or Student Exchange Visitor Program requirements and were unlawfully present in the United States. Each bride was to be paid $12,000 over a defined period for agreeing to participate in a fraudulent marriage.

"Our nation relies on the security of our nation’s immigration system, and any kind of fraud committed to cheat that system is a serious matter," said United States Attorney Lawrence Keefe. "This investigation, and the sentence imposed today, confirms that those who abuse the immigration process will be held accountable to the fullest extent of the law."

During June and July 2018, HSI Panama City executed a federal search warrant and three federal seizure warrants, resulting in the seizure of approximately $120,000 in suspected illicit proceeds, as well as documentary and electronic evidence related to numerous fraudulent marriages. Over $700,000 passed through Kolla’s bank accounts during the investigation. Currently, HSI Panama City is also coordinating with HSI New Delhi to locate and recover approximately $200,000 from the ICICI Bank in Mumbai, India, identified by investigators as additional proceeds from the marriage fraud enterprise.

This is an HSI-led investigation conducted with U.S. Citizenship and Immigration Services, Bay County Sheriff’s Office, and the Panama City, Blountstown, and Altha Police Departments, with assistance provided by sheriff’s offices in Coffee and Dale counties, Alabama. Assistant United States Attorney Corey J. Smith prosecuted the case.

"Marriage fraud is a serious crime that undermines our nation’s security," said HSI Tampa Special Agent in Charge James C. Spero. "To help protect the legal immigration system and the values associated with U.S. citizenship, HSI special agents will continue to work with law enforcement partners to stop criminals that seek to circumvent our laws."

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

TALLAHASSEE, FLORIDA – Gadsden County Sheriff’s Deputy Joseph Barnes, Jr., 52, of Quincy, has been arrested on a federal criminal complaint alleging that he unlawfully used a communication facility to aid or facilitate the possession with intent to distribute a controlled substance. Barnes was released on court-ordered conditions that included surrendering his two service weapons and the trained K-9 that played prominently in Barnes’ alleged criminal activity. The criminal complaint was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

According to the criminal complaint, Barnes actively aided individuals who distributed drugs in the Gadsden County area by alerting these individuals that federal law enforcement was watching them. In addition, he is alleged to have physically examined drug transport vehicles to determine if law enforcement had attached GPS tracking devices to vehicles about to be used for drug transportation. The complaint also alleges that he used his Gadsden County K-9, which was trained to detect the odor of narcotics residue, to determine whether a law enforcement K-9 could detect the presence of drugs in cars equipped with a hidden compartment to transport a load of drugs. Barnes allegedly used his cell phone to facilitate meetings with these individuals to accomplish these goals.

The criminal complaint and arrest stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targeted a drug trafficking organization.

This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Eric K. Mountin is prosecuting the case.

A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PENSACOLA, FLORIDA – Elvin Castron-Murcia, 20, a Honduran native residing in Louisiana, was sentenced in federal court today to ten years in prison for traveling for illicit sexual conduct and transporting a minor for criminal sexual activity involving a Northwest Florida girl. The sentence was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

"The illegal actions of this defendant will have a lasting and harmful impact on his adolescent victim, and it is important that he be imprisoned so he cannot take advantage of other young girls," Keefe said. "We thank the various federal, state, and local law enforcement partners who helped find the victim, return her safely to her family, and ensure that the defendant is brought to justice."

This investigation began in May 2018, when a 12-year-old female, identified only as "ENN," disappeared after her mother caught her communicating on Facebook with a male under the name "Elvin C. Murcia." Several neighbors had observed a black Honda Civic with Tennessee license tags parked near ENN’s residence in Navarre, Florida. A search of ENN’s cell phone and Instagram social media account revealed images of the girl in a vehicle with a male who appeared to be the same person on Murcia’s Facebook account.

The next day, ENN’s mother was able to communicate with her daughter via Facebook Messenger, and law enforcement officers determined that the cell phone used for the conversation was located in Tennessee heading toward Alabama. A state trooper soon observed the black Honda Civic with Tennessee tags and stopped the vehicle in Alabama. ENN was identified as the vehicle’s passenger and Murcia, who was using a license issued in a false name, was later identified as the driver. Images and videos forensically located on Murcia’s phone confirmed that Murcia and ENN were in a relationship that began when ENN was 11 years old. Law enforcement officers were also able to obtain video from a Tennessee Walgreens store showing Murcia purchasing birth control with ENN. The Department of Homeland Security confirmed that Murcia was illegally present in the United States.

