Southern District of Florida
Press releases recorded for this federal judicial district.
Lake Worth resident on bond in federal case charged with bank fraud conspiracy involving over $2.1 million dollarsRead the Press Release
MIAMI – While on bond in an aggravated identity theft matter, Manley Vanel Neptune, 33, of Lake Worth, was charged in a second federal case with participating in a conspiracy to obtain over $2.1 million dollars by depositing a stolen U.S. Treasury check into a fraudulent bank account.
According to allegations in the initial complaint, on Feb. 2, Neptune attempted to open a fraudulent account at a First Horizon Bank in Lighthouse Point, Florida, by presenting a counterfeit U.S. passport card in the name of “W.H.” (Case No. 24-mj-6052). Neptune was arrested by law enforcement. On Feb. 15, Neptune was indicted for using a counterfeit passport and aggravated identify theft (Case No. 24-cr-60028). Neptune was released on bond.
Neptune was then charged in a second complaint when further investigation revealed that on Feb. 1, Neptune successfully opened a fraudulent account at a Truist Bank in Pompano Beach, Florida by using the same counterfeit U.S. passport card, in the name of “W.H.,” that Neptune used at First Horizon Bank the following day. On Feb. 20, while on bond, Neptune caused two female co-conspirators to deposit, into the fraudulent account at Truist Bank, a stolen U.S. Treasury check in the amount of $2,172,687.18 that was issued to “W.G.H.” The second criminal complaint (Case No. 24-mj-6093) charges Neptune with participating in the bank fraud conspiracy.
On March 7, Neptune had his initial appearance in federal court in Case No. 24-mj-6093. The parties stipulated to pretrial detention with the right to revisit. An arraignment hearing is scheduled for March 21.
If convicted of the bank fraud conspiracy, Neptune faces up to 30 years in federal prison. If convicted of using a fraudulent U.S. passport, Neptune faces up to 10 years in federal prison. If convicted of aggravated identity theft, Neptune faces a mandatory minimum term of 2 years in federal prison to run consecutive to any other sentence imposed. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.
HSI Ft. Lauderdale investigated the case. Assistant U.S. Attorney Joseph A. Cooley is prosecuting it.
An indictment and complaint contain mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 24-mj-6039 and 24-cr-60028.
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Colombian National Extradited from Colombia to the United States to Face Charges of Murder Conspiracy and Attempted Murder of U.S. Army SoldiersRead the Press Release
MIAMI – On March 7, Ciro Alfonso Gutierrez Ballesteros, 32, made his initial appearance in federal court in Miami. Gutierrez Ballesteros was extradited from Colombia to the United States to face federal charges lodged against him in a federal indictment returned in 2022 by a Miami federal grand jury. Gutierrez Ballesteros was indicted for charges that include conspiring to murder members of the United States Uniformed Services and attempted murder of members of the United States Uniformed Services.
According to the indictment, Gutierrez Ballesteros, in concert with other co-conspirators, planned a bombing attack against U.S. Army soldiers present at the Colombian 30th Army Brigade Base in Cucuta, Colombia. Co-conspirator Andres Fernando Medina Rodriguez used his status as a medically discharged Colombian Army Officer to gain access to the base where he conducted surveillance. As part of the surveillance, Medina Rodriguez took photographs and video of the areas where the U.S. Army soldiers were primarily located.
Gutierrez Ballesteros instructed Medina Rodriguez to find and purchase a vehicle suitable for conducting a vehicle borne improvised explosive device (“VBIED”) attack at the base. Medina Rodriguez purchased a white SUV and Medina Rodriguez and Gutierrez Ballesteros then drove the vehicle to Venezuela where it was outfitted with the explosives.
On June 15, 2021, Medina Rodriguez drove the vehicle with the VBIED to the 30th Army Brigade Base in Cucuta, Colombia, where he parked it in front of the location where U.S. and Colombian military personnel were located. Gutierrez Ballesteros, riding a motorcycle, followed Medina Rodriguez to the Colombian military base. Medina Rodriguez pulled the detonation pin on the explosive and left the area on foot before fleeing on the motorcycle driven by Gutierrez Ballesteros. As a result of the detonated VBIED, three U.S. Army soldiers were injured.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office announced the extradition of Gutierrez Ballesteros.
The FBI investigated the case. The FBI was assisted by the FBI Legal Attaché in Bogotá, the Fiscalía General de la Nación Colombia, and the National Police of Colombia. Assistant U.S. Attorney Randy A. Hummel, Assistant U.S. Attorney Andy R. Camacho, and the Justice Department’s National Security Division Trial Attorneys David C. Smith and Michael Dittoe are prosecuting the case.
The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché at the U.S. Embassy in Bogotá worked with Colombian authorities to secure the arrest and extradition of Gutierrez Ballesteros.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20054.
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California Woman Pleads Guilty to Leaving Threatening Anti-Semitic MessageRead the Press Release
MIAMI – Melanie Harris, 59 of Riverside, California, pled guilty to knowingly and intentionally transmitting a threatening communication in interstate commerce. Harris, who has been in custody since July 20, 2023, entered her guilty plea before U.S. Magistrate Judge Jared M. Strauss on March 4. Harris remains in custody and is scheduled for sentencing on May 23 before U.S. District Judge Roy K. Altman in Miami, where she faces a maximum sentence of five years in prison.
According to the facts admitted at the change of plea, on October 3, 2022, Harris made multiple calls to Victim 1’s cell phone, and left four separate threatening voicemails, with the intent to communicate a true threat and with the knowledge that the communications would be seen as true threats. In one of these four October 3 voicemails, Harris stated in relevant part: “I’ll cut your f------ head off kiker.” The term “kike” has long been used as an anti-Semitic slur aimed at Jews.
Neither Victim 1 nor his wife, Victim 2, knew the identity of the person (Harris) calling Victim 1 with these threatening and harassing calls and voicemails. Nor did they know where the calls were coming from because Harris concealed her phone number using the *67 feature. However, all of these calls originated from the Riverside, California area, where Harris lived at the time, and were received by Victim 1’s phone in the Southern District of Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, announced the guilty plea.
The FBI's Miami Area Corruption Task Force, which also investigates civil rights violations, investigated the case. Assistant U.S. Attorneys Edward N. Stamm and Nardia Haye are prosecuting the case, which was indicted by Executive Assistant U.S. Attorney Harry C. Wallace, Jr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60050.
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U.S. Attorney’s Office food distribution events valued greatly by local residentsRead the Press Release
MIAMI – Two large tents, a dozen plastic tables, and staff members eager to serve recently lined an area in front of Wells Recreation Center in Riviera Beach, Fla. The goal? To feed 500 families. And it’s a goal the U.S. Attorney’s Office (USAO) for the Southern District of Florida meets each week.
It’s a partnership between Law Enforcement Coordination and Community Outreach Section (LEC/COS) staff, local police, parks and recreation, and Farm Share Inc., which provides the bread, canned goods, pasta, and poultry. Each Tuesday beginning at 9 a.m. all over the USAO footprint, these partners work to put food on the tables of those in need.
“The collaboration makes these distributions successful,” said LEC/COS Chief J.D. Smith. “And the parks/recreation centers provide a perfect backdrop. They are community staples, well known, with great access for local residents.”
Those who attend a food distribution can receive upward of 40 pounds of free food items depending on household size. And their appreciation shows at each food distribution.
“Bless you and thank you all for doing what you do,” said a grateful Riviera Beach resident. “We appreciate you.”
The positive feedback goes a long way with LEC/COS staff, reminding them how important these events are to the community.
“It feels good to know that we’re making a difference in so many peoples’ lives,” said Community Outreach Specialist Corey Mackay. “These food distributions are something I look forward to. I enjoy interacting with members of our community.”
The food drives alternate between parks in Riviera Beach and Fort Lauderdale to ones in several Miami locations.
“We try to organize these food distributions in areas that have the most food insecurity,” said Smith. “We’ve been doing these for years and the demand has remained consistent. We’re honored to be able to host these events. Community service is what drives our unit. There is nothing more important.”
Anyone interested in volunteering at a food drive may call the USAO Violence Reduction Partnership at (305) 961-9134. People interested in attending a food distribution may visit Farm Share’s website at https://www.farmshare.org/food-distributions-florida or call (305) 246-3276.
Staff and volunteers from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office serve community members in Riviera Beach during a recent food distribution event. Staff hold these food distributions weekly, serving approximately 500 households.
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Former Army lieutenant colonel sentenced to federal prison for possessing child pornographyRead the Press Release
MIAMI – On March 5, a former Army lieutenant colonel was sentenced to 42 months in federal prison, followed by 15 years of supervised release for possession of child pornography, after pleading guilty in December 2023.
On March 10, 2021, law enforcement officers executed a residential search warrant at home of Edgar Ali Cerda, 49, of Cooper City. An examination of Cerda’s electronic devices revealed multiple images and videos depicting sexual exploitation of children under 12 years of age, with one victim as young as two years old. Evidence also revealed that Cerda shared images within a group chat. Law enforcement officers arrested Cerda, who was home at the time.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) announced the sentence imposed by U.S. District Judge Rodney Smith.
FBI Miami and BSO investigated the case with assistance from the Florida Department of Law Enforcement (FDLE), Fort Lauderdale Police Department, and Homeland Security Investigations (HSI). Assistant U.S. Attorney Ajay J. Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), PSC marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about PSC, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60115.
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Broward Sheriff’s Office deputy convicted at trial of COVID-19 relief fraudRead the Press Release
MIAMI – On March 5, a federal jury in Fort Lauderdale convicted a Broward Sheriff’s Office (BSO) deputy of two counts of wire fraud for her COVID-19 relief fraud scheme.
In 2021, Stephanie Diane Smith, 53, of Sunrise, Florida, applied for and received two PPP loans for herself as a sole proprietor doing business as Children 1st Basketball Training and Agape Smith Vending, respectively, based upon materially false information about each business’s total amount of gross income for the year 2019, including a falsified IRS tax form submitted with each application. Smith also sought and received forgiveness of both fraudulently obtained PPP loans, which totaled over $31,000 in principal and interest. During the period of the scheme, Smith was employed as a deputy sheriff in BSO’s Department of Law Enforcement.
The sentencing is scheduled for May 29 before U.S. District Judge James I. Cohn. Smith faces up to 20 years in prison for each wire fraud conviction. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; Special Agent in Charge Brian Tucker, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, and Broward Sheriff Gregory Tony of BSO made the announcement.
FBI Miami, FRB-OIG and BSO investigated this case. Assistant U.S. Attorneys David Snider and Trevor Jones are prosecuting it. Assistant U.S. Attorney Darren Grove is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60203.
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Former Venezuelan Military Official Pleads Guilty to Money Laundering and Bribery SchemeRead the Press Release
MIAMI – A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.
According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.
Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.
Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
The DEA’s Miami Field Division is investigating the case.
Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida and Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under Case No. 22-CR-20423.
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Former Venezuelan Military Official Pleads Guilty to Money Laundering and Bribery SchemeRead the Press Release
A former Venezuelan National Guard major pleaded guilty today to a money laundering scheme involving bribes to foreign officials and defrauding foreign financial institutions.
According to court documents, Nepmar Jesus Escalona Enriquez, 47, of Fort Lauderdale, Florida, and formerly of Venezuela, participated in an illegal scheme, facilitated by bribery and false pretenses, that involved knowingly submitting fraudulent applications to the Venezuelan currency regulation authority, also known as CADIVI, to deceive Banesco Bank, the Central Bank of Venezuela, and the Venezuelan customs authorities into releasing U.S. dollars to Escalona and his co-conspirators outside of Venezuela. The fraudulent applications were submitted to purportedly finance food imports into Venezuela but in reality, were an artifice to enrich the conspirators. This conduct resulted in the transfer of nearly $1.7 million in U.S. dollars from Banesco Bank into an account controlled by the conspirators.
