Northern District of Florida
Press releases recorded for this federal judicial district.
Four Indicted in Tax Fraud SchemeRead the Press Release
TALLAHASSEE, FLORIDA B Kimberly Watson, 32, Malcolm Lipscomb, 35, Shavone Ricketts, 31, and Alfretta Jones, 37, all of Tallahassee, have been indicted for conspiracy to file false claims for more than $80,000 in federal tax refunds. The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.
The indictment alleges that between June 2009 and September 2012, the defendants conspired to file false federal income tax returns that included fabricated wage, tax withholding, and tax credit information. When refunds were issued on the bogus returns, the conspirators had them deposited into their own bank accounts or placed onto pre-paid debit cards.
Watson, Lipscomb, and Ricketts are also charged with multiple counts of filing false claims, wire fraud, as well as aggravated identity theft, based on the unauthorized use of the personal identifying information of others.
The defendants have been arrested and are scheduled for trial on March 4, 2013, before United States District Judge Robert L. Hinkle.
If convicted of conspiracy, each defendant faces up to ten years in prison. Wire fraud carries a maximum sentence of 20 years in prison. The offense of filing false claims is punishable by five years in prison. Each count of aggravated identity theft carries a mandatory sentence of two years in prison, which must be served consecutively to any other sentence.
Jones is additionally charged with obstruction of justice, which carries a maximum sentence of ten years in prison, and with making false statements and perjury, each of which carries a maximum sentence of five years in prison.
U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations, the Leon County Sheriff=s Office, and the United States Postal Inspection Service, whose joint investigation led to the indictment in this case.
- The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF). In September 2012, the Department issued Tax Division Directive 144, which sets forth expedited Department review procedures for SIRF cases, enabling law enforcement to respond quickly and effectively to the grave challenges presented in SIRF cases and to prevent the victimization of innocent taxpayers whose identities are stolen by fraudsters.
Assistant United States Attorney Corey J. Smith is prosecuting the case.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Defendants Sentenced to Prison and Ordered to Pay $8.5 Million to Victims of Mortgagte-Fraud SchemeRead the Press Release
PANAMA CITY, FLORIDA – Pamela C. Marsh, United States Attorney for the Northern District of Florida, announced that earlier today, United States District Judge Richard Smoak ordered defendants, who were convicted several months ago for their roles in a complicated mortgage-fraud scheme, to pay more than $8.5 million to victims of the scheme. Avinie Maurice Bates, III, 41, of Miami; Jill Beth Newman Zuravel, 47, of Boynton Beach; Alan Jay Nathan, 60, of Boca Raton; and Meredith Lelann King, 38, of Destin were held jointly responsible for repaying the victims $8.5 million in losses caused by the scheme, and Joann V. Walter, 56, of Parkland was held jointly responsible for repaying $2.4 million of the losses.
The evidence presented in the case showed that Bates held himself out as a real-estate investor with a Miami investment company, known as Right Choice Housing, LLC. Zuravel acted as the attorney for Right Choice Housing. Nathan owned Mortgage Bankers of America Group, Inc., a mortgage company located in Boca Raton, and Walter was a mortgage broker with Mortgage Bankers of America. King was a closing agent employed by Blue Dolphin Title, LLC, a title company located in Panama City Beach.
The evidence further showed that, in 2005 and 2006, the defendants obtained over $9 Million in mortgages from lenders to purchase ten properties in Panama City and Panama City Beach. Bates found properties, entered into sales contracts to purchase the properties at one price (the “lower sales price”), and listed the buyer on the contracts as “Right Choice Housing, LLC and/or assigns.” Then Bates, Zuravel, Nathan, and Walter convinced individuals in the Miami area to release their credit information in exchange for up to $30,000. Once these individuals (the “straw buyers”) were in place, Zuravel prepared the legal documents to assign the sales contracts from Bates and Right Choice Housing to the straw buyers at a much higher price (the “higher sales price”).
Once these assignments were made, Nathan and Walter prepared loan applications for the straw buyers, in which they falsely inflated the straw buyers’ income, employment, bank account balances, and intent to reside at the properties – all for the purpose of fraudulently qualifying the straw buyers for the millions of dollars in loans.
After the loans had been approved by the lenders, King conducted the property closings at Blue Dolphin Title in Panama City Beach. At the closing, she used the difference between the lower and higher sales prices to cover the straw buyers’ required down payments and then paid the rest to Bates, Zuravel, and Nathan. Of that balance, King wired over $1.2 million to Bates or to companies owned by Bates, such as Gold by Gold and Bates Enterprises.
