Southern District of Florida

MIAMI – Yesterday, Keyon Lewis, 26, of Vero Beach, Florida, was ordered detained pending trial by U.S. Magistrate Judge Shaniek Mills Maynard, after a federal grand jury in Fort Pierce, Fla., returned an indictment on July 13 charging Lewis with distribution of fentanyl resulting in death, and possession with intent to distribute fentanyl, in violation of Title 21, U.S.C. 841(a).

According to court documents, on November 5, 2021, Lewis allegedly distributed fentanyl to a man in the parking lot of an Applebee’s Restaurant, in Vero Beach. The man was later found dead on the kitchen floor of his residence by his wife. The United States alleges in the indictment that the fentanyl, Lewis distributed to the man, killed him.

After law enforcement arrived and confirmed the man was dead, they used his cellphone to order more fentanyl from Lewis. It is alleged that on November 7, 2021, Lewis, unaware that he was communicating directly with law enforcement, arrived at the decedent’s residence, allegedly bringing additional fentanyl to distribute. Indian River County Sheriff’s Office immediately arrested Lewis.

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. In 2020, more than 6,150 people died from overdoses involving fentanyl and fentanyl analogs in 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), made the announcement. 

DEA Miami and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter 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 23-cr-14030.

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MIAMI – Within three years of being released from prison, more than 50 percent of those trying to re-integrate into society are incarcerated again. That’s why U.S. Attorney’s Office staff use Re-Entry Simulations to put the shoe on the other foot and show community stakeholders what returning citizens must endure.

Training recently was held at Dr. Dorothy Bendross Mindingall Social-Economic Institute, 5120 NW 24th Ave. in Miami. More than 100 individuals participated in the Re-Entry Simulation to include Broward County State Attorney’s Office, Broward County Public Defender’s Office, Neighbors and Neighbors Association, and Opportunities Industrialization Centers of South Florida. These trainings normally are given only to adults. This time, however, it was a combination of adults and teens.

“It’s special for me to be here to welcome you all to this very important training,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We’re here in Liberty City and I am one of you. I grew up and played basketball right around the corner.”

Re-Entry Simulations are conducted regularly by the Law Enforcement Coordination/Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office. These trainings allow participants to experience what it’s like for someone returning from prison and how difficult that transition can be.

Services such as quick loan, pawn shop, social services, counseling, banking, drug testing, church, career center, and others lined the walls of the multi-purpose room and participants had to visit them for tasks or assistance. The simulation was broken into four 20-minute segments, which equaled four weeks in the life of a returning citizen. All tasks—like getting a job and finding affordable housing—had to be completed each week or the participant wound up in jail.

“It’s a catch-22,” said LEC/COS Chief J.D. Smith. “People returning from prison who are trying to make it in society have so many barriers placed in front of them that it’s no wonder so many struggle. I want to bring this to as many peoples’ attention as I can. They do better, we do better.”

Something as simple, or seemingly so, as an ID can be a real ordeal for a returning citizen. Many leave prison with no identification. No ID, no job, no apartment. The struggle just perpetuates, often leading to frustration, and perhaps a why even bother mentality.

“When people get out of prison they have to live somewhere and it may be in your community,” said Smith. “You should want them to succeed because when they do better, their families do better, and our communities do better. And that helps everyone.” 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida gives the opening remarks to a group of both teens and adults prior to a Re-Entry Simulation Training. This exercise is designed to show participants what it’s like for former inmates trying to re-enter society.

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MIAMI – Edgar Perez, 51, of Miramar, Florida, the final defendant in a 12-defendant health care fraud conspiracy was sentenced yesterday to 12 months in federal prison, followed by three years of supervised release, and ordered to pay a restitution in the amount of $547,560.00, for his participation in a health care fraud conspiracy that billed Blue Cross Blue Shield (“BCBS”) for more than $53 million for services, including allergy tests and physical therapy, that patients never received.

Jorge Caballero, 44, of Hialeah, Fla., Alexander Juan, 47, of Miramar, Fla., Aymee Caballero, 52, of Miramar, Fla., Roberto Ballester-Ramos, 55, of Hialeah, Fla., Roberta Ascencion, 69, of Hialeah, Fla., Mara Ventura, 36, of Hialeah Gardens, Fla., Vladimir Perez Pena, 58, of Hialeah, Fla., Amado Plain Moreno, 36, of Miami, Fla., Carlos Sablon, 55, of Hialeah, Fla., Maria Rodriguez-Alvarez, 58, of Hialeah, Fla., and Edgar Perez were indicted on July 28, 2022, and charged with conspiracy to commit health care fraud and wire fraud, and health care fraud.

The defendants opened multiple clinics throughout South Florida, and paid recruiters to provide personal information for BCBS beneficiaries. The defendants then submitted fraudulent bills to BCBS and received payments into clinic bank accounts before transferring to personal accounts, making cash withdrawals, and laundering money through various businesses and individuals.

All defendants entered guilty pleas, and have been sentenced as follows: Jorge Caballero was sentenced to 52 months in prison, Alexander Juan was sentenced to 48 months in prison, Aymee Caballero was sentenced to 41 months in prison, Roberto Ballester Ramos was sentenced to 45 months in prison, Roberta Ascencion was sentenced to 12 months in prison, Mara Ventura was sentenced to 12 months in prison, Vladimir Perez Pena was sentenced to 11 months, Amado Plain Moreno was sentenced to 33 months in prison, Carlos Sablon was sentenced to 12 months in prison, and Maria Rodriguez Alvarez was sentenced to 4 months in prison. They all have agreed to pay more than $9,000,000 in restitution.

“These defendants compromised the integrity of America’s healthcare system by stealing millions of dollars that should have gone to providing quality care to patients with true medical needs,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Such criminal behavior will not be tolerated in this district.”

“Individuals who steal from our health care system are not just stealing money from the government. Instead, they are stealing from the most vulnerable among us – the sick, the elderly, the poor,” said Justin E. Fleck, Deputy Special Agent in Charge, FBI Miami. “The FBI will not relent in our efforts to investigate and bring them to justice, and seize their illegal income and assets in restitution.”

