Northern District of Florida

U. S. Attorney Marsh praised the work of Northwest Florida Mortgage Fraud Task Force and the Defense Criminal Investigative Service, in pursuing this investigation.  Formed in July 2011, the Northwest Florida Mortgage Fraud Task Force is a partnership of the Federal Bureau of Investigation, the Okaloosa County Sheriff’s Office, and the Florida Department of Law Enforcement, and is charged with investigating mortgage fraud in the panhandle of Florida.

This prosecution is a continuation of vigorous efforts to combat mortgage fraud as part of  Operation Stolen Dreams, a nationwide sweep targeting fraudulent mortgage loans.  This national emphasis is the largest collective enforcement effort ever brought to bear in confronting the problem and was initiated by the Mortgage Fraud Working Group of the President’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 Thomas P. Swaim.

PENSACOLA, FLORIDA – Rudolf Straat, 49, and his wifeMaria Gudelis, 45, both of Sarnia, Ontario, Canada, were sentenced to two years in federal prison for conspiring to commit tax fraud, mortgage fraud, and money laundering.   

Between 2004 and 2012, the husband-and-wife team fraudulently obtained mortgage loans to purchase homes in Florida and Nevada for more than $10 million.  In applying for these loans, Straat and Gudelis falsely represented that they were United States citizens when, in fact, Straat is a citizen of the Netherlands, and Gudelis is a citizen of Canada.  In addition, they falsely represented on the loan applications that they were unmarried and made false statements concerning their employment.

Straat and Gudelis concealed income they received on the sales of these homes by transferring the properties into trusts and nominee companies, and by taking other steps to ensure that gains from the sales would not be reported under their personal taxpayer identification numbers. 

The couple lived in Sandestin from at least October 2005 through July 2007.  During this period, Straat failed to file federal income tax returns for tax years 2005 and 2006, failing to report $364,902 in capital gains for 2005, and more than $689,368 in capital gains for 2006 to the IRS.  Gudelis also failed to file income tax returns for tax years 2005 and 2006, failing to report $749,883 in capital gains for 2005, and more than $30,826 in capital gains for 2006.  Both Straat and Gudelis used a portion of these unreported capital gains to fraudulently purchase additional properties.

Straat pled guilty to conspiracy and tax charges in December 2012.  Gudelis pled guilty as charged in early January 2013.  As part of their sentence, Gudelis and Straat are required to pay restitution in the amount of $575,814 to the IRS and $5,188,459 to the mortgage lenders they victimized.

United States Attorney Marsh praised the work of IRS-Criminal Investigations, the Federal Bureau of Investigation, and Homeland Security Investigations, whose joint investigation led to the convictions in this case.  “Mortgage fraud harms not only lenders, but honest homebuyers and the community at large through increased housing costs,” Marsh said.  “We will continue to investigate and prosecute criminals who try to game the system by manipulating the mortgage loan industry and cheating on their taxes.”

James D. Robnett, Special Agent in Charge of IRS Criminal Investigation, stated, “Mortgage fraud impacts the entire country by weakening faith in the financial system.  IRS-CI’s goal is to help restore confidence in the financial system, both the public tax system and the private banking system, through our aggressive investigation of violations of federal laws, no matter where in the world these investigations take us.  It is with the cooperation of the talented individuals at the U.S. Attorney’s Office that our agency and others can work together towards this common goal.”

Nestor Duarte, Acting Special Agent in Charge of the Jacksonville FBI Office, stated, “The FBI identified mortgage fraud as a threat to not only the banking industry, but the financial sector as a whole.  To that end, the FBI, working with its partners in the banking and mortgage industry purposely identified groups and individuals, both domestically and internationally, who willingly participate in these criminal schemes and diligently work with the U.S. Attorney’s Office to bring about successful prosecutions."

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

PENSACOLA, FLORIDA – Mack S. Varnado, Jr., 32, of Cantonment, was sentenced Tuesday afternoon as a result of his guilty plea on February 7, 2013, to a federal indictment charging him with the receipt and transportation of child pornography. The sentencing was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida. 

On October 13, 2011, a cybertip was reported to the National Center for Missing and Exploited Children (“NCMEC”) that sparked the local investigation.  The report documented email messages containing child pornography being transmitted from an America Online (“AOL”) account in the Northern District of Florida.  Specifically, on October 12, 2011, AOL detected that an email message was sent from the user “NohassleSN24” to Yahoo! subscriber “[email protected].”  The message contained several child sexual exploitation images.  Detective Chris Wilkinson, of the Pensacola Police Department, was able to trace this email message to Varnado at his residence in Cantonment, Florida.  A total of fourteen illicit images had been sent by Varnado.  All of the images depicted minor children between approximately ten and fourteen years old engaged in various sexual activities. 

On or about January 13, 2012, Detective Wilkinson obtained a warrant to search the email account hosted by AOL, located in Dulles, Virginia.  On January 18, 2012, AOL responded that Varnado maintained email messages, both sent and received, which had attachments of child pornography.   

All this information led to a federal search warrant on Varnado’s residence in Cantonment.  The defendant was present during the execution of the search warrant.  Multiple pieces of digital media were seized.  A forensic examination of Varnado’s digital media revealed images and videos of child pornography, matches for the screen name [email protected], and matches to those images located in the “sent” mailbox linked to the email account used by Varnado.

Senior United States District Judge Roger Vinson sentenced Varnado to 60 months imprisonment to be followed by 6 years of supervised release.  In addition, based upon Varnado sending and receiving child pornography from his residence in Cantonment, Judge Vinson ordered that Varnado forfeit his interest in the residence because it was used to facilitate the online crimes against children.  This amounted to Varnado forfeiting $74,000 to the United States government. 

In announcing the sentence, U.S. Attorney Marsh said, “Protecting our children from the permanent scars left behind when this kind of exploitation occurs is critically important work.  This prison sentence, along with the forfeiture ruling, should send a strong message of deterrence.  We have the expertise to responsibly gather the necessary evidence to charge these cases, and the charges when proven beyond a reasonable doubt carry serious penalties under federal law.”  She expressed her gratitude to U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Pensacola Police Department for their cooperation, dedication, and expertise in the investigation and prosecution of the case.

