Northern District of Florida

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today thatClifford Virgile, 25, of Tallahassee, and Rodney Charles, 22, of Miami, were sentenced to prisons terms based upon their pleas of guilty to identity theft and income tax refund fraud charges.  United States District Judge Robert L. Hinkle sentenced Virgile to a total of 70 months in prison, three years of supervised release, $500 in special monetary assessments, and $102,824 in restitution.  Charles received a total term of 25 months in prison, three years of supervised release, $400 in special monetary assessments, and $4,475 in restitution.

According to court records, the men were arrested on the Florida State University campus on May 16, 2013.  FSU Police Officers responded after employees noticed the men loitering in a deserted area, near a bank of automated teller machines shortly before 6:00 a.m.  Charles fled when officers approached.  When caught, Charles had $2,906 in cash, a debit card in a woman’s name, and a receipt showing that he had just withdrawn $500 using that card.  Virgile was located nearby.  When officers found Virgile’s rental vehicle, they discovered another five debit cards in other people’s names, $13,605 in cash, and receipts for other cash withdrawals.

Officers also found Virgile’s laptop, which contained stolen personal identity information (“PII”) for about 250 people.  Other fraudulent income tax returns have been linked to the PII in Virgile’s computer and to the internet addresses used for the returns, which were directed to the debit cards.

Proceeds from seventeen fraudulent income tax returns were sent to these six debit cards.  These returns sought a total of $95,499 and actually caused refunds totaling $58,513 to be issued.  Another $17,953 was recovered from the debit cards after they were seized.  Sentencing was based upon total attempted losses exceeding $400,000 and actual losses of $119,619, which were reduced by the monies seized when the defendants were arrested.  

U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the FSU Police Department, the U.S. Secret Service, and the Internal Revenue Service.  The case was prosecuted by Assistant United States Attorney Michael T. Simpson.

TALLAHASSEE, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that Ashley Assgill Glover, 29, of Miami, Florida, was sentenced to five years in federal prison after pleading guilty to one count of theft of government property, one count of possession of unauthorized devices, and one count of aggravated identity theft.

U.S. District Court Judge Mark Walker sentenced Glover on July 10, 2014, to a five year prison term followed by three years of supervised release.   Glover was also ordered to pay the Internal Revenue Service restitution in the amount of $216,031. 

On March 12, 2012, the Tallahassee Police Department stopped Glover, and found her in possession a list of more than 800 victims’ personal identifying information (PII).  There were also debit cards loaded with tax refunds linked to fraudulent tax returns.  Sixty fraudulent tax returns were filed during the 2012 tax season in the names of victims on the list.  These returns claimed approximately $369,848 in fraudulent refunds.

In June 2012, Glover was stopped by Coral Springs Police Department and found in possession of a list including over 160 victims’ PII.  In November 2012, Glover was stopped by the Florida Department of Agriculture and found in possession of yet another list containing over 600 victims’ PII.

During the 2012 tax season, there were 206 fraudulent tax returns filed using information from the three recovered lists seeking approximately $1,246,417 in fraudulent refunds.  Fortunately, the Internal Revenue Service detected most of the fraudulent tax returns and stopped the issuance of more than a million dollars in fraudulent refunds.

U.S. Attorney Marsh praised the work of the Tallahassee Police Department, the United States Secret Service, the Internal Revenue Service, and the Florida Department of Agriculture, whose joint investigation led to the convictions in the case.

The case was prosecuted by Assistant U.S. Attorney Winifred L. Acosta Nesmith.

TALLAHASSEE, FLORIDA– Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Frank William Johannissohn, 66, of Tallahassee, Florida, has been charged by a federal grand jury with mail fraud, possession of an authentication feature with intent to defraud the United States, making false statements to the United States Office of Personnel Management, and aggravated identity theft.

The indictment alleges that on or about July 26, 2013, Johannissohn mailed a fraudulent “Redress of Alimony” order bearing the forged signatures of a Wakulla County circuit court judge and a deputy clerk of the court to the United States Office of Personnel Management, as well as a certification stamp of the Wakulla County Clerk of the Court.  According to the Indictment, Johannissohn mailed the fraudulent document in an attempt to obtain approximately $10,000 in additional retirement payments for every year of his retirement.  Specifically, the fraudulent “Redress of Alimony” purportedly ordered the termination of Johannissohn’s obligation to provide health insurance for his former spouse, to pay for a survivor benefit under his federal retirement annuity for his former spouse, and to pay alimony to his former spouse.

If convicted on Count One of the Indictment charging mail fraud, Johannissohn faces a term of imprisonment of not more than 20 years, a period of supervised release of up to 3 years, a fine of up to $250,000, and a $100 special monetary assessment.  If convicted on Counts Two (possession of an authentication feature with intent to defraud the United States) and Three (using a false writing and document) of the Indictment, Johannissohn faces on each of these counts a term of imprisonment of not more than 5 years, a period of supervised release of up to 3 years, a fine of up to $250,000, and a $100 special monetary assessment.  If convicted on Count Four of the Indictment charging aggravated identity theft, Johannissohn faces a term of imprisonment of 2 years that must run consecutive to any term of imprisonment imposed for Counts One and Two, a period of supervised release of up to 1 year, a fine of up to $250,000, and a $100 special monetary assessment. 

The Indictment results from an investigation by the United States Office of Personnel Management’s Office of Inspector General with the assistance of the Wakulla County Sheriff’s Office and the Leon County Sheriff’s Office.  The case is being prosecuted by Assistant United States Attorney Jason Beaton.

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 in a court of law.

PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that the Honorable Richard Smoak sentenced Versiah M. Taylor, 33, of Panama City, Florida, to 264 months in federal prison and Tracy L. Collier, 48, of Panama City, Florida, to 164 months in federal prison for filing fraudulent tax returns using the personal identifying information (PII) of other individuals.

Between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds.  The defendants used the PII of inmates of the Florida Department of Corrections, Bay County residents, and others to file fraudulent income tax returns.  Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and mailed them to Taylor.  Taylor, operating out of a small office that he rented in the Steele Boys Bail Bond’s Plaza in Panama City, orchestrated the filing of multiple tax returns creating false employment information and using the PII of other individuals.  These returns each claimed fraudulent refunds between $3,000 and $9,530 and were to be deposited onto prepaid debit cards, which were then mailed to various locations throughout Bay County, Florida.

Taylor was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $4,500 special monetary assessment.

Collier was also sentenced to serve a 3-year term of supervised release and ordered to pay $107,422 in restitution and a $2,200 special monetary assessment.

This conviction results from an investigation by agents of the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Katy Risinger.

PANAMA CITY, FLORIDA– United States Attorney Pamela C. Marsh announced that the Honorable Richard Smoak sentenced Will Rustin Sprayberry, 33, of Alabama to 46 months in federal prison and Jennifer Nicole Pippin, 31, of Alabama to 18 months in federal prison for manufacturing, possessing, and passing counterfeit currency.

Sprayberry and Pippin pled guilty in March to two counts of manufacturing, possessing, and passing counterfeit United States currency in Panama City, Florida, between November 7, 2013, and November 13, 2013.

Sprayberry and Pippin were also each sentenced to 3 years of supervised release, a $200 special monetary assessment, and ordered to pay restitution in the amount of $410 to various businesses throughout Panama City Beach, Florida. 

PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Jeffrey B. Richards, age 63, of Milton, was sentenced today on federal charges related to the online receipt of child pornography.

For approximately ten years, Richards utilized peer-to-peer software to download vast amounts of child pornography, including more than 100,000 sexualized images and videos of children.  During this time, Richards was teaching in local schools.  The prosecution revealed that in his online searches, Richards used search terms specifically geared toward obtaining child sexual exploitation images and videos.  In addition, Richards possessed at least one audio file in which a young female portraying a “student” was engaged in graphic sexual acts with her “teacher” in exchange for a favorable grade in school.

Senior United States District Judge Lacey A. Collier sentenced Richards to six years imprisonment to be followed by ten years of supervised release.  Upon release, Richards will be required to register as a sexual offender.

The prosecution was a result of a joint investigation by the Federal Bureau of Investigation, the Department of Homeland Security, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney David L. Goldberg.

PANAMA CITY, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that a federal grand jury returned an indictment yesterday charging Robert Leesean Williams (29) with possession and receipt of child pornography.  Counts one and two of the indictment allege that between June 15, 2013, and June 16, 2013, Williams knowingly and intentionally distributed and received images and videos of child pornography.  Count three alleges that between June 15, 2013, and September 12, 2013, Williams knowingly possessed child pornography that involved a prepubescent minor and a minor that had not attained the age of twelve (12).

If convicted of counts one and two of his indictment, Williams faces a minimum mandatory sentence of five (5) years and up to twenty (20) years in prison.  If convicted on count three of this indictment, Williams faces a term of imprisonment of not more than twenty (20) years. Additionally, as to each count, Williams faces the imposition of a fine of up to $250,000, not less than five (5) years and up to a lifetime term of supervised release, and a $100 special monetary assessment. 

The indictment results from an investigation by agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, and the North Florida Internet Crimes Against Children Task Force.  The case is being prosecuted by Assistant United States Attorney Kathryn Risinger.

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 in a court of law.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today that United States District Judge Robert Hinkle sentenced Jerry Samuel Joseph, 33, formerly of Tallahassee, to a total of 81 months in federal prison on two indictments.  One case involved five charges relating to fraudulent federal income tax returns, and the other case involved failing to register as a sex offender.

In a case indicted in the Northern District of Florida, Joseph pled guilty to conspiring to file false claims against the United States, two charges of converting government funds, using the U.S. Postal Service to commit fraud, and using stolen identity information to commit fraud.  Joseph was sentenced to 57 months for each of the first four charges and to a 24-month consecutive sentence for using stolen identity information to commit fraud.

This first case involved approximately 71 fraudulent federal income tax returns filed in 2011 and 2012, seeking refunds totaling $352,721.  These returns generated actual refunds totaling $134,931.00 in checks that were mailed to an apartment complex in Tallahassee.  Joseph created the fraudulent returns, arranged for them to be filed, and directed others to retrieve and to cash the refund checks. 

In a second case, indicted in the Eastern District of New York, Joseph pled guilty to failing to register as a sex offender.  This case was transferred to the Northern District of Florida for plea and sentencing.  Joseph received a 57-month sentence in this case, concurrent with the sentences imposed in the fraud case.