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, made the announcement.

FBI Miami investigated the case. Assistant U.S. Attorney Lindsey Lazopoulos Friedman prosecuted it. Assistant U.S. Attorney Joshua Paster 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 22-cr-20341.

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MIAMI – Staff from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) and Veronica Harrell-James of the U.S. Attorney’s Office for the Southern District of Florida recently participated in the 5th Annual Unity in the Community at Fort Pierce Recreation Center in Fort Pierce, Fla.

Orchestrated by the Fort Pierce Police Department, nearly 70 vendors filled the recreation center’s gymnasium from 10 a.m. to 2 p.m. to assist the hundreds of families in attendance. Vendors included support groups, grief counseling, food banks, educational opportunities, and legal services to name a few.

In addition to the gymnasium activity, families also were entertained outside with live music and police K-9 exercises. 

Parents and children also were able to interact with a multitude of law enforcement personnel from FPPD. Interaction between law enforcement and the community is critical in developing positive relationships.

Most of the participating children came from summer camps and daycare, or community members who wanted their kids to participate.

LEC/COS staff manned a booth where they distributed more than 200 children’s books to local kids. They provided financial fraud prevention information to the parents.

“How old are you?” Re-entry & Community Outreach Specialist Keisha Bazile asked a young boy who had approached the table in search of a book. “Oh, you’re 7? You might enjoy this one. Grab whatever you like.”

High on the priority list for LEC/COS is early childhood literacy and these events are perfect opportunities to encourage kids to read more. 

“Depending on where they live, some children may not have access to a library, so we like to give them books to foster a love of reading,” said Bazile. “If they learn to love reading at an early age, their chance of future success goes up significantly.”

According to national data, children not reading at grade level by fourth grade tend to struggle with reading and are likely to drop out of school.

In addition to events like Unity in the Community, LEC/COS staff regularly conduct readings for pre-K children at area schools.

“We look forward to these events and appreciate the Fort Pierce Police Department for putting this one together,” said LEC/COS Chief J.D. Smith. “It allows us the opportunity to serve vulnerable populations in our district. That is and always will be our main focus.”

Anyone interested in donating children’s books may do so by emailing U.S. Attorney’s Office staff at [email protected] or by calling (305) 961-9134.

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.usdoj.gov/usao/fls.

Re-entry & Community Outreach Specialist Keisha Bazile and Community Liaison Specialist Audrey Charles distribute children’s books to kids in the Fort Pierce, Fla., area in an effort to get them interested in reading.

Nearly 70 vendors brought their services and information to Fort Pierce, Fla., area families during the recent Unity in the Community. From live music and K-9 exercises to family assistance and books and prizes for children, this event had something for parents and kids alike.

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MIAMI –  The operators of several Key West, Florida, labor staffing companies, including PSEB Services JD, Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. were sentenced to prison today for tax and immigration-related crimes.

According to court documents and statements made in court, at various times between Jan. 2014 and Nov. 2020, Eka Samadashvili, Davit Pavliashvili, and others helped run a series of labor staffing companies that facilitated the employment of non-resident aliens in hotels, bars, and restaurants in Key West and elsewhere who were not authorized to work in the United States. These labor staffing companies did not withhold federal income and Social Security and Medicare taxes from workers’ wages and did not report said wages to the IRS.

Eka Samadashvili was sentenced to 36 months in prison for conspiring to harbor aliens and induce them to remain in the United States and conspiring to defraud the United States. In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Samadashvili to serve three years of supervised release and to pay approximately $8,473,785.69 in restitution to the United States.

Davit Pavliashvili was sentenced to 18 months in prison for conspiring to harbor aliens and induce them to remain in the United States and filing a false federal tax return with the IRS. The court also ordered Pavliashvili to serve three years of supervised release and to pay approximately $16,925.31 in restitution to the United States.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

HSI Miami and IRS-CI Miami investigated the case.

Senior Litigation Counsel Christopher Clark for the Southern District of Florida and Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division 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-10003.

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The operators of several Key West, Florida, labor staffing companies, including PSEB Services JD, Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. were sentenced to prison today for tax and immigration-related crimes.

According to court documents and statements made in court, at various times between Jan. 2014 and Nov. 2020, Eka Samadashvili, Davit Pavliashvili, and others helped run a series of labor staffing companies that facilitated the employment of non-resident aliens in hotels, bars and restaurants in Key West and elsewhere who were not authorized to work in the United States. These labor staffing companies did not withhold federal income and Social Security and Medicare taxes from workers’ wages and did not report said wages to the IRS.

Eka Samadashvili was sentenced to 36 months in prison for conspiring to harbor aliens and induce them to remain in the United States and conspiring to defraud the United States. In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Samadashvili to serve three years of supervised release and to pay approximately $8,473,785.69 in restitution to the United States.

Davit Pavliashvili was sentenced to 18 months in prison for conspiring to harbor aliens and induce them to remain in the United States and filing a false federal tax return with the IRS. The court also ordered Pavliashvili to serve three years of supervised release and to pay approximately $16,925.31 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.

Homeland Security Investigations and IRS-Criminal Investigation investigated the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christohper Clark for the Southern District of Florida prosecuted the case.

MIAMI – Yesterday, Anthony James Howe, 33, of Port St. Lucie, Florida, was sentenced to 15 years in prison, followed by 15 years of supervised release, after pleading guilty in March to distribution and receipt of child sexual abuse material (CSAM).

In March 2022, Homeland Security Investigations (HSI) agents learned that an individual, later identified as Howe, had been using social media applications and chatrooms to trade CSAM with other users. Some of the images and videos traded by Howe depicted sexual abuse activities of children as young as toddlers. HSI agents also learned that Howe claimed he had installed a hidden camera in a minor child’s bedroom. HSI agents identified Howe as the person involved and executed a federal search warrant at his home. Howe later admitted to using social media platforms to send and receive CSAM.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office, announced the sentence imposed by U.S. District Court Judge Jose E. Martinez.