Murcia will be removed from the United States after serving his sentence in federal prison.

"The victimization of innocent children will not be tolerated in this country, and this case reinforces that message," said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. "The FBI and our law enforcement partners will stop at nothing to identify child predators and ensure the safety of young people who are among the most vulnerable members of our community."

"Castron-Murcia acted with an intense focus to befriend this child and gain her trust only to victimize her," said FDLE Pensacola Special Agent in Charge Jack Massey. "FDLE will continue to work aggressively with our law enforcement partners to investigate those who seek to hurt our children."

The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Santa Rosa County Sheriff’s Office, the Alabama Law Enforcement Agency, and Homeland Security Investigations. Assistant United States Attorney David L. Goldberg prosecuted the case.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PENSACOLA, FLORIDA – Noah D. Stirn, 24, formerly housed at the Blackwater River Correctional Facility in Milton, Florida, was indicted on federal charges related to issuing threatening communications involving explosives and mailing threatening communications to injure others. The charges were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida. Stirn is now in federal custody.

The indictment alleges that in April and May 2019, while incarcerated by the State of Florida at Blackwater River Correctional Facility, Stirn mailed multiple letters to federal and state agencies that threatened the use of explosive devices to harm those in the local buildings. The indictment alleges that Stirn asserted that the attacks were "for the cause of the Islamic State." It is also alleged that Stirn threatened the use of "C4" and "car bombs."

Stirn will have his arraignment in federal court on the charges on June 25, 2019, at 2:00 pm, before United States Magistrate Judge Hope T. Cannon.

This case resulted from an investigation by the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Law Enforcement Capitol Police, the Pensacola Police Department, and the Tallahassee Police Department. Assistant United States Attorneys David L. Goldberg and Michelle K. Daffin are prosecuting the case.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

 

PANAMA CITY, FLORIDA – Three Bay County residents pleaded guilty on June 14, to federal fraud charges stemming from activities meant to induce elderly victims with false promises of sweepstakes prizes. The men each pleaded guilty to one count of conspiracy to commit wire fraud and mail fraud, one count of wire fraud, and one count of mail fraud. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the guilty pleas of Delroy Williams, 52, of Lynn Haven, Vivian Walters, 33, of Lynn Haven, and Jevaughn Williams, 22, of Panama City Beach.

A sentencing hearing for the three men is currently set for August 27, 2019, at 11:00 a.m.

Assistant U.S. Attorneys Michael Harwin and Michelle Daffin are prosecuting the case following a joint investigation by the United States Postal Inspection Service and the Lynn Haven Police Department.

“It is appalling that some individuals consider it acceptable to prey on vulnerable elders, defrauding them of their hard-earned savings,” U.S. Attorney Keefe said. “The U.S. Attorney’s Office will never tolerate such shocking and shameful behavior, and working closely with our federal, state, and local partners we will prosecute such criminals to the full extent of the law.”

Since the late 1990s, telemarketers in Jamaica have been engaging in a scam by contacting victims in the United States and falsely claiming the victims have won large sweepstakes prizes. Victims, who are primarily elderly, are induced to send cash or cash equivalents in order to release their purported prizes. The victims’ funds are often transported by wire transfers and United States Postal Service packages.

Between 2014 and 2017, the defendants conspired together to receive wire transfers and mailed packages from victims, took a percentage of the funds for themselves, and then forwarded the remainder to co-conspirators in Jamaica. Over 40 victims have been identified through wire transfer records and searches of the defendants’ electronic devices.

“In this investigation, U.S. Postal Inspectors labored arduously to bring these individuals to justice. The U.S. Postal Inspection Service works aggressively to investigate fraud schemes that involve the mail and victimizing our most vulnerable citizens” said Miami Division Inspector in Charge Antonio “Tony” Gomez.

Delroy Williams and Vivian Walters pleaded guilty to a fraudulent wire transfer of $1,800 from an 82-year-old victim and inducing an 85-year-old victim to send a U.S. Express Mail package containing $500 cash.

Jevaughn Williams pleaded guilty to a $1,500 fraudulent wire transfer from an 84-year-old victim. Williams also pleaded guilty to inducing a 78-year-old victim to mail $1,400 in postal money orders that were subsequently deposited into his personal bank account.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

BLAST (Building Lasting Relationships Between Police and Community) Program

                     Brings Law Enforcement and Communities Together

TALLAHASSEE, FLORIDA – This Wednesday, high school students in Gainesville will have the opportunity to hear directly from three of the area’s top law enforcement officials – including the U.S. Attorney, the Alachua County sheriff, and the Gainesville police chief – as part of a BLAST Program, which offers students an opportunity to meet representatives of the criminal justice community to ask them questions, share their perceptions of law enforcement, and interact with law enforcement officers in a familiar setting.