Joseph was previously convicted in South Carolina in 1998 of Criminal Sexual Conduct With a Minor Under the Age of Sixteen, and in Dade County, Florida, in 2006 of Lewd and Lascivious Battery on a Child aged 12 to 16 and of Failing to Register as a Sex Offender.  As a convicted sex offender, Joseph was required to register with authorities under the Sex Offender Registration and Notification Act (“SORNA”) and to keep that registration current.  Joseph initially registered in 2008, when he was released from the Florida Department of Corrections and moved to Tallahassee.  However, after being questioned about his involvement in fraudulent activity, Joseph left Tallahassee in 2009.  Agents investigating the fraud case learned that Joseph was living and working in Brooklyn, New York, under the name “Jerry Geudy.”  Joseph was arrested on the federal fraud charges and for state probation violations on June 7, 2013.  He admitted that he had been living in New York for about four years and that he had not registered as a sex offender during that time.

When released from the Bureau of Prisons, Joseph will serve a ten-year term of supervised release, with requirements that he continue to register under SORNA, that he receive sex offender treatment, and that he have no unsupervised contact with minors.  Joseph was also ordered to pay $600 in special monetary assessments.  Judge Hinkle advised that he would set a restitution amount at a later date.

U.S. Attorney Marsh praised the joint efforts of the Internal Revenue Service, the Secret Service, the United States Postal Inspectors, and the United States Marshals Service.  Assistant U.S. Attorneys Michael T. Simpson (NDFL) and Tyler Smith (EDNY) prosecuted this case.

PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced the sentencing today of Andrea Lorraine Avery, 47, of Los Angeles, California, following acceptance of her guilty plea in December of last year.  Avery pleaded guilty to seven counts that included:  conspiracy to commit fraud, five counts of mail fraud affecting a financial institution, and conspiracy to commit money laundering.  Avery was sentenced to 84 months in prison and ordered to pay restitution in the amount of $10,323,369 to the FDIC as Receiver for Washington Mutual, GMAC Mortgage, SunTrust Mortgage, Wells Fargo Bank, USBank, and others. 

Avery admitted that beginning in 2005 and continuing through 2008, she and others entered into contracts to purchase twenty-four residences located in Florida, Georgia, Louisiana, Texas, and California.  As a part of the fraudulent scheme, numerous properties located in the Northern District of Florida were purchased, which included homes in Navarre, Santa Rosa Beach, and Panama City.  Thereafter, fraudulent loan applications were submitted to financial institutions to fund the purchases.  In the loan applications, Avery and other borrowers made false statements to the lenders, which included:  providing false names and social security numbers; overstating the borrower’s income and assets; and falsely stating the earnest money deposit was not borrowed.  In support of the loans, Avery and other borrowers submitted fraudulent supporting documents to the lenders, which included:  false pay-stubs, false W-2s, false verifications of employment, and false documentation concerning the borrower’s credit.  Approximately $16 million in loans were issued by the lenders in connection with the fraudulent scheme.  Avery and her company received more than $3.5 million in kickbacks as a result of the scheme. 

The charges are the result of an investigation by the Florida Department of Law Enforcement, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation.  This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.

           PANAMA CITY, FLORIDA– Late Wednesday night, a federal jury returned verdicts finding Donald Terry Dubose, a/k/a “Terry Dubose,” 66, of Panama City Beach, Florida, Elwood Ladon West, a/k/a “Woody West,” 40, of Monroeville, Alabama, and Frank Alfred Baker, 62, of Marianna, Florida, guilty of certain charges in a twelve count superseding indictment charging conspiracy to commit wire fraud, making false statements, and filing false claims against the Federal Deposit Insurance Corporation.  Dubose was convicted on all twelve counts of the indictment.  West was convicted on counts two through twelve of the indictment and acquitted on the first count, the conspiracy charge.  Baker was convicted of the conspiracy charge and certain of the remaining wire fraud and false claim charges.  The verdicts were handed down late Wednesday evening, following a trial that lasted almost three weeks.
  
            The evidence at trial established that Coastal Community Investments (“Coastal”) was a bank holding company that owned Coastal Community Bank, based in Panama City Beach, Florida, and Bayside Savings Bank, based in Port St. Joe, Florida.  Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010.  Dubose was the Chairman and Chief Executive Officer of Coastal and the largest Coastal shareholder.  West was the Chief Financial Officer of Coastal and a Coastal shareholder.  Baker was an attorney for Coastal and was Coastal’s second largest shareholder.

            The case involved a fraud committed against the Government relating to the FDIC’s Temporary Liquidity Guarantee Program (TLGP), which was created at the height of the nation’s financial crisis in October 2008.  The purpose of the TLGP was to encourage banks to begin lending to one another again, and thereby, help to stabilize the economy.  To accomplish this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing unsecured debt, thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC.

            The evidence at trial showed that in October 2008, Coastal had a $3,000,000 secured loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”).  At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock that secured the loan and take over Coastal Community Bank and Bayside Savings Bank.  Under pressure from RBC to repay this debt, the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing for a fact that it was instead a secured loan, so that Coastal could get an FDIC-guaranteed loan under the TLGP.

            The evidence at trial established that Coastal obtained a $3,750,000 loan from central Florida-based CenterState Bank.  Based on the defendants’ misrepresentations, the CenterState Bank loan was guaranteed by the FDIC under the TLGP (the “TLGP Loan”), and as provided by the program, represented 125% of the RBC Loan.  Coastal used the proceeds of the TLGP Loan to repay the RBC Loan.

            In June 2010, Coastal defaulted on the TLGP Loan, and on August 6, 2010, CenterState Bank filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest.  The FDIC paid CenterState’s claim on August 13, 2010, by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.

            United States Attorney Marsh said, “These defendants – bank officers and a bank attorney – took advantage of the Temporary Liquidity Guarantee Program, which was designed to help the country avoid financial collapse, and instead used the program to enrich themselves.  Such fraud committed by bank insiders against programs designed to help our citizens will not be tolerated.  Not only is such conduct a breach of trust, it is harmful to our communities and our nation.  My office will continue to investigate and prosecute any individual who would harm our banking system, our financial institutions, and our national economy.”

            Matt Alessandrino, Assistant Inspector General for Investigations, FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney's Office and our law enforcement colleagues in investigating the fraud that led to these convictions today.  It is particularly troubling to the FDIC OIG when bank insiders and other professionals affiliated with the bank violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund or harm FDIC programs designed to restore the strength of the banking system.  We are committed in our efforts to maintain integrity in our nation's banks.”

           “Bank executives who commit fraud impact the safety and soundness of financial institutions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “My office will continue its vigorous pursuit of those who undermine the Federal Reserve’s ability to carry out its supervisory responsibilities over banks and bank holding companies it regulates.  I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to these convictions.”

            The defendants are facing a maximum of 30 years’ imprisonment on each count of conspiracy to commit wire fraud, wire fraud, and making false statements to the FDIC.  Each defendant faces a maximum of five years’ imprisonment for causing the submission of CenterState Bank’s false claim against the United States.

            The case was prosecuted by Assistant U.S. Attorney Gayle Littleton and Assistant U.S. Attorney Ryan Love, with the invaluable assistance of Federal Reserve – Office of the Inspector General Special Agent Amy Whitcomb.

PANAMA CITY, FLORIDA– Late last night, a federal jury returned verdicts finding Donald Terry Dubose, a/k/a “Terry Dubose,” 66, of Panama City Beach, Florida, Elwood Ladon West, a/k/a “Woody West,” 40, of Monroeville, Alabama, and Frank Alfred Baker, 62, of Marianna, Florida, guilty of conspiring to commit wire fraud, making false statements, and filing false claims against the Federal Deposit Insurance Corporation.  In addition, the three defendants were found guilty of seven counts of wire fraud, three counts of making false statements to the FDIC, and one count of aiding and abetting a false claim against the United States.  The verdicts were handed down late last evening, following a trial that lasted almost three weeks. 
  
            The evidence at trial established that Coastal Community Investments (“Coastal”) was a bank holding company that owned Coastal Community Bank, based in Panama City Beach, Florida, and Bayside Savings Bank, based in Port St. Joe, Florida.  Coastal Community Bank and Bayside Savings Bank both failed on July 30, 2010.  Dubose was the Chairman and Chief Executive Officer of Coastal and the largest Coastal shareholder.  West was the Chief Financial Officer of Coastal and a Coastal shareholder.  Baker was an attorney for Coastal and was Coastal’s second largest shareholder.

            The case involved a fraud committed against the Government relating to the FDIC’s Temporary Liquidity Guarantee Program (TLGP), which was created at the height of the nation’s financial crisis in October 2008.  The purpose of the TLGP was to encourage banks to begin lending to one another again, and thereby, help to stabilize the economy.  To accomplish this, the TLGP provided that the FDIC would guarantee a loan made by one financial institution (the “lender”) to another financial institution (the “borrower”) in an amount up to 125% of the borrower’s existing unsecured debt, thus assuring repayment to the lender by the borrower or, in the event of default, by the FDIC. 

            The evidence at trial showed that in October 2008, Coastal had a $3,000,000 secured loan with RBC Bank (USA), which was secured by 100% of the stock of Coastal Community Bank and Bayside Savings Bank (the “RBC Loan”).  At that time, the RBC Loan was in default, thus giving RBC the ability to exercise its right to take the pledged stock that secured the loan and take over Coastal Community Bank and Bayside Savings Bank.  Under pressure from RBC to repay this debt, the defendants falsely certified to the FDIC that the RBC Loan was unsecured, knowing for a fact that it was instead a secured loan, so that Coastal could get an FDIC-guaranteed loan under the TLGP.

            The evidence at trial established that Coastal obtained a $3,750,000 loan from central Florida-based CenterState Bank.  Based on the defendants’ misrepresentations, the CenterState Bank loan was guaranteed by the FDIC under the TLGP (the “TLGP Loan”), and as provided by the program, represented 125% of the RBC Loan.  Coastal used the proceeds of the TLGP Loan to repay the RBC Loan. 
            In June 2010, Coastal defaulted on the TLGP Loan, and on August 6, 2010, CenterState Bank filed a claim with the FDIC for payment of the full amount due on the TLGP Loan, plus interest.  The FDIC paid CenterState’s claim on August 13, 2010, by wiring $3,805,833.34 in principal and interest from the FDIC to CenterState.

            United States Attorney Marsh said, “These defendants – bank officers and a bank attorney – took advantage of the Temporary Liquidity Guarantee Program, which was designed to help the country avoid financial collapse, and instead used the program to enrich themselves.  Such fraud committed by bank insiders against programs designed to help our citizens will not be tolerated.  Not only is such conduct a breach of trust, it is harmful to our communities and our nation.  My office will continue to investigate and prosecute any individual who would harm our banking system, our financial institutions, and our national economy.”    