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 – Senior United States District Judge Roger Vinson sentenced two men following their pleas of guilty to one count of conspiracy to defraud the government, four counts of theft of public money, and two counts of aggravated identity theft. Victor T. Williams, 28, of Tampa, Florida was sentenced to forty-two months, and Kenneth R. Faison, 51, of Foley, Alabama was sentenced to twenty-four months in prison.  The sentences were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

Between November 2011 and November 2012, Williams fraudulently obtained tax refund checks in the Tampa area and sent them to Faison, who deposited and cashed the checks in banks in northwest Florida and southern Alabama.  Faison used accounts in the name of a church where he served as pastor to convert the checks.  Once Faison had deposited the checks, he kept a percentage of the stolen funds for himself and transferred the remainder to Williams.  Faison and Williams also committed identity fraud to convert the checks in at least two instances, including using identifying information stolen from a victim taxpayer in order to add the taxpayer as signatory to Faison’s bank account so he could deposit a check.  As part of each defendant’s sentence, Senior Judge Vinson ordered the payment of more than $220,000, which was successfully stolen from the government as a result of this conspiracy.

This case was investigated by the Internal Revenue Service – Criminal Investigations and was prosecuted by Assistant U.S. Attorney Alicia Kim 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.

PENSACOLA, FLORIDA – Arturo L. Molina, 35, of the Fort Walton Beach area, pled guilty today to a single count federal indictment charging him with wire fraud in connection with claims filed related to the Gulf of Mexico oil spill. The guilty plea was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida. 

As a part of the plea, Molina admitted to electronically submitting a Gulf Coast Claims Facility (GCCF) form to obtain funds that he claimed were lost due to the Deepwater Horizon oil rig spill in the Gulf of Mexico.  The GCCF was tasked with receiving and processing all claims by individuals and businesses impacted by the Deepwater Horizon spill.  To seek payment from the GCCF for damages incurred as a result of the oil spill, an individual or business was required to complete a GCCF Claim Form.  Molina originally claimed he suffered $14,400.00 in lost earnings as an employee for a construction company in Fort Walton Beach, Florida.  

In support of his false claim, Molina provided documents to the GCCF.  His submissions included what purported to be valid paychecks from “A & M Professional Framing, Inc.”  Molina also submitted to the GCCF a Full Review Final Payment form for a loss he claimed to have incurred in the amount of $19,800.00.  Molina submitted W-2 forms and a partial 1040 U.S. Individual Income Tax Return form for 2010.  These forms claimed that Molina earned business income, yet there were no supporting documents attached and they did not appear to be fully executed.  Based on these false claims, the GCCF made payment to Arturo L. Molina in the amount of $13,900.00.

Molina was eventually interviewed by investigators regarding his GCCF claims.  He admitted he was paid by “A & M Professional Framing, Inc.” only in cash, which contradicted the paychecks submitted with his original claim.  Further, he conceded that he was not a legal resident of the United States and did not have a permit to lawfully work in this country.  In reality, the investigation revealed that none of the paychecks submitted with Molina’s claim were ever actually issued to him from the bank account provided in his claim.  Furthermore, the W-2 forms submitted contained multiple social security numbers and, pursuant to review by the Social Security Administration’s Office of the Inspector General, they are not legitimately linked to Molina. The tax forms submitted by Molina in support of the claim were also fraudulent. 

Sentencing for Molina is set before Chief United States District Judge M. Casey Rodgers on July 5, 2013, at 9:00 a.m. Molina faces up to twenty years imprisonment, three years of supervised release, and up to a $250,000 fine for this wire fraud conviction. 

The indictment results from an investigation by agents of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney David L. Goldberg is prosecuting the case.

PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, was sentenced today by Senior U.S. District Judge Lacey A. Collier to six months in federal prison for his conviction on one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). Additionally, Judge Collier ordered Odom to pay a fine of $46,000 and a Special Monetary Assessment of $100 for the felony conviction. The sentencing was announced this afternoon by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.

            According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate.  The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions.  During his guilty plea on February 12, 2013, Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions. 

            In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000.  As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom.

            This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.

GAINESVILLE, FLORIDA – Robert Stanley Ziolkowski, 66, of Adel, Georgia, was sentenced today by U.S. District Court Judge M. Casey Rogers to serve 360 months in federal prison for travel with the intent to engage in sexual activity with a child.
Ziolkowski was convicted following a two-day jury trial in January for one count of traveling to meet a minor for the purpose of engaging in sexual activity. During the trial, evidence demonstrated that Ziolkowski used the Internet website Craigslist to contact a person in Gainesville, Florida, and arranged to have sex with an eleven-year-old girl.  Ziolkowski was arrested after he traveled from Adel, Georgia, and arrived at a gas station in Gainesville to meet the child.
Due in part to his prior convictions for sex offenses, Ziolkowski faced a recommended sentence of between 292 and 360 months in prison. Ziolkowski was also sentenced to serve the remainder of his life on supervised release, which he will be required to serve upon completion of his prison sentence.
In announcing the court’s sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida, stated, “Protecting children from the horrors of sexual exploitation is one of the highest priorities of the Department of Justice and this Office. We will continue our partnership with our state, local, and federal law enforcement agents to ensure that offenders are prosecuted to the full extent of the law.”
This case was the result of an undercover law enforcement operation which took place in Gainesville, Florida, in February 2012.  Ms. Marsh praised the North Florida Internet Crimes Against Children Task Force and the Alachua County Sheriff’s Office.   The case was prosecuted by Assistant U.S. Attorney Frank Williams.

PENSACOLA, FLORIDA – A federal grand jury returned two indictments this week charging twelve individuals with methamphetamine and pseudoephedrine related conspiracy offenses.  The indictments were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.  These individuals were arrested on federal warrants and made their initial appearances in United States District Court today.

The indictments charge that Gregory A. Militello (42), Joshua P. Militello (30), Nicole D. Jones (32), Kirby B. Smith (50), James E. Atiabi (35), John W. Casey (33), Stephanie A. Gunderson (26), Jared L. Hester (29), Shannon L. Hurd (29), Shawn M. King (34), Joseph D. Peterson (33), and Hunter G. Myrick (23), all from the greater Pensacola area, were involved in a conspiracy to possess and distribute large amounts of pseudoephedrine in order to manufacture methamphetamine from January 1, 2011, until their arrests.  Pseudoephedrine is a chemical used to manufacture methamphetamine.  In addition to the twelve individuals arrested on federal warrants, dozens more were arrested on state warrants involving similar alleged activity.

Trial for the federal defendants is set for June, 2013. If convicted at trial, each of the twelve defendants faces up to twenty years imprisonment, three years of supervised release, and up to a $250,000 fine on the conspiracy charged in the indictments.  Mr. Peterson faces a separate mandatory penalty of ten years to life imprisonment based upon a charge against him involving the manufacture of methamphetamine.

The indictments result from an investigation by agents of the United States Drug Enforcement Administration, the Florida Department of Law Enforcement, the Escambia County Sheriff’s Office, and the State Attorney’s Office. Assistant United States Attorney David L. Goldberg is prosecuting the case.