During the four-hour program at Eastside High School, law enforcement officers also provide students with their perspective on responding to dangerous or uncertain circumstances and the importance of remaining calm and following the officers’ directions in these situations. Members of the media are welcome to attend and photograph/video most demonstrations of the BLAST (Building Lasting Relationships Between Police and Community) Program demonstrations.

“Sharing these perspectives encourages safe interactions between citizens and officers to improve our community,” said Lawrence Keefe, United States Attorney for the Northern District of Florida, who will be one of the participants in the Gainesville program. “Our communities are safest when residents and law enforcement work as partners, and the BLAST program is an excellent way to replace misgivings and apprehension with familiarity and trust.”

Among those joining Keefe in speaking with the students will be Alachua Sheriff Sadie Darnell and Gainesville Police Chief Tony Jones. Agencies participating in the program include the FBI, ATF, DEA, Florida Highway Patrol, and the Alachua County Sheriff’s Office. Media: Please RSVP to  [email protected]  if you plan to attend.

The BLAST Program schedule will include the following discussion sessions, during which students will have a chance to participate in role play with law enforcement officers. (Students with media permissions will be identified.)

• Federal Crimes Scenario: Students will evaluate video scenarios and learn about each phase of a federal criminal case, including investigation, prosecution, and sentencing.

This session is open to the media, and videography and photography is permitted.

• Domestic Violence Response / K-9 Demonstration: Students will participate in a scenario in which law enforcement officers respond to a domestic disturbance. Discussion includes the challenges officers’ face, rights of witnesses and suspects, and benefits of providing information to law enforcement.

This session is open to the media, and videography and photography is permitted.

• Traffic Stop Simulation: Students and officers engage, alternating the roles of civilians and officers conducting a traffic stop. Discussion includes de-escalation and the uncertainty officers and vehicle occupants face during a traffic stop.

This session is open to the media, and videography and photography is permitted.

• Use of Force: Facilitators and students will discuss when law enforcement officers may use force and an officer’s reaction time when confronted with a life-threatening situation.

This session is closed to the media. Reporters may try the simulator equipment after the event ends.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

PENSACOLA, FLORIDA – Michael Lee DePine, 63, of Pensacola, was sentenced today for the production and possession of child pornography. The Court sentenced DePine to 18 years in federal prison, to be followed by supervised release upon which DePine will have to register as a sex offender. Lawrence Keefe, United States Attorney for the Northern District of Florida, announced the sentencing this afternoon.

In December 2018, law enforcement officers received information from the National Center for Missing and Exploited Children that DePine and a local minor female were engaged in illicit sexual communications and activity via Facebook Messenger. Homeland Security Investigations and the Pensacola Police Department were able to geo-locate the criminal activity of DePine to his residence. This led law enforcement to obtaining a federal search warrant for DePine’s residence in Pensacola. In January 2019, law enforcement searched his residence. While searching the residence, DePine was located at his place of employment, Navy Federal Credit Union. A forensic review of DePine’s seized digital media confirmed that he was in possession of multiple child pornographic images of the minor victim. These images were produced by DePine of the minor female in his bedroom at the residence.

“There are few things more vile, and harder to comprehend, than sexual crimes against young innocents. We will pursue these sexual predators wherever and whenever we must, in order to get them out of our neighborhoods and into our prisons,” U.S. Attorney Keefe said.

The investigation revealed that DePine had been picking the minor female up at her residence in the middle of the night in order to bring her back to his residence and engage in sexual acts.  DePine also provided the minor female with intimate apparel and electronic funds for her expenses. The government requested, during the sentencing hearing, that the Court not only sentence DePine to imprisonment, but also that he be required to forfeit his 2016 Lexus and his residence because both were utilized by DePine to commit his crimes. The Court ordered DePine to forfeit to the government his vehicle, his residence, and all the electronic devices he used to commit his crimes.

“This predator used social media as a means to continually abuse a young minor victim while producing multiple pornographic images of this child,” said HSI Tampa Special Agent in Charge James C. Spero. “Now this felon will no longer be able to abuse children and he will be held accountable for his crimes, thanks to the diligent investigative work of the Pensacola Police Department, the North Florida Internet Crimes Against Children Task Force and our HSI special agents.”