Matt Alessandrino, Assistant Inspector General for Investigations, FDIC, said, “The Federal Deposit Insurance Corporation Office of Inspector General is pleased to have joined the U.S. Attorney's Office and our law enforcement colleagues in investigating the fraud that led to these convictions today.  It is particularly troubling to the FDIC OIG when bank insiders and other professionals affiliated with the bank violate the public trust and engage in activities that cause losses to the Deposit Insurance Fund or harm FDIC programs designed to restore the strength of the banking system.  We are committed in our efforts to maintain integrity in our nation's banks.”

            The defendants are facing a maximum of 30 years’ imprisonment on each count of conspiracy to commit wire fraud, wire fraud, and making false statements to the FDIC.  Each defendant faces a maximum of five years’ imprisonment for causing the submission of CenterState Bank’s false claim against the United States.

This case was investigated by the Federal Reserve – Office of the Inspector General, the Federal Bureau of Investigation, the FDIC, and the Office of the Special Inspector General for the Troubled Asset Relief Program.

            The case was prosecuted by Assistant U.S. Attorney Gayle Littleton and Assistant U.S. Attorney Ryan Love, with the invaluable assistance of Federal Reserve – Office of the Inspector General Special Agent Amy Whitcomb.

TALLAHASSEE, FLORIDA B Today Ricardo Jean-Louis, 24, of North Miami, Florida, was sentenced to five years in federal prison for theft of government property, access device fraud, and aggravated identity theft.  The sentence was announced by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

In 2012, Jean-Louis was involved in a fraudulent scheme to obtain more than $300,000 in federal income tax refunds derived from tax returns that had been filed using the stolen identity information of multiple taxpayers.

Searches conducted by the North Miami Police Department at the residence of Jean-Louis in August 2013 revealed computer information identifying him as a member of the “Money Avenue” street gang known to be involved with identity theft and other economic crimes.  Other information retrieved from his computer included the names, dates of birth, and social security numbers of more than 100 persons and records of attempted searches for the personal information of deceased individuals.

As part of his sentence, Jean-Louis was ordered to pay $71,061 in restitution to the Internal Revenue Service. 

U.S. Attorney Marsh extended her grateful appreciation to the Internal Revenue Service, the United States Secret Service, and the North Miami Police Department, whose joint investigation led to the conviction in this case.

The government’s case was prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.

TALLAHASSEE, FLORIDA– Chad Eric Jones, 43, of Madison, Florida, was sentenced on April 29, 2014, to one year in federal prison by U.S. District Court Judge Robert Hinkle following acceptance of his guilty plea in November of last year.  Jones, a federally licensed firearms dealer, pleaded guilty to multiple counts of selling firearms to a convicted felon and a single count of selling a handgun to a person under 21 years of age. 

In September of last year, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the Madison County Sheriff’s Office and the Madison Police Department, executed a search warrant at Jones’ residence and place of business, Gunslingers Pawn and Gun on Duval Street in Madison. 
While executing the search warrant at Gunslingers Pawn and Gun, agents seized 67 firearms not listed in the Gunslingers acquisition and disposition book.  Jones ultimately forfeited all of these firearms to the government and surrendered his federal firearms license.

            During the course of the investigation, agents obtained an audio recording in which Jones admitted that he intentionally kept certain firearms out of his acquisition and disposition book to conceal the fact that he was selling firearms to prohibited persons.  If a firearm was not in his acquisition and disposition book, Jones believed that government agents would be unable to determine that he had sold the firearm to a convicted felon. 

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Madison County Sheriff’s Office, and the Madison Police Department. The case was prosecuted by Assistant United States Attorney Jason S. Beaton.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced today that Michael Townsend Anthony, 40, of Tallahassee, has beensentenced to 188 months in federal prison today for possession of a firearm by a convicted felon.  Because Anthony had previously been convicted of three or more crimes of violence committed on separate occasions, he faced a minimum fifteen year term of imprisonment.

Anthony was stopped by officers of the Tallahassee Police Department on August 13, 2013, because his vehicle’s windows were illegally tinted.  A police canine alerted to the odors of controlled substances in the car, leading to the discovery of crack cocaine, oxycodone, and drug packaging.  The car also held a loaded 9 millimeter pistol and two loaded 12-gauge shotguns.  Mr. Arnold’s passenger, Issac Williams, 39, was recently sentenced to state prison for a probation violation arising from the same incident.

Anthony pled guilty after his motion to suppress was denied.

In imposing sentence, United States District Judge Robert L. Hinkle determined that Anthony possessed the firearms in connection with drug distribution offenses.  Judge Hinkle also imposed a five-year term of supervision to be served upon release from custody and a $100 special monetary assessment.

At sentencing, the government noted that Anthony had eighteen prior felony convictions and that he had only been out of custody for limited periods since 1991.  Anthony was last released from the Florida Department of Corrections in June 2012, thirteen months before the new arrest.

U.S. Attorney Marsh praised the joint efforts of the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, and Firearms.  Assistant U.S. Attorney Michael T. Simpson prosecuted this case.

GAINESVILLE, FLORIDA – Ona M. Colasante, 57, a physician from Gainesville, Florida, surrendered yesterday on charges contained in a federal indictment.  U.S. Attorney Pamela C. Marsh announced the grand jury charges, which include 199 counts of health care fraud, three counts of introduction or delivery of misbranded drugs, three counts of introduction or delivery of unapproved new drugs, and five counts of money laundering.

According to the indictment, Colasante owned and operated a medical business known as the Hawthorne Medical Center in Hawthorne, Florida, from approximately 1998 until March 2009, and the Colasante Clinic on NW 16th Avenue in Gainesville, Florida, from approximately January 2010 until January 2013.  During her operation of these medical businesses, Colasante is charged with having submitted or caused to be submitted fraudulent claims to health care benefit programs for medically unnecessary tests and procedures and medical services not rendered or provided, and thereafter receiving reimbursement for the fraudulent claims.  These programs included Medicare, Medicaid, and Blue Cross Blue Shield of Florida. It is further alleged that while operating the Clinic, Colasante used some of the proceeds from the fraudulent health care claims to purchase non-FDA-approved drugs and devices from pharmacies located outside the United States.  According to the indictment, Colasante then submitted or caused to be submitted fraudulent claims to health care benefit programs for the administration of the non-FDA-approved drugs.  It is further alleged that the non-FDA-approved drugs were being administered to patients of the Colasante Clinic without their knowledge or consent.

Colasante made her initial appearance on the charges before U.S. Magistrate Judge Gary R. Jones at the U.S. District Courthouse in Gainesville yesterday.  The trial is scheduled for June 17, 2014, before U.S. District Judge Mark E. Walker at the U.S. District Courthouse in Gainesville. 

If convicted of charges in the filed indictment, Colasante faces a term of up to 10 years imprisonment for each of the health care fraud counts, up to three years imprisonment for each of the FDA violations, and up to 10 years imprisonment for each of the money laundering counts.   She also faces fines and forfeiture of assets on each count. 

This indictment is the result of a joint investigation conducted by the Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the Internal Revenue Service-Criminal Investigation; Florida Attorney General Pam Bondi’s Medicaid Fraud Control Unit; and the Food and Drug Administration.  The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.

TALLAHASSEE, FLORIDA -- Angel Santiago, 43, of Ambrose, Georgia, pleaded guilty today to knowingly engaging in a sexual act with a federal prisoner.  The plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida, and Teresa M. Gulotta-Powers, Special Agent in Charge, United States Department of Justice Office of the Inspector General, Miami Field Office.

Plea documents reflect that, while working as a correctional officer at the Federal Correctional Institution in Tallahassee, Santiago developed a romantic relationship with a female inmate.  Several times a month between 2010 and 2012, Santiago would enter the inmate’s cell in the early morning hours and have sexual intercourse with her. 

Santiago faces a maximum sentence of 15 years in federal prison.  He is also subject to a term of supervised release of five years to life.  Sentencing will be held July 10, 2014, in federal district court in Tallahassee. 

The case was investigated by the United States Department of Justice Office of the Inspector General.  It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller.

JACKSONVILLE, FLORIDA – U.S. Attorney Pamela C. Marsh announced the sentencing today of Robert Eugene Spiker, 45, of Marion, Indiana, by U.S. District Court Judge Mark E. Walker.  On January 17, 2014, Spiker pleaded guilty to two counts of Solicitation to Commit Murder of a Federal Judge and an Assistant United States Attorney, and one count of Attempted Murder of an Assistant United States Attorney.  Spiker was sentenced today to a total of 60 years in prison, followed by three years of supervised release.

Spiker admitted that between March and April of 2013 he made numerous written threats and devised a plan to murder an Assistant United States Attorney and a Federal Magistrate Judge in Jacksonville, Florida.  On separate occasions, Spiker attempted to solicit other individuals to kill the victims for payment or “in-kind” services.  Spiker’s written threats and directives included his intention to attack the federal prosecutor in the courtroom.  He also directed one assailant to kill the judge without regard to the presence of his family members:  “If his family gets in the way, so be it.”  Finally, on April 11, 2013, Spiker attempted to smuggle a metal “shank” into the courtroom for the purpose of murdering the federal prosecutor.  Prior to his entry into the courtroom, Spiker was searched, and the weapon was confiscated. 

This case was investigated by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Baker County Sheriff's Office.  The case was prosecuted by Assistant U.S. Attorney Frank Williams.

PENSACOLA, FLORIDA – U.S. Attorney Pamela C. Marsh announced the sentencing today of Jason Andrew Vitulano, 38, of West Palm Beach, Florida, and Marc A. Gross, 54, of Boca Raton, Florida, by U.S. District Court Chief Judge M. Casey Rodgers following acceptance of their guilty pleas in August of last year.  Both Vitulano and Gross pleaded guilty to several counts that included:  conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, and conspiracy to commit money laundering.  Gross also pleaded guilty to making false statements to a federal agent and perjury.  Vitulano was sentenced to 77 months in prison, ordered to pay restitution in the amount of $4,047,140.81, and a monetary judgment in the amount of $1,404,447 was entered.  As part of Gross’s sentence, the Court forfeited Gross’s personal residence valued at approximately $340,000, his retirement accounts valued at approximately $253,000, and also ordered him to pay $3,507,187 in restitution as part of the five years of probation Gross was ordered to complete. 

Vitulano and Gross both admitted that between June 2007 and February 2008, they were involved in the purchase of six townhomes in Temple Terrace, Florida, and two homes in Santa Rosa Beach, Florida, all purchased in the names of straw buyers.  In order to finance each of these purchases, Vitulano and Gross caused loan applications containing false information to be submitted to various mortgage lenders and financial institutions.  The false information submitted included false employers and an overstatement of income and assets.  The fraudulently obtained loans were foreclosed upon causing harm to the lenders. 