Escalona further admitted that in at least one instance, the co-conspirators arranged for a series of bribes to be paid to officials in Venezuela to prevent the detection of their fraudulent scheme. Escalona also admitted in another instance to instructing a co-conspirator to wire transfer proceeds of the fraud, as well as funds constituting bribes, to four financial institutions in the United States. The five illicit wire transfers totaled approximately $420,847.
Escalona pleaded guilty to one count of money laundering conspiracy. He is scheduled to be sentenced on May 23 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
The DEA’s Miami Field Division is investigating the case.
Trial Attorney Emily Cohen and Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Andrea Goldbarg for the Southern District of Florida are prosecuting the case.
U.S. Attorney’s Office staff stress importance of making smart choices to local studentsRead the Press Release
MIAMI – Students from Bowman Ashe/Doolin K-8 Academy in Miami recently attended a Making Smarter Choices Field Trip at the U.S. Attorney’s Office for the Southern District of Florida.
Staff from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) provided real-world examples to show students the perils of doing the wrong thing and how easy it can be to stray from the correct path.
Incarcerated inmate testimonial videos focused on lives wasted, regret and the desire for redemption.
“If I could be the good for you then maybe you could be the good for me,” said an inmate doing 25 years to life for the murder of a husband/father. “All I’m asking for is a little redemption.”
Unfortunately for him, time for redemption has passed. And that is what LEC/COS
Chief J.D. Smith stressed to the students. One mistake can change everything.
“Each day you have a choice to make,” said Smith. “Am I going to be a good person or a bad person? It’s a daily decision that is in your hands.”
The field trip is designed to motivate children to work hard, uplift themselves and their communities, and do things about which they feel passion.
“If you’re going to fail, you may as well fail at something you love,” said Smith.
The second part of the field trip consisted of a mock trial whereby students tried a murder case in a federal courtroom. Hands shot up as Smith asked who would like to be defense and prosecution attorneys. Roles also included bailiff, court clerk and jury—in which the majority of students participated. Assistant U.S. Attorney Michele S. Vigilance played the judge role.
The case centered on fraternity hazing that went too far and ended in a student’s death. Each student with a speaking role was provided a script and advised to speak clearly, loudly, and confidently.
“The team that wins will be the one that can step up to the microphone and deliver,” said Smith.
The mock trial challenges students to come out of their shells and play the part. Post field trip evaluation forms from the students routinely sing the praises of the trial, from the roles to the décor and serious nature of the courtroom.
“Many of the students we receive throughout the school year are interested in becoming lawyers,” said Smith. “Our field trip gives them a sense of what it’s like.”
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Community Outreach Specialist John Hampton gets sworn in by a Bowman Ashe/Doolin K-8 Academy student prior to testifying during a recent mock trial. This trial was part of the U.S. Attorney’s Office for the Southern District of Florida’s Making Smarter Choices Field Trip.
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Lee County, Florida Man Pleads Guilty to Conspiracy to Smuggle Turtles to Germany and Hong Kong and Falsely Labeling the Turtles on Related PaperworkRead the Press Release
MIAMI – A Lee County man pleaded guilty today to federal criminal charges for conspiring to illegally export thousands of turtles to Germany and Hong Kong, and falsifying documents to conceal his conduct.
John Michael Kreatsoulas, 36, of Alva, Florida, pleaded guilty to one count of conspiracy to traffic wildlife and nine counts of falsifying records in violation of the Lacey Act.
According to the factual proffer in support of the plea and other documents included in the court record, from July 2015 to July 2021, Kreatsoulas was the owner and principal of Omni Reptiles, Inc., an unregistered Florida business located in Alva, Florida. Omni was in the business of domestic and international wholesale trade of wildlife, including protected species of reptiles. Kreatsoulas and Omni shipped wildlife they sold to domestic and foreign customers, including to customers in Germany and Hong Kong through Miami International Airport.
Specifically, Kreatsoulas and his co-conspirators collected and captured various species of turtles, including three-stripe mud turtles and Florida mud turtles, from the wild in Florida and sold those turtles to interstate and foreign customers. Kreatsoulas then falsified U.S Fish and Wildlife Service Forms 3-177, which accompanied the international shipments, by including a false “Source” code attesting that the turtles were captive-bred and not wild-caught. Kreatsoulas also falsified invoices related to the sale of the turtles, which purported to show that the turtles sold to co-conspirators in Florida and outside the United States were “captive-bred” hatchling three-stripe mud turtles when, in fact, they were taken from the wild by Kreatsoulas and his co-conspirators.
A sentencing hearing is scheduled for May 17 at 1:30 p.m. before U.S. District Judge Rodolfo A. Ruiz II. Kreatsoulas faces up to five years in federal prison for each count of conviction.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General for the Environment and Natural Resources Division Todd Kim of the Justice Department’s Environment and Natural Resources Division and Special Agent in Charge Douglas Ault of the U.S. Fish & Wildlife Service (FWS), Southeast Region, made the announcement.
FWS agents in Miami investigated this matter. Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Senior Trial Attorney Gary N. Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20480.
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Former South Florida Pharmacy CEO Sentenced to Prison for Lying to Federal InvestigatorsRead the Press Release
MIAMI – On Feb. 23, Patrick Smith, 71, of Palm Beach Gardens, Florida, the former CEO and President of Patient Care America (PCA), a compounding pharmacy located in Broward County, was sentenced to 6 months in prison for lying to federal agents who were investigating PCA for various health care fraud offenses.
According to court records, in March of 2020 Smith voluntarily met with DCIS agents who were investigating PCA on allegations of health care fraud and payment of kickbacks to marketing groups that solicited TRICARE beneficiaries on behalf of PCA. TRICARE is the health care benefit program for United States military members and their families. During that interview, Smith lied to agents about his role in the scheme. Smith falsely claimed, for example, that he played no role in hiring the marketing groups and that he didn’t know they were directly soliciting TRICARE beneficiaries.
In all, PCA paid over $40 million in kickbacks to the marketers for recruiting and referring TRICARE beneficiary prescriptions for expensive, unnecessary compounded medications to PCA. To date, over a dozen of PCA’s marketers and employees have been convicted and sentenced for their roles in the scheme. The government has recovered more than $30 million in fraud proceeds from PCA and the individual defendants.
Smith was sentenced by U.S. District Judge Roy K. Altman. Smith pled guilty, on July 21, 2023, to making a materially false statement in a matter within the jurisdiction of the United States Department of Defense.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida, Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Special Agent in Charge Justin C. Fielder of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
DCIS and FDA-OCI investigated this case. Assistant U.S. Attorney Jon Juenger prosecuted this case. DCIS, FDA-OCI, the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG), and the FBI investigated related cases.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20532.
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South Florida Man Indicted by Federal Grand Jury for Firearm Offense in Relation to Shooting at the Palm Beach Gardens MallRead the Press Release
MIAMI - Kamarcio Mitchell, 28, of West Palm Beach, was indicted by a federal grand jury for unlawfully possessing a firearm and ammunition as a convicted felon. The indictment follows Mitchell’s arrest, on Feb. 16, pursuant to a joint response by local, state, and federal law enforcement partners to a shooting that occurred at the Palm Beach Gardens Mall (The Gardens Mall) on Valentine’s Day.
According to allegations in the criminal complaint and the charges set forth in the indictment, on Feb. 14, Mitchell was at The Gardens Mall with a firearm. Surveillance video captured Mitchell on the second level of The Gardens Mall near a retail store. Mitchell followed another male onto the escalator and was manipulating an object under his shirt. Mitchell was then fired upon by the other male and shot. Mitchell fled the mall to the parking lot, leaving a trail of blood. A loaded firearm that had been disassembled was found in the parking lot by police, near the blood trail. Mitchell was later treated for his injury at a local hospital where he admitted to being shot. The investigation by law enforcement determined that the firearm found in The Gardens Mall parking lot was a loaded handgun that had previously travelled in interstate commerce.
Mitchell is a convicted felon and based upon his prior criminal history is charged as an Armed Career Criminal. If convicted, Mitchell faces a mandatory minimum prison sentence of 15 years to a maximum sentence of life.
Mitchell has stipulated to pretrial detention, pending the possibility of a future hearing to determine bond. An arraignment hearing is scheduled for March 5.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service, Chief Clinton Shannon of the Palm Beach Gardens Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office announced the indictment.
The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant United States Attorneys John McMillan and Shannon O’Shea Darsch are prosecuting the case.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
A criminal complaint and indictment contain allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-80022-AMC.
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Firearms Trafficker Sentenced to 57 Months in Federal PrisonRead the Press Release
MIAMI – On Feb. 26, Elieser Sori-Rodriguez, 51, of Pompano Beach, was sentenced to 57 months in federal prison, by U.S. District Judge Robin L. Rosenberg, for smuggling firearms from the United States to the Dominican Republic.
Sori-Rodriguez conspired to purchase firearms by means of a false statement and smuggle them out of the United States by directing co-conspirators to purchase firearms on his behalf, hiding the firearms inside boxes marked as household goods, and sending the firearms to the Dominican Republic using a freight shipping service. Co-defendants John Thomas Neal, Shane Sepersaude, and William Ilijic assisted Sori-Rodriguez in the conspiracy.
On Nov. 30, Sori-Rodriguez pled guilty to conspiracy to purchase firearms by means of false statement, three counts of purchase of firearms by means of false statement, smuggling firearms from the United States, and delivery of a firearm to a common carrier without written notification. Neal, Sepersaude, and Ilijic previously pled guilty to purchasing a firearm by means of a false statement and were sentenced.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, made the announcement.
HSI Fort Pierce and ATF investigated this matter. Assistant U.S. Attorney Christopher Hudock prosecuted the case.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14016.
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Miami Resident Sentenced to 30 Months in Prison for Operating Investment SchemeRead the Press Release
MIAMI – On Feb. 22, Jack Connor Ridall, 29, of Miami, was sentenced to 30 months in prison, by U.S. District Judge Donald M. Middlebrooks, for operating an investment fraud scheme.
Ridall defrauded victims out of approximately $735,000, by falsely indicating he would use their money for various investments. Ridall was the founder and sole member of Stratcapital LLC, Guss Capital, LLC, and Guss Actium Manager, LLC. Using these three companies, Ridall succeeded in causing at least three people to provide him money based on his material misrepresentations. The false statements Ridall made to these victims included (a) Ridall’s investing experience and performance, (b) the use of investor funds for purposes other than those that he promised, and (c) the safety of the investment. Ridall also falsely told his victims, among other things, that his companies were investment management companies with substantial assets. Ridall did not invest investor funds in securities or in an investment fund, but instead he misappropriated investor funds to pay for luxury retail purchases, hotel stays, restaurants, and fraudulent transfers to family members. When victims asked Ridall for updates on their investments, he provided forged attorney letters and audit reports indicating that the victims' investments yielded high rates of return.
In Nov. 2023, Ridall pled guilty to one count of wire fraud.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. The Securities and Exchange Commission provided invaluable assistance. Assistant U.S. Attorney Roger Cruz prosecuted the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20152.
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Miami physical therapist assistant convicted of over $2.6 million in fraudulent claimsRead the Press Release
MIAMI – On Feb. 16, a Miami federal jury convicted a local physical therapist assistant of conspiracy to commit health care fraud and wire fraud, and five counts of health care fraud after a week-long trial.