HSI Fort Pierce Office investigated this case. Assistant U.S. Attorneys Luisa Berti and Justin Hoover prosecuted it.

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.

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-14003.

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MIAMI – A Miami federal grand jury has charged Rafael Antonio Saldana, 37, of Miami-Dade County, with coercion and enticement of a minor, production of child pornography and attempted coercion and enticement of a minor.

According to the indictment and underlying criminal complaint, law enforcement’s review of a 15-year-old boy’s phone revealed multiple sexually explicit images of the minor victim solicited by Saldana. In the days leading up to July 13, Saldana sent messages to the minor victim’s phone coordinating a time and location for the two to meet. It is alleged that Saldana planned over text to pick up the minor victim at a McDonald’s in Miami, then drive him to Saldana’s home to engage in sexual activity with Saldana and a third, unidentified individual. On July 13, Saldana arrived across the street from the McDonald’s in Miami to meet the minor victim. Law enforcement ultimately placed Saldana under arrest outside of his home.

Prior to his arrest, Saldana worked part-time at the Children’s Movement of Florida, an organization that advocates for early childhood learning opportunities and access to children’s health care.

If convicted, Saldana faces a mandatory minimum of 15 years in prison and up to 30 years in prison on the production of child pornography charge. He faces a mandatory minimum sentence of 10 years in prison and up to a lifetime in prison on the coercion and enticement of a minor and attempted coercion and enticement of a minor charges. If convicted of any of the charges, Saldana faces up to a lifetime of supervised release and will be required to register as a sex offender.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Interim Director Stephanie V. Daniels of the Miami-Dade Police Department (MDPD), announced the charges.

HSI Miami and MDPD investigated the case. Assistant U.S. Attorney Audrey Pence Tomanelli is prosecuting 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.

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 23-mj-03384.

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MIAMI – Carl R. Ruderman, 81, former chairman of 1 Global Capital LLC (“1 Global”) was indicted yesterday with orchestrating a sprawling fraud scheme that affected more than 3,400 investors in 42 different states. Four of Ruderman’s co-conspirators have already pleaded guilty for their role in this fraud.

Alan G. Heide, 65, of Lake Worth, Florida, the former 1 Global chief financial officer, pleaded to a single count information, charging him with one count of 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.

Andrew Dale Ledbetter, 81, of Fort Lauderdale, Florida, 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, 78, of Delray Beach, Florida, 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.

Jan Douglas Atlas, 78, of Fort Lauderdale, Florida, 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.

According to the indictment, 1 Global was 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 was the chairman of 1 Global and Heide was the chief financial officer. Schwartz was a director and consultant at 1 Global, and also held out as a chief operating officer in the company’s marketing materials. Ledbetter was an attorney licensed in the State of Florida who had an of counsel position at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning around 2015. Atlas was a partner at Law Firm #1 and acted as outside counsel for 1 Global.

The indictment alleges that to attract investments, Ruderman 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. Allegedly, 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.

It is alleged that Ruderman 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 driven by his wife. Ruderman also diverted 1 Global investor money to businesses benefitting him and his family, without the investors’ knowledge.

According to the allegations, substantial 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. Allegedly, these questions were raised by investors, investment advisors, and regulators. As alleged in the charging documents, Ruderman 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. Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.

As alleged in the indictment, at the request of Ruderman, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Allegedly, Ruderman and others at 1 Global used and relied on Atlas’s opinion letters to continue to raise money illegally, in numerous pitches and communications to investment advisors and investors.

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.

Information about the related cases can be found here: https://www.justice.gov/usao-sdfl/1Global-Capital.

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 Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.

U.S. Attorney Lapointe commended the investigative efforts of FBI Miami, IRS-CI Miami, and the FDIC-OIG, Atlanta Region, for their assistance. Assistant U.S. Attorneys Elizabeth Young and Amanda Perwin are prosecuting this case. 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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MIAMI – A 37-year-old South Florida resident, Eladio Vega, was sentenced yesterday to 87 months in prison, followed by three years of supervised release, for his role in a widespread fraud scheme involving the distribution of adulterated and misbranded cancer, HIV, psychiatric, and other expensive prescription medications to unsuspecting patients. In May, Vega pleaded guilty to one count of conspiracy to traffic misbranded and adulterated drugs in violation of Title 18, United States Code, Section 670.

The prescription medication diversion fraud scheme involved a division of labor, in which street-level dealers obtained the medicines and supplied them to participants who inspected, cleaned, and packaged the drugs for shipment to others with established pharmaceutical wholesale companies.

The wholesale company owners prepared fraudulent documentation, falsely representing that legitimate drug manufacturers had provided the medications to them. In fact, the suppliers had acquired the drugs through health care fraud, theft or burglary, or by buying the medications from patients who obtained prescriptions but chose to sell them rather than take their medicines. With the false documentation, the company owners then sold the newly misbranded medications to retail pharmacies. In turn, the retail pharmacies sold the medications to patients who did not know the real source of the drugs, which had been stored and transported with no regard to temperature, light, humidity, or other maintenance controls.

To conceal the nature of their criminal enterprise and the identities of those profiting from it, conspirators routed money obtained from sales of the mislabeled and adulterated drugs through the bank accounts of multiple shell companies.

To date, 17 defendants have been indicted in connection with this case, 15 of whom have pleaded guilty and been sentenced to prison, except for a corporation defendant, which was sentenced to a forfeiture of $78 million.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami 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, announced the sentence.

FBI Miami and FDA-OCI Miami investigated the case. Assistant U.S. Attorney Frank Tamen prosecuted it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

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 19-cr-20674.

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MIAMI – A federal jury in Miami has found Mark Grenon, 65, and his three sons, Jonathan Grenon, 38, Jordan Grenon, 29, and Joseph Grenon, 36, guilty of conspiracy to defraud the United States by distributing an unapproved and misbranded drug.  Jonathan and Jordan Grenon were also found guilty of contempt of court.

The Grenons, all of Bradenton, Florida, manufactured, promoted, and sold a product they named Miracle Mineral Solution (“MMS”). MMS is a chemical solution containing sodium chlorite and water which, when ingested orally, became chlorine dioxide, a powerful bleach typically used for industrial water treatment or bleaching textiles, pulp, and paper. The Grenons claimed that ingesting MMS could treat, prevent, and cure COVID-19. The FDA, however, had not approved MMS for treatment of COVID-19, or for any other use. Rather, in prior official warning statements, the FDA had strongly urged consumers not to purchase or use MMS for any reason, explaining that drinking MMS was the same as drinking bleach and could cause dangerous side effects, including severe vomiting, diarrhea, and life-threatening low blood pressure. See https://www.fda.gov/consumers/consumer-updates/danger-dont-drink-miracle-mineral-solution-or-similar-products. In fact, FDA received reports of people requiring hospitalizations, developing life-threatening conditions, and even dying after drinking MMS.

Before marketing MMS as a cure for COVID-19, the Grenons marketed MMS as a miracle cure-all for dozens of other serious diseases and disorders, such as cancer, Alzheimer’s disease, diabetes, HIV/AIDS, and leukemia, even though the FDA had not approved MMS for any use. The Grenons sold tens of thousands of bottles of MMS nationwide, including to consumers throughout South Florida. They sold this dangerous product under the guise of Genesis II Church of Health and Healing (“Genesis”), an entity they created to avoid government regulation of MMS and shield themselves from prosecution. Genesis’ own websites describe Genesis as a “non-religious church,” and defendant Mark Grenon, the co-founder of Genesis, has repeatedly acknowledged that Genesis “has nothing to do with religion,” and that he founded Genesis to “legalize the use of MMS” and avoid “going [ ] to jail.” The Genesis websites further stated that MMS could be acquired only through a “donation” to Genesis, but the donation amounts for MMS orders were set at specific dollar amounts, and were mandatory, such that the donation amounts were effectively just sales prices. The Grenons received more than $1 million from selling MMS.

The federal jury also found defendants Jonathan and Jordan Grenon guilty of criminal contempt of court. The United States previously filed a civil case against the defendants and Genesis II Church of Health and Healing. See United States v. Genesis II Church of Health and Healing, et al., Case No. 20-21601-CV-WILLIAMS. In that civil case, the United States obtained court orders halting the Grenons’ distribution of MMS. The Grenons willfully violated those court orders and continued to distribute MMS. The Grenons also threatened the federal judge presiding over the civil case, and threatened that, should the government attempt to enforce the court orders halting their distribution of MMS, the Grenons would “pick up guns” and instigate “a Waco.”

During trial, the jury saw photos and video of a dirty rundown shed in Jonathan Grenon’s backyard in Bradenton, Florida, where the defendants were manufacturing their MMS. These photos showed dozens of blue chemical drums containing nearly 10,000 pounds of sodium chlorite powder, thousands of bottles of MMS, and other items used in the manufacture and distribution of MMS. The blue chemical drums of sodium chlorite powder—the primary active ingredient in MMS—had warning labels advising the product was toxic, flammable, and highly dangerous to consume.

Sentencing has been scheduled for October 6. At sentencing, the defendants face up to 5 years in prison.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Assistant Commissioner Justine Green of the FDA’s Office of Criminal Investigations announced the conviction.

FDA’s Office of Criminal Investigations investigated the case. Assistant U.S. Attorneys Michael B. Homer and John Shipley of the Southern District of Florida are prosecuting it.

U.S. Attorney Lapointe commends and thanks the government of Colombia for its assistance. U.S. Attorney Lapointe also extends his gratitude to the Justice Department’s Office of International Affairs (OIA) and the Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogota, Colombia for their substantial assistance in securing the arrest and extradition of Mark Grenon to 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 21-cr-20242.

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MIAMI – Patrick Smith, 71, of Palm Beach Gardens, Florida, the former CEO of Patient Care America (PCA), a compounding pharmacy located in Broward County, pled guilty today to one count of lying to federal agents who were investigating PCA for various health care fraud offenses.

According to court records, Smith admitted that in March of 2020 he voluntarily met with DCIS agents who were investigating PCA on allegations of health care fraud and payment of illegal kickbacks. During that interview, Smith lied to agents about his role in hiring the marketing groups who were paid by PCA to recruit Tricare patients. Smith claimed that he played no role in vetting the marketing groups, when in fact documents and witness testimony establish that he frequently met with the marketing groups and decided which to hire and on what terms. PCA paid over $40 million in kickbacks to the marketers. To date, a dozen of PCA’s marketers have been convicted and sentenced to prison terms of up to 13 years for their roles in the scheme.

U.S. Attorney Markenzy Lapointe of the Southern District of Florida, and Special Agent in Charge Darrin K. Jones of the Defense Criminal Investigative Service (DCIS), Southern Field Office, made the announcement.

Patrick Smith faces a maximum sentence of five years in prison. The Court has not set a date for sentencing yet.

DCIS investigated the case, with assistance from the Veterans Affairs-Office of Inspector General, the Food and Drug Administration-Office of Criminal Investigation, and FBI Miami.

Assistant U.S. Attorney Jon Juenger is 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 number 22-cr-20532.

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MIAMI – After skipping bond and remaining on the lam for 12 years, 71-year-old Carlos Blanco has been extradited from Spain to the United States to face federal child pornography possession and distribution charges in the Southern District of Florida. Blanco made his initial appearance in Miami federal court this week after arriving on a flight from Spain, where he was arrested pursuant to a request from the U.S. government.

Federal law enforcement originally arrested Blanco (a citizen of the United States, Honduras, and Cuba) on November 3, 2010, charging him by criminal complaint with possessing and distributing child pornography. He was released on bond following initial hearings before a federal magistrate judge. Following a grand jury’s decision to indict Blanco, the court set a February 24, 2011 hearing, at which Blanco was expected to plead guilty. Blanco failed to appear for the change of plea hearing, and the judge issued an arrest warrant. The court declared Blanco a fugitive on February 25, 2011 -- a designation Blanco held for over 12 years.  

In March 2023, Blanco was arrested in Spain pursuant to a request for his provisional arrest made by the U.S. Department of Justice Criminal Division’s Office of International Affairs (OIA). Blanco consented to his extradition to the United States. Blanco lived in Spain from July 2022 through the date of his arrest. Before that, he lived in Honduras for 11 years.

Markenzy Lapointe, U.S. Attorney for the Southern District of Florida, and Jeffrey B. Veltri, Special Agent in Charge, FBI Miami, announced the extradition.

U.S. Attorney Lapointe extends his gratitude to FBI Miami’s Crimes Against Children and Human Trafficking Task Force and the government of Spain for making the extradition possible, as well as OIA for its significant assistance in securing the defendant’s extradition. The U.S. Attorney also extends his gratitude to the Spanish Civil Guard and Interpol for their assistance in capturing this fugitive and in bringing him back to the United States. 

FBI Miami investigated the criminal case against Blanco, which Assistant U.S. Attorney Cory O’Neal is prosecuting. 

An indictment is merely an accusation, and a defendant is innocent 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 Case #10-20837-CR-King.

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MIAMI – A South Florida federal grand jury has charged four men in their early 20s with targeting and robbing people who sold electronic items on a popular online marketplace and using guns during some of the robberies.     

The indictment, unsealed today, charges Palm Beach residents Jordan Denzel Lewis, 23, Tyrell Brion Bouie, 21, Anthony Christopher Diggs Jr., 20, and Broward resident Johntaevious Henry Johnson, 23, with conspiracy to commit robbery, robbery, conspiracy to use and carry a firearm during a crime of violence, and brandishing a firearm during a crime of violence. It also charges Lewis, a prior convicted felon, with illegal possession of a firearm. 

It is alleged that the defendants targeted victims on a national online marketplace that allows users to list items for sale on its website and mobile application. Once users post items for sale, other users across the United States can view, bid on, and purchase items. According to the charges, from about June to October 2022, Lewis, Bouie, Diggs, and Johnson conspired to rob, and robbed, people who posted Apple products for sale on the online marketplace. The indictment also alleges that they used firearms in some of the robberies.     

Johnson and Diggs have made their initial appearances in federal magistrate court in Fort Lauderdale. Initial appearances for Lewis and Bouie will be set later.        

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, made the announcement.

FBI Miami investigated the case, with assistance from the Plantation Police Department. Assistant U.S. Attorneys Deric Zacca and Ajay Alexander are prosecuting it. Assistant U.S. Attorney Jorge Delgado is handling asset forfeiture.

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 23-cr-60138.

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MIAMI – Today, U.S. District Court Chief Judge Cecilia M. Altonaga sentenced Ariel Valero, a 45-year-old Hialeah man, to over 11 years in federal prison followed by five years of supervised release for bank robbery and brandishing a firearm during a crime of violence.

On December 26, 2019, Valero entered a Wells Fargo bank, located in Miramar, Broward County, Florida, covered head-to-toe in a black jumpsuit and ski mask. Upon entering the bank, Valero brandished a black firearm, jumped onto the teller counter, threatened the tellers, and stole $30,959.99 in cash. Surveillance footage captured Valero leaving the scene of the robbery on a bicycle, pedaling for a couple of blocks, and then dumping the bicycle in the nearby plaza. A forensic examination of the bicycle seat revealed the presence of Valero’s DNA. The jury convicted Valero of the armed bank robbery.   

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 sentence.

FBI Miami investigated the case, with assistance from the Miramar Police Department. Assistant U.S. Attorneys M. Catherine Koontz and Ajay Alexander prosecuted it. Assistant U.S. Attorney Joshua Paster 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-60020.

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MIAMI – The U.S. District Court for the Southern District of Florida ruled on Friday that the State of Florida violates the rights of children with complex medical needs by keeping some children unnecessarily institutionalized in nursing facilities, while placing other children at serious risk of unnecessary institutionalization.

Following a two-week bench trial in May, the court found that the children in nursing facilities are capable of living in the community. Based on the testimony of experts and family members during the trial, the court also found that parents and guardians of institutionalized children overwhelmingly want their children to live at home, but that they have not been given meaningful options other than institutional placement. The court’s decision, coming after nearly a decade of litigation, marks a major turning point in the treatment of children with disabilities in Florida and vindicates their right to community integration.

The court heard from many families who struggled desperately to keep their children at home despite a lack of services, and others who had no choice but to place their children in nursing homes because they could not get the help they needed. For example, parent Heather Patten testified about having to place her son in a nursing home when he was a toddler, telling the court, “I was scared, and I didn’t feel like I had a choice. I felt like there was no choice.” Another parent, Martin Carrizales, testified that for his disabled teenage stepson, “The help that they would give is that they would put him in a home but I would not be able to take care of him, and that is not what I wanted for him.”

“This important ruling will help Florida families of disabled children keep and care for their children at home by requiring increased access to medical support and services,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We look forward to seeing the systematic changes in Florida needed to prevent the unnecessary institutionalization of children with complex medical needs.”

“This is a momentous decision impacting hundreds of vulnerable children and their families,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s ruling sends a clear message that children with complex medical needs deserve to grow up with the love and support of their families and should not be confined to nursing facilities where they are stripped apart from their communities. The Civil Rights Division is strongly committed to ensuring that people with disabilities are not isolated from society but are fully integrated into their communities.”

The department’s lawsuit challenged the State of Florida’s policies that violated the Americans with Disabilities Act (ADA) and resulted in children with disabilities living and growing up in nursing facilities, separated from their families, friends and community. To remedy its violation, Florida must take steps to ensure that children with complex medical needs can access the services they need to live in their own homes and communities. Florida must also develop transition plans for institutionalized children and engage families to ensure that they can make informed choices about where their children live.

Approximately 140 children with disabilities are currently housed in three pediatric nursing facilities across Florida, and many more are at risk of entering these institutions due to a shortfall of services, including home nursing care. These children live with a range of medical conditions and disabilities, and many are dependent on medical technology such as ventilators. Under the ADA and the Supreme Court’s landmark decision in Olmstead v. L.C. – which was decided over 24 years ago – Florida is required to serve children with disabilities in the most integrated setting appropriate to their needs, as long as the children or their guardians do not oppose community integration. 

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.

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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MIAMI – A Miami federal grand jury has charged Anthony Faustin, 28, of Homestead, Florida, with conspiracy, wire and bank fraud, and access device and aggravated identity theft crimes, in connection with a scheme to obtain fraudulent loans under the Paycheck Protection Program (PPP).

According to the allegations in the indictment, Faustin submitted fraudulent PPP loan applications on behalf of six individuals in 2021. In the loan paperwork, Faustin made the applicants appear eligible for pandemic relief by misrepresenting them as sole proprietors or lying about their prior years’ income (or both). Lenders disbursed over $100,000 to bank accounts controlled by the individuals, who would then withdraw the money and gave Faustin his cut.

At the time of the alleged crimes, Faustin was a contractor with Immigration and Customs Enforcement working as a detention officer at Krome North Service Processing Center in Miami.

Faustin made his initial appearance yesterday in federal magistrate court in Miami. If convicted, he faces up to 20 years in prison on the conspiracy and fraud counts and two years on the aggravated identity theft counts.  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, Special Agent in Charge Jimmy Valenzuela for U.S. Immigration and Customs Enforcement Office of Professional Responsibility (ICE OPR), and 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, announced the charges.

ICE OPR and SBA OIG investigated this matter.  Assistant U.S. Attorney Daniel Bernstein is prosecuting the case.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

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 23-cr-20275.

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MIAMI – Ahmed Subni Wadi (Ahmed Wadi), 49, and his son Ramzi Ahmed Wadi (Ramzi Wadi), 21, both from Miami, Florida, have been indicted in federal court with conspiracy to distribute controlled substances and dealing firearms without a license.

According to the indictment and underlying criminal complaint affidavit, in November 2022, Ahmed Wadi sold a firearm with an obliterated serial number and multiple grams of oxycodone to someone in the parking lot of a mall. During the sale, an individual serving as Ahmed Wadi’s bodyguard told the purchaser that he was armed and there for Ahmed Wadi’s protection.

The charging documents also allege that on April 7, Ahmed Wadi sold two semi-automatic firearms and multiple grams of oxycodone laced with fentanyl to someone at the business where both defendants work.  Ahmed Wadi also offered to sell the person a machine gun and silencer. It is alleged that later that month, Ramzi Wadi completed that transaction on his father’s behalf – selling the person a machine gun, silencer, and multiple grams of oxycodone laced with fentanyl. It is alleged that Ramzi Wadi was carrying a firearm during this sale, says the indictment.

On June 6, law enforcement officers executed a search warrant at the defendants’ business and residence. According to statements made in court, law enforcement officers recovered over 30 firearms, suspected cocaine, marijuana, and pill bottles containing suspected oxycodone laced with fentanyl.

If convicted of all charges, defendants face up to 25 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, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and Interim Special Agent in Charge Eli Lawson of the Florida Department of Law Enforcement (FDLE), made the announcement.

ATF Miami Field Office and FDLE investigated the case. Assistant U.S. Attorney Stefan Diaz Espinosa is prosecuting it. Assistant U.S. Attorney Jorge Delgado 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.

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 23-cr-20286.

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MIAMI – Oscar Robinson, 67, of Sebring, Florida, has been sentenced to 13 years in prison for armed drug trafficking. Following his guilty plea to possession with intent to distribute a mixture and substance containing a detectable amount of cocaine, and possession of a firearm in furtherance of a drug trafficking crime.

On July 21, 2021, Robinson distributed crack cocaine from his residence in Sebring, Florida. On January 21, 2022, Robinson again distributed crack cocaine from his residence. On February 1, 2022, law enforcement officers executed a search warrant at Robinson’s residence, during which they seized a loaded Smith & Wesson, .357 caliber revolver, several grams of crack cocaine, a detailed drug ledger, and $10,900.00.

Robinson has prior felony convictions from the State of Florida for, among other things, assault with intent to commit robbery, aggravated assault with a firearm, possession of cocaine, possession of cocaine with intent to sell, sale of cocaine, and sale of cocaine.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, announced the sentence imposed by U.S. District Judge K. Michael Moore.

DEA Miami investigated the case, with assistance from the Highlands County Sheriff’s Office. Assistant U.S. Attorney Michael D. Porter 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 22-cr-14064.

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MIAMI – Following a trial in Miami federal court, a jury has found Patrick E. Longsworth, 68, guilty of aiming a laser pointer at two United States Coast Guard helicopters and one Miami-Dade Police Department helicopter.

According to the evidence at trial, the defendant aimed a green laser pointer at three government helicopters in late November last year – two U.S. Coast Guard helicopters, and one Miami-Dade Police Department helicopter. During the first incident, the laser struck a U.S. Coast Guard rescue swimmer in the eye. Six days later, the Defendant again aimed his green laser pointer at a second U.S. Coast Guard helicopter. Within a half hour of the laser strike to the second U.S. Coast Guard helicopter, a Miami-Dade Police Department helicopter responded to the area and was also struck multiple times with a green laser. Miami-Dade Police Department officers caught that incident on video and were able to direct ground units to the defendant’s residence where they found the defendant in his backyard holding a green laser pointer.

An indictment charged Longsworth with three counts of aiming a laser pointer at an aircraft, in violation of 18 U.S.C. § 39A. Longsworth proceeded to trial. The jury found him guilty on all three counts. 

Longsworth was previously charged in a criminal complaint under case number 22-mj-04163-JG.

Longsworth is scheduled to be sentenced on September 7 at 1:30 p.m. in Miami before U.S. District Judge Rodolfo Ruiz. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Zinnia P. James, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, and Special Agent in Charge Todd A. Damiani, U.S. Department of Transportation-Office of Inspector General (DOT-OIG), Miami Field Office, announced the conviction.

CGIS and DOT-OIG investigated this case. Assistant U.S. Attorney Alexandra D. Comolli and Special Assistant U.S. Attorney Jessica Ayer prosecuted it.

The number of laser strikes reported to the Federal Aviation Administration has been increasing since 2018. Laser strikes on aircraft are a serious threat to aviation safety that can incapacitate pilots during flight and can cause eye injuries.

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-20017.

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MIAMI – Ethan Blair, 42, of Merritt Island, Florida, has been sentenced to 168 months in federal prison for drug trafficking. On March 16, Blair pleaded guilty to distribution, and possession with intent to distribute 50 grams or more of methamphetamine.

On October 4, 2022, Blair distributed several ounces of methamphetamine and possessed over 400 additional grams of methamphetamine with the intent to distribute it in Port St. Lucie. To avoid arrest, Blair tried to flee the scene causing a high-speed chase. During the chase, Blair hit a law enforcement officer with the driver’s side mirror of his vehicle and threw several ounces of methamphetamine out the window. Law enforcement officers apprehended Blair after he crashed his vehicle.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, announced the sentence imposed by U.S. District Judge K. Michael Moore.

DEA Miami investigated the case, with assistance from Port St. Lucie Police Department. Assistant U.S. Attorney Michael D. Porter 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 22-cr-14072.

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MIAMI – Catherine Shannon Dunton, 55, has been sentenced to 48 months in prison, followed by three years of supervised release, for stealing fentanyl from sterile vials intended for patients for personal use and then replacing the fentanyl with saline solution to avoid detection.   

From February 28 to April 18, 2022, Dunton, a Florida licensed Registered Nurse (RN), worked at an outpatient surgical center in Jensen Beach, Martin County, Fla. as a circulating nurse. While working at the center, Dunton took vials of fentanyl, a narcotic painkiller in liquid form, and self-administered it by injection. To avoid detection, she replaced the fentanyl from nearly 450 vials with saline solution, and then returned the adulterated vials to the center for use during outpatient surgical procedures.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida 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.  

FDA-OCI Miami investigated the case, with assistance from U.S. Postal Inspection Service (USPIS), Miami Division. Assistant U.S. Attorney Diana M. Acosta 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 22-cr-14073.

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MIAMI – Samuel Harris, 43, who was a police officer with the Miami-Dade Police Department (“MDPD”), has pleaded guilty to wire fraud in connection with his fraudulent applications for a Paycheck Protection Program (PPP) loan, an Economic Injury Disaster Loan (“EIDL”), and an EIDL advance. Harris entered his guilty plea in Miami today before U.S. District Judge Robert N. Scola Jr.

According to the facts admitted at the change of plea, Harris, who was a full-time MDPD police officer, also was the owner and president of Oregen Digital, Inc. (“Oregen”).  Working with an associate, on June 29, 2020, Harris submitted and caused to be submitted a false and fraudulent PPP loan application falsely claiming that Oregen had 10 employees and a monthly payroll of over $50,000 per month. In support of this application, Harris submitted a fraudulent IRS Form W-3 falsely claiming that Oregen had paid 10 employees over $602,000 in wages during 2019. As a result of this false and fraudulent application, Harris obtained a $125,579 PPP loan from a Georgia-based SBA-approved PPP lender. 

Harris also admitted that on June 30, 2020, he caused to be submitted to the SBA a false and fraudulent EIDL application in the name of Oregen, seeking both an EIDL and an EIDL advance. In this fraudulent application, Harris falsely claimed that for the twelve-month period prior to January 31, 2020, Oregen had gross revenues of over $859,000 and 10 employees. As a result of this fraudulent application, Oregen obtained from the SBA a $10,000 EIDL advance that did not need to be repaid and $149,900 in EIDL loan proceeds.

Harris is scheduled for sentencing on September 25 at 8:30 a.m. before U.S. District Judge Scola in Miami, where he faces a possible maximum sentence of up to 20 years in prison.

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 Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and 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, announced the guilty plea.

The FBI’s Miami Area Corruption Task Force, which includes task force officers from the Miami-Dade Police Department’s Professional Compliance Bureau, IRS-CI, and SBA OIG investigated the case.  U.S. Attorney Lapointe thanked the Miami-Dade County Office of Inspector General for their invaluable assistance with this case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case.

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 23-cr-20189.

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MIAMI – Ruben Montanez-Mirabal, 33, who worked as a registered nurse for the Federal Bureau of Prisons (“BOP”) at the Federal Detention Center – Miami (“FDC-Miami”) has been sentenced to 72 months in prison after pleading guilty to conspiring to receive bribes and introduce prohibited objects, including controlled substances, into a federal prison, and to introducing prohibited objects into a federal prison, arising from his illegal deliveries of contraband to inmates at FDC-Miami.

From November 2021 through late August 2022, Montanez-Mirabal solicited and obtained illegal payments from FDC-Miami inmates in exchange for violating his official duties and FDC-Miami rules by bringing in and delivering to them prohibited objects, including sheets of paper that were soaked with synthetic cannabinoids. In exchange for this illegal activity, Montanez-Mirabal accepted thousands of dollars in bribes from these inmates and their associates. Along with these payments, Montanez-Mirabal also solicited and received other things of value from inmates, including the free use of a Lamborghini and a Rolls-Royce.

Montanez-Mirabal would bring these drug-soaked pages and other prohibited items into FDC-Miami and then either deliver them directly to the inmates or hide them in places where the inmate paying him would be able to recover the contraband. Those inmates would then re-sell the pages to other inmates at a rate of $1,500 per page. Montanez-Mirabal made a number of these deliveries, providing over 100 drug-soaked pages, worth more than $150,000 in total, to inmates inside FDC-Miami in exchange for the bribes he received. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge James Boyersmith, Department of Justice Office of Inspector General (DOJ-OIG), Miami Field Office, announced the sentence imposed by U.S. District Judge Jose E. Martinez.

U.S. Attorney Lapointe commended the investigative efforts of the FBI’s Miami Area Corruption Task Force and DOJ-OIG in this case. Assistant U.S. Attorney Edward N. Stamm 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-20051.

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MIAMI – U.S. Attorney Markenzy Lapointe announced criminal charges against fourteen defendants in connection with over $1.9 billion in fraud prosecuted in the Southern District of Florida, as part of the Department of Justice’s 2023 National Health Care Fraud Enforcement Action. The charges stem from various schemes to defraud government and private health care benefit programs by submitting false claims for items and services that were not needed and, in many instances, never provided as well as a scheme to unlawfully distribute adulterated and misbranded prescription medications.

“The results of this nationwide coordinated law enforcement effort that we announce today exemplify our office’s ongoing commitment to prosecuting health care fraud-related schemes,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “We will continue to hold accountable those who exploit health care programs for personal profit in South Florida.”

“These enforcement actions, including against one of the largest health care fraud schemes ever prosecuted by the Justice Department, represent our intensified efforts to combat fraud and prosecute the individuals who profit from it,” said Attorney General Merrick B. Garland. “The Justice Department will find and bring to justice criminals who seek to defraud Americans and steal from taxpayer-funded programs.”

“This nationwide enforcement action demonstrates that the Criminal Division is committed to fighting health care fraud and opioid abuse by prosecuting those who allegedly exploit patients and health care benefit programs for personal gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s announcement includes some of the largest and most complex cases that the Department has prosecuted, and demonstrates the Department’s commitment to seeking justice for those at all levels of the healthcare industry who put profits above patient care, from professionals in doctors’ offices to executives in corporate boardrooms.”

The charges announced today by U.S. Attorney Lapointe are part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 78 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.5 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled, and, in some cases, used the proceeds of the schemes to purchase luxury items, including exotic automobiles and yachts.

The Health Care Fraud Unit’s Strike Forces in Brooklyn, Dallas, Detroit, the Gulf Coast, Houston, Los Angeles, Miami, Newark, and Tampa; the Health Care Fraud Unit’s National Rapid Response Strike Force; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Southern District of Georgia, District of Idaho, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of New Jersey, Eastern District of New York, Southern District of Ohio, District of South Carolina, Southern District of Texas, Eastern District of Washington, and Eastern District of Wisconsin; and the State Attorney Generals’ Offices for Indiana, New York, and Pennsylvania are prosecuting the cases in the National Enforcement Action, with assistance from the Health Care Fraud Unit’s Data Analytics Team. Descriptions of each case involved in today’s enforcement action are available on the department’s website at www.justice.gov/criminal-fraud/health-care-fraud-unit/2023-national-hcf-court-documents.

The Southern District of Florida, in particular, worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the cases filed during the enforcement period: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region; FBI, Miami Field Office; the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; the Department of Defense Office of Inspector General (DOD OIG), Defense Criminal Investigative Service, Southeast Field Office, the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG), Southeast Field Office; IRS Criminal Investigation (IRS-CI), Miami Field Office; and the Office of Personnel Management, Office of Inspector General (OPM-OIG).

“Federal health care programs are designed to provide access to high quality care to patients nationwide. When bad actors attempt to exploit those measures for illicit financial gain, they put greed before the needs and safety of their patients, and take valuable resources away from their intended recipients,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “As today’s enforcement action illustrates, HHS-OIG and our law enforcement partners are committed to defending the federal health care system against fraud.”

“These cases serve to highlight the magnitude of health care fraud in South Florida, but unfortunately are only the tip of the iceberg,” said Jeffrey B. Veltri, Special Agent in Charge, FBI Miami. “Our health care system is under constant attack by fraudsters who are driven by greed. They pilfer billions of dollars from Medicare and other health care benefit programs. The FBI, Health and Human Services Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, Department of Defense Office of Inspector General, the United States Attorney’s Office for the Southern District of Florida, and the Department of Justice devote considerable resources to investigate, arrest, and prosecute these criminals. We will not relent. But, we need the public’s assistance. Please report suspicious activity, inform your insurance company if you see charges on your explanation of benefits for services you did not receive and protect your insurance cards and other personally identifiable information.”

“The cases described in today's announcement reflect the FDIC OIG’s commitment to investigating allegations of fraud, including health care fraud schemes, that threaten to undermine the integrity of our Nation’s banking system,” said Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “We will continue to coordinate with our law enforcement partners to investigate such schemes, and are pleased to join them in announcing today’s enforcement action."

“This indictment is an important step in protecting federal health care programs from fraudulent billing and ensuring patients receive uncompromised care through the Department of Defense’s TRICARE Program,” stated Special Agent in Charge Darrin Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “We will continue to work closely with our law enforcement partners to hold health care fraudsters accountable and to protect patient health and safety.”

The following defendants have been charged in the Southern District of Florida:

In United States v. Rubier, Case No. 23-cr-80105, Yosbel Roque Rubier, 43, of Miami, Florida, was charged by indictment with health care fraud and aggravated identity theft in connection with an alleged scheme to defraud Medicare of approximately $900,000 for durable medical equipment (“DME”) that was never supplied to Medicare beneficiaries. As alleged in the indictment, Rubier was the owner and operator of FCM Supply LLC (“FCM”), a clinic in Greenacres, Florida, that purported to provide DME to eligible Medicare beneficiaries. In a four-month period, FCM submitted approximately $900,000 in allegedly fraudulent health care claims to Medicare for DME that FCM never provided, and that Medicare beneficiaries never requested or needed. To support these fraudulent claims, Rubier used stolen means of identification of medical providers. As a result, Medicare paid approximately $443,000 to FCM. FBI Miami and HHS-OIG Miami investigated the case. Assistant U.S. Attorney Shannon Shaw is prosecuting it.

In United States v. Cesar, Case No. 23-cr-20259, Tania Cesar, 55, of Hialeah, Florida, was charged by indictment with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the Indictment, Cesar was a licensed physical therapist assistant at Elite Therapy Group, Inc (“Elite Therapy”), a physical therapy clinic in Miami, Florida. Cesar signed