This case was investigated by the Internal Revenue Service – Criminal Investigation, the Florida Department of Law Enforcement, and the Federal Bureau of Investigation.  The case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced the culmination of Organized Crime Drug Enforcement Task Force Operation “King of the Trap.” 
The operation targeted a drug trafficking organization that was responsible for distributing in excess of 100 kilograms of cocaine and 500 pounds of marijuana in the north central panhandle of Florida between 2008 and 2013.  The investigation led to the arrest and prosecution of 43 federal defendants, whose sentences ranged from three years of probation to life imprisonment.
As a result of the operation, law enforcement personnel seized nine kilograms of cocaine, one kilogram of crack cocaine, three pounds of marijuana, and 220 grams of methamphetamine.  In addition, the investigation resulted in the seizure of 14 firearms and assets valued in excess of $120,000.
U.S. Attorney Marsh praised the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the office of Homeland Security Investigations, the Florida Department of Law Enforcement, the Florida Highway Patrol, the Leon County Sheriff’s Office, the Taylor County Sheriff’s Office, the Tallahassee Police Department, and the Perry Police Department for their hard work, dedication, and expertise in the investigation that led to the successful prosecution of this case.
The case was prosecuted by Assistant United States Attorney Jason R. Coody.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatthree men have been sentenced today by United States District Judge Mark Walker for conspiring to defraud the Supplemental Nutrition Assistance Program (SNAP) - - also known as the food stamp program - - and on other charges. 

Rodrigue Bissainthe, 26, pled guilty to conspiracy and two mail fraud charges on November 27, 2013.  He received a sentence of three years of supervised release, with one year to be served in home confinement.  He must pay $300 in special monetary assessments (SMAs) and $3,572.85 in restitution.  His convictions were based upon allowing fraudulently obtained SNAP debit cards to be mailed to his residence and using one of the SNAP cards.

Darius Jemmott, 22, was convicted of conspiracy, three charges of fraud involving interstate wire communications, and aggravated identity theft.  He received a sentence of two years in prison, to be followed by a three-year term of supervised release.  He must pay $500 in SMAs and $500.10 in restitution.  He provided a second address to which fraudulently obtained SNAP debit cards were mailed and used one of the SNAP cards.

Dwayne Phanor, 24, pled guilty to conspiracy, mail fraud, wire fraud, and seven aggravated identity theft charges on December 4, 2013.  He received a sentence of 54 months in prison, to be followed by twelve months of supervised release.  He must pay $1,000 in SMAs and restitution of $7,905.21.

According to court records, Phanor filed approximately 72 fraudulent SNAP applications, seeking total benefits of approximately $102,000.  Some applications were unsuccessful, because those people named in the applications were already properly receiving SNAP benefits.  Phanor then made about twenty-five change of address requests, to have those legitimate SNAP benefits diverted to locations he controlled.  In those calls, Phanor sometimes pretended to be elderly or female, based upon the circumstances of the genuine beneficiary.  When Phanor received SNAP cards, he sold them at discounted prices to his acquaintances.

SNAP provides economic assistance to qualified low-income people, to help them obtain adequate food.  The United States Department of Agriculture funds the SNAP program, and in Florida, SNAP is administered by the Department of Children and Family Services (DCF).  The Department of Financial Services investigates public assistance fraud arising from DCF programs.

U.S. Attorney Marsh praised the Department of Children and Family Services, the Department of Financial Services, the Tallahassee Police Department, the United States Postal Inspectors, and the United States Secret Service for their hard work, dedication, and expertise in the investigation that led to the successful prosecution of this case. 

PENSACOLA, FLORIDA, – United States Attorney Pamela C. Marsh announced that Joshua Douglas Taylor, 24, of Shalimar, Florida, was sentenced yesterday afternoon by Chief U.S. District Judge Casey Rodgers to 360 months in prison for receipt and transportation of child pornography.
Taylor’s sentence was the result of conduct that occurred between October 28, 2011, and February 16, 2012.  During that time, Taylor knowingly and intentionally received and transported images and videos of child pornography.
In addition to the term of imprisonment, Taylor was also sentenced to a life term of supervised release.
Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents from the Federal Bureau of Investigations, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Pensacola Police Department, the Okaloosa County Sheriff’s Office, and the Walton County Sheriff’s Office.

The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.

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

TALLAHASSEE, FLORIDA – Angel Santiago, 43, of Ambrose, Georgia, has been indicted for engaging in a sexual act with an inmate who was then under his custodial authority as a federal correctional officer.  The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida and Teresa M. Gulotta-Powers, Special Agent in Charge, United States Department of Justice Office of the Inspector General, Miami Field Office.

The indictment alleges that the offense took place between 2010 and 2012, at the Federal Correctional Institution in Tallahassee.  Santiago was arraigned in federal court today and a trial date was scheduled for May 6, 2014.

If convicted, Santiago faces a maximum sentence of 15 years in federal prison.

The case was investigated by the United States Department of Justice Office of the Inspector General.  It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller  

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.

TALLAHASSEE, FLORIDA – Christopher Brunson, 38, of Perry, Florida, has been indicted for violating the civil rights of a Taylor County Correctional Institution inmate.  The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

The indictment alleges that on January 30, 2013, Brunson, who was then employed as a correctional officer at the Taylor Correctional Institution, struck and assaulted an inmate resulting in bodily injury.  Brunson was arraigned in federal court today and a trial date was scheduled for April 14, 2014.

If convicted, Brunson faces a maximum sentence of ten years in federal prison.

The case was investigated by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, and the Florida Department of Corrections, Office of Inspector General.  It is being prosecuted by Assistant U.S. Attorney Karen Rhew-Miller  

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.

TALLAHASSEE, FLORIDA – Perry, Florida, physician Eulogio Muncal Vizcarra, 71, was arrested yesterday on charges contained in a federal indictment.  U.S. Attorney Pamela C. Marsh announced that the grand jury charged Vizcarra with 49 counts of unlawfully dispensing, or causing the dispensing of controlled substances.

According to the indictment, Vizcarra operated a medical business known as the Perry Family Medical Clinic on S. Jefferson Street in Perry, Florida, where Vizcarra is charged to have prescribed controlled substances to patients without sufficient medical necessity.  He allegedly prescribed these substances in quantities and dosages that caused patients to abuse, misuse, and become addicted to the drugs.  The indictment further alleges that Vizcarra prescribed controlled substances to patients knowing that the patients were addicted to and misusing these drugs, and that he continued to prescribe addictive controlled substances to patients even after learning that the patients had suffered overdoses on the drugs, were selling the drugs, or were ‘doctor shopping.’

He made his initial court appearance on the charges before U.S. Magistrate Judge Charles A. Stampelos at the U.S. District Courthouse in Tallahassee today.  The trial is scheduled for April 14 before U.S. District Judge Mark E. Walker at the U.S. District Courthouse in Tallahassee.

If convicted of unlawfully dispensing controlled substances, Vizcarra faces a term of up to 5, 10, or 20 years imprisonment depending upon the controlled substances involved, and a fine of up to $1,000,000.

This indictment is the result of a joint investigation conducted by the Drug Enforcement Administration, the Federal Bureau of Investigation, the United States Marshals Service, the Florida Department of Health, Taylor County Sheriff’s Office, and the United States Attorney’s Office for the Northern District of Florida.  The case is being prosecuted by Assistant United States Attorney Eric K. Mountin.

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 in a court of law.

TALLAHASSEE, FLORIDA — United States Attorney Pamela C. Marsh and Special Agent in Charge James D. Robnett of the Tampa Field Office of Internal Revenue Service Criminal Investigation joined today to announce their increased efforts to enforce federal income tax laws as the nation begins the tax-filing season. 

From Pensacola to Gainesville, legal actions for violations of tax and monetary laws have surged.  Recent trials found two guilty in Panama City of more than $500,000 in stolen identity refund fraud; six defendants throughout the district pleaded guilty in separate cases involving more than $3 million in tax fraud; and judgments of eight defendants in Pensacola, Panama City, and Tallahassee netted sentences ranging from 24 to 78 months, more than $6 million in forfeiture, and an estimated $900,000 in restitution.  These recent activities, along with the indictment of five more individuals, make up part of the increased enforcement efforts over the recent weeks.

Ms. Marsh cautioned would-be fraudsters, “As the number of crooks willing to steal identities and tax dollars has grown, so has our ability to track, investigate, arrest, and prosecute these cases.  We will pursue criminal prosecutions of all who engage in these illegal activities, with intensity.   Further, to those who contemplate filing fraudulent tax returns, the recent sentences handed down by our courts should serve as a warning that offenders face serious punishment.  Honest, hardworking taxpayers are entitled to this protection by law enforcement.  We are ready for tax season.”

SAC Robnett warned tax cheats, “Beware! As filing season approaches, many of you may believe you can get away with committing tax fraud.  But be warned:  the tenacious investigators of the IRS will not stop in their pursuit of those responsible for stealing from the federal government and the American people.”  In addressing the taxpaying public, SAC Robnett stated, “Our office, in partnership with prosecutors and law enforcement officers throughout the state, will dedicate the necessary resources to make an impact in the fight against fraud.  You, the taxpaying members of the public, should have confidence that those who do not pay their fair share of taxes, and who steal your hard earned money, will be held accountable.”

Over the last year, here are some examples of notable tax cases in our District:

Pensacola:

January 31, 2014: Douglas Edward Henderson, 51, of Fort Walton Beach, Florida, pleaded guilty to an Information charging him with five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud.  As the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., Henderson caused personal expenses to be paid from business accounts for the years 2008 through 2010, and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base.  These items were then falsely deducted on corporate tax returns and the personal income was never reported on his individual income tax return, for which he later provided false invoices to the IRS in an attempt to conceal the crime.  Henderson also engaged in a fraudulent short-sale of a condominium causing the mortgage company to lose nearly $500,000. Henderson is scheduled to be sentenced by Chief U.S. District Court Judge M. Casey Rodgers on April 17, 2014, at 9 a.m. 

Panama City:

February 6, 2014: Angel Done, 54, of New York, New York, was sentenced by United States District Judge Richard Smoak to 78 months in prison and was ordered to pay restitution to the IRS in conjunction with other defendants in the amount of $245,747.32.  Done was the last of five defendants sentenced to federal prison for various federal tax violations.  Previously, Judge Smoak sentenced Wilson Calle, 55, of New York, New York, and Blaine Johnston, 62, of Marianna, Florida, each to 78 months in prison; Wilfredo Rodriguez, 53, of Miami, Florida, to 27 months in prison; and Diana Gonzalez, 63, of Miami, Florida, to 63 months in prison.  Between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds. 