From May 2019 through February 2021, Tania Cesar, 55, of Hialeah, Florida, worked as a physical therapist assistant at Elite Therapy Group Inc. (Elite) in Miami, Florida. During this period, Cesar signed over 1,500 physical therapy notes for physical therapy treatments that she never provided to patients. Cesar’s false and fraudulent therapy notes led to over $2.6 million in claims billed to Blue Cross Blue Shield (BCBS). Several co-conspirators testified, including the owners of Elite, describing the payment agreement between Elite and Cesar. Cesar would come into the therapy clinic once or twice a week to sign the therapy notes but never treated patients. Some of Elite’s patients also testified, explaining that they had never received physical therapy treatment, nor they had ever met Cesar. Furthermore, Cesar signed false and fraudulent therapy notes for treatments she purportedly performed on dates when airline and U.S. Customs and Border Protection (CBP) records confirmed that she was out of the country.
In addition, Cesar was working full-time at another physical therapy clinic in Miami, where Cesar logged hours that, when added up with the hours for purported physical therapy she signed for in fraudulent therapy notes from Elite, suggested that she was working more than 24 hours on multiple days.
Moreover, Cesar had the same financial relationship with another clinic, Zion Medical (Zion), before she began signing false and fraudulent therapy notes at Elite. The owner of Zion testified that he and Cesar had the same agreement that Cesar had with the owners of Elite, Cesar would sign false and fraudulent therapy notes for treatments she never performed. These false and fraudulent therapy notes were also billed to BCBS as part of the scheme.
Sentencing is set for May 6 before U.S. District Senior Judge Robert N. Scola Jr.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Lindsey Lazopoulos Friedman are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20259.
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Boynton Beach man found guilty of threatening a member of CongressRead the Press Release
MIAMI – On Feb. 22, following a two-day trial, a federal jury in Ft. Lauderdale convicted a man for calling the office of a Congress member in Washington, D.C. and threatening to kill the member of Congress and another.
On Jan. 29, 2023, Frank Stanzione, 53, of Boynton Beach, Florida, made a telephone call from his residence in Boynton Beach to the office of a member of the United States House of Representatives. Stanzione left a voice message for the member that stated the following:
[Victim 1] you fat f------ piece of s--- f-----. You better watch your mother f------ back because I’m gonna bash your mother f------ f----- head in with a bat until your brains are splattered across the f------ wall. You lying, disgusting, disgraceful, mother f------ f-----. You mother f------ piece of s---. You’re gonna get f------ murdered you goddamn lying piece of garbage. Watch your back you fat, ugly, piece of s---. You and [Victim 2] are dead.
The Congress member’s chief of staff reported the message to the United States Capitol Police (USCP) the next morning. The USCP began investigating the voice message as a threat and determined that it was made from a telephone number assigned to Stanzione.
On Jan. 31, 2023, USCP special agents went to the address associated with the telephone number and interviewed Stanzione. USCP confirmed that Stanzione had left the voice message for the Congress member. Stanzione found the telephone number on an online search engine.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Chief J. Thomas Manger of USCP announced the guilty verdict.
USCP – Threat Assessment Section investigated the case. Assistant U.S. Attorney Mark Dispoto and Special Assistant U.S. Attorney Joe Wheeler are prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80064.
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Miami man arrested in multimillion-dollar bank fraud scheme targeting dozens of victims nationwideRead the Press Release
MIAMI – On Feb. 21, a man was arrested after a federal grand jury returned an indictment charging him with multiple counts of bank fraud and aggravated identity theft.
According to allegations in the indictment and statements made in court, from April 2022 through March 2023, Latron Earl Williams, 24, of Miami, Florida, fraudulently obtained personable identifiable information (PII) of various bank account holders, as well as addresses, debit card numbers, and bank account numbers. Williams used the fraudulently obtained information to pose as the account holders, fraudulently accessed their bank accounts, and caused more than $2 million in wire transfers from the bank accounts of approximately 50 victims nationwide into bank accounts he controlled. Then, Williams arranged for accomplices to withdraw the fraudulently obtained funds to conceal his involvement in the fraud.
If convicted, Williams faces up to 30 years in prison on each count of bank fraud, and a mandatory minimum penalty of two years in prison for aggravated identity theft consecutive to any bank fraud sentence. U.S. District Judge Roy K. Altman will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jason Scalzo of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Electronic Crimes Unit, and Special Agent in Charge Rafael Barros of the United States Secret Service (USSS), Miami Field Office made the announcement.
FDIC-OIG, Electronic Crimes Unit and USSS, Miami Field Office investigated the case. Assistant U.S. Attorney Michael B. Homer is prosecuting it.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20009.
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Justice Department Seeks Forfeiture of Two Bal Harbour Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
MIAMI – From the outset of Russia’s unprovoked, full-scale invasion of Ukraine on Feb. 24, 2022, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. The Department continues that work through significant enforcement actions. Today, the Department announced an array of new charges, arrests, and forfeiture proceedings, to include a civil forfeiture complaint that was filed in the Southern District of Florida.
“The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it,” said Attorney General Merrick B. Garland. “That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.”
“It has been two years since Russia’s unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war,” said FBI Director Christopher Wray. “To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.”
Today, the United States filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida, alleging that two Bal Harbour condominiums are subject to forfeiture based on violations of the International Emergency Economic Powers Act (“IEEPA”), Office of Foreign Assets Control (“OFAC”) sanctions, and federal money laundering statutes.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI’s Miami Field Office made the announcement.
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On January 26, 2018, pursuant to Executive Order 13685, OFAC sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea (the “Sanctions”). OFAC added Perevalov, Abramov, and VAD, AO to the specially designated nationals and blocked persons (“SDN”) List. Once OFAC imposed the Sanctions, all property or interest in property belonging to Perevalov, Abramov, and/or VAD, AO in the United States, “[was] blocked and [could] not be transferred, paid, exported, withdrawn, or otherwise dealt in[.]” E.O. 13685 § 2(a). OFAC never issued a license which was required for anyone to transact with, or on behalf of, Perevalov and Abramov.
Soon after the Sanctions, R.S., a Miami real estate agent retained to manage the properties, worked to transfer the two condominiums owned by Perevalov, Units 1616 and 1617 located at 10295 Collins Avenue, Bal Harbour, Florida 33154 (the “Defendant Properties”) to an LLC in violation of the Sanctions. The Defendant Properties have a combined value of approximately $2.5 million. On April 10, 2018, R.S. and others, including a law firm, formed 1616 Collins LLC, and named R.P., a Perevalov family member who was a minor at the time, the entity’s purported sole beneficial owner. On June 14, 2018, the title of the Defendant Properties was transferred to 1616 Collins LLC in violation of the Sanctions. R.S. served as Perevalov’s power of attorney for the transfer. After the transfer, R.S. continued to lease the Defendant Properties, collected proceeds derived from the Defendant Properties, and used those proceeds to maintain the Defendant Properties including by making property tax payments.
FBI Miami is investigating the case with assistance from the Sunny Isles Beach Police Department. Assistant U.S. Attorneys Marx P. Calderón and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the Counterintelligence and Export Control Section of the National Security Division are prosecuting this civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
A video statement from Attorney General Garland is available here https://www.youtube.com/watch?v=zOsemz-Gj-c.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards a judgment in favor of the United States.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cv-20687.
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Indian River County resident pleads guilty to distributing fentanyl resulting in deathRead the Press Release
MIAMI – On Feb. 20, an Indian River County resident pleaded guilty in federal court in Fort Pierce to distribution of fentanyl, the use of which resulted in the death of another person.
As part of the plea documents filed with the court, Keyon Lewis, 27, admitted that on Nov. 5, 2021, he sold fentanyl to a man in a parking lot in Vero Beach, Florida. The next day, the man’s wife found him dead on the kitchen floor of their residence. After law enforcement officers discovered the victim’s body, they used the victim’s cellphone to order more fentanyl from Lewis. On Nov. 7, 2021, Indian River County officers arrested Lewis at the victim’s residence.
Lewis’s sentencing is scheduled for May 21 before U.S. District Judge Aileen M. Cannon in Fort Pierce. Lewis faces a mandatory minimum penalty of 20 years and a maximum penalty of up to life in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO) made the announcement.
DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter is prosecuting it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14030.
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St. Lucie County robber sentenced to federal prisonRead the Press Release
MIAMI – On Feb. 15, a St. Lucie County woman was sentenced to 36 months in federal prison, followed by three years of supervised release, for attempted Hobbs Act robbery, after previously pleading guilty in November 2023.
On April 21, 2023, Jennifer Scee, 48, of St. Lucie County, Florida, entered a pharmacy in Port St. Lucie, approached a pharmacy associate, who was behind the counter, and demanded Dilaudid, a brand name for hydromorphone, an opioid. When the associate asked Scee for her prescription, Scee displayed a weapon while she continued to demand the medication. When the associate told Scee that she did not have any Dilaudid, Scee jumped over the counter and pointed the weapon at the associate’s chest. After the associate started yelling and banging on the counter, Scee fled the scene.
Port St. Lucie Police Department officers obtained video surveillance from the plaza where the pharmacy is located, which shows Scee wearing a long-sleeved white shirt, black leggings, a black hat covering, and a surgical mask covering her face entering and fleeing the pharmacy on foot. Later, law enforcement officers also obtained surveillance footage showing a 2001 – 2005 Honda Civic Coupe with a sunroof and dark tinted windows pulling into the parking lot at the nearby plaza shortly before the robbery and leaving the parking lot shortly after the robbery. Law enforcement officers confirmed that a 2004 Honda Civic Coupe was registered to Scee in Port St. Lucie, Florida. Later, law enforcement arrested Scee at her residence in Port St. Lucie.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office and Chief Richard R. Del Toro, Jr. of the Port St. Lucie Police Department (PSLPD) announced the sentence imposed by U.S. District Judge Donald M. Middlebrooks.
FBI Miami and PSLPD investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14043.
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South Florida Man Arrested in Relation to Shooting at the Palm Beach Gardens MallRead the Press Release
MIAMI - Kamarcio Mitchell, 28, of West Palm Beach, had his initial appearance this morning before a U.S. Magistrate Judge in West Palm Beach on a criminal complaint charging him with unlawfully possessing a firearm and ammunition as a convicted felon. Mitchell’s arrest, on Feb. 16, was the result of a joint response by local, state, and federal law enforcement partners following a shooting that occurred at the Palm Beach Gardens Mall (The Gardens Mall) on Valentine’s Day.
According to allegations in the criminal complaint, on Feb. 14, Mitchell was at The Gardens Mall with a firearm. Surveillance video captured Mitchell on the second level of The Gardens Mall near a retail store. Mitchell followed another male onto the escalator and was manipulating an object under his shirt. Mitchell was then fired upon by the other male and shot. Mitchell fled the mall to the parking lot, leaving a trail of blood. A loaded firearm that had been disassembled was found in the parking lot by police, near the blood trail. Mitchell was later treated for his injury at a local hospital where he admitted to being shot. The investigation by law enforcement determined that the firearm found in The Gardens Mall parking lot was a loaded handgun that had previously travelled in interstate commerce.
Mitchell is a convicted felon and based upon his prior criminal history is charged in the criminal complaint as an Armed Career Criminal. If convicted, Mitchell faces a mandatory minimum prison sentence of 15 years to a maximum sentence of life.
The United States has sought the pretrial detention of Mitchell. A detention hearing has been scheduled before the West Palm Beach Duty Magistrate Judge on Feb. 27. An arraignment hearing is scheduled for March 5.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service, Chief Clinton Shannon of the Palm Beach Gardens Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office announced the arrest and charges.
The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County provided invaluable assistance. Assistant United States Attorney John McMillan is prosecuting the case.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
A criminal complaint contains allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-8057-BER.