“We are thankful for the hard work and support from our federal partners in helping us bring this case to a successful conclusion,” said Pensacola Police Chief Tommi Lyter.

The case was investigated by United States Immigration and Customs Enforcement Homeland Security Investigations, the Pensacola Police Department, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Senior Litigation Counsel David L. Goldberg.

The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment, unsealed today, charging eight defendants with 83 counts of federal dogfighting offenses stemming from an investigation into drug trafficking and a large-scale illegal dogfighting operation involving approximately 100 dogs. The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

Most of the dogs used by the defendants were recovered by the United States Marshals Service and placed with appropriate foster organizations. In addition to setting out the facts supporting the charges, the indictment alleges that at one of the locations searched where dog fighting events were conducted, investigators discovered the remains of a recently-deceased dog, confirming that dog fights were recently held at that location.

“The United States Attorney’s Office takes allegations of dogfighting very seriously. Our society can be judged, in part, by how we treat our animals,” Keefe said. “This office will work with our partners at the federal, state, and local levels to pursue such cases vigorously."

The defendants named in this indictment are:

● Jermaine Terrell Hadley, 31, Quincy, Florida;

● Devar San Jacus Donaldson, 27, Quincy, Florida;

● Sariem Shanquell McMillian, 23, Quincy, Florida;

● Randell Lavel Colston, 47, Quincy, Florida;

● Bob Streets, 35, Quincy, Florida;

● Zanntayfey Yohoun Bennett, 35, Quincy, Florida;

● Dennis Lamar Howard, 45, Chattahoochee, Florida; and

● Leonard Safford, 37, Gretna, Florida.

The indictment and arrests resulted from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targeted a drug trafficking organization that also allegedly organized and conducted a large-scale illegal dogfighting operation throughout the Northern District of Florida between 2014 through

2019. During the operation, search warrants were executed on properties allegedly involved in training, housing, and conducting illegal dogfights.

The charged defendants face penalties of up to five years imprisonment and fines up to $250,000, per count of conviction.

On May 8, 2019, Hadley, Donaldson, McMillian, and Colston were among a dozen individuals indicted on federal drug trafficking offenses for allegedly distributing methamphetamine, cocaine, and MDMA throughout the north-central Florida Panhandle between 2018 and 2019.

The cases were investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, U.S. Customs and Border Protection Air and Marine Operations, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The cases are being prosecuted by Assistant United States Attorney Eric Mountin.

The OCDETF approach to combating drug trafficking is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE – In an effort to curb growing local gun violence, largely fueled by stolen guns and illegal drug activity, Leon County Sheriff Walt McNeil and Lawrence Keefe, United States Attorney for the Northern District of Florida, today announced an unprecedented commitment of federal, state and local resources to get wanted criminals off the streets and illegal guns and drugs out of their hands.

“This community is about to see an unprecedented show of force with a single focus – to make our neighborhoods safer by getting illegally possessed guns and drugs, as well as the criminals who use them off our streets,” Sheriff McNeil said.

As part of the sheriff’s “ALL in LEON” initiative, U.S. Attorney Keefe announced a coordinated effort among federal agencies – including the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Drug Enforcement Administration (DEA), and the U.S. Attorney’s Office, as well as the Office of the State Attorney, 2nd Judicial Court and Florida Department of Law Enforcement (FDLE)– to actively collaborate with local law enforcement to put gun criminals away for a long time.

“The considerable tools, resources and expertise of the appropriate federal law enforcement agencies will coordinate with and complement local law enforcement to help this community stem the rising flood of gun violence,” Keefe said. “Criminals be warned: If you commit a crime with a gun, these federal agencies are coming for you, and you’ll be put away in the federal prison system far from Tallahassee for as long as possible.”

It is a federal crime to use a gun in the commission of a drug trafficking or violent crime or for a convicted felon to possess a gun. Those charged with such offenses are usually jailed pending trial, and if convicted are ineligible for probation and face possible mandatory minimum sentences. Under Florida’s 10-20-Life law, anyone who carries a firearm during the commission of a violent felony faces a mandatory minimum sentence of 10 years in prison. Anyone who shoots a firearm during a violent felony faces a mandatory minimum sentence of 20 years. Furthermore, anyone who shoots someone during a violent felony faces a mandatory minimum sentence of 25 years and may face life in prison without the possibility of parole.