February 6, 2014: Versiah M. Taylor, 33, and Tracy L. Collier, 48, both of Panama City, Florida, were found guilty by a federal jury on multiple counts of tax fraud, wire fraud, and identity theft.  Between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds using the personal identifying information (PII) of inmates of the Florida Department of Corrections, Bay County residents, and others.  Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and then mailing them to Taylor.  Taylor orchestrated the filing of multiple tax returns using false employment information and the PII of other individuals.  Sentencing for both defendants is scheduled for May 7, 2014, before United States District Judge Richard Smoak.

Tallahassee:

January 23, 2014:  Jerry Samuel Joseph, 33, originally of Tallahassee, Florida, pleaded guilty to conspiracy to file false tax claims for refund, theft of government property, mail fraud, and aggravated identity theft.  Joseph filed at least 71 false tax returns totaling more than $315,000. Joseph is scheduled to be sentenced before U.S. District Court Judge Robert L. Hinkle on April 29, 2014.  Rose Vernet, a co-conspirator who helped cash some of the refund checks produced by this fraudulent scheme, received a term of probation and was ordered to pay $20,714.45 in restitution on November 14, 2013.

February 4, 2014:  Ashley Assgill Glover, 28, of Miami, Florida, pleaded guilty to one count of theft of government property, one count of possession of unauthorized devices, and one count of aggravated identity theft.  Following a traffic stop by the Tallahassee Police Department, Glover was found with the PII of more than 800 victims and debit cards loaded with tax refunds linked to fraudulent tax returns.  Glover was stopped two more times in the following eight months by various state and local law enforcement agencies, each time in the possession of the PII of hundreds of victims.  To date, the IRS has identified fraudulent tax returns using that PII, which claim approximately $369,848 in fraudulent tax refunds.  Glover is scheduled to be sentenced before U.S. District Court Judge Mark E. Walker on April 18, 2014.

February 11, 2014:  Ricardo Jean-Louis, 24, of North Miami, Florida, pleaded guilty to theft of government funds, unlawful use of an access device, and aggravated identity theft.  Between January and February 2012, Jean-Louis obtained six pre-paid debit cards that had been loaded with fraudulently obtained tax refunds totaling more than $50,000.  The tax returns had been filed in the names of unwitting victims.  Jean-Louis used several of the cards at Tallahassee banks and retailers to obtain more than $10,000 in cash and merchandise.  He is scheduled to be sentenced by U.S. District court Judge Robert L. Hinkle on May 2, 2014 at 9 a.m.

February 14, 2014:  U.S. District Court Judge Robert L. Hinkle sentenced William “Geri” Eaton, 60, to 27 months in prison for tax evasion and making false statements in a matter involving a health care benefit program.  Between August 2010 and December 2011, Eaton willfully evaded payment of more than $650,000 in federal income taxes by concealing the nature, location, and extent of his assets, by making false and misleading statements and material omissions concerning the existence of IRS liens on his property, and by opening a bank account using a false social security number.  Eaton also admitted making false statements and submitting false documents in a matter involving Sacred Heart Health System.  

Gainesville:

February 13, 2014:  Ricardo Jacinto Rodriguez, 37, of Tampa, Florida, pleaded guilty to charges of conspiracy to file false tax claims for refund, possession of unauthorized access devices, and aggravated identity theft.  Rodriguez admitted to providing PII of more than 100 patients from the Veteran’s Administration, where he worked as a volunteer, to his co-defendant, Andropolis Mitchell, who already pleaded guilty to his participation in the fraudulent tax scheme.  The investigation determined that an estimated 65 false claims for tax refunds were filed in an attempt to obtain more than $550,000, of which the defendants received approximately $212,000.  Rodriguez is scheduled to be sentenced on May 19, 2014, before U.S. District Court Judge Mark E. Walker.

These cases were the result of investigations by the Special Agents of the IRS-Criminal Investigation, its federal, state, and local law enforcement partners, and prosecuted by Assistant United States Attorneys of the Northern District of Florida.

TALLAHASSEE, FLORIDA – William “Geri” Eaton, 60, was sentenced to 27 months in prison for tax evasion and for making false statements in a matter involving a health care benefit program. 

Between 2004 and 2008, Eaton, a realtor, earned more than $1.18 million in taxable income.  He failed to file his federal income tax returns as they became due and instead, in the fall of 2009, Eaton filed late returns for all four prior tax years.  His total tax due, not counting interest and penalties, was more than $472,000.  In early 2010, Eaton entered an agreement to pay his back-taxes in monthly installments of $1,000.  He made six payments, and then stopped paying altogether.  On April 29, 2011, Eaton opened an account under a false social security number at a Tallahassee credit union.  One week later, he sold his beach house in St. Teresa, Florida, for more than $1.3 million.  To conceal the money from the IRS, Eaton deposited the $727,437 in proceeds he received from the sale into his fraudulently-opened credit union account.  He later transferred a portion of this money to a Pensacola credit union account, which he had also opened under a false social security number.  Over the course of the next seven months, Eaton spent more than $125,000 of the sales proceeds.  He made no payments on his taxes during this period. 

In September 2011, Eaton was treated for a heart attack at Sacred Heart Hospital in Pensacola.  He applied to the hospital for financial assistance in paying his bill.  In his application for assistance, Eaton falsely claimed that he had a single checking account with a balance of only $1,588, when, in fact, the balances in his accounts totaled well over $600,000.  In listing his assets on the application, Eaton also fraudulently omitted the fact that he had purchased two vehicles for $31,000 only a month before.  In reliance on Eaton’s false statements, Sacred Heart Hospital wrote off $79,622 in charges for Eaton’s care.

In November 2011, the IRS levied Eaton’s fraudulently-opened credit union accounts and obtained approximately $610,000 as payments toward his tax liabilities. 

In November 2013, Eaton pleaded guilty to charges of tax evasion and making false statements in a matter involving a health care benefit program.  In addition to his prison sentence, Eaton was ordered to pay $99,126 in restitution to the IRS and to Sacred Heart Health System. 

In announcing the sentence handed down by the court, United States Attorney Pamela C. Marsh expressed her deep gratitude for the work of the Assistant U.S. Attorney who prosecuted the case, as well as the agents of IRS Criminal Investigations who investigated the case.  Ms. Marsh said, “Every year, millions of hard-working Americans comply with the law and pay their federal taxes.  Those who evade and cheat the system hurt all of us.  Criminal tax prosecutions are often difficult and complicated to investigate and prosecute, but they are necessary to deter potential violators and promote respect for the tax laws.  The sentence in this case should serve as a stark warning to those who choose to cheat their fellow Americans by failing to pay their fair share.”

The case was prosecuted by Assistant United States Attorney Karen Rhew-Miller.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatAlbert Hendrik “Henk” Van Der Merwe, 46, of Crawfordville, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 12 months in prison for importing merchandise under false invoice and for receiving unregistered silencers.  Van Der Merwe will serve a three-year term of supervised release after his incarceration, during which he will be subject to search by his probation officer.  As a consequence of this conviction, he cannot own or possess firearms.  The court also entered an order forfeiting Van Der Merwe’s interest in three silencers and in an Uzi 9 millimeter carbine.  

Van Der Merwe was arrested on April 10, 2013, after agents intercepted three silencers that he had ordered from South Africa under an invoice declaring them to be motorcycle parts.  Messages retrieved from Van Der Merwe’s e-mail accounts reflected that he had ordered another silencer from the same supplier in the past, that he wanted these shipped “discretely,” and that he was interested in obtaining additional silencers for friends.  He requested that the silencer for the Uzi be “full-auto rated.”  Examination of the weapon determined that the Uzi had been converted to a machine gun.

U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Customs Service and the Bureau of Alcohol, Tobacco, and Firearms.

The case was prosecuted by Assistant United States Attorney Michael T. Simpson. 

PANAMA CITY, FLORIDA – Following a six-day trial, a jury found Versiah M. Taylor, 33, and Tracy L. Collier, 48, guilty yesterday evening on multiple counts of tax fraud, wire fraud, and identity theft.  Taylor and Collier are both from Panama City.

Evidence presented at trial proved that between September 9, 2011, and August 15, 2012, the defendants prepared and filed fraudulent tax returns seeking more than $500,000 in refunds.  The defendants used the personally identifiable information (PII) of inmates of the Florida Department of Corrections, Bay County residents, and others to file fraudulent income tax returns.  Collier, who was incarcerated during the conspiracy, provided the personal information of inmates by disguising the social security numbers and dates of birth as legal case citations and mailed them to Taylor.  Taylor, operating out of a small office that he rented in the Steele Boys Bail Bond’s Plaza in Panama City, orchestrated the filing of multiple tax returns creating false employment information and using the PII of other individuals.  These returns each claimed fraudulent refunds between $3,000 and $9,530 and were to be deposited onto prepaid debit cards, which were then mailed to various locations throughout Bay County, Florida.

Taylor and Collier each face up to 20 years in prison, a fine of up to $250,000, up to three years of supervised release, restitution, criminal forfeiture, and a $100 special monetary assessment.  Additionally, for each count of aggravated identity theft, Taylor and Collier face a minimum mandatory sentence of two years in prison that is to be served consecutive to any other sentence imposed.

Sentencing for both defendants is scheduled for May 7, 2014, before United States District Judge Richard Smoak.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division. 

The case was prosecuted by Assistant U.S. Attorney Katy Risinger.

PANAMA CITY, FLORIDA — United States Attorney Pamela C. Marsh announced today that Angel Done, 54, of New York, New York, was sentenced by United States District Judge Richard Smoak to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32. 

Done is the fifth and final defendant sentenced to federal prison as a result of charges brought against him and four other co-defendants by the U.S. Attorney’s Office, alleging various federal tax violations.  On December 19, 2013, Judge Smoak imposed the following sentences on the other defendants:

• Wilson Calle, 55, of New York, New York, was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
• Blaine Johnston, 62, of Marianna, Florida, was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
• Wilfredo Rodriguez, 53, of Miami, Florida, was sentenced to 27 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $160,490.93; and
• Diana Gonzalez, 63, of Miami, Florida, was sentenced to 63 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32.

U.S. Attorney Marsh praised the investigators and prosecutors for bringing this case to a successful conclusion and said, “As the number of greedy offenders willing to steal identities and tax dollars has grown, so has our ability to track, investigate, arrest, and prosecute these cases, effectively and cooperatively.  We are pursuing those engaged in these schemes, with intensity, and we are ready for tax season.” 

During the federal trial in September, prosecutors presented evidence that between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds.  The defendants falsely reported that creditors of the defendants and their clients had withheld large amounts of federal income taxes and asserted that the creditors had paid those amounts over to the IRS.  As a result of the fraudulently overstated income tax withholding, the tax returns filed on behalf of the defendants or their clients claimed large refunds, to which they were not entitled.