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Palm Beach County Armed Career Criminal and Drug Dealer Sentenced to 45 Years in Federal PrisonRead the Press Release
MIAMI – A Palm Beach County man was sentenced to 45 years in federal prison. The sentence comes after a federal jury in West Palm Beach convicted him on multiple drug trafficking and firearms charges related to his participation in a conspiracy to sell a synthetic opioid, commonly sold as fentanyl, cocaine, and Eutylone (a synthetic cathinone with effects akin to Methylenedioxymethamphetamine), and his possession of a machinegun in furtherance of those crimes.
On or about March 3, 2022, the West Palm Beach Police Department executed a search warrant at a West Palm Beach residence. Willie Boone, 24, was detained on scene. During the search, officers recovered multiple controlled substances, including N-Pyrrolidino Etonitazene, Eutylone, and cocaine. Other evidence included two of Boone’s cellphones and two firearms, one of which was a Glock Model 17 pistol with a machinegun conversion device. That conversion device, commonly known as a “Glock Switch” rendered the pistol fully automatic. Boone had previously been convicted of three felony drug-trafficking offenses and was prohibited from possessing a firearm, including the unregistered machinegun. Forensic evidence recovered from the cellular telephones and Boone’s DNA on the Glock Model 17 pistol confirmed his possession of the firearm and possession in the charged drug conspiracy.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and West Palm Beach Police Department Chief Frank Adderley announced the conviction.
ATF and the West Palm Beach Police Department investigated the case. Assistant U.S. Attorneys Shannon O’Shea Darsch and Alexandra Chase are prosecuting the case. Assistant U.S. Attorney Gabrielle Charest-Turken for the Southern District of Florida is handling asset forfeiture.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80175.
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Man and woman charged in elder fraud conspiracyRead the Press Release
MIAMI – On Feb. 1, a federal grand jury returned an indictment charging a man and a woman for their alleged involvement in an elder fraud conspiracy.
Monique C. Clarke, aka Monique Clark-Mootoo, aka Rebecca White, and aka Mark Hilton, 28, a Jamaican national, and Jon-Michael Hudson, 33, a resident of Jamaica, were charged in federal court by indictment with conspiracy to commit money laundering. Allegedly, the criminal enterprise targeted a total of 51 elderly victims throughout the United States and incurred in a total loss of more than $6.6 million dollars.
According to the allegations in the indictment, court documents, and statements made during court hearings, from October 2020 through January 2021, Clarke and Hudson were allegedly engaged in laundering proceeds from a criminal enterprise that targeted elderly victims throughout the United States. As alleged in a court document, members of the criminal enterprise engaged in a lottery scam.
The co-conspirators made telephone calls to elderly victims and told them that they had won a lottery contest prize of millions of dollars. The victims were told that to collect the prize, they must pay fees for shipping, taxes, insurance, and customs processing, among other things. The co-conspirators then asked the victims to send the funds (generally, via personal checks and cashier’s checks) to third-party individuals, commonly known as money mules, who are known for receiving and moving money that is fraudulently acquired from victims. Then, these individuals allegedly deposited the checks into their bank accounts, withdrew the cash and sent it to Clarke and other co-conspirators via a courier service.
A court document further alleges that Clarke received over $500,000 of $1,653,473 from the proceeds of five victims’ losses. Clarke and Hudson allegedly deposited a portion of the fraudulently obtained proceeds into Clarke’s bank accounts. Later, Clarke allegedly wired transferred $150,000 to a car dealer’s bank account in Jamaica for the purchase of a 2020 AMG GT 63 S Coupe Mercedes Benz.
On Feb. 14, Clarke and Hudson made their initial appearances in federal court. On Feb. 20, Hudson had his detention hearing. Clarke’s detention hearing was continued to Feb. 23. If convicted, Clarke and Hudson each face up to 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.
HSI Ft. Lauderdale investigated the case with assistance from the Broward Sheriff’s Office (BSO) and U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Joseph A. Cooley is prosecuting it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
If you or someone you know has been a victim of elder fraud, help is standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (833–372–8311). Victims or witnesses can also contact the HSI Tip Line by calling (866) 347-2423. If you have received a scam phone call, email, or message, you may also report it to the Federal Trade Commission (FTC) at https://reportfraud.ftc.gov.
The Department of Justice is committed to helping protect American seniors. The public is encouraged to remain vigilant and not to provide personal identifiable information (PII), such as a social security number, or money in response to false claims. For information regarding the Department’s Elder Justice Initiative visit https://www.justice.gov/elderjustice. The Department of Justice also offers a variety of resources relating to elder fraud victimization through its Office for Victims of Crime at https://www.ovc.gov.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60023.
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Indian River County drug dealer sentenced to federal prisonRead the Press Release
MIAMI – On Feb. 15, an Indian River County man was sentenced to 72 months in federal prison, followed by three years of supervised release for drug trafficking. The sentence comes after he previously pleaded guilty to distribution of fentanyl.
On April 19, 2023, Juan Carlos Sanchez Echevarria, 34, of Indian River County, Florida, sold 55 grams of fentanyl in Fellsmere, Florida.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO), announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14035.
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Fake concert promoter and former rapper plead guilty to $1.35 million fraud scheme involving bogus music concertsRead the Press Release
MIAMI – Two men pleaded guilty to conspiracy to commit mail fraud and wire fraud, and aggravated identity theft for their involvement in a bogus music concert fraud scheme.
Terronce Morris, 41, of Missouri City, Texas, pleaded guilty on Feb. 13 to conspiring with Blake Kelly, 36, of Los Angeles, California, in a fraud scheme involving bogus music concerts with famous artists, including J.B., B.E., and P.M. Kelly had previously pleaded guilty to the same conspiracy, on Jan. 9. Morris and Kelly also pleaded guilty to aggravated identity theft for forging the signature and using the identity of music artist J.B. on false and fraudulent concert contracts.
According to the factual proffer and other court documents, between December 2019 and March 2020, Morris and Kelly fraudulently obtained approximately $1,350,000 from victim J.R. Morris and Kelly persuaded the victim to give them the money for the purportedly production of a music festival, featuring J.B., P.M., B.E., and other music recording artists. Morris and Kelly created several false and fraudulent concert performance contracts forging the signatures of the music recording artists. Morris also created false and fraudulent email accounts that he used to pose as if the music recording artists themselves had sent the signed contracts to Kelly and himself. Additionally, during a video call with the victim, Morris and Kelly had an accomplice pose as J.B. to trick the victim into believing that J.B. had agreed to perform at the concert series.
Relying on Morris’s and Kelly’s false and fraudulent statements, the victim sent three wire transfers to Morris. The victim also mailed Morris a $200,000 check made payable to J.B., that Morris then deposited into his own personal account. Morris and Kelly used the fraudulently obtained money to enrich themselves and finance a lavish lifestyle for themselves and their accomplices, which included traveling, purchasing luxury goods, paying for luxurious services, and dining at high-priced restaurants.
Morris’s sentencing is scheduled for May 2, at 1:30 p.m. Kelly’s sentencing is scheduled for March 28, 1:00 p.m. Morris and Kelly face up to 20 years in prison for the conspiracy charge, as well an additional two years in prison for the identity theft charge.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Roger Cruz and Joan Silverstein are prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60118.
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Florida conspirators sentenced to nearly five years in prison each for evading over $42 million in duties when illegally importing and selling plywoodRead the Press Release
MIAMI – A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced.
In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act.
Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000.
“The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.”
“Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.”
“Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”
According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product.
The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws.
When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.
According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.
Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.
For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China.
The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.
Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings.
The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.
HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.
The U.S. Attorney’s Office for the Southern District of Florida and attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Massachusetts man sentenced to 15 years in prison for child pornography distributionRead the Press Release
MIAMI – On Feb. 9, a Massachusetts man was sentenced to 15 years in federal prison, followed by 25 years of supervised release, and ordered to pay restitution to victims totaling $33,500 in West Palm Beach federal court after being previously convicted of 15 counts of distribution of child pornography.
During the summer of 2023, Eric Bahre, 41, of Westfield, Massachusetts, sent dozens of videos of child pornography, including the sado-masochistic abuse of infants and toddlers to a woman in South Florida in a chatroom. During his communication, Bahre emphasized that the videos were for the woman to share them with her “child.”
In June 2023, HSI West Palm Beach and HSI Springfield federal agents, along with Westfield Police Department (WPD), Hampden County Sheriff’s Office (HCSD), and the Massachusetts State Police (MSP) officers found electronic devices containing videos and photographs of child exploitation material in Bahre’s house. They also found evidence of Bahre’s communications with the woman, and others, in chatrooms dedicated to the distribution of child pornography.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence.
HSI West Palm Beach Office investigated the case with assistance from HSI Springfield Office, WPD, HCSD, and MSP. Assistant U.S. Attorney Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the HSI and other law enforcement agencies.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80093.
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Cryptocurrency futures market CEO charged with violating Bank Secrecy ActRead the Press Release
MIAMI – On Feb. 12, the Chief Executive Officer (CEO) of Digitex Futures Exchange (Digitex Futures), was charged in federal court with willfully causing Digitex Futures to violate the Bank Secrecy Act by failing to establish and implement an anti-money-laundering program.
According to the allegations in the indictment, from January 2018 through April 2022, Adam Colin Todd, 50, a former resident of Miami, Florida, illegally operated Digitex Futures, an online futures exchange company, as an unregistered futures commission merchant in the United States. As alleged in the indictment, Todd sold and offered futures contracts to Digitex Futures’ customers. Allegedly, Todd willfully failed to establish, implement, and maintain an adequate anti-money-laundering program, including an adequate know-your-customer program. The indictment further alleges that Todd publicly stated that he refused to implement know-your-customer policies for Digitex Futures.
Todd made his initial appearance in federal court. If convicted, Todd faces up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorney Trevor Jones is prosecuting it.
An information contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20478.
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Member of transnational organized crime group convicted of money laundering, encouraging aliens to come to the United States, trafficking stolen property, and bribery of public officials sentenced to 95 months in prisonRead the Press Release
MIAMI – On Feb. 9, a Miami Beach man was sentenced to 95 months in federal prison for his role in a violent transnational organized crime group operating in Cuba, Mexico, Spain, and South Florida since as early as 2009.
The sentence comes after a jury convicted Javier Hernandez, 50, of Miami Beach, Florida, of conspiracy to commit encourage and induced aliens to come to or enter the United States without authority, conspiracy to transport stolen vessels, conspiracy to traffic in certain motor vehicles, trafficking in certain motor vehicles, and conspiracy to launder money to promote stolen property trafficking and the bribery of public officials in October 2023.
According to evidence introduced at trial, Hernandez and his codefendant, Ramon Reyes Aranda, 38, of Naples, Florida, stole vessels from the west coast of Florida. Reyes Aranda would identify the vessels, and Hernandez transported them to Mexico, where they would be used to fund and facilitate the enterprise’s illegal activities. Prior to the trial, Reyes Aranda pleaded guilty to participating in a money laundering conspiracy to promote stolen property trafficking and the bribery of public officials.
The stolen property, which included boats and vessels, were transported to a coconspirator in Mexico, who would then use the stolen property to facilitate and promote the organization’s activities. For example, evidence introduced at trial showed that Hernandez transported a vehicle to Mexico for use in bribing a foreign official so that the organization could continue conducting migrant smuggling without interference from law enforcement.