“With the help of our federal partners, there is nowhere that these violent criminals can hide,” Sheriff McNeil said. “This is a long-term commitment, and the community will see the evidence of it at work very soon.”

McNeil said every resident of our community has a role to play in supporting this effort: If you have a tip about someone criminally possessing a gun or committing an offense with a gun, call Big Bend Crime Stoppers at 850-574-TIPS or go online at bbcsi.org. You can also contact ATF at 1-888-ATF-TIPS or text ATFTAM to 63975.

If you own a gun legally, keep it securely locked up, and don’t store it in a vehicle. LCSO says last month alone, 12 guns were stolen from vehicles during car break-ins worked by the agency. “Stolen guns often end up used in the commission of crimes.” McNeil said.

This historic strike force operation follows a spate of gun violence incidents, including one over the recent Memorial Day weekend. Along with the law enforcement and prosecutorial activity, “ALLin LEON” has engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills and substance abuse treatment.

“The dignity of our neighbors and neighborhoods are at stake with the drug activity that leads to gun violence,” said Southside resident and advocate Christic Henry. “As we meet the needs and give opportunities to those looking to break the cycle of poverty, we must balance that effort with respect and enforcement of the law.”

PENSACOLA, FLORIDA – Noah D. Stirn, 24, formerly housed at the Blackwater Correctional Facility in Milton, Florida, was taken into federal custody today on a criminal complaint charging him with threatening communications involving explosives and mailing threatening communications to injure others. The charges were announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The criminal complaint alleges that during a one week time frame, Stirn mailed multiple letters to federal and state agencies that threatened the use of explosive devices to harm those in the local buildings. This led to the evacuation of the buildings and the deployment of officers with bomb sniffing canines.

Stirn will have his initial appearance today in federal court on the charges at 3:00 pm before United States Magistrate Judge Elizabeth M. Timothy.

A criminal complaint is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

This case resulted from an investigation by the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Law Enforcement, the Pensacola Police Department, the Tallahassee Police Department, and the Tallahassee Capitol Police. Assistant United States Attorney David L. Goldberg is prosecuting the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html

TALLAHASSEE, FLORIDA – "We are extremely thankful for the immediate, effective response of the Pensacola Police Department, Federal Bureau of Investigation, and the United States Marshals Service to this morning's incident," said Lawrence Keefe, United States Attorney for the Northern District of Florida. The U.S. Attorney's Office highly values our federal, state, and local law enforcement partners, and we greatly appreciate everything they did to help us today.” 

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury returned an indictment, unsealed today, charging 12 defendants with federal drug trafficking offenses.  The indictment was announced by Lawrence Keefe, United States Attorney for the Northern District of Florida.

The defendants are:

• Jermaine Terrell Hadley, 31, Quincy, Florida;
• Devar San Jacus Donaldson, 27, Quincy, Florida;
• Sariem Shanquell McMillian, 23, Quincy, Florida;
• Ja’rod Lamar Bryant, 31, Quincy, Florida;
• Jaquantavious Trayshon Owens, 25, Quincy, Florida;
• Jamaron Juanata Paden Sr., 29, Marianna, Florida;
• Eddie Lee Hughes, 52, Quincy, Florida;
• Tiffany Jean Hughes, 29, Marianna, Florida;
• Samantha Eugenia Yelle, 30, Marianna, Florida;
• Patrick Lee Baker, 43, Quincy, Florida;
• Randell Lavel Colston, 47, Quincy, Florida; and
• Linda Lockwood, 48, Quincy, Florida.
   

The indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force Operation which targeted a drug trafficking organization alleged to be responsible for the distribution of methamphetamine, cocaine, and MDMA throughout the northcentral panhandle of Florida between 2018 and 2019.

The charged defendants face penalties ranging up to and including life imprisonment, and fines up to $20,000,000.

The case was investigated by the Drug Enforcement Administration, the Office of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, the Gadsden County Sheriff’s Office, Jackson’s County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case is being prosecuted by Assistant United States Attorney Eric Mountin.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt.  All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

TALLAHASSEE, FLORIDA – A federal grand jury has returned a forty-seven count superseding indictment, unsealed today, against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S.  Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS Criminal Investigation (CI) Tampa Field Office made the announcement.

In December 2018, a federal grand jury charged Maddox and Carter-Smith in a forty-four count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery.  That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS, and filing false tax returns.  The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery, and making false statements to federal officers.