Following the trial, Done, Calle, and Johnston were found guilty by a federal jury of conspiring to defraud the United States by filing, or assisting others in filing, false federal income tax returns and of multiple counts of filing false federal income tax returns.  Rodriguez was found guilty by the jury of filing a false federal income tax return seeking a false and fraudulent refund.  Gonzalez had previously entered a guilty plea to the charge of conspiracy to defraud the United States by filing, or assisting others in filing, false federal income tax returns seeking false and fraudulent refunds. 

This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by Assistant U.S. Attorneys J. Ryan Love and Randall J. Hensel.     

PENSACOLA, FLORIDA – Pensacola resident Clay C. Keys, 53, was sentenced today on his guilty plea to a federal indictment charging him with the receipt and distribution of child pornography and possession of ammunition by a convicted felon.  Keys was previously convicted in state court for a lewd and lascivious act upon a child, and was a registered sexual offender.

Keys was found guilty of using peer-to-peer software between April 2009 and August 2013 to share thousands of images of child pornography online.  A federal search warrant was obtained for Keys’ residence in August 2013, and law enforcement officers discovered more than 10,000 images and videos of child pornography.  Chief United States District Judge M. Casey Rodgers sentenced Keys to 15 years in federal prison to be followed by a lifetime of supervised release.

 Keys was also sentenced to 10 years in prison for possession of ammunition by a convicted felon, which will run concurrent with his sentence for child pornography. 

In announcing the sentence imposed by the court, United States Attorney Pamela C. Marsh credited the success of this prosecution to the joint efforts of the Department of Homeland Security, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force, whose joint investigation led to the complaint in the case. 

The case was prosecuted by Assistant U.S. Attorney David L. Goldberg.

TALLAHASSEE, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that Ashley Assgill Glover, 28, of Miami, Florida, pleaded guilty today to one count of theft of government property, one count of possession of unauthorized devices, and one count of aggravated identity theft.

Glover is scheduled to be sentenced by U.S. District Court Judge Mark Walker on April 18, 2014.  On the first two counts, she faces maximum penalties of 10 years in prison, three years of supervised release, and a $250,000 fine.  On the third count, she faces a mandatory two-year term of imprisonment that must run consecutive to the sentence imposed on the other counts, one year of supervised release, and a $250,000 fine.

On March 12, 2012, the Tallahassee Police Department stopped Glover and found her in possession of personal identifying information (PII) for more than 800 victims.  Debit cards loaded with tax refunds linked to fraudulent tax returns were also found.  To date, the IRS has identified fraudulent tax returns using that PII, which claim approximately $369,848 in fraudulent tax refunds.

Three months after the Tallahassee Police Department incident, Glover was stopped by Coral Springs Police Department and found in possession of PII for more than 160 victims.  Then five months later, Glover was stopped by the Florida Department of Agriculture, and was found in possession of yet another list containing PII for more than 600 victims.

The case was investigated by the Tallahassee Police Department, the United States Secret Service, the Internal Revenue Service, and the Florida Department of Agriculture.

The case is being prosecuted by Assistant U.S. Attorney Winifred L. Acosta Nesmith.

PENSACOLA, FLORIDA - - United States Attorney Pamela C. Marsh announced that Ricky L. Blankenship, age 43, of Pensacola, was sentenced today on federal charges related to a multi-year conspiracy to distribute cocaine throughout Pensacola, Florida.

           The investigation into Blankenship culminated in November 2013, when Blankenship and his co-defendant were apprehended leaving a residence in which over $260,000.00 in cash was located.  The co-defendant was found to be in possession of eight (8) kilograms of cocaine when stopped by law enforcement.  Telephone records corroborated Blankenship’s illicit relationship with the co-defendant and the deliverer of the seized cocaine.  Over the multi-year criminal conspiracy, Blankenship was responsible for over five hundred (500) kilograms of cocaine entering into the Northern District of Florida.  This, coupled with his prior criminal history, was considered by the Court at sentencing. 

            Blankenship was sentenced by Senior United States District Judge Lacey A. Collier to life imprisonment to be followed by 10 years of supervised release.  Blankenship was also ordered to forfeit multiple vehicles, gold vehicle rims, a Rolex watch, diamond earrings, six flat screen televisions, and over $260,000.00 in cash.

            The prosecution was a result of a joint investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Escambia County Sheriff’s Office, and the Pensacola Police Department.  The case was prosecuted by Assistant U.S. Attorney David L. Goldberg.

GAINESVILLE, FLORIDA – Pamela C. Marsh, the United States Attorney for the Northern District of Florida, announced today that a Gainesville grand jury returned a seven-count indictment against Samuel J. Cusumano, 64, of Orlando, Florida, charging him with wire fraud violations of Title 18, United States Code, Section 1343.

The indictment alleges that Cusumano, as the founder and Chairman of the Board of Directors of the Swedish company Storehouse Credit Union Ek., promoted and disseminated materials claiming to offer its members the opportunity to obtain high-yield investments.  The materials purported to provide a variety of financial benefits and services, as well as falsely represented that the accounts yielded monthly returns in excess of 5 percent.  Through these misrepresentations, Cusumano induced investors into making more than $17 million in payments and deposits to Storehouse Credit Union Ek., through which he diverted more than $600,000 to his personal benefit.

If convicted, Cusumano faces a maximum of 20 years in prison for each count in the indictment.

This case was investigated by the Internal Revenue Service – Criminal Investigation and the FBI. 

The case is being prosecuted by Assistant U.S. Attorney Gregory McMahon.

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.

PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that Douglas Edward Henderson, 51, of Fort Walton Beach, Florida, pleaded guilty today to an Information charging him with five counts of submitting a false tax return, two counts of aiding in the preparation of a false tax return, one count of mail fraud, and one count of conspiracy to commit mail and wire fraud.

Henderson admitted that as the president of Henderson Electric Heat and Air Conditioning and Henderson Electric, Inc., both located in Okaloosa County, Florida, he caused personal expenses to be paid from the business accounts for the years 2008 through 2010, and caused their false classification as business expenses associated with contracts between his companies and MacDill Air Force base.  These items were then falsely deducted on corporate tax returns and the personal income was never reported on Henderson’s individual income tax return.  Following notification of an audit by the Internal Revenue Service, Henderson caused misclassified invoices to be presented to the IRS in an attempt to make these personal expenses paid by his businesses appear legitimate.

Henderson also admitted that he engaged in a fraudulent short sale of his condominium in Miramar Beach, Florida, using a family trust and the cooperation of a third party.  Henderson and the third party arranged to make an offer of $664,000 to purchase the unit on which Henderson had a mortgage of more than $1.1 million.  The mortgage company, Vericrest, agreed to this sale; however, it would not have allowed the sale had it known that the transaction was being conducted on behalf of Henderson and that he had actually provided the funding to make the purchase.

Henderson is scheduled to be sentenced by Chief U.S. District Court Judge M. Casey Rodgers on April 17, 2014 at 9 a.m.  He faces maximum penalties of 5 years in prison for each of the tax violations and 20 years each for the mail fraud and mail and wire fraud conspiracy.  Henderson faces up to a total of $1,200,000 in fines and forfeiture. 

The charges are the result of an investigation by the Internal Revenue Service – Criminal Investigation.  The case is being prosecuted by Assistant U.S. Attorney Tiffany Eggers.

PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that two former residents of Destin, Florida, Gary Wayne Thomas, 64, of Daphne, Alabama, and Brian Keith Thomas, 40, of Birmingham, Alabama, were sentenced by Chief U.S. District Court Judge M. Casey Rodgers to serve time in a federal prison.  Gary Wayne Thomas was sentenced to 72 months in prison and Brian Keith Thomas was sentenced to 24 months in prison. 

Both men were charged with conspiracy to structure cash withdrawals and structuring cash withdrawals to avoid the Currency Transaction Reporting (CTR) requirement, conspiring to commit bank fraud, and conspiracy to commit money laundering.  Gary Thomas was also charged with money laundering, failure to appear, possession of a firearm and ammunition by a person under indictment, and possession of a firearm and ammunition by a fugitive from justice.

Brian Thomas, the son, went to trial during the week of July 22, 2013, before Chief U.S. District Judge M. Casey Rodgers and was convicted of all counts.  The father, Gary Thomas, pled guilty to all charges on October 30, 2013. 

The evidence showed that between January 1, 2008, and November 1, 2008, Gary Thomas and Brian Thomas caused approximately $4,550,000 to be deposited into their domestic bank accounts and then wired to offshore bank accounts in the Cayman Islands and Belize.  Shortly thereafter, Gary Thomas stopped making payments on the loans he and his various entities had obtained from New South Federal Savings Bank, now known as Beal Bank.  The total amount of the loans was approximately $56 million.  In the summer of 2009, the bank filed civil suits against Gary Thomas on these loans. 

In a three-year period between 2010 and 2013, Gary Thomas wired approximately $2,150,000 from the offshore banks into several domestic accounts including five accounts that Brian Thomas opened in Destin banks.  Thereafter, the father and son conspired to structure withdrawals of cash under $10,000 to avoid the CTR requirement and to hide Gary Thomas’s interest in the funds from his creditor bank.  The structured withdrawals were done on roughly 194 occasions and totaled more than $1.6 million.

Gary Thomas used some of these funds to purchase five airplanes, numerous vehicles, and homes in Destin, Florida, and Fairhope, Alabama.  Thus far, the government has successfully forfeited the five airplanes; approximately $387,413 in cash, which represents the proceeds of the sale of the home in Fairhope, Alabama; and a $60,000 Hyundai Equus.  The government has also obtained monetary judgments of forfeiture against Gary and Brian Thomas in the amounts of $4,970,000 and $1,197,148 respectively. 

Ms. Marsh credited the successful prosecution of this case to the joint efforts of the Internal Revenue Service – Criminal Investigation, the United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.

PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses. 

Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.

Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.

Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.

This case was prosecuted by Assistant United States Attorney Kathryn Risinger.

PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced that Daniel Freiwald, 29, was sentenced today by the Honorable Judge Smoak to 97 months in prison for 3 counts of child exploitation offenses. 

Between December 7, 2012, and January 23, 2013, Friewald, who was then an active duty Air Force member stationed at Tyndall Air Force Base, knowingly and intentionally possessed and received images and videos of child pornography, the majority of which depicted prepubescent children, including infants and toddlers.

Freiwald was also sentenced to a five-year term of supervised release, which he will be required to serve upon completion of his prison sentence.

Ms. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Pensacola Police Department.

This case was prosecuted by Assistant United States Attorney Kathryn Risinger.