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

PANAMA CITY, FLORIDA – Michael William Joseph, III, 53, formerly an inmate in the Florida Department of Corrections was sentenced to 63 months in prison today for his involvement in an inmate tax fraud scheme and ordered to pay $37,196.27 in restitution to the Internal Revenue Service. 

United States District Judge Richard Smoak sentenced Joseph to 63 months in prison based upon Joseph’s guilty plea to forty-one counts of violation of federal criminal laws which included:  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.  In addition, Judge Smoak also ordered that $29,514.91 in United States currency would be forfeited to the United States as proceeds of Joseph’s federal crimes.  These funds included money that was seized by law enforcement from Joseph’s bank account, as well as an additional stash of cash found buried in the backyard of a Tampa home in June 2009.

The evidence showed that Joseph conspired with others to file eighty-one false claims for tax refunds against the government in the names of forty-one inmates incarcerated in Florida Department of Corrections from February 7, 2008, through July 10, 2012.  Most of the false refunds were directed to a bank account under the control of Joseph or were sent in checks to the residence of Joseph’s mother.   

United States Attorney Pamela Marsh stated, “The Department of Justice is committed to vigorously prosecuting those individuals and groups of individuals who steal the identities of other individuals and use those stolen identities to fraudulently obtain large amounts of money from the Government. We have intensified our efforts, along with our federal and state law enforcement partners, to identify and vigorously prosecute these stolen identity return fraud cases.”

“Today’s sentence reflects the seriousness with which tax refund fraud is taken by the courts” stated James D. Robnett, Special Agent in Charge of the IRS Criminal Investigation, Tampa Field Office. “Our office, in cooperation with the U.S. Attorney’s Office and our federal, state and local law enforcement partners, will continue to commit resources to combat tax fraud wherever it may occur.  Through aggressive enforcement of the tax laws our office hopes to promote confidence in the tax system, proving that this type of crime will not be tolerated.”

Ms. Marsh expressed her grateful appreciation for 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 was prosecuted by Assistant United States Attorney Tiffany H. Eggers.

TALLAHASSEE – Kenneth L. Barber, 62, of Tallahassee, Florida, was convicted by a federal jury in Tallahassee today of wire fraud, preparing false tax returns, making a false statement to a bank, and conspiracy to commit tax fraud.  The verdict was announced by Pamela C. Marsh, the United States Attorney for the Northern District of Florida.

At trial, the government presented evidence that Barber ran and operated a local tax preparation business where he encouraged preparers to falsify clients’ tax returns. Barber’s former employees testified that the defendant trained them on how to prepare fraudulent returns to increase the clients’ tax refunds.  At Barber’s instruction and direction, the employees filed returns falsifying income, deductions, credits, dependents, and filing status in order to obtain inflated tax refunds and to limit the tax due to the IRS.   Government agents testified that the scheme resulted in a loss of more than $700,000.

Barber was convicted of making false statements to a financial institution based upon evidence that he provided a bank with false information concerning his income in order to qualify for loans totaling more than $300,000.  Records introduced at trial showed that personal and corporate tax returns Barber submitted to Wachovia Bank reflected substantially greater income than the returns the defendant actually filed with the IRS.

The defendant is facing a maximum sentence of five years in prison for conspiracy, three years in prison on each count of preparing fraudulent tax returns, twenty years in prison on each count of wire fraud, and thirty years in prison on each count of making a false statement to a bank.        

In announcing the verdict, U.S. Attorney Marsh said, “As honest American citizens are filing their tax returns in advance of Monday’s deadline, this verdict emphasizes that we continue to aggressively pursue those who defraud and illegally manipulate the tax system.  Tax return preparers who engage in illegal schemes abuse positions of trust and willfully undermine the entire tax system.  I am grateful to the dedicated public servants who tirelessly investigated and prosecuted this case.”  U.S. Attorney Marsh specifically praised the work of the Internal Revenue Service, whose investigation led to the convictions in the case

Barber is scheduled for sentencing on June 26, 2013 before United States District Judge Robert L. Hinkle. 

PANAMA CITY, FLORIDA – Following a three day trial in federal court, a jury found Thomas Monroe Lee, 40, of Gadsden, Alabama, guilty of using the Internet in an attempt to persuade, induce, and entice a minor to engage in sexual activity.

Evidence presented during trial proved that, on June 14, 2012, law enforcement officers posed as a 14-year-old boy named Skylar and responded to an advertisement entitled “Last call!!!! – m4m – 1840 (PCB/Laguna beach),” which had been posted under the “Casual Encounters” link on Craigslist.  Over the next 48 hours, Lee engaged in email chats and text messages with Skylar that were sexual in nature.  Subsequently, Lee drove to a location where he had arranged to meet Skylar and transport him back to his residence to engage in sexual activity.  Once Lee arrived at the location, officers from various law enforcement agencies arrested him for attempted online enticement of a child.

As a result of the guilty verdict, Lee faces a sentence of ten years to life in prison, a fine of up to $250,000, not less than five years and up to a life term of supervised release, and a $100 special monetary assessment.

In announcing the verdict, Pamela C. Marsh, United States Attorney for the Northern District of Florida, credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Marshals Service, Bay County Sheriff’s Office, Walton County Sheriff’s Office, and the Gainesville Police Department.  Ms. Marsh said, “The safety and well-being of our children is a top priority for the Department of Justice.  Our office will continue to aggressively prosecute these cases to protect the community and children, who are our most innocent victims.  Great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”

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.

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

PANAMA CITY, FLORIDA – Robert E. Eldridge 43, of Panama City, was sentenced today to serve 180 months in federal prison for receipt and possession of child pornography

Eldridge pled guilty in January to two counts of receiving and possessing child pornography. During his plea of guilty, Eldridge admitted that between January 1, 2012, and March 21, 2012, he downloaded in excess of 35 videos and 160 still images containing child pornography from a peer-to-peer network and that he “preferred minor females around 12 years of age.”

Due to a prior conviction for Promoting Sexual Performance of a Child, Eldridge faced an enhanced penalty of a mandatory minimum term of imprisonment of fifteen years on Count One of his indictment and a mandatory minimum term of imprisonment of ten years on Count Two. Eldridge was also sentenced to a 10-year term of supervised release, which he will be required to serve upon completion of his prison sentence.

In announcing the court’s sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida stated: “Protecting children from sexual exploitation is one of the highest priorities of the Department of Justice and this Office. We will continue our partnership with our state, local, and federal law enforcement agents to ensure that offenders are prosecuted to the full extent of the law.”

Ms. Marsh had high praise for the Bay County Sheriff’s Office and agents of the U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE HSI) who assisted in the investigation. The case was prosecuted by Assistant U.S. Attorney Kathryn Risinger.

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.  