An extensive multi-national operation, led by American and Mexican law enforcement authorities, was formed to combat the activities of a violent transnational organized crime group known collectively in Mexico as La Mafia Cubana en Quintana Roo, or the Cuban Mafia in Quintana Roo. Through this operation, law enforcement officials learned that Jose Miguel Gonzalez Vidal, 36; Reynaldo Abreu Garcia, 56; Yohismy Perez Gonzalez, 40; Yosvani Carbonel Lemus, 43; Reynaldo Crespo Marquez, 44, and Jancer Sergio Ramos Valdes, 37, all Cuban citizens residing in Mexico at the time of the charges, along with Maikel Antonio Hechavarria Reyes and Monica Susana Castillo, both of Mexico, were part of an organized crime group that profited from various schemes, including the smuggling and extortion of Cuban migrants held hostage in Mexico for the payment of smuggling fees (United States v. Vidal, et al., Case No. 21-cr-20050-CMA).
According to evidence contained in the court record, Gonzalez Vidal introduced Hernandez to Reyes Aranda so that they could work together to transport stolen vessels for the organization. Both Hernandez and Reyes Aranda were paid by Gonzalez Vidal and other members of the organization for their transportation of the stolen property.
The members of the migrant extortion racket required the victims to provide contact information of a family member from whom they would later demand a $10,000 USD ransom fee. The men contacted the victims’ relatives, some of whom were in Miami, and threatened to torture, starve, and kill the victims if the relatives refused to pay. If a victim’s relative was able to pay the ransom, the organization released the victim and sent them by bus to the United States-Mexico border with instructions to seek political asylum. The victims whose relatives were unable to pay the fee were beaten, threatened with knives and guns, and shocked with stun guns until they were finally rescued by Mexican authorities. Members of the organization also sought to profit from drug trafficking and fraud schemes.
Further, once the defendants were charged in the United States and detained pending trial, they continued operating the organization by seeking to obstruct justice, violating court orders, and distributing contraband in a federal detention center. As part of their prison racket, the organization paid bribes to a federal employee to introduce contraband and controlled substance for distribution into the Federal Detention Center (FDC), in Miami.
For their participation in the criminal scheme, Gonzalez Vidal, Crespo Marquez, Abreu Garcia, Perez Gonzalez, Carbonel Lemus, and Ramos Valdes previously pleaded guilty to Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and migrant smuggling.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Acting Special Agent in Charge Matthew J. Margelot, U.S. Coast Guard Investigative Service (CGIS), Southeast Region; Warden Gio Ramirez of the Federal Detention Center (FDC), Bureau of Prisons (BOP); Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD); Chief of Police Tracy Frazzano for the Marco Island Police Department, and Chief of Police Ciro M. Dominguez of the Naples Police Department, made the announcement.
The prosecution of this organization has involved significant support from the Justice Department’s Office of International Affairs, FBI’s International Violent Crimes Unit, and the Justice Department’s Violent Crime and Racketeering Section.
These multinational prosecutions are the result of ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership established by the Organized Crime Drug Enforcement Task Forces (OCDETF) Priority Transnational Organized Crime Program. Since 2012, Operation Sisyphus Task Force participants have secured the conviction of over thirty members and associates of the criminal organization.
The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Assistant U.S. Attorneys Arielle Klepach and Brian Dobbins prosecuted U.S. v. Hernandez, et al., Case No. 22-cr-20557.
Assistant U.S. Attorneys Manolo Reboso, Quinshawna Landon and Ignacio J. Vázquez, Jr. prosecuted U.S. v. Vidal, et al., Case No. 21-cr-20050. First Assistant U.S. Attorney Michael Davis conducted collateral litigation regarding obstruction of justice activities in the Vidal, et al. prosecution.
Assistant U.S. Attorney Annika Miranda handled asset forfeiture.
Anyone with related information or who may have been a victim or witness should contact HSI at 877-4-HSI TIP (877-447-4847).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under the case numbers referenced above.
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Man sentenced to three years in prison for destroying property at U.S. courthouse and federal building in Fort LauderdaleRead the Press Release
MIAMI – On Feb. 8, a man was sentenced to three years in prison and ordered to pay restitution in the amount of $71,933.20 for destroying federal property at the U.S. Courthouse and Federal Building in Fort Lauderdale. The sentence follows his guilty plea entered in November 2023 to one count of destruction of federal property in violation of Title 18, United States Code, Section 1361.
According to facts admitted in support of his guilty plea, on Sept. 5, 2022, Matthew Leon Chilcutt, 45, of Fort Lauderdale, Florida, forced his way into the Courthouse when the building was closed to the public in observance of the Labor Day holiday. While on the federal premises, Chilcutt smashed glass and other objects, destroyed interior and exterior doors, and caused significant water damage, among other acts of destruction. Surveillance video at the Courthouse recorded Chilcutt throughout the offense.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and the Federal Protective Service (FPS), Miami Region, announced the sentence imposed by U.S. District Judge K. Michael Moore.
FPS investigated this case with assistance from the Fort Lauderdale Police Department. Assistant U.S. Attorney David A. Snider prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20449.
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Former Iranian-Owned Boeing Aircraft Successfully Returned to the United StatesRead the Press Release
MIAMI – The Department of Justice today completed enforcement of a final order for forfeiture of a U.S.-manufactured Boeing 747 cargo plane, previously owned by Mahan Air, a sanctioned Iranian airline affiliated with the Islamic Revolutionary Guard Corp-Qods Force (IRGC-QF), a designated Foreign Terrorist Organization (FTO).
On Feb. 11, the government of Argentina transferred physical custody of the aircraft to the United States pursuant to the final order of forfeiture, which was issued by the U.S. District Court for the District of Columbia on May 3, 2023, which rests all right, title, and interest in the aircraft in the United States of America. The Boeing 747 cargo plane arrived in the Southern District of Florida where it will be prepared for disposition.
“The United States’ forfeiture of the Boeing 747 cargo plane culminates over 18 months of planning, coordination, and execution by the U.S. government and our Argentine counterparts,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Bad actors — both near and far — are on alert that the United States will use all its tools to hold those who violate our laws to account. The successful seizure of the Boeing 747 underscores our commitment to prevent the illegal exportation of U.S. technologies and enforce U.S. export control laws.”
“Using a whole-of-government approach, we have worked with our international partners to forfeit a plane transferred by Iranian entities in violation of U.S. sanctions and export control laws,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Foreign adversaries — seeking to illegally use American-made products to further their endeavors — need to know that the United States government will work with the international community to hold them accountable for their illegal conduct. The United States appreciates the collaboration with our Argentinian law enforcement and judicial partners.”
“The seized American-built aircraft was transferred by a sanctioned Iranian airline in a transaction that violated U.S. export control laws and directly benefited the Islamic Revolutionary Guard Corps, which is a designated terrorist organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department is committed to ensuring that the full force of U.S. laws deny hostile state actors the means to engage in malign activities that threaten our national security.”
“Mahan Air — known to ferry weapons and fighters for the Islamic Revolutionary Guard Corps and Hizballah — violated our export restrictions by selling this airplane to a Venezuelan cargo airline. Now, it’s property of the U.S. government,” said Assistant Secretary of Export Enforcement’s Matthew S. Axelrod of the Department of Commerce. “This seized airplane’s arrival in the United States is a powerful example of our unceasing efforts to prevent Iran and its proxies from leveraging and profiting from U.S. technology.”
“The transfer of this plane to U.S. custody is the final step in the long process to bring this case to its rightful conclusion,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch “The FBI, along with our federal government and international partners, used every tool under our authorities to hold the Iranian government and their affiliates accountable for violating U.S. laws.”
Boeing 747 cargo plane, the target aircraft, taken Sept. 6, 2019.
The plane was previously detained by Argentine law enforcement. On July 19, 2022, the U.S. District Court for the District of Columbia issued a seizure warrant for the aircraft, which Argentine authorities promptly enforced. On Oct. 20, 2022, in support of its ongoing criminal investigation, the United States filed a civil forfeiture complaint alleging that the aircraft’s transfer from Mahan Air to Empresa de Transporte Aéreocargo del Sur, S.A. (EMTRASUR), a Venezuelan cargo airline and subsidiary of Consorcio Venezolano de Industrias Aeronáuticas y Servicios Aéreos, S.A (CONVIASA), a Venezuelan state-owned company, violated U.S. export control laws. As alleged, Mahan Air was subject to a Department of Commerce Temporary Denial Order, which prohibited, among other things, Mahan Air from engaging in any transactions involving any commodity exported from the United States that is subject to the Export Administration Regulations. The complaint further alleged that the unauthorized transfer of this aircraft directly benefited the IRGC-QF.
According to court documents, the registered captain of the aircraft was an ex-commander for the IRGC and a shareholder and member of the board of a second sanctioned Iranian airline, Qeshm Fars Air, affiliated with the IRGC-QF. Argentinian law enforcement also recovered a Mahan Air flight log documenting the aircraft’s flights after the unlawful transfer to EMTRASUR and confirmed additional violations of U.S. export control laws between February and May 2022 when EMTRASUR reexported the aircraft between Caracas, Venezuela; Tehran, Iran; and Moscow without U.S. government authorization.
The Department of Commerce Bureau of Industry and Security’s Miami Field Office and the FBI Miami Field Office are investigating the case.
Assistant U.S. Attorneys Andy R. Camacho for the Southern District of Florida and Rajbir Datta for the District of Columbia and, and Trial Attorney Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are handling the seizure and investigation, with assistance from Paralegal Specialist Brian Rickers and Legal Assistant Jessica McCormick. Senior Trial Attorney John Beasley and Trial Attorney Jesse Ormsby of the Justice Department’s Office of International Affairs; Special Agent Adam Mastriani and Task Force Officer Robert Cunniff of the FBI Miami Field Office; and Ricardo Hernandez of the FBI’s Legal Attaché in Buenos Aires provided significant assistance in working with the Argentine authorities, led by Argentine Federal Judge Federico Villena and the U.S. Marshals Service to manage the difficult logistics and coordination of the physical transfer of the Boeing aircraft from Argentina to the United States.
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Vero Beach resident pleads guilty to fentanyl distribution charges in federal courtRead the Press Release
MIAMI – On Feb. 7, a Vero Beach man pleaded guilty to two counts of distributing fentanyl.
In April 2023, Sudiata Neket Zanja Stinson, 47, of Vero Beach, Florida, sold approximately 20 grams of fentanyl to a purchaser in two separate occasions.
The sentencing hearing has not been set yet. Stinson faces up to 40 years in federal prison.
Stinson’s conviction is the result of a Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) fentanyl distribution operation.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Miami Field Division, and Sheriff Eric Flowers of IRCSO made the announcement.
DEA Miami Field Division, Port St. Lucie Resident Office and IRCSO investigated the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14040.
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Former CEO Sentenced to Prison for COVID-19 Relief Fraud and Money LaunderingRead the Press Release
MIAMI – On Feb. 8, Gregory Scott Keough, 57, of Wellington, Florida, was sentenced to 30 months in prison for submitting fraudulent loan applications seeking approximately $2 million in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. These loans are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
From March 2020 to Aug. 2020, Keough and conspirator Derek Acree, an attorney, submitted one fraudulent EIDL application and three fraudulent PPP loan applications on behalf of entities they both controlled. Of the funded loans, Keough was responsible for approximately $1,612,222. Keough individually submitted four additional false loan applications on behalf of companies he controlled as the Chief Executive Officer (CEO). Two of those applications were funded and Keough received $309,555 in CARES Act proceeds. These companies included National Financial Holdings Inc., NFH Florida LLC, DBA Finova Financial LLC, NFH Partners LLC, Grupo Keough LLC, Enclave Partners LLC, and National Financial Holding Technology LLC. The loans misrepresented the number of employees, payroll expenses, and gross revenues.
After obtaining the fraudulent loan proceeds, Keough transferred some of it to other bank account, paid multiple credit cards, as well as used to purchase and install storm windows for his home, private jet travel, and private school tuition.
Keough had entered a guilty plea to two counts of wire fraud and one count of money laundering in Nov. 2023. In addition to prison, Keough was ordered to pay $1,922,355 million in restitution.