PENSACOLA, FLORIDA – Freeport physician Robert L. Ignasiak, Jr., 58, was sentenced to 30 years in prison yesterday for health care fraud, illegally distributing controlled substances, and failing to appear for trial.  The sentence imposed by the court was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

Between 2001 and 2005, while operating the Freeport Medical Clinic, Ignasiak developed a reputation as a physician who freely prescribed highly addictive controlled substances.  During that time, Ignasiak prescribed drugs such as hydrocodone, oxycodone, morphine, diazepam, and alprazolam in dosages and combinations that caused his patients to abuse and become addicted to the drugs.  Ignasiak continued to prescribe these substances even after becoming aware that his patients were abusing them.  He did this in spite of indications that his patients were not taking the medicines as prescribed, were stealing drugs, were “doctor shopping,” were taking the medicines with alcohol, were suffering overdoses, or were exhibiting other out-of-control behaviors.  Ignasiak’s illegal prescribing practices resulted in the deaths of several of his patients.

Ignasiak was initially indicted on these charges in 2008.  Following a jury trial in the fall of that year, Ignasiak was convicted of 12 counts of health care fraud and 31 counts of illegally distributing controlled substances.  In 2012, Ignasiak’s convictions were reversed on appeal and he was released from custody pending a retrial.  On October 31, 2012, Ignasiak faked his own suicide and fled.  A warrant was issued for his arrest.  He was arrested in Coral Springs, Florida in September 2013, and his retrial had been scheduled for December 2, 2013.

In October 2013, Ignasiak pled guilty to 12 counts of health care fraud, 29 counts of illegally distributing controlled substances, and one count of failing to appear for trial.  

The charges were the result of a four-year joint investigation by the North Florida Health Care Fraud Task Force, comprised of the Federal Bureau of Investigation - Jacksonville Division, the Florida Department of Financial Services, the Florida Department of Law Enforcement, the Florida Attorney General’s Office, the Drug Enforcement Administration - Miami Division, the National Drug Intelligence Center Document Exploitation Division, the Defense Criminal Investigative Service, the Walton County Sheriff’s Office, and the State Surgeon General, Florida Department of Health. 

Assistant U.S. Attorneys Karen Rhew-Miller and Alicia Kim prosecuted this case.

PENSACOLA, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced today that Lawrence Allen Wright, 46, of Niceville, Florida, was sentenced by Senior Federal District Court Judge Lacey A. Collier to 75 months in prison and ordered to pay over $3.7 million dollars in restitution. 

Wright’s sentence is a result of his guilty plea last October to a seven-count Information charging: one count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, two counts of bank fraud, one count of mail fraud, one count of aggravated identity theft, and one count of making a false statement to federally insured financial institution.

In pleading guilty, Wright admitted to conspiring with other individuals to commit bank fraud and money laundering.  As a part of that scheme, Wright solicited individuals to act as straw buyers to purchase unimproved lots located in Walton County, using loans from Countrywide, so Wright could build homes on the lots.  While soliciting the straw buyers, Wright promised to make payments on the fraudulent loans and pay the earnest money deposit and closing costs for the straw buyers.  Wright told the straw buyers that he would be able to sell the properties for a profit after he built homes on them and that he would then share a portion of the proceeds with the straw buyers. 

In addition to the conspiracy charges, Wright pled guilty to defrauding Regions Bank, Beach Community Bank, and GulfSouth Private Bank.  Three of the counts concerned Wright causing another individual to sign his ex-wife’s name on legal documents without his ex-wife’s knowledge or permission.  The legal documents included mortgage loan documents, promissory notes, and tax returns.  

This case was investigated by IRS-CI, Federal Deposit Insurance Corporation-Office of Inspector General, U.S. Treasury, Office of the Special Inspector General for the Troubled Asset Relief Program, and the Okaloosa County Sheriff’s Office as part of the Northwest Florida Financial Crimes Task Force.

PENSACOLA, FLORIDA – Pamela C. Marsh, U.S. Attorney for the Northern District of Florida, announced today that Charles C. Martin, 40, and Joseph B. Doyon, 43, of Pace, Florida, and Marquis R. Seals, 34, Bernard Cook, 39, and Tremayne C. Jamison, 42, of Pensacola, Florida, have been sentenced in federal court after having pleaded guilty to mail fraud and filing false claims related to the 2010 BP oil spill.

Martin, Seals, Doyon, and Cook admitted to submitting fraudulent claims to the Gulf Coast Claims Facility (GCCF).  They falsely inflated their income as employees of Hooters of Pensacola Beach and stated they lost money due to the oil spill in their GCCF claims.  Martin, then general manager of Hooters, and Seals, then assistant manager, aided and abetted their co-workers by providing fraudulent employment documentation for their claims.  Jamison filed a false claim with the National Pollution Funds Center of the U.S. Coast Guard, which included a letter from Martin stating a contract between Jamison’s company and Hooters of Pensacola Beach was cancelled due to the oil spill, when actually no such contract existed.

Today, Martin was sentenced to 24 months in prison for his role in the scheme, and Doyon was sentenced to 12 months.  Last month, Cook was sentenced to 12 months in prison, Seals was sentenced to 9 months, and Jamison was sentenced to 6 months.  More than $85,000 will be paid back to the Deepwater Horizon Oil Spill Trust due to the restitution ordered in this case.

These cases result from an investigation by the U.S. Secret Service and were prosecuted by Assistant U.S. Attorney Alicia Kim. 

TALLAHASSEE, FLORIDA – U.S. Attorney Pamela C. Marsh announced today that the U.S. Attorney’s Office for the Northern District of Florida collected $6,255,150 in criminal and civil actions in Fiscal Year 2013.  Of this amount, $5,272,499 was collected in criminal actions and $982,650 was collected in civil actions

In addition, the U.S. Attorney’s Office for the Northern District of Florida worked closely with the Justice Department’s Civil Division to jointly collect an additional $3,405,336. 

U.S. Attorney General Eric Holder also announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending September 30, 2013.  The more than $8 billion in collections in FY 2013 represents over three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions of the Justice Department during that same period.

“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”

U.S. Attorney Marsh added:  “These impressive numbers are the result of dedicated work by federal employees.  Federal workers have taken a beating this year – from the budget battles resulting in hiring freezes and smaller workforces to sixteen days of furlough during the government shutdown.  Our employees not only keep our communities safer by prosecuting criminals, they are returning millions of dollars to our nation’s bottom line.  When looking around for government services to cut, it seems wise to avoid cutting those that are bringing back a profit.”

As one example of the collections work done in the Northern District of Florida, the U.S. Attorney’s Office and the Justice Department recovered $3.4 million in 2013, as part of a civil settlement against radiation oncology providers in Pensacola, Florida.  More specifically, the government alleged that between 2007 and 2011, the healthcare providers regularly billed for radiation oncology services that were not supervised by a physician, as required by Medicare, Medicaid and TRICARE, and that, in fact, these services were often performed while the defendant doctors were on vacation or were working at another radiation oncology clinic.  The government also alleged that the defendants billed for other treatment services even when patients’ medical records provided no evidence that the services were rendered.  The defendants also allegedly billed twice for the same services and misrepresented the level of a service provided to increase their reimbursement from the federal health care programs.  The settlement of the case was the result of collaborative efforts by the U.S. Attorney’s Office with the Justice Department’s Civil Division, Commercial Litigation Branch, the Department of Health and Human Services’ Office of Inspector General, and TRICARE Management Activity.

The U.S. Attorneys’ Offices across the nation, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

Nationwide, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration, and Department of Education.

In addition to the sums discussed above, the U.S. Attorney’s office for the Northern District of Florida, working with partner agencies and divisions, collected$3,051,935.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced thatThomas Zachary Breeding, 29, of Panama City, Florida, was sentenced today by U.S. District Court Judge Richard Smoak to 15 months in prison for obstruction of justice and making false statements to the National Oceanic and Atmospheric Administration (“NOAA”).

In October, Breeding pleaded guilty to the charges, which related to his illegal commercial fishing in The Edges Closed Area of the Gulf of Mexico (the “Edges”).  The Edges is an area of the Gulf southwest of Panama City that is closed to commercial fishing annually from January 1 to April 30.  The Edges is closed to commercial fishing to protect the spawning season for gag grouper and ensure the continued viability of the grouper fishery in the Gulf. 

Breeding was the captain of The Wolf commercial fishing vessel, based out of Panama City.  On January 9, 2012, NOAA’s Vessel Monitoring System (“VMS”) in St. Petersburg, Florida detected The Wolf inside The Edges.  NOAA immediately notified Breeding that he had unlawfully entered The Edges, warned him not to again breach the area, and reminded him of The Edges coordinates.

Just one week later, on January 17, 2012, a VMS technician again detected The Wolf inside The Edges.  A Coast Guard plane immediately flew over The Wolf and confirmed that it was inside The Edges and was commercial fishing. 

The Coast Guard pilot made radio contact with Breeding and advised him that he was inside The Edges.  Breeding told the Coast Guard pilot that, according to his GPS system, he was outside of the restricted area.  The Coast Guard pilot instructed Breeding and his crew to cease fishing and return to home port in Panama City.

The Wolf returned to Panama City the next morning, at which time Breeding falsely told authorities that he was fishing in The Edges by accident because the GPS device and plotter on The Wolf were inaccurate. 

At his plea hearing, Breeding admitted that he had intentionally breached The Edges to fish commercially and that, to conceal his actions, he manually altered the GPS device to render it inaccurate by approximately three nautical miles to allow him to claim the breach was accidental.

At the sentencing hearing, NOAA Assistant Special Agent in Charge Gregg Houghaboom testified that, in addition to fishing in The Edges Closed Area on January 9, 2012, and January 17, 2012, Breeding was cited by the Coast Guard in 2005 for fishing inside the Madison-Swanson Closed Area, which is an area of the Gulf south of Panama City that is closed year-round to commercial fishing to protect the spawning of reef fish, including grouper.  Breeding and the boat’s owner were fined $25,000 for this incident, but Breeding never paid his portion of the fine. 

Agent Houghaboom also testified that Breeding was cited by NOAA in 2007 for commercial fishing in a longline and buoy-gear restricted area of the Gulf.  He was fined $17,500 for this violation, a fine that he also never paid.

This case was investigated by the National Oceanic and Atmospheric Administration.

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatAdnan Ali Sabla, 50, of Tampa, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 27 months in prison for fraud charges.  Sabla will serve a three-year term of supervised release after his incarceration and is required to pay $112,861.12 in restitution.  

Sabla was arrested on March 18, 2013, when he arrived in Tallahassee with 24 stolen and fraudulently-obtained Treasury checks.  He admitted that he had delivered wrongfully-obtained checks on other occasions.  Sabla was sentenced based on a total of 59 checks, in a total amount of $254,832.54.