PANAMA CITY, FLORIDA – Two federal grand jury indictments were unsealed today charging five individuals with using the personal identifying information of other individuals to file fraudulent tax returns.  The indictments were announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

The first indictment charges two individuals:  Versiah M. Taylor, 32, of Panama City, and Tracy L. Collier, 47, an inmate at the Florida Department of Corrections’ Lake Butler Reception & Medical Center.  Taylor and Collier are charged in a forty-five count indictment with conspiring to defraud the government with respect to claims, filing false claims against the United States, wire fraud, and aggravated identity theft.

The indictment alleges that Taylor and Collier conspired to file false federal income tax returns with the Internal Revenue Service (IRS), claiming refunds of more than $503,273.00, knowing that they were not entitled to receive those funds.  Collier, while incarcerated at Okaloosa Correctional Institution, obtained the names, dates of birth, and social security numbers of various inmates, often without the individual’s knowledge or authorization.  According to the indictment, Collier provided the personal identifying information to Taylor, and Taylor then used the information to file false tax returns claiming fraudulent refunds.  The false returns submitted to the IRS in this scheme included fabricated amounts of wages, names of false employers and financial institutions, and false amounts of interest income and Social Security income.  As a result of the scheme, Taylor and Collier caused the United States Treasury to pay fraudulent income tax refunds by loading said refunds onto prepaid debit cards purchased in the Bay County area or onto prepaid debit cards mailed by various financial institutions to locations throughout the Bay County area.

The second indictment charges Anthony Q. Atkinson, 31, Anthony L. Smith, Jr., 25, and John Jerome Fagin, 30, all of the greater Panama City area.  Atkinson, Smith and Fagin are charged in a ten count indictment with conspiring to defraud the government with respect to claims, filing false claims against the United States, wire fraud, and aggravated identity theft.

The indictment alleges that Atkinson, Smith, and Fagin conspired to file fraudulent federal income tax returns with the IRS, claiming refunds of more than $37,526.00.  As part of the scheme, Smith provided personal identifying information to Atkinson, who would then file fraudulent tax returns using the false and stolen information.  The indictment alleges that Fagin provided his own personal identifying information, as well as the addresses of other individuals to Smith and Atkinson to facilitate the filing of false tax returns.  The false tax claims submitted in this scheme included fabricated amounts of Social Security income, taxable interest income, tax withholdings and names of financial institutions.  As a result, Atkinson, Smith and Fagin caused the United States Treasury to pay fraudulent income tax refunds by loading refunds onto prepaid debit cards purchased in the Bay County area or onto prepaid debit cards mailed by financial institutions to locations throughout the Bay County area.

If convicted of the charges contained in these two indictments, the defendants face up to twenty 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 on each count of conviction.  Additionally, each count of aggravated identity theft carries a potential minimum mandatory sentence of two years in prison, which must be served consecutively to any other sentence imposed.

The indictment results from an investigation conducted by agents of IRS Criminal Investigation and this case is being prosecuted by Assistant United States Attorney Kathryn Risinger 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. U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations whose investigations led to the indictments in these cases.

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

PENSACOLA, FLORIDA– Buddy Lamar Redden, 65, of Pensacola,was indicted today by the federal grand jury for six sales of firearms to convicted felons and for dealing in firearms without a license. The seven-count indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.
If convicted of dealing in firearms without a license, Redden faces up to five (5) years in prison and a $250,000 fine. For each count of conviction for sale of a firearm to a convicted felon, Redden faces up to ten (10) years in prison and a $250,000 fine.
The indictment comes as a result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Edwin Knight.
An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. A defendant is presumed innocent unless and until the government proves his guilt beyond a reasonable doubt to the satisfaction of a jury at trial.

TALLAHASSEE, FLORIDA – Today, Kevin Lee Butler, 23, of Quincy, Florida, was sentenced to ten years in federal prison for using the internet in an attempt to entice a minor to engage in sexual activity.  The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

In October 2011, Butler replied to an internet ad posted as part of an undercover investigation conducted by the North Florida Internet Crimes Against Children (“ICAC”) Task Force.  The ad purported to be from a “single mom” of a 12 year-old girl.  Butler exchanged a series of emails with the undercover agent who was posing as the child’s mother.  During the course of the exchanges, Butler made arrangements to travel to Tallahassee for the purpose of having sex with the 12 year old.  When he arrived at the meeting place, he was arrested.  

Butler pled guilty to this offense in January.  As part of Butler’s sentence, United States District Judge Robert L. Hinkle also imposed a life time term of supervised release, with the conditions that Butler attend sex offender treatment, that he register as a sex offender, and that his computers, and other electronic devices be subject to search by his probation officer and by law enforcement.

United States Attorney Marsh credited the success of this prosecution to the joint efforts of the agencies participating in the North Florida ICAC, particularly Homeland Security Investigations, the Florida Department of Law Enforcement, the United States Marshals Service, and the Tallahassee Police Department.  Ms. Marsh said, “The protection of the children in our community remains a priority of the Department of Justice, and great praise is deserved by all of our law enforcement partners who contributed to the success of this investigation.”

The case was prosecuted by Assistant United States Attorney Herbert Lindsey.

PANAMA CITY, FLORIDA –Charles R. Hood, 59, of Tallahassee, Florida was sentenced to thirty months in federal prison today for conversion of property listed as collateral on a mortgage loan.

On October 18, 2012, Hood pled guilty to a one-count information charging him with conversion of property pledged as collateral on a mortgage loan, in violation of Title 18, United States Code, Section 658.  Facts presented during the plea hearing revealed that Hood, owner of Fidelity Foods, LLC, was working as a peanut broker. On January 7, 2008, Hood signed a loan agreement with Farm Credit of Northwest Florida (hereinafter “Farm Credit”) allowing him to receive a revolving line of credit of up to $5 million.  As collateral on the loan, Hood pledged, among other things, peanuts that he or his company held at warehouses and/or shelling plants.  After receiving a line of credit from Farm Credit throughout 2008, Hood subsequently defaulted on the loan.  Afterwards, Farm Credit attempted to recover their losses by claiming the peanuts pledged as collateral on the loan.  However, Farm Credit subsequently learned that between on or about January 7, 2008, and on or about January 23, 2009, Hood had used peanuts which were listed as collateral on Hood’s loan agreement with Farm Credit to settle an outstanding $2,100,838.83 business debt that he owed to another company.

As part of his sentence, United States District Judge Richard Smoak also imposed three years’ supervised release.  In addition, Hood agreed to pay $2,456,720.97 in restitution to the victim, Farm Credit, which represented the outstanding balance owed on his loan.

The sentence was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. Ms. Marsh praised the work of the Federal Bureau of Investigation in this matter.  The case was prosecuted by Assistant U.S. Attorney J. Ryan Love.