Burnette’s initial appearance is scheduled for today at 3:00 p.m. EST at the United States Courthouse in Tallahassee.  The trial of this case has been scheduled for November 4, 2019.

More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.”  Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner.  Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance.  Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters, and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.

The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects.  Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette.  Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox.  The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox.  The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.

The investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan, and Andrew J. Grogan of the Northern District of Florida and Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Department of Justice, Criminal Division’s Public Integrity Section.

The maximum terms of imprisonment for the offenses are as follows:

• 30 years: Bank Fraud, False Statements to a Financial Institution
• 20 years: Racketeering Conspiracy, Extortion, and Honest Services Fraud
• 5 years: Use of Interstate Facilities in Furtherance of Bribery, Making False Statements to a Federal Officer, Conspiracy to Defraud the United States
• 3 years: False Statement on a Tax Return

 

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt.  All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

 

A federal grand jury has returned a 47-count superseding indictment against suspended Tallahassee City Commissioner Scott Charles Maddox, 51, Tallahassee political consultant Janice Paige Carter-Smith, 54, and John Thomas Burnette, 42, all of Tallahassee, Florida. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S.  Attorney Lawrence Keefe of the Northern District of Florida, Special Agent in Charge Rachel Rojas of the FBI’s Jacksonville Field Office and Special Agent in Charge Mary Hammond of the IRS  Criminal Investigation (CI) Tampa Field Office made the announcement.

In December 2018, a federal grand jury charged Maddox and Carter-Smith in a 44-count indictment for conspiring to operate a racketeering enterprise that engaged in acts of bank fraud, extortion, honest-services fraud and bribery.  That indictment also charged Maddox and Carter-Smith with substantive counts of bank fraud, false statements to financial institutions, extortion, honest-services fraud, use of interstate facilities to facilitate bribery, false statements to federal officers, conspiracy to interfere with the lawful function of the IRS and filing false tax returns.  The superseding indictment adds Burnette as a defendant and charges him with participating in the racketeering conspiracy and extortion, honest services mail fraud, the use of facilities in interstate commerce to facilitate bribery and making false statements to federal officers.

Burnette’s initial appearance is scheduled for today at the U.S. Courthouse in Tallahassee. The trial of this case has been scheduled for Nov. 4, 2019.

More specifically, the December 2018 indictment alleges that Maddox and Carter-Smith conspired to operate two companies, Governance Inc. and Governance Services LLC, as one entity they referred to as “Governance.”  Governance was allegedly part of a racketeering enterprise which extorted money and accepted bribes from Governance clients under color of Maddox’s office and through fear of the economic harm which Maddox could inflict in his position as an influential City Commissioner.  Maddox allegedly agreed to and voted on matters and exerted influence on City employees to take actions that benefitted the businesses that paid Maddox and Carter-Smith through Governance.  Additionally, Maddox and Carter-Smith allegedly defrauded a bank of more than $250,000 through two fraudulent short sales of real property, lied to federal agents about Governance and other matters and violated federal tax laws by conspiring to interfere with the IRS and filing false tax returns.

The superseding indictment adds charges that Burnette participated with Maddox and Carter-Smith in extorting representatives of a company seeking to develop properties in Tallahassee to pay money to Maddox through Governance in exchange for Maddox’s assistance as a public official in the proposed projects.  Further, it is alleged that Burnette arranged the logistics of bribe payments of $10,000 per month to Maddox through Governance, and told the company representatives that Maddox wanted them to deal only with Burnette.  Additionally, the superseding indictment alleges that when Maddox and Burnette traveled to Las Vegas (Nevada) with the company representatives paying for all expenses, Maddox and Burnette told the company representatives about Maddox threatening to destroy a former client’s business deals if the former client did not pay Maddox.  The superseding indictment further alleges that at subsequent meetings, when asked by company representatives about stopping the bribe payments to Maddox, Burnette made various extortionate statements to the representatives as to what actions Maddox would take to cause economic harm to the company if they stopped making the $10,000 monthly payments to Maddox.  The superseding indictment further alleges that Burnette made false statements to the FBI concerning the name of the firm that Carter-Smith had, his knowledge of the company making payments to Maddox through Governance, and the content of conversations that Maddox had with company representatives.

An indictment is merely a charge and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The investigation was conducted by the FBI and the IRS-CI.  The case is being prosecuted by Trial Attorneys Simon J. Cataldo and Peter M. Nothstein of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Stephen M. Kunz, Gary Milligan and Andrew J. Grogan of the Northern District of Florida.