Acree was charged separately and pled guilty to conspiracy to commit wire fraud in Oct. 2022 (Case No. 22-cr-80157). Acree was sentenced, in Jan. 2023, to 41 months in prison and ordered to pay $1,262,600 million in restitution.
Restitution was paid in full jointly by both Acree and Keough.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement.
FBI West Palm Beach investigated the case. The Office of State Attorney Dave Aronberg for the 15th Judicial Circuit – Palm Beach County and the Palm Beach County Sheriff’s Office PPP Fraud Task Force provided invaluable assistance. Assistant U.S. Attorney Robin W. Waugh prosecuted it and Assistant U.S. Attorney Joshua Pastor handled asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-80154.
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Florida Felon Admits Role in Multi-Million Dollar Health Care Kickback Scheme After Pleading Guilty to COVID-19 Fraud and Unlawfully Possessing FirearmsRead the Press Release
MIAMI – On Feb. 8, a Florida man admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, after previously pleading guilty to carrying out a COVID-19 fraud scheme and being a felon in possession of firearms and ammunition.
Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty, before U.S. District Judge Raag Singhal in the Southern District of Florida, to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute (Case No. 24-cr-60004).
According to documents filed in the health care fraud case and statements made in court, Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pled guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal (Case No. 23-cr-80068). According to documents in the wire fraud case and statements made in court, Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. Moreover, at the time of Memon’s arrest he was a convicted felon and illegally possessed 12 firearms and ammunition.
Memon is scheduled to be sentenced in the two cases on March 26, 2024. The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. The wire fraud charge is punishable by a maximum of 20 years in prison, the money laundering charge is punishable by a maximum of 10 years in prison, and the felon in possession charge is punishable by a maximum of 15 years in prison. The charges are also punishable by a fine.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Attorney for the United States Vikas Khanna for the District of New Jersey (for the health care fraud matter); Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge James E. Dennehy of the FBI, Newark Field Office, made the announcement.
FBI West Palm Beach and Newark Field Offices investigated the cases. Invaluable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Department of Health and Human Services-Office of Inspector General; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorneys Robin W. Waugh for the Southern District of Florida and Matthew Specht for the District of New Jersey are prosecuting these cases. Assistant U.S. Attorney Joshua Pastor for the Southern District of Florida is handling asset forfeiture.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 23-cr-80068 and 24-cr-60004.
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Miami man found guilty of murder in aid of racketeeringRead the Press Release
MIAMI – On Feb. 7, a Miami federal jury found a man guilty in a 23-count superseding indictment of murdering a man in aid of racketeering, assaulting a federal law enforcement officer, as well as of multiple counts of discharging a firearm in furtherance of a crime of violence, possessing a firearm and ammunition as a convicted felon, access device fraud and aggravated identity theft.
On April 28, 2020, Geno St. Flerose, of Miami, Florida, a member of the “Everybody Eats,” “EBE” gang shot and killed the victim, who was driving by St. Flerose’s house after St. Flerose chased him for over four blocks, and fired approximately thirteen rounds into the victim’s car, striking him three times. The victim died before getting to the hospital. The victim was 22 years old at the time of his murder.
Then, on June 17, 2020, a federal special agent was conducting surveillance in St. Flerose’s neighborhood when St. Flerose saw the agent’s car. St. Flerose ran into the street and fired multiple rounds at the agent’s car, penetrating it, but not striking the agent.
Law enforcement agents also discovered that St. Flerose had hundreds of people’s personal identifiable information.
Sentencing is scheduled for May 3 at 9:00 a.m. before U.S. District Judge Beth Bloom. St. Flerose faces up to life in prison, criminal fines of up to $250,000 as to each count, and a period of supervised release of up to life.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, and Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.
FBI Miami and USSS Miami investigated the case. Assistant U.S. Attorneys Christine Hernandez and Yara Dodin are prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20149.
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Florida Man Admits Role in Multimillion-Dollar Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced.
Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty before U.S. District Court Judge Raag Singhal in the Southern District of Florida to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal. Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.
The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. Both charges are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 26, 2024.
Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida.
memon.information.pdfMiami woman sentenced to 70 months in prison after using COVID-19 funds to gamble and launder moneyRead the Press Release
MIAMI – On Feb. 5, a Miami woman was sentenced to 70 months in federal prison for money laundering of nearly $2 million in fraudulent COVID-19 relief loans, after previously pleading guilty in October 2023.
From April 2020 through April 2021, Maritza Morales Hermoso, 58, of Miami, Florida, and others, including co-defendant Javier Lazo Cabrera, conspired to defraud private lenders and the Small Business Administration (SBA) by filing false and fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, despite that several of those companies had no payroll and were not actively doing business at the time the loan applications were submitted. The applications were supported by fabricated payroll documents and inflated employee numbers. As a result of these false and fraudulent applications, a California-based SBA-approved PPP lender disbursed close to $2 million in fraudulent loan proceeds to bank accounts controlled by Hermoso.
Hermoso spent the proceeds from the fraudulent PPP and EIDL loans on gambling at South Florida casinos and various other personal expenses like cosmetic surgery, a Cadillac Escalade, and a Pomeranian puppy. Hermoso also disguised her misuse of funds by laundering the loan proceeds through multiple unrelated business accounts and withdrawing the money in cash.
Hermoso’s co-defendant, Cabrera, pleaded guilty to conspiracy to commit wire fraud in December 2023. Cabrera’s sentencing is scheduled for March 11 at 8:30 a.m. in Miami. Cabrera faces up to 20 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office announced the sentence.
USSS Miami, SBA OIG, Investigations Division’s Eastern Region, and FBI Miami investigated the case. Assistant U.S. Attorneys Joseph Egozi and Roger Cruz prosecuted the case. Assistant U.S. Attorneys Mitchell Evan Hyman is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20360.
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Man Convicted of $300M Securities Price Manipulation and Wire Fraud Cryptocurrency ConspiracyRead the Press Release
A federal jury in the Southern District of Florida convicted a Pennsylvania man today for manipulating the price of a security and scheming to defraud investors in connection with the purchase of Hydrogen Technology’s cryptocurrency, HYDRO.
According to court documents and evidence presented at trial, Shane Hampton, 32, of Philadelphia, served as the head of financial engineering at Hydrogen Technology and orchestrated a months-long scheme to manipulate the price of HYDRO. Hampton and his co-conspirators hired an outside firm, Moonwalkers Trading Limited of South Africa, to run an automated trading system or “bot” to manipulate the price of HYDRO on a cryptocurrency exchange in the United States by flooding the market with fake and fraudulent orders from October 2018 to April 2019.
Hampton and his co-conspirators executed approximately $7 million in “wash trades” and placed over $300 million in “spoof trades” for HYDRO through the bot. Collectively, these spoof and wash trades were designed to, and did, fraudulently induce retail investors to purchase HYDRO so that Hampton and his co-conspirators could sell Hydrogen Technology’s own holdings of HYDRO for over $1.5 million over the course of a seven-month period.
The jury convicted Hampton of conspiracy to commit securities price manipulation and conspiracy to commit wire fraud. He is scheduled to be sentenced on April 29 and faces a maximum penalty of five years in prison for the conspiracy to commit securities price manipulation conviction and 20 years in prison for the conspiracy to commit wire fraud conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hampton is the fourth defendant to be convicted as part of the case. Michael Kane, the CEO of Hydrogen Technology, pleaded guilty to the same charges and is awaiting sentencing; Andrew Chorlian, an engineer at Hydrogen Technology, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and is awaiting sentencing; and Tyler Ostern, the CEO of Moonwalkers Trading Limited, also pleaded guilty to conspiracy to commit securities price manipulation and wire fraud and has been sentenced to two years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement.
The FBI Miami Field Office investigated the case. Former Assistant U.S. Attorney Eric Morales for the Southern District of Florida assisted in the investigation of the case.
Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section are prosecuting the case.
Miami armed career criminal sentenced to 30 years in federal prisonRead the Press Release
MIAMI – On Jan. 25, a Miami man was sentenced to 30 years in federal prison, followed by five years of supervised release, for unlawfully possessing a firearm and ammunition as an armed career criminal. The sentence comes after a jury convicted him in October 2023.
As shown at trial and sentencing, this case involved an eight-day span where Demetris Kewan Mackie, 29, of Miami, Florida, possessed and used the same gun to shoot at two victims, injuring one.
On April 12, 2023, Mackie pistol-whipped and shot a male victim outside a laundromat in Miami. Miami-Dade Police Department (MDPD) officers responded to the scene. When MDPD officers arrived, they found a blood trail on the ground that led them to where the victim had collapsed. The next morning, the victim advised MDPD officers that a male with a silver-topped gun and a teardrop-shaped tattoo next to his right eye had pistol-whipped him before shooting at him the day before. Surveillance footage verified the victim’s story.
Three days later, North Miami Beach Police Department (NMBPD) officers responded to another shooting. This time the victim was unharmed and was able to identify Mackie as the attacker.
On April 20, 2023, MDPD officers arrested Mackie. At the time of the arrest, Mackie was carrying a silver-topped gun whose test-fired casings matched the casings from both shootings.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division announced the sentence imposed by U.S. District Judge Rodolfo A. Ruiz II.
ATF Miami Field Office investigated the case with assistance from MDPD and NMBPD. Assistant U.S. Attorneys Zachary A. Keller and Vanessa Bonhomme prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20204.
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Highlands County man sentenced to 100 months for distribution of methamphetamineRead the Press Release
MIAMI – On Jan. 30, a Highlands County man was sentenced to 100 months in federal prison, followed by three years of supervised release, for distribution of methamphetamine. The sentence comes after his guilty plea on Sept. 27, 2023.
Between January and May 2023, Rafael Junior Morrero, 46, of Sebring, Florida, sold a total of 204.09 grams of pure methamphetamine on five separate occasions in Highlands County.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Paul Blackman of the Highlands County Sheriff’s Office (HCSO), announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
DEA Miami Field Division, Port St. Lucie Resident Office and HCSO investigated the case. Assistant U.S. Attorney Christopher Hudock prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14014.
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Miami felon convicted at trial of armed Hobbs Act robberyRead the Press Release
MIAMI – On Jan. 24, a federal jury found a Miami felon guilty of Hobbs Act robbery conspiracy, Hobbs Act robbery, discharge of a firearm in furtherance of a crime of violence, and of being a felon in possession of a firearm and ammunition.
During a six-day trial, the government presented DNA, firearms and ballistics, cell-site data, surveillance footage, photographic, testimonial, forensic, and other evidence showing that on April 3, 2022, Frederick Lee Alvin, 39, of Miami, Florida, robbed a market in Little Havana. After Alvin entered the store wearing a mask and dressed in all black, he demanded money from the register, fired a gun at the cashier’s feet, and fled with $3,400 from the register and the cashier’s wallet. Alvin was later arrested at a local motel in possession of the same firearm that he used during the market robbery.
Sentencing is scheduled for April 17 before U.S. District Judge Patricia A. Seitz. Alvin faces up to life in prison. Alvin had been previously convicted of three prior felony offenses, which triggered the Armed Career Criminal Act (ACCA) enhancement.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, announced the conviction.
ATF Miami Field Office investigated the case. Assistant U.S. Attorneys Will Rosenzweig and Abbie Waxman are prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
This prosecution is a part of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is the centerpiece of the Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through the PSN program a broad spectrum of law enforcement and community stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs to reduce violence crime and gun violence, and to make our local neighborhoods safer for everyone.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20244.