By the end of 2006, all of the mortgages were in default, and all of the properties have since been foreclosed upon or are in foreclosure proceedings.
At the sentencing hearings for the defendants, held in September, the Court determined the following terms of imprisonment for each defendant, but reserved ruling on the issue of restitution until a hearing could be held:Bates was sentenced to just over 12 years in prison.
Zuravel, who cooperated in the case, was sentenced to 4 years in prison.
Nathan, who cooperated in the case, was sentenced to just under 3 years in prison.
King, who cooperated in the case, was sentenced to 2½ years in prison.
Walter, who cooperated in the case, was sentenced to 20 months in prison.
Restitution Hearing
The Court held an evidentiary hearing regarding the restitution a week ago, but reserved ruling until today. The Court ordered the defendants Bates, Zuravel, Nathan and King to pay a total of
8,596,595.24 in restitution to the victims on all ten properties as set forth below, and ordered Walter to pay a total of $2,409,462.38 for her involvement with three of the properties. At the hearing, the Government admitted dozens of exhibits reflecting the outstanding balances on the mortgages, as well as the price for which the properties were sold after foreclosure or current taxable value to establish the amount owed to the victim financial institutions and sellers. The Government’s evidence showed that, to date, the total loss on all of the mortgages was approximately $12 million, and the fair market value of the properties was just under $3 million.Property
Restitution Ordered
Victim
23001 Front Beach Road
Panama City Beach, Florida$610,489.42
JP Morgan Chase
$486,865.63
$200,000.00Aurora Loan Services
Ocwen Loan Servicing, LLC21222 Front Beach Road
Panama City Beach, Florida$747,704.42
$375,000.00American Home Mortgage Servicing Inc.
Ocwen Loan Servicing, LLC1501 Trout Lane
Panama City Beach, Florida$421,268.54
$160,000.00
$95,000.00Aurora Loan Services
Wingspan Portfolio Advisors
Marie Beamer483 Wahoo Road
Panama City Beach, Florida$822,957.64
$194,250.00HSBC Bank
Ocwen Loan Servicing, LLC1522 Trout Lane
Panama City Beach, Florida$1,310,350.58
$116,640.00Ocwen Loan Servicing, LLC
Thomas & Deborah Frowert2729 Kings Road
Panama City, Florida$474,640.15
Bank of America
4452 Ashland Road
Panama City, Florida$1,112,849.77
$120,000.00Selene Finance
DTA Solutions, LLC2843 Longleaf Road
Panama City, Florida$895,394.50
Selene Finance
342 Fairway Boulevard
Panama City Beach, Florida$453,184.59
Deutsche Bank
TOTAL
8,596,595.24
“This case is a stark reminder of the lengths to which greed-motivated criminal minds will go,” said U.S. Attorney Marsh. “At a time when the economy and the real-estate market were on a downward trajectory, these defendants were not afraid to make a bad situation worse. In cases driven by greed, restitution to the victims is a critical part of the penalty paid by these offenders.” Ms. Marsh also expressed her deep gratitude to the work of the Florida Office of Financial Regulation – Bureau of Financial Investigations, the Florida Department of Financial Services - Division of Insurance Fraud, and the U.S. Postal Inspection Service, whose excellent work led to the results in this case.
The case was prosecuted by Assistant U.S. Attorney Gayle Littleton.Man Pleads Guilty to Inmate Tax Fraud SchemeRead the Press Release
PANAMA CITY, FLORIDA – Michael William Joseph, III, 53, formerly an inmate at Apalachee Correctional Institution in Sneads, has entered a plea of guilty before United States District Judge Richard Smaok to forty-one (41) counts of the indictment returned against him in July of last year. The guilty plea was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Joseph pled guilty to conspiracy to defraud the government with respect to claims, conspiracy to commit mail fraud, twenty-four counts of filing false claims against the government and fifteen counts of theft from the government. As a part of his plea, Joseph admitted to conspiring to file false claims for refunds against the government in the names of inmates incarcerated in Florida Department of Corrections from February 7, 2008 through July 10, 2012. The majority of the false refunds issued as a result of the scheme were directed to a bank account under the control of Michael Joseph or were sent in checks to the residence of Joseph’s mother to be later cashed.
Joseph is scheduled for sentencing before Judge Smoak on March 20, 2013 and faces the following maximum prison sentences: ten years in prison for Count One; five years in prison on each count for Counts Two through Twenty-eight; twenty years in prison for Count Twenty-nine, and ten years in prison on each violation alleged in Counts Thirty through Forty-six.