PENSACOLA, FLORIDA – United States Attorney Pamela C. Marsh announced today that four individuals pled guilty before Chief U. S. District Judge M. Casey Rodgers to their involvement in a fraudulent prisoner income tax refund scheme.  The indictment of Cora Beard (68) of Morriston, William Scott Folk (36) and Christopher Jesse Lee (36) both currently incarcerated with the Florida Department of Corrections, and Gail Anita Moss (60) of Miami Gardens was returned by a federal grand jury on January 15, 2013.  Count One charged all four defendants with conspiracy to defraud the government with respect to claims, and Count Two charged all four defendants with conspiracy to commit mail fraud.  Cora Beard and Gail Anita Moss were also charged with seven counts of filing false claims against the government and seven counts of theft from the government.  The indictment also charged Beard with one count of aggravated identity theft, and Moss with two counts of aggravated identity theft.
 
            In today’s hearing, Beard pled guilty to Counts One through Nine, Seventeen through Twenty-Three and Thirty Two; Moss pled guilty to Counts One, Two, Eleven through Sixteen, Twenty-Five through Thirty and Thirty-One through Thirty-Three; and Lee and Folk each pled guilty to Counts One and Two.  All four defendants are scheduled to be sentenced on May 20, 2013, by Chief Judge Rodgers.  The individuals were charged in a multi-year scheme in which they and others used the names and social security numbers of inmates incarcerated in the Florida Department of Corrections, and on occasion, other individuals who were not incarcerated, to file fraudulent tax returns.  As part of this scheme, Cora Beard and Gail Anita Moss used their home addresses as well as the home addresses of previously indicted co-conspirators, Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair and others, so IRS refund checks would be mailed to them.  The other co-conspirators were indicted in January 2012, and all pled guilty to their involvement in the fraudulent income tax scheme. 

            During the course of the scheme charged in the indictment, the defendants and others filed and caused to be filed approximately 344 false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States. A copy of the indictment is attached.

            At sentencing, each defendant faces a maximum of ten years in prison for Counts One and Two.  For the counts of filing false claims against the government, Cora Beard and Gail Anita Moss face up to five years in prison on each of their counts.  For the counts of theft from the government, Cora Beard and Gail Anita Moss face up to ten years in prison on each of their counts.  For the counts of aggravated identity theft, Cora Beard and Gail Anita Moss face a minimum mandatory sentence of two years imprisonment on each count, which must be run consecutively to any other sentence imposed. 

The case was prosecuted by Assistant U.S. Attorney Tiffany Eggers 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. The investigation is the result of an investigation by the Internal Revenue Service – Criminal Investigations.

TALLAHASSEE, FL B James Ryan Lanier, 33, was sentenced to 106 months in federal prison for embezzling more than $800,000 from Merrill Lynch clients.   The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

Between 2008 and 2010, Lanier used his position as a financial advisor for Merrill Lynch in Tallahassee to funnel approximately $887,931 in client funds to his own personal bank accounts.  Lanier was able to induce Merrill Lynch Client Associates to wire transfer client funds to bank accounts Lanier controlled by using forged client authorization letters and falsely claiming that his clients had verbally approved the transfers.  To facilitate the scheme, Lanier purposely sought assistance from Merrill Lynch employees who were unfamiliar with Lanier’s clients.  Lanier used the embezzled client funds to make loan payments, and to purchase vehicles, an interest in a cellular telecommunications business, and a condominium in Albany, Georgia.

Last November, Lanier pled guilty to 13 counts of wire fraud, three counts of mail fraud, four counts of money laundering, and two counts of aggravated identity theft in connection with the embezzlement.

In addition to the prison sentence, Lanier was ordered to pay $887,931 in restitution to Merrill Lynch.

U.S. Attorney Marsh commended the work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and the United States Marshal’s Service, whose joint investigation led to the arrest in this case.  Ms. Marsh stated, “This office will vigorously prosecute financial advisors and consultants who victimize and swindle their own clients. This sentence should serve as a stark warning to those who may be tempted to line their own pockets by betraying their clients’ trust.”

PENSACOLA, FLORIDA – A former mortgage broker, Randolph Branham, 46, of Destin, Florida, was sentenced in federal court yesterday to 2 years in prison and ordered to pay over $1.8 million in restitution, having been adjudicated guilty of multiple bank fraud violations. 

In December of last year, Branham pled guilty to a five-count indictment, alleging that he had overstated his income to financial institutions and mortgage lenders on mortgage loan documents related to six pieces of property located in Destin, Panama City Beach, and Freeport, Florida.  As a part of the scheme to defraud the lenders, Branham also submitted fraudulent letters falsely inflating his income.  Approximately $2.4 million in loans were issued by the lenders as a result of Branham’s fraud.  The lenders defrauded included:  The First National Bank of Florida (which was closed by the FDIC in September 2011), SunTrust Mortgage, Trustmark National Bank, First City Bank of Florida, IndyMac Bank (now known as OneWest Bank), and Bank of America. 

Yesterday afternoon, Senior U.S. District Judge Lacey A. Collier sentenced Branham to 2 years in prison and ordered him to pay over $1.8 million in restitution to the victim lenders and the FDIC as Receiver for The First National Bank of Florida due to the bank’s closure. 

Pamela C. Marsh, United States Attorney for the Northern District of Florida, praised the work of Northwest Florida Mortgage Fraud Task Force, a partnership between the Federal Bureau of Investigation, the Okaloosa County Sheriff’s Office and the Florida Department of Law Enforcement. 

U.S. Attorney Marsh stated, “The successful prosecution of this mortgage broker on mortgage fraud offenses demonstrates the commitment of the Department of Justice to combating mortgage fraud in the Northern District of Florida. It is critical that we protect the integrity of the real estate market and banking institutions in our communities, which are major contributors to the health of our economy in Florida. I commend the investigative activities of the Northwest Florida Mortgage Fraud Task Force, a partnership between the Federal Bureau of Investigation, the Okaloosa County Sheriff’s Office and the Florida Department of Law Enforcement. Together, they did an excellent job in unraveling some very complicated real estate financial transactions in this case.”

TALLAHASSEE, FL – Jean Therve, 29, of Haiti, was sentenced yesterday to thirty-three months in federal  prison for attempting to bribe an Immigration and Customs Enforcement (ICE) Deportation Officer to release him from federal detention where he was being held pending deportation to Haiti.

Therve was indicted last year on one count of bribery.  At his trial last December, the government presented evidence that between November 29 and December 6, 2011, Therve offered a deportation officer, who was acting in an undercover capacity, $3,000 to release him.  After a series of conversations, Therve arranged for a third party to wire $1,400.00 to the officer as an initial payment for his release.