The majority of these checks were obtained by the filing of income tax returns, which falsely claimed that refunds were due.  Sabla also delivered some stolen Social Security and Veteran’s Benefits checks.  In the pleas entered in court Sabla was described as a middleman who transported the checks between the persons who obtained them and persons who could cash them.

U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the U.S. Secret Service and the Internal Revenue Service.

The case was prosecuted by Assistant United States Attorney Michael T. Simpson. 

TALLAHASSEE, FLORIDA – United States Attorney Pamela C. Marsh announced thatMichael Clifford Watson, 32, of Key West, Florida, was sentenced today by United States District Judge Robert Hinkle to serve 360 months in prison for drug conspiracy charges.  Watson will serve an eight-year term of supervised release after his incarceration.

Watson was arrested at a Tallahassee apartment on November 19, 2012, based upon outstanding drug charges from Key West.  Six ounces of cocaine, digital scales, and $2,760 were seized at the time of his arrest.  At Watson’s sentencing, the Court determined that he was distributing oxycodone in addition to cocaine in Tallahassee.  Watson pled guilty in October 2013, on the date set for jury selection. 

Watson was sentenced as a career offender.  He was convicted in 2001 of possession of cocaine with intent to sell, and in 2010 of sale of cocaine, both times in Key West.  According to court proceedings, Watson has served three terms in the Florida Department of Corrections.

U.S. Attorney Marsh credited the success of this prosecution to the joint efforts of the Tallahassee Police Department, the U.S. Drug Enforcement Administration, the U.S. Marshal’s Service, and the Key West Police Department.

The case was prosecuted by Assistant United States Attorney Michael T. Simpson. 

PANAMA CITY, FLORIDA– Adrienne Eve Williams, 32, of Wexford, Illinois, pleaded guilty today in federal court to falsely personifying an officer or employee of the United States.

During the plea hearing, Williams admitted that between October 2012 and April 2013, she impersonated Northern District of Florida United Stated District Judge Richard Smoak, United States Attorney Pamela C. Marsh, and a certified legal assistant when she drafted fraudulent legal documents that pertained to a pending civil case and were allegedly signed by Smoak, Marsh, and the legal assistant.

Williams is currently scheduled to be sentenced in federal court on March 5, 2014, in Panama City.  She faces a term of imprisonment of up to three years, followed by a term of one year of supervised release, and a fine of up to $250,000.

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Katy Risinger.  

PANAMA CITY, FLORIDA — United States Attorney Pamela C. March announced the sentencing of four defendants by United States District Judge Richard Smoak today. 

Wilson Calle, 55, of New York, New York, Blaine Johnston, 62, of Marianna, Florida, Wilfredo Rodriguez, 53, and Diana Gonzalez, 63, both of Miami, Florida, were all sentenced today, based on charges brought against them by the U.S. Attorney’s Office, alleging various federal tax violations.  During a federal trial in September, Calle and Johnston were found guilty by a federal jury of conspiring to defraud the United States by filing, or assisting others in filing, false federal income tax returns, and multiple counts of filing false federal income tax returns.  Rodriguez was found guilty by the jury of filing a false federal income tax return seeking a false and fraudulent refund.  Gonzalez had previously entered a guilty plea to the charge of conspiracy to defraud the United States by filing, or assisting others in filing, false federal income tax returns seeking false and fraudulent refunds. 

The sentences imposed today by Judge Smoak for each defendant are as follows:

• Wilson Calle was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
• Blaine Johnston was sentenced to 78 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32;
• Wilfredo Rodriguez was sentenced to 27 months in prison and was ordered to pay restitution to the Internal Revenue Service in the amount of $160,490.93; and
• Diana Gonzalez was sentenced to 63 months in prison and was ordered to pay restitution to the Internal Revenue Service in conjunction with other defendants in the amount of $245,747.32.

In announcing the sentence imposed by the court, United States Attorney Marsh said, “In these difficult economic times, tax refund fraud is especially harmful to our communities and our nation.  It harms the government, as well as every honest taxpayer who dutifully pays taxes.  We will continue to aggressively pursue those who defraud and illegally manipulate the tax system, especially those individuals who concoct schemes to submit false tax returns and assist others in doing so.”

During the jury trial, the prosecutors presented evidence that, between 2008 and 2009, the defendants prepared and filed fraudulent tax returns seeking more than $19 million in refunds.  By using an obscure IRS Form 1099-OID, the defendants falsely reported that creditors of the defendants and their clients had withheld large amounts of federal income taxes and asserted that the creditors had paid those amounts over to the IRS.  In doing so, the defendants fraudulently reported debts they owed as income tax withholdings.  As a result of the fraudulently overstated income tax withholding, the tax returns filed on behalf of the defendants or their clients claimed large refunds, to which they were not entitled.
The case was prosecuted by Assistant U.S. Attorneys J. Ryan Love and Randall J. Hensel.  

PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that Andrea Lorraine Avery, 47, of Los Angeles, California, pleaded guilty this afternoon on federal charges concerning a mortgage fraud and money laundering scheme.  Avery is scheduled to be sentenced on March 20, 2014, before Senior United States District Judge Roger Vinson. 

According to the Indictment and the facts admitted by Avery during her guilty plea, beginning in 2005 and continuing through 2008, Avery and others entered into contracts to purchase residences located in Florida, Georgia, Louisiana, Texas, and California.  Thereafter, loan applications were submitted to financial institutions to fund the purchases.  In the loan applications, Avery and other borrowers made false statements to the lenders, which included: providing false names and social security numbers; overstating the borrower’s income and assets; and falsely stating the earnest money deposit was not borrowed.  In support of the loans, Avery and other borrowers submitted fraudulent supporting documents to the lenders, which included: false pay-stubs, false W-2s, false verifications of employment, and false documentation concerning the borrower’s credit.  Thereafter, Avery and others transferred money, required from the borrower to close on the purchase of the property, to the title agent handling the closing.  As a result of Avery’s fraud, lenders loaned over $5,646,250 for just the five homes located in Santa Rosa and Walton counties.  As a part of the scheme, Avery and others received kickbacks from the fraudulent loans’ proceeds.  

Avery’s Indictment was the seventh indictment obtained as a part of the investigation into this multi-state mortgage fraud and money laundering scheme.  Some of the others indicted and sentenced before Avery included: Lonnet Rochell Williams, who received 120 months in prison; Bryan Pool, who received 57 months in prison; Steven Imes, who received 78 months in prison; Annita Hawes, who received 23 months in prison; Raysean Richardson, who received 18 months in prison; and Dorothy Rodriguez who received 18 months in prison. 

For Counts One through Six of the Indictment, which charged conspiracy to commit fraud and mail fraud affecting a financial institution, Avery faces up to 30 years in prison on each count, and for Count Seven of the Indictment, which charges conspiracy to commit money laundering, Avery faces an additional 20 years in prison. 

The charges are the result of an investigation by the Florida Department of Law Enforcement, the Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation. 

This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers. 

PENSACOLA, FLORIDA — Pamela C. Marsh, the United States Attorney for the Northern District of Florida, announced that Bret A. Nichols, age 29, of Paradise, California, was indicted today on federal charges for engaging in a conspiracy to produce and receive images and videos of child pornography from a couple in Mary Ester, Florida.

The two-count indictment alleges that between October 2010 and December 2012, Nichols conspired with Corine D. Motley, a/k/a Corine Gillreath, a/k/a “Dusty,” a/k/a “Kandi Kane,” and Brandon C. Gillreath, to produce pornographic images and videos of child victims here in the Northern District of Florida.  Motley and Gillreath were convicted on related charges in federal court in Pensacola in June 2013 and were sentenced to 29½ years and 35 years imprisonment, respectively, for their personal production of child pornography here in Florida.  The images and videos they produced were transmitted over the Internet.  

Nichols was arrested in northern California on federal charges stemming from his alleged involvement.  He remains in custody at the Sacramento County Jail.

The indictment was a result of a joint investigation by the Department of Homeland Security, the Okaloosa County Sheriff’s Office, the Pensacola Police Department, and other members of the Internet Crimes Against Children Task Force.

The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.

An indictment is merely an allegation that a defendant has committed a violation of federal criminal law.  All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial. 

TALLAHASSEE, FLORIDA – David Daniel Hicks, Jr., 42, of Andalusia, Alabama, was sentenced today to serve 200 months in prison for the use of a facility of interstate commerce to entice a minor to engage in sexual activity, interstate travel for illicit sexual conduct, and production of child pornography.  Hicks was sentenced to a lifetime term of supervised release after his incarceration.  He is required to register as a sex offender, to complete sex offender treatment, to submit to monitoring of any computer or electronic accounts, to avoid unsupervised contact with children, and to inform future employers of his convictions.

Hicks was arrested on April 12, 2013, after traveling from Andalusia to Tallahassee to have sex with what he thought was a fourteen-year-old boy.  His arrest was part of a larger undercover investigation conducted by a coalition of law enforcement agencies.  Following the arrest, investigators served a search warrant at Hicks’ Alabama residence and found tens of thousands of images of child pornography, including five computer videos of Hicks performing sexual acts on an adolescent male.  These videos were created in that residence, with a camera that was seized there.

The solicitation and travel charges were indicted in the Northern District of Florida.  The production charge was indicted in the Middle District of Alabama, but transferred to the Northern District of Florida for disposition and sentencing.  Hicks entered guilty pleas to all charges against him.  Hicks also agreed to forfeit the electronic devices and electronic media that were seized under the search warrant.

In announcing the sentence imposed by the court, United States Attorney Pamela C. Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida Internet Crimes Against Children Task Force, particularly the U.S. Immigrations and Customs Enforcement, the Tallahassee Police Department, the Leon County Sherriff’s Office, and the Covington County, Alabama Sherriff’s Office.

The case was prosecuted by Assistant United States Attorneys Michael T. Simpson (NDFL) and Jared Morris (MDAL).

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

PENSACOLA, FLORIDA - -  United States Attorney Pamela C. Marsh announced that Jeffrey B. Richards, age 63, of Milton, was arrested today on a federal criminal complaint charging him with the distribution, receipt and possession of child pornography.

The criminal complaint, sworn to by a special agent of the Federal Bureau of Investigation, alleges that between December 2012 and December 2013, Richards utilized peer-to-peer software to share hundreds of images of child pornography online. 

            Richards made his initial appearance on the criminal complaint today before United States Magistrate Judge Charles J. Kahn, Jr.

            The complaint was a result of a joint investigation by the Federal Bureau of Investigation, the Department of Homeland Security, the Pensacola Police Department and other members of the Internet Crimes Against Children Task Force. The case is being prosecuted by Assistant U.S. Attorney David L. Goldberg.

A criminal complaint is merely a preliminary allegation that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent until and unless the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.