This prosecution resulted from the collaborative investigative efforts of IRS Criminal Investigation, the U.S. Postal Inspection Service, the Florida Department of Law Enforcement, the State Attorney’s Office for the 14th Judicial Circuit of Florida, and the Florida Department of Corrections. The case is being prosecuted by Assistant United States Attorney Tiffany H. Eggers.South Florida Man Sentenced to Four Years in Federal Prison for Income Tax FraudRead the Press Release
TALLAHASSEE, FLORIDA – Marvens Jean-Paul, 21, of Opa Locka, Florida, was sentenced yesterday to 48 months in federal prison for his leadership role in a conspiracy to file false claims for federal income tax refunds, involving stolen identities. Jean-Paul was sentenced by U.S. District Judge Robert Hinkle.
Jean-Paul pled guilty in 2012 to two counts of conspiracy to file false claims, seven counts of wire fraud, and four counts of aggravated identity theft based upon his involvement in schemes to file false claims for more than $1 million in federal tax refunds in 2010 and 2011. Jean-Paul admitted to stealing personal identifying information from an office on the campus of Florida A&M University, resulting in the victimization of several recent graduates of FAMU. Illegally using the information of these victims, Jean-Paul and his co-conspirators filed false tax returns that included false wage and income information, as well as false withholding information. At Jean-Paul’s direction, his co-defendants, Kimle Fils-Aime and Guerline St. Charles, cashed tax refund checks generated by one of the schemes at JP Morgan Chase Bank in North Miami, where they worked as tellers. In addition to the checks, Jean-Paul also arranged for the illegally obtained tax refunds to be loaded onto prepaid debit cards, which were used to wire transfer cash. As a result of the false claims, Jean-Paul obtained more than $279,398 in fraudulent income tax refunds.As part of his sentence, Jean-Paul was ordered to pay $280,285 in restitution. Last year, St. Charles and Fils-Aime each pled guilty to conspiracy and were sentenced for their roles in the scheme. Fils-Aime was sentenced to 12 months in prison and ordered to pay $86,748 in restitution. St. Charles was sentenced to five years’ probation, with eight months’ home detention, and was ordered to pay $73,320.03 in restitution.
“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,” said Pamela C. Marsh, United States Attorney for the Northern District of Florida. “We are pursuing those engaged in these schemes, with intensity, and we are ready for tax season.” Ms. Marsh expressed her grateful appreciation for the work of Internal Revenue Service -- Criminal Investigations, the U.S. Postal Inspection Service, and the Leon County Sheriff’s Office, whose joint investigation led to the convictions in the case.
The case was prosecuted by Assistant U.S. Attorney Winifred Acosta NeSmith.Multi-State Mortgage Fraudster Sentenced to 10 Years in PrisonRead the Press Release
PENSACOLA, FLORIDA – Lonett Rochell Williams47, Woodland Hills, California, was sentenced yesterday to 10 years in prison for conspiracy to commit mail fraud, conspiracy to commit money laundering, and six substantive counts of mail fraud.
In October of last year, Williams pled guilty to an eight-count indictment alleging that she participated in a conspiracy to defraud multiple lenders as part of a scheme to fraudulently purchase thirty-seven properties located in Texas, Georgia, and California, and in Navarre, Panama City Beach, and Sarasota, Florida. Approximately $20,448,767 in loans were issued by the lenders in connection with the real estate deals. Williams and her company received more than $4.5 million in kickbacks as a result of the scheme.
In September 2011, Williams’ son, Raysean K. Richardson, 28, New York, New York, was separately indicted on charges of conspiracy to commit mail fraud, mail fraud, and conspiracy to commit money laundering based on his role in the scheme. Richardson was convicted as charged following a jury trial held before Chief United States District Judge M. Casey Rodgers in September 2012. He is scheduled to be sentenced on February 19, 2013, by Judge Rodgers. Richardson faces up to twenty years in prison on each of the three counts of conviction.
Pamela C. Marsh, United States Attorney for the Northern District of Florida, praised the work of IRS-Criminal Investigations, the FBI and the Florida Department of Law Enforcement, whose joint investigation led to the convictions in these cases.