Therve is subject to a deportation order that will be executed on the completion of his prison sentence

In announcing the sentence, Pamela C. Marsh, United States Attorney for the Northern District of Florida, commended the work of the ICE Office of Professional Responsibility, which conducted the undercover investigation that led to Therve’s arrest and conviction.

Ms. Marsh added, “In this case, an attempt to pay a bribe to a deportation officer to release an individual from custody was thwarted by the quick action of ICE officers. Attempts to corrupt and provide things of value to public officials will be immediately investigated and prosecuted vigorously.  Prosecution of public corruption, including attempts to bribe law enforcement and correctional officers, is a priority of this office and the Department of Justice.” 

The case was prosecuted by Assistant U.S. Attorney Herbert Lindsey.

TALLAHASSEE, FLORIDA – Rose Martine Vernet, 34, of Tallahassee, was arraigned today on a five-count indictment charging conspiracy to defraud the United States, conversion of income tax refund checks, mail fraud, and aggravated identity theft.   The indictment was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

The indictment alleges that between February 2011 and January 2013, Vernet was part of a conspiracy to file fraudulent federal income tax returns seeking more than $350,000 tax refunds.  The conspirators filed the returns in the names of individuals, both living and deceased, whose identities had been stolen.  The indictment alleges that Vernet sold eight fraudulently obtained refund checks and provided the buyer with the personal identifying information of the victims to make the checks easier to negotiate.  In selling the checks, Vernet is alleged to have told the buyer that the taxpayers were “dead people,” and that “no one will be able to report nothing.” 

If convicted, Vernet faces up to ten years in prison on each of the conspiracy and conversion charges, up to twenty years in prison on the mail fraud charge, and a mandatory consecutive two- year term of imprisonment for identity theft.  Trial is scheduled for April 8, 2013.

This case was investigated by the Internal Revenue Service – Criminal Investigations, the United States Secret Service, and the U.S. Postal Inspection Service.  Assistant U.S. Attorney Michael T. Simpson is prosecuting this 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.

PENSACOLA, FLORIDA – Jay Odom, 56, of Destin, pleaded guilty today before Senior U.S. District Judge Lacey A. Collier to one count of causing a presidential campaign committee to make a false statement to the Federal Election Commission (FEC). The guilty plea was announced this afternoon by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Robert O. Davis, Acting United States Attorney for the Northern District of Florida.

            According to court documents, in approximately December 2007, Odom directly and indirectly solicited employees of his business entities and their family members to each make the maximum allowable contributions to the authorized campaign committee of a presidential candidate.  The employees were encouraged to make these donations with the understanding that Odom would advance funds to or reimburse these individuals for their contributions.  Odom admitted to both knowing that this activity was illegal and intending to conceal the true source and amount of the campaign contributions. 

            In 2007, Odom directly or indirectly used personal funds to reimburse individual contributions to the authorized campaign committee of the presidential candidate for a total of $23,000.  As a result of this scheme, Odom intentionally caused the presidential candidate’s authorized campaign committee to file a report with the FEC that falsely stated that 10 individual donors had made federal campaign contributions when in fact each contribution was made by Odom. 

At sentencing, scheduled for 10:30AM on April 23, 2013, Odom faces a maximum potential penalty of five years in prison.

This case was investigated by the FBI.  This case is being prosecuted by Assistant U.S. Attorney Randall J. Hensel and Trial Attorney Brian K. Kidd of the Criminal Division’s Public Integrity Section.

PENSACOLA, FLORIDA – Victor T. Williams, 28, of Tampa, Florida, pled guilty yesterday to charges of conspiracy, theft of public money, and aggravated identity theft based on his participation in a scheme to obtain fraudulent federal income tax refunds.   The plea was announced by Pamela C. Marsh, the United States Attorney for the Northern District of Florida.

Between 2011 and 2012, Williams and his uncle, Kenneth R. Faison, 51, the pastor of the Pentecostal Temple Church of God in Christ in Mexia, Alabama, conspired to deposit more than $235,000 in U.S. Treasury checks issued on false tax returns.   The returns had been filed in the names of taxpayers, some deceased, whose identities had been stolen.  Williams obtained the checks from confederates in the Tampa area, and mailed them to Faison, who then deposited the checks in banks in north Florida and south Alabama.   Faison kept a percentage of the stolen funds for himself, and transferred the remainder to Williams.   In one instance, Faison added the victim taxpayer as signatory to his bank account, using identifying information stolen from the victim to do so. 

Earlier this year, Faison pled guilty to conspiracy, theft of public money, and aggravated identity theft for his role in the conspiracy.   He is scheduled to be sentenced before Senior United States District Judge Roger Vinson on April 9, 2013.   Williams is scheduled for sentencing on May 8, 2013 before Judge Vinson.

Conspiracy is punishable by a maximum sentence of five years in prison.  Theft of public monies is punishable by ten years in prison.  Aggravated identity theft carries a mandatory sentence of two years in prison, which must be served consecutively to any other sentence.

The case was investigated by the Internal Revenue Service-Criminal Investigations.  It is being prosecuted by Assistant U.S. Attorney Alicia Kim.

PANAMA CITY, FLORIDA – United States Attorney Pamela C. Marsh announced thatChristopher Shaun Lamar, 35, of Atlantawassentenced today to 293 months in federal prison for conspiring to distribute more than five kilograms of cocaine and possessing cocaine with intent to distribute.  Sentence was imposed by United States District Judge Richard Smoak, who presided over Lamar’s jury trial in November 2012.

At Lamar’s trial, Panama City Police officers testified that they seized 360 grams of cocaine and 70 grams of crack cocaine from a rental vehicle during a traffic stop in January 2006.  Officers learned that a local cocaine distribution group had been receiving kilogram quantities of cocaine from Atlanta.  Four members of this organization were convicted of federal drug trafficking offenses at trial and by plea in 2006 and 2007.  Also during trial, cooperating defendants testified that Lamar supplied the group with about 25 kilograms of cocaine in late 2005 and early 2006.  The group picked up the drugs in Atlanta for sale in north Florida.

Lamar argued at trial and at sentencing that he met the witnesses only briefly at strip clubs, that he was a rap musician, and that he only sold marijuana – not cocaine.  However, the witnesses had hundreds of telephone contacts with a cellular telephone attributed to Lamar and were able to give detailed directions to Lamar’s residence near Atlanta.  The witnesses gave similar descriptions of Lamar’s criminal activities despite having been arrested months apart, and being housed separately before being interviewed.

Lamar was indicted in November 2007, but was not apprehended until May 8, 2012, when the DeKalb County Police Department arrested him with a half-pound of marijuana, scales, and a loaded pistol.  That case arising from that arrest remains pending.  Lamar received an enhanced sentence because of his prior felony drug conviction, which stemmed from his arrest on December 16, 2004, with an ounce of cocaine and a loaded revolver.