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Former Broward Sheriff’s Office lieutenant charged with COVID-19 relief fraud schemeRead the Press Release
MIAMI – On Jan. 5, a former Broward Sheriff’s Office (BSO) Department of Detention lieutenant was charged with two counts of wire fraud for allegedly fraudulently obtaining a total of $167,750 in forgivable Paycheck Protection Program (PPP) loans.
On April 1, 2021, Ernest Bernard Gonder Jr., 41, of Port St. Lucie, Florida, allegedly submitted a false and fraudulent PPP loan application misrepresenting EBG Properties LLC’s average monthly payroll and number of employees, according to the allegations in the information. In support of this application, Gonder also allegedly submitted multiple fraudulent IRS Forms 941. As a result of this false and fraudulent application, a New Jersey-based Small Business Administration (SBA)-approved PPP lender disbursed $106,540 to a bank account controlled by Gonder in the name of EBG Properties.
The information also alleges that on April 6, 2021, Gonder submitted a second false and fraudulent PPP loan application misrepresenting The Impact Center of Broward County Inc’s average monthly payroll and number of employees. In support of this application, Gonder also allegedly submitted multiple fraudulent IRS Forms 941. As a result of this false and fraudulent application, the New Jersey-based SBA-approved PPP lender disbursed $61,210 to a bank account controlled by Gonder in the name of The Impact Center of Broward County.
The information further alleges that Gonder used the proceeds of the scheme to enrich himself. Gonder also sought and received forgiveness of the two PPP loans he received, as alleged in the information.
On Jan. 30, Gonder made his initial appearance in federal court in Fort Lauderdale, Florida. If convicted, Gonder faces up to 20 years in prison on each count.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Brian Tucker of the Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-CFPB), and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO), made the announcement.
FBI Miami, FRB-CFPB Office of Inspector General and BSO investigated the case. Assistant U.S. Attorney Marc Anton is prosecuting it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
These charges stem from the Department of Justice’s ongoing initiative to prosecute fraud in connection with COVID-19 pandemic relief programs that offered assistance under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, as well as other crimes relating to the pandemic.
An information contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-60003.
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Former chairman of 1 Global sentenced to five years in prison for running $250 million securities fraud schemeRead the Press Release
MIAMI – On Jan. 31, the former chairman of 1 Global Capital LLC (“1 Global”) was sentenced to five years in prison for carrying out a $250 million securities fraud conspiracy scheme.
The sentence comes after Carl R. Ruderman, 82, of Aventura, Florida, entered his guilty plea in October 2023. Chief U.S. District Judge Cecilia M. Altonaga also ordered Ruderman to pay a forfeiture money judgment in the amount of $285,599,532, as agreed in his plea agreement. Ruderman’s restitution order is still pending.
Ruderman was the chairman of 1 Global, a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”).
Ruderman admitted that he and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. According to plea documents, investors were falsely told that 1 Global had audited financials by a public accounting firm, that the investor’s money would be spent on the MCAs, and that they could expect double-digit returns on their investments, among other things.
Ruderman admitted that he spent 1 Global’s investor’s money on credit card payments, vacation travel, insurance payments for his art collection and valuable jewelry, drivers, nannies, housekeepers, mortgage payments for his house, tuition, and payments for a luxury car. Ruderman also admitted that he diverted 1 Global investor money to businesses benefitting him and his family, without the investors’ knowledge.
Questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission. Ruderman admitted in plea documents that he knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Ruderman also admitted that he directed a lawyer, Jan Atlas, to author two opinion letters in 2016 containing false information that allowed 1 Global to skirt federal securities laws.
Four of Ruderman’s co-conspirators, all from South Florida, previously pleaded guilty and were sentenced for their roles in the fraud scheme, including two lawyers who provided Ruderman with false legal cover to skirt federal securities laws. The co-conspirators cases are referenced below:
Alan G. Heide, the former chief financial officer of 1 Global pleaded guilty to conspiracy to commit securities fraud (case no. 19-cr-60231) and was sentenced to 60 months in prison by U.S. District Judge Roy K. Altman. Judge Altman also ordered Heide to pay over $57 million in restitution to the victims of the scheme.
Attorney Andrew Dale Ledbetter pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60103) and was sentenced by Judge Altman to 60 months in prison. Judge Altman also ordered Ledbetter to pay over $148 million to the victims of the scheme.
Steven Allen Schwartz, the former chief operating officer of 1 Global pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 20-cr-60003) and was sentenced to 24 months in prison by Judge Altman. Judge Altman also ordered Schwartz to pay over $36 million in restitution to the victims of the scheme.
Attorney Jan Douglas Atlas pleaded guilty to conspiracy to commit wire fraud and securities fraud (case no. 19-cr-60258) and was sentenced to eight months in prison by Judge Altman. Judge Altman also ordered Atlas to pay over $29 million in restitution to the victims of the scheme.
1 Global filed for bankruptcy on July 27, 2018. As of that time, according to documents from related cases, 1 Global had more than 3,400 investors and had raised more than $250 million during the scheme. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
The SEC previously filed civil fraud actions related to the 1 Global fraud, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.); SEC v. Steven A. Schwartz, Case No. 20-80008-CV-DMM (S.D. Fla.); and SEC v. Andrew Dale Ledbetter, Esq., Case No. 20-61972-CV (S.D. Fla.).
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, Special Agent in Charge Matthew D. Line of IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Quenton Sallows of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Miami Region, made the announcement.
FBI Miami, IRS-CI, Miami Field Office, and FDIC-OIG, Miami Region investigated the case. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin prosecuted it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20303.
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Protecting Places of Worship Forum Held to Prevent and Combat Hate Crimes, Acts of Religious Violence, and DiscriminationRead the Press Release
MIAMI – On Jan. 30, the U.S. Attorney’s Office for the Southern District of Florida and the FBI, hosted a Protecting Places of Worship forum, facilitated by the Department of Justice’s Community Relations Service, with nearly 200 faith and community leaders as part of the U.S. Department of Justice’s United Against Hate initiative.
The Protecting Places of Worship forum brought together U.S. Department of Justice representatives and others, including faith-based leaders and congregants (from churches, mosques, synagogues, and temples), federal and state prosecutors, and law enforcement and public safety personnel to prevent and combat hate crimes and protect our local faith-based institutions. The attendees came together to learn about and discuss: best practices for protecting and securing places of worship; how local, state, and federal hate crimes laws are used to prosecute people who harm or threaten places of worship and their congregants; how and when to identify, report and prevent threats to places of worship, hate crimes, acts of religious violence, and faith-based discrimination; hate crimes statistics; strategies to prepare staff, clergy, and congregants for an active shooter situation; resources available to places of worship; as well as victim services and community concerns.
“In a time when we are witnessing a rise in religious-based violence, hate crimes, and threats to our places of worship, yesterday’s forum in support of the Department’s United Against Hate initiative could not be more imperative,” stated U.S. Attorney Markenzy Lapointe. “One of the best ways to prevent crimes fueled by religious bias is to ensure that our faith-based leaders have the information and resources they need to help protect their places of worship and congregants. No one should live in fear because of their religious beliefs. We must all speak out against the insidious threats that strike at our right to practice our religious beliefs freely and safely. Remember, united, we are stronger than hate.” “Everyone who attends a religious service deserves to do so in peace,” said Jeffrey B. Veltri, Special Agent in Charge of FBI Miami.“Yesterday’s gathering marked another milestone in our ongoing partnership with faith-based community leaders to protect houses of worship from those intent on violence. Hate crimes are the highest priority of the FBI’s civil rights program. As such, we want our religious leaders to have the latest information on ways to secure their facilities and deal with threats that may come their way. We hope that the forum serves to further educate our faith communities about civil rights laws, maintain an open dialogue, and encourage ongoing cooperation between law enforcement and these important communities. Our common goal is to ensure people are safe.”
The Protecting Places of Worship forum fostered partnerships and engagement, while providing attendees with invaluable federal, state, and local resources, to include tools to help protect and secure places of worship. Forum partners included the Department of Justice Community Relations Service, the Federal Emergency Management Agency, the Department of Homeland Security’s Cybersecurity and Infrastructure Defense Agency, the Miami-Dade State Attorney’s Office, the Broward State Attorney’s Office, the Broward Sherriff’s Office, the Miami-Dade County Asian American Advisory Board, the Miami-Dade County Interfaith Advisory Board, the Anti-Defamation League of Florida, and the Coalition of South Florida Muslim Organizations. The U.S. Attorney’s Office and our law enforcement and community partners will not stop working to protect everyone in South Florida from unlawful acts of hate.
In Sept. 2022, U.S. Attorney General Merrick Garland started the United Against Hate program to convene local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate. The United Against Hate program represents a “whole of government” approach to combating hate crimes. To learn more visit https://www.justice.gov/hatecrimes/spotlight/united-against-hate.
The U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners are United Against Hate. Our united mission is to prevent, investigate and prosecute threats to places of worship and hate crimes through education, outreach, and the justice system. The U.S. Attorney’s Office Hate Crimes Public Service Announcement (PSA) can be viewed at https://www.justice.gov/usao-sdfl/media/1336351/dl?inline. For more information visit the Southern District of Florida’s Hate Crimes Prevention and Enforcement website at https://www.justice.gov/usao-sdfl/hate-religious-crimes.
In support of the United Against Hate mission, following the Oct. 7 attacks in Israel, U.S. Attorney Lapointe and Special Agent in Charge Veltri issued a statement highlighting the Department’s commitment to combat hate crimes and potential threats to the South Florida community. A copy of the statement can be found at https://www.justice.gov/usao-sdfl/pr/joint-statements-us-attorney-markenzy- lapointe-southern-district-florida-and-special.
In a Nov. 2023 program, U.S. Attorney Lapointe, FBI Special Agent in Charge Veltri, Broward County State Attorney Harold F. Pryor, and Miami-Dade County State Attorney Katherine Fernandez Rundle addressed over 200 South Florida law enforcement officers during a day-long interactive training session. The program included a keynote address by Judy and Dennis Shepard of the Matthew Shepard Foundation, and a presentation by the Anti-Defamation League. More information regarding the training program is available by visiting https://www.justice.gov/usao-sdfl/pr/south-florida-law-enforcement-officers- receive-latest-hate-crimes-training.
The U.S. Attorney’s Office and FBI’s outreach, prevention, and enforcement efforts are ongoing.
If you have information about a possible threat to a place of worship or believe you are a victim of or a witness to a hate crime, contact your local law enforcement agency (911), then the FBI at www.fbi.gov/tips or 1-800-CALL-FBI (1-800-225- 5324). You can also report a hate crime, find resources and grant information, and learn more about the Department of Justice’s hate crimes prevention and enforcement work by visiting www.justice.gov/hatecrimes.
###Peace Ambassadors Leadership Program sees area high school students become leaders in school and communityRead the Press Release
MIAMI – For the first time since the COVID-19 outbreak, South Florida high school students are participating in the U.S. Attorney’s Office (USAO) Peace Ambassadors Leadership Program.
Some 110 students from 11 area high schools recently gathered in Miami Jackson Senior High’s auditorium to learn about the program and commit to seeing it through. Students will become leaders in both their schools and in their communities. The program is a collaboration between Miami-Dade School District and staff from the USAO for the Southern District of Florida. Students will have a monthly classroom challenge as well as a community challenge.
Past classroom challenges have included teaching conflict resolution skills to underclassmen and past community challenges have seen students pack “essentials bags” to distribute to the homeless as well as organize park cleanups.
“It’s rewarding when you find students who lean into it and make the most of the program,” said USAO Law Enforcement Coordination Specialist Michael L. Martinez. “It feels good to hear their success stories.”
The program teaches students to focus on core principles such as integrity, authenticity, and empathy to look within and take on projects that are personal to them. Creating positive environments and activities in communities that struggle with violence can have a snowball effect and may be able to offset some of the negativity these communities experience.
“How many here are happy with safety in your communities?” asked Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith, USAO. “How many think it could be better?” Many student hands went up to signify that improvements could be made. “Why not you? That is the question. You could be the people who change your communities for the better … change your families for the better.”
According to Smith, the key is start small and focus on oneself. Strive to be better every day. By doing so, students can lay a foundation that will get stronger with every positive action taken. Only then can they move on to affect others in a positive manner.
“They should work on themselves first, then start working on their families, and then on to their schools and communities,” said Smith. “That is how it starts. You have to take those first steps. This is about the students in the program being positive role models. If they take anything away from this, be positive role models in your families and communities.”
Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith presents to area high school students on the USAO Peace Ambassador Leadership Program. This program encourages and helps students become leaders in their communities.
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Latin King gang member sentenced to 380 months in prison for sex trafficking, obstruction and use of interstate facilities in aid of racketeeringRead the Press Release
MIAMI – Today, a Latin King gang member was sentenced to 380 months in prison by Chief District Judge Cecilia M. Altonaga after having been convicted at trial of two counts of sex trafficking by force, fraud, or coercion, obstruction of sex trafficking enforcement, and use of interstate facilities in aid of racketeering.
Jason Wagner, aka “King Ace,” of Miami, Florida, forced several women to engage in commercial sex since as early as 2003. To make his adult and underaged victims engage in commercial sex, Wagner locked them in his apartments, took their personal identification documents, subjected them to violence and threats of violence, and provided them with drugs. Wagner initially came to the attention of law enforcement after a woman alerted a good Samaritan that she was being held hostage in Wagner’s home. After Wagner’s arrest in this case, he repeatedly asked the woman to drop the charges and refuse to testify in court.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD), announced the sentence.
HSI Miami, in partnership with MDPD’s Human Trafficking Squad and the South Florida Human Trafficking Task Force, investigated the case. Assistant U.S. Attorneys Lacee Elizabeth Monk and Jessica Kahn Obenauf prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate better, 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.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence with the National Hotline is confidential, and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline, visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking, visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-20124.
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Final Member of Cargo Theft Ring Convicted of Stealing 19,000 Pounds of Perry Ellis Perfume Worth over $230,000Read the Press Release
MIAMI – On Jan. 19, a jury found Eligio Bacallao, 69, of Miami, guilty of one count of conspiracy to commit cargo theft and one count of cargo theft.
The evidence at trial revealed that Bacallao and his co-conspirators stole over $230,000 of Perry Ellis perfume, weighing in at over 19,000 pounds, from the inside of a steel-sealed, GPS-monitored tractor trailer in April 2016. The shipment was destined for Laredo, Texas, but 22 of the 24 pallets of perfume never left Hialeah, Florida because of the theft.
Two of Bacallao’s co-conspirators were previously found guilty for their roles in the theft, in July 2017.
U.S. District Judge Joan A. Lenard is scheduled to sentence Bacallao on April 10, 2024. The defendant is facing a total statutory maximum penalty of 10 years' imprisonment.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the convictions.
Assistant U.S. Attorneys Stefan Diaz Espinosa and Alexandra D. Comolli are prosecuting this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 16-cr- 20965.
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Attorney General Merrick B. Garland Honors Department of Justice Employees and Partners for the 2022 and 2023 Attorney General’s AwardsRead the Press Release
MIAMI – Today, in Washington, D.C., Attorney General Merrick B. Garland announced the recipients of the 70th and 71st Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.
Employees of the U.S. Attorney’s Office for the Southern District of Florida were among those recognized during the 70th and 71st Attorney General’s Awards ceremony.
“We are incredibly proud of our Southern District of Florida staff members who were recognized today with an Attorney General’s Award,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The honorees have carried forth the Department of Justice’s mission with extraordinary skill and dedication. These distinguished employees have protected our safety and security, as well as our civil rights. They have given a voice to the victimized, prevented crime, prosecuted fraud schemes, and litigated important appellate issues. As a community, we are incredibly grateful for their tireless efforts and commend their well-deserved accolades.”
70th Attorney General’s Awards – 2022
The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption. The award was presented to Assistant U.S. Attorneys Brooke C. Watson and Nicole Grosnoff for the Southern District of Florida, alongside a Southern District of New York Assistant U.S. Attorney and other honorees, to include Special Agents and employees of the Federal Deposit Insurance Corporation (FDIC), U.S. Secret Service, Small Business Administration (SBA), Social Security Administration (SSA), FBI, and U.S. Postal Inspection Service (USPIS).
71st Attorney General’s Awards – 2023
A Distinguished Service award was presented to Assistant U.S. Attorney Veronica Harrell James for the Southern District of Florida, alongside a Deputy Chief of the Civil Rights Division’s Disability Rights Section, trial attorneys, and other personnel of the Civil Rights Division.
A John Marshall Award for Handling of Appeals was presented to Assistant U.S. Attorneys Laura Thomas Rivero and Michael Brenner for the Southern District of Florida.
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Yo Arete Yon Sitwayen Ameriken Paske LI Te Vwayaje Ale an Ayiti Ak Entansyon Pou LI Te Fè Abi Seksyèl Sou MinèRead the Press Release
Yon sitwayen ameriken te fè premye aparisyon li nan Kolorado semèn pase a pou l fè fas ak yon akizasyon poutèt li te vwayaje ale an Ayiti ak entansyon pou l komèt zak seksyèl ilegal ak yon moun ki poko gen 18 tan.
Dapre dokiman tribinal yo ak enfòmasyon ki devwale piblikman nan tribinal la, ant 2006 ak 2010, Michael Geilenfeld, ki gen 71 zan, ki soti orijinèlman nan Iowa, te swadizan vwayaje soti nan Ayewopò Entènasyonal Miami pou ale Ayiti plizyè fwa pou li angaje nan rapò seksyèl ak minè. Pandan ke li te an Ayiti, Geilenfeld te jere St. Joseph’s Home for Boys, yon rezidans ki te desèvi timoun ki ekonomikman defavorize nan anviwon ak nan kapital la, Pòtoprens. Plizyè moun ki te rete nan St. Joseph's Home for Boys rapòte ke Geilenfeld te abize yo seksyèlman lè yo pat ko gen 18 tan.
Geilenfeld te jwenn arestasyon li 20 janvye nan Kolorado. Yo akize li pou vwayaj ak entansyon pou li angaje nan kondwit seksyèl ilegal. Si yo kondane li, li ap gen yon pèn maksimòm pou l pase 30 lane nan prizon.
Odyans detansyon Geilenfeld la pwograme pou rekòmanse nan dat premye fevriye.
Asistan Pwokirè Jeneral Enterimè Nicole M. Argentieri nan Divizyon Kriminèl Depatman Jistis la, Avoka Ameriken Markenzy Lapointe pou Distrik Sid Florid, Ajan Espesyal an chaj Anthony Salisbury nan Envestigasyon Sekirite Enteryè (HSI) Miami, ak Ajan Espesyal an chaj Jeffrey B. Veltri nan Biwo FBI Miami Field te fè anons la.
HSI ak FBI ap mennen ankèt sou ka a.
Avoka Jijman Jessica Urban ak Eduardo Palomo nan Seksyon Eksplwatasyon Timoun ak Obsenite nan Divizyon Kriminèl la ak Asistan Avoka Ameriken Lacee Monk pou Distrik Sid Florid la ap pouswiv ka a.
Ka sa a te prezante nan kad Project Safe Childhood, yon inisyativ nan tout peyi a pou konbat epidemi eksplwatasyon ak abi seksyèl sou timoun, Depatman Lajistis te lanse nan mwa me 2006. Project Safe Childhood, ki dirije pa Biwo Avoka Ameriken yo ak Seksyon Eksplwatasyon Timoun ak Obsenite, jere resous federal, leta ak lokal yo pou pi byen lokalize, arete, ak pouswiv moun k ap eksplwate timoun atravè entènèt, epitou pou idantifye ak sove viktim yo. Pou plis enfòmasyon sou Project Safe Childhood, tanpri vizite www.justice.gov/psc.
Nenpòt moun ki gen enfòmasyon ki gen rapò ak sa yo oswa ki ka te yon viktim oswa temwen ta dwe kontakte HSI nan 877-4-HSI TIP (877-447-4847).
Foto Geilenfeld nan 2024.
Yon akizasyon se jis yon akizasyon. Tout akize yo sipoze inosan jiskaske yo pwouve yo koupab san okenn dout rezonab nan yon tribinal.
Un citoyen américain arrêté pour avoir voyagé en Haïti avec l'intention d'abuser sexuellement des mineursRead the Press Release
Un citoyen américain a fait sa première comparution au Colorado la semaine écoulée pour répondre à l’accusation d’avoir voyagé en Haïti dans le but d’avoir des relations sexuelles illicites avec une personne de moins de 18 ans.
Selon les documents de la Cour et les informations communiquées en audience publique, entre 2006 et 2010, Michael Geilenfeld, 71 ans, originaire d’Iowa, aurait effectué de multiples voyages partant de l’aéroport international de Miami à destination d’Haïti dans le but d’accomplir des actes sexuels sur des mineurs. Pendant ses séjours en Haïti, Geilenfeld gérait le St. Joseph’s Home for Boys, une résidence desservant les enfants économiquement défavorisés de la capitale, Port-au-Prince, et ses environs. Des anciens résidents du St. Joseph’s Home for Boys ont signalé que Geilenfeld avait abusé d’eux sexuellement a lors qu’ils étaient âgés de moins de 18 ans.
Geilenfeld a été arrêté au Colorado le 20 janvier. Il est accusé d’avoir voyagé avec l’intention d’accomplir des actes sexuels illicites. S’il est reconnu coupable, il encourt une peine maximale de 30 ans d’emprisonnement.
L'audience préalable au placement en détention de Geilenfeld est prévue pour le 1er février prochain.
L'annonce a été faite par Nicole M. Argentieri, procureure adjointe par intérim de la division pénale du département de la Justice ; Markenzy Lapointe, procureur fédéral du district sud de Floride ; Anthony Salisbury, agent spécial responsable des enquêtes du département de la Sécurité intérieure (HSI) à Miami ; et Jeffrey B. Veltri, agent spécial responsable de l’antenne du FBI.
Le HSI et le FBI mènent l’enquête.
Les substituts du procureur Jessica Urban et Eduardo Palomo de la Section chargée des affaires d'exploitation des enfants et d’obscénités de la division pénale et la procureure fédérale adjointe Lacee Monk du district sud de la Floride sont chargés de la poursuite de cette affaire.
Le dossier est porté en justice dans le cadre du projet Safe Childhood, une initiative nationale de lutte contre l’épidémie d’exploitation et d’abus sexuels contre des enfants lancée en mai 2006 par le département de la Justice. Dirigée par les bureaux des procureurs des États-Unis et la Section chargée des affaires d'exploitation des enfants et d’obscénités, le projet Safe Childhood canalise les ressources fédérales, étatiques et locales pour mieux localiser, appréhender et poursuivre les personnes qui exploitent les enfants via l’Internet, ainsi que pour mieux identifier et secourir les victimes. Pour de plus amples informations sur le projet Safe Childhood, veuillez consulter le site www.justice.gov/psc.
Toute personne disposant d’informations sur le sujet ou qui aurait été une victime ou un témoin est priée de contacter le HSI au numéro de téléphone suivant : 877-4-HSI TIP (877-447-4847).
Photo de Geilenfeld en 2024.
Un acte d’accusation est simplement une allégation. Tous les accusés sont présumés innocents jusqu'à ce que leur culpabilité soit prouvée au-delà de tout doute raisonnable devant une cour de justice.