“Mortgage fraud, like all financial crimes, adds to the underground economy, erodes the integrity of our tax system and threatens the financial health of our communities as has been witnessed over the past several years” stated Special Agent in Charge James Robnett of the IRS Criminal Investigation Tampa Field Office. “Our agency, in cooperation with other federal and state law enforcement partners, target the offenders of mortgage fraud in our attempt to stem the tide of criminal activities that lay waste to the underpinnings of our financial system and this sentence should serve as a deterrent to those thinking about committing the same crimes.”
United States Attorney Marsh noted that prosecution is a continuation of this office’s vigorous efforts to combat mortgage fraud as part of Operation Stolen Dreams, a nationwide sweep that targeted mortgage fraud throughout the country. The largest collective enforcement effort ever brought to bear in confronting mortgage fraud, Operation Stolen Dreams was organized by the Mortgage Fraud Working Group of President Obama’s Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated effort to investigate and prosecute financial crimes.
The case was prosecuted by Assistant United States Attorney Tiffany H. Eggers.
Pain Clinic Owner and Two Physicians Sentenced for Prescription Drug Conspiracy and Money Laundering ConspiracyRead the Press Release
PENSACOLA, FLORIDA – Dennis M. Caroni, age 38 of Los Angeles, CA, Dr. Gerard M. DiLeo, age 61 of Bradenton, FL, and Dr. Joseph G. Pastorek, II, age 62 of Slidell, LA, were sentenced today by Chief U.S. District Judge Casey Rodgers for their roles in running illegal pill mill pain clinics in Pensacola and New Orleans. Following a six-week trial in United States District Court in Pensacola in October and November 2011, all three defendants were charged and found guilty of conspiring to unlawfully distribute prescription pain killers. Caroni and DiLeo were also convicted of conspiring to unlawfully launder the proceeds of their prescription drug distribution violations.
As the owner and operator of Global pain management clinics in Pensacola and the New Orleans area between 2004 and 2008, Caroni was sentenced by Chief Judge Rodgers to 20 years in prison. DiLeo was sentenced to two years’ imprisonment plus one additional year home confinement for his role as part-owner of one of the clinics and full-time prescribing physician. The other prescribing physician charged, Pastorek, was sentenced to one year’s imprisonment plus one additional year home confinement.
The sentencing hearing for all three defendants had originally commenced July 25, 2012. The proceeding was adjourned after two days to give Chief Judge Rodgers additional time to consider the evidence before making a ruling. The hearing resumed on January 17, 2013, to present additional evidence for the judge’s consideration. Following final arguments by the attorneys this morning, Chief Judge Rodgers pronounced the sentence for each defendant.
“The protection of citizens from unscrupulous individuals who operate pill mills, dispensing highly addictive controlled substances, is a primary concern of healthcare fraud investigations,” said U.S. Attorney Marsh. “Operators of such clinics and the doctors they hire to peddle dangerous narcotics will be vigorously prosecuted by this office. These defendants irresponsibly distributed oxycodone, methadone, and hydrocodone, and they operated outside the usual course of professional medical practice – in short, they were drug dealers. The indiscriminate over-prescribing of narcotic drugs wreaks havoc on society by causing addiction and potential overdose deaths. The combination of illegal drug distribution and the theft of public funds and fraud committed against the taxpayers and health care benefit programs remains a high priority of the Department of Justice.”
This case was the result of a multi-year Organized Crime Drug Enforcement Task Force operation named “Doc-in-a-Box” and the cooperative efforts of the Drug Enforcement Administration, Internal Revenue Service—Criminal Investigation, Florida Department of Law Enforcement, Santa Rosa County Sheriff’s Office, and U.S. Attorney’s Office Northern District of Florida. The defendants were prosecuted by Assistant U.S. Attorneys Randy Hensel and Alicia Kim.
Sneads Man Indicted for Manufacturing Child PornographyRead the Press Release
PANAMA CITY, FLORIDA– A federal grand jury has returned a four-count indictment charging Donyel James Fitts, 28, of Sneads, with manufacturing child pornography. The indictment was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
Counts One and Two of the indictment allege that, on June 20 and 21, 2012, Fitts persuaded, induced, enticed, and coerced a child to engage in sexually explicit conduct, for the purpose of photographing the minor victim. Counts Three and Four of the indictment allege that Fitts videotaped a child engaged in sexually explicit conduct on October 16, 2012, and October 19 2012, respectively.
For each count, if convicted, Fitts faces a mandatory sentence of 15 to 30 years in prison, a life term on supervised release, and a $250,000 fine.
This case is being investigated by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Jackson County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Gayle Littleton.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 Attorney’s 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
An indictment is merely a formal charge by the grand jury. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt at trial.