U.S. Attorney Marsh praised the joint efforts of the Drug Enforcement Administration, the U.S. Marshals Service, and the Panama City Police Department. 

Assistant U.S. Attorney Michael T. Simpson prosecuted this case.

TALLAHASSEE, FLORIDA – Carl Joseph Coutard, 21, and Carliss Pereira, 22, both of Miami, Florida, and Christopher J. Wright, 22, of Fort Lauderdale, have been charged with conspiring to access the iRattler computer system at the Florida A&M University (FAMU) in order to divert financial aid monies to themselves.   The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

The eight-count indictment alleges that between March and November 2010, the three men illegally used the personal identifying information of their fellow FAMU students, without the students’ permission, to access the students’ financial aid information in the iRattler system.  As alleged in the indictment, the defendants then changed the students’ bank account and routing information without the students’ knowledge or consent.  When the students were due to receive financial aid refunds, the defendants would divert these monies to bank accounts the defendants had fraudulently opened in the students’ names.

In addition to conspiracy, Wright is charged with one count of using an unauthorized access device, Coutard and Pereira are charged with possession of more than 15 unauthorized access devices, and Coutard is charged with obtaining information from a protected computer without authorization.
The unauthorized access device offenses are punishable by up to 10 years in prison.  The computer intrusion and conspiracy offenses each carry a maximum sentence of 5 years in prison. 

All three men are also charged with aggravated identity theft, which carries a mandatory term of 2 years in prison, which must be served consecutively to any other sentence.

U.S. Attorney Marsh praised the work of the Federal Bureau of Investigation, the FAMU Police Department, the United States Department of Education, the United States Secret Service, and the Florida Department of Law Enforcement, whose joint investigation led to the indictment in the case.

The case 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.

PENSACOLA, FLORIDA – Gerard Germaine Jackson, 34, of Houston, TX, entered a guilty plea this morning in United States District Court to conspiring to supply up to fifty kilograms of cocaine for distribution in the Pensacola area. Jackson also admitted supplying more than 500 grams of cocaine to Pensacola distributors on April 21, 2010, which was charged in a second count. The guilty pleas on these counts were announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida. 

At his sentencing by Chief U.S. District Judge M. Casey Rodgers, Jackson will face a mandatory minimum sentence of twenty years up to a potential maximum of life in prison, $10,000,000 in fines, up to ten years of supervised release, and a $200 special monetary assessment. As part his guilty plea, Jackson agreed to the forfeiture of his interest in eighteen real properties located in Houston, Texas, a 2009 BMW, and the entry of a monetary judgment against him of $500,000.

The conviction comes as a result of a two year federal Organized Crime Drug Enforcement Task Force (OCDETF) investigation that has, to date, resulted in 20 federal narcotics convictions, the seizure of multiple kilograms of cocaine, and the seizure and forfeiture of drug related assets that include real and personal property, currency, and the entry of money judgments against profits derived from drug transactions conducted in this district and elsewhere. 

The case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the Internal Revenue Service – Criminal Investigation Division, and the Pensacola Police Department, Narcotics Section. This and the related cases were prosecuted Assistant U.S. Attorney Thomas Swaim.

TALLAHASSEE, FLORIDA – Monique Shevette Kimble, 41, of Tallahassee, has been indicted for preparing false income tax returns, filing false claims against the government, and identity theft.  The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

The 13-count indictment alleges that between February and April 2009, Kimble, the owner- operator of Speedie Tax Service in Tallahassee, prepared federal income tax returns seeking refunds based upon false claims for first-time home buyer and education tax credits.   Kimble is also alleged to have used W-2 forms to file fraudulent claims for tax refunds, falsely reporting that two taxpayers had received income from a temporary employment agency where Kimble knew the taxpayers had never worked.  The indictment charges that Kimble unlawfully used the name and social security number of one of these taxpayers in connection with the falsified W-2 return.

Kimble is scheduled for trial on April 1, 2013 before Judge Robert L. Hinkle in Tallahassee, Florida.   

1. If convicted, Kimble faces a maximum of five years in prison on each of the charged offenses. 
2. U.S. Attorney Marsh praised the work of the Internal Revenue Service, whose investigation led to the indictment in the case.  
3. 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.  

The case is being prosecuted by Assistant U.S. 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.

TALLAHASSEE, FL – Nine men have now been sentenced to federal prison in connection with Operation See Change, a six-month undercover investigation targeting street-level drug distribution along Tallahassee’s Alabama Street corridor.

On Tuesday, Esaias Jyjuan Tucker, 24, of Tallahassee, was sentenced to 240 months in prison for conspiracy to distribute and possession with intent to distribute powder and crack cocaine.  Tucker was the source of supply for a substantial quantity of the drugs being distributed in the Alabama Street corridor.

Those sentenced in Operation See Change include: Eddie Jerome Boyd, 44, was sentenced to 262 months; Antwan Santez Bullard, 27, was sentenced to 188 months; Danny Ray Crittenden, Jr., 27, was sentenced to 188 months; Deonte Deangelo Hill, 19, was sentenced to 15 months; Tommy Clarence Jackson, 54, was sentenced to 192 months; Willie Powell, 23, was sentenced to 96 months; Marquiz Donnell Rollins, 32, was sentenced to 10 months; and
Denson Jacarrus Washington, 24, was sentenced to 188 months.

Jackson’s 192-month prison term also included sentences for possession of a firearm during a drug trafficking crime, possession of a stolen firearm, and possession of a firearm while a convicted felon.

The United States Attorney’s Office, the State Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Leon County Sheriff’s Office, the Tallahassee Police Department, and the Florida Department of Law Enforcement initiated Operation See Change in July 2011. Relying on current crime data and statistics, Operation See Change focused on the city’s most violent and active open-air drug market in the Alabama Street-Griffin Heights area. Working undercover, detectives from the Leon County Sheriff’s Office and the Tallahassee Police Department worked with federal agents to make strong cases against drug dealers – many of whom had long criminal histories of violence and drug trafficking crimes.

In announcing the sentence, the U.S. Attorney for the Northern District of Florida, Pamela C. Marsh, stated: “Attacking violent crime and making our communities safer is one of Attorney General Holder’s highest priorities for the Department of Justice, nationwide.
Operation See Change was our local initiative aimed at reducing violent crime here in Tallahassee.  Taking such violent felons out of our communities for a significant period of time should send a message of deterrence to others who might be attracted to the gang lifestyle and culture.  Both state and federal laws give us strong enforcement tools that we will not hesitate to use.”  U.S. Attorney Marsh also expressed her grateful appreciation for the work and partnership of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Leon County Sheriff’s Office, the Tallahassee Police Department, and the Florida Department of Law Enforcement, whose joint investigation led to the convictions in these cases.

The cases were prosecuted by Assistant U.S. Attorney Jason Coody.

PENSACOLA – Four Floridians have been federally indicted for their involvement in a fraudulent prisoner income tax refund scheme.  The indictment of Cora Beard (68) of Morriston, William Scott Folk (36) and Christopher Jesse Lee (35) both currently incarcerated in the Florida Department of Corrections, and Gail Anita Moss (60) of Miami Gardens was announced today by Pamela C. Marsh, United States Attorney for the Northern District of Florida.  Count One charges all four defendants with conspiracy to defraud the government with respect to claims, and Count Two charges all four defendants with conspiracy to commit mail fraud.  Cora Beard and Gail Anita Moss are also charged with seven counts of filing false claims against the government and seven counts of theft from the government.  The indictment also charges Beard with one count of aggravated identity theft, and Moss with two counts of aggravated identity theft. 

            The indictment alleges that beginning around January 2006, the four individuals and others filed fraudulent tax returns using the names and social security numbers of inmates housed in the Florida Department of Corrections, and on occasion other individuals who were not incarcerated.  As part of this scheme, Cora Beard and Gail Anita Moss used their home addresses, as well as the home addresses of previously indicted co-conspirators Mary Blair, Thomas Rabeau, Nikki Kight, Elton Blair and others, so IRS refund checks would be mailed to them.  The other co-conspirators were indicted last January, and all pled guilty for their involvement in the fraudulent income tax scheme.  For her involvement in the scheme, Mary Blair was sentenced to 52 months in prison, Thomas Rabeau was sentenced to 24 months in prison, and a fifth co-conspirator, Carter Hassman, who was already serving a sentence in the Florida Department of Corrections, was sentenced to 10 years in prison.

It is further alleged in the indictment that, during the course of the scheme, the defendants and others filed and caused to be filed approximately 344 false and fraudulent federal income tax returns, which falsely claimed approximately $1,656,721 in false, fictitious, and fraudulent refunds from the United States.  A copy of the indictment is attached.

            Trial will be scheduled before Chief United States District Judge M. Casey Rodgers. If convicted, each defendant faces a maximum of ten years in prison for each of Counts One and Two.  For the counts of filing false claims against the government, Cora Beard and Gail Anita Moss face up to five years in prison on each of their seven counts.  For the counts of theft from the government, Cora Beard and Gail Anita Moss face up to ten years in prison on each of their seven counts.  For the counts of aggravated identity theft, Cora Beard and Gail Anita Moss face a minimum mandatory sentence of two years imprisonment on each count, which must be run consecutively to any other sentence imposed. 

The case is being prosecuted by Assistant U.S. Attorney Tiffany Eggers 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. The indictment is the result of an investigation by the Internal Revenue Service – Criminal Investigations.
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 B Three defendants have been charged with conspiring to defraud the United States in the filing of false tax returns.  The 31-count indictment, unsealed today, also charges wire fraud, false claims, and aggravated identity theft.  The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

Amber Sasha-Rashawn Simmons, 22, and Joshua Clayton Thomas, 23, both of Tampa, and Spencer Larry Parson, 25, of Tallahassee, are charged with conspiring to file false claims for more than $818,000 in federal tax refunds between August 2011 and June 2012.  The indictment alleges that the conspirators created the fraudulent returns using taxpayer identification numbers and other personal identifying information stolen from both living and deceased individuals, who had been patients of the Tallahassee Memorial Hospital.

In addition to conspiracy, Simmons, Thomas, and Parson are also charged with ten substantive counts of filing false claims against the United States and ten counts of wire fraud.  The defendants also face charges of aggravated identity theft based upon the unauthorized use of victims’ personal identifying information.

If convicted, the defendants face maximum sentences of ten years in prison for conspiracy, five years for filing false claims, and twenty years for wire fraud.  If convicted of aggravated identity theft, Simmons, Thomas, and Parson each face a separate mandatory minimum term of two years’ imprisonment, which must be served consecutively to any other sentence.

U.S. Attorney Marsh commended the work of the Internal Revenue Service – Criminal Investigations, the United States Postal Inspection Service, and the Leon County Sheriff’s Office, whose joint investigation led to the indictment in this case.

The government’s case is being prosecuted by Assistant U.S. Attorney Jason Coody.

• The case is being prosecuted as part of a Department of Justice initiative to fight stolen identity refund fraud (SIRF).  In September of last year, 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. 

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– Kraig Antonio Davis, 23, of Tallahassee, Florida,was arraigned in federal court today on charges of filing false tax claims, aggravated identity theft, and mail fraud.  The indictment was announced today by Pamela C. Marsh, U.S. Attorney for the Northern District of Florida.

The five-count indictment alleges that between January and July 2011, Davis filed false claims for federal tax refunds using personal identifying information stolen from taxpayers. Davis is alleged to have used the stolen personal identifying information to submit applications for prepaid debit cards to be used to deposit the fraudulently obtained refunds.

Davis is scheduled for trial on April 1, 2013 before United States District Judge Robert L. Hinkle.  

If convicted, Davis faces a maximum of ten years in prison on each count of mail fraud, up to five years in prison for filing false claims, and a mandatory term of two years’ imprisonment for aggravated identity theft.   The mandatory two-year sentence must be served consecutively to any other sentence that may be imposed in the case.

U.S. Attorney Marsh praised the work of the Leon County Sheriff’s Office, U.S. Postal Inspection Service, and the Internal Revenue Service — Criminal Investigations, whose joint investigation led to the indictment in the case.   

1. 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. 

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

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 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.

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
$200,000.00

Aurora Loan Services
Ocwen Loan Servicing, LLC

21222 Front Beach Road
Panama City Beach, Florida

$747,704.42
$375,000.00

American Home Mortgage Servicing Inc.
Ocwen Loan Servicing, LLC

1501 Trout Lane
Panama City Beach, Florida

$421,268.54  
$160,000.00
$95,000.00

Aurora Loan Services
Wingspan Portfolio Advisors
Marie Beamer

483 Wahoo Road
Panama City Beach, Florida

$822,957.64
$194,250.00

HSBC Bank
Ocwen Loan Servicing, LLC

1522 Trout Lane
Panama City Beach, Florida

$1,310,350.58
$116,640.00     

Ocwen Loan Servicing, LLC
Thomas & Deborah Frowert

2729 Kings Road
Panama City, Florida

$474,640.15

Bank of America

4452 Ashland Road
Panama City, Florida

$1,112,849.77
$120,000.00

Selene Finance
DTA Solutions, LLC

2843 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

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.

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.

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.

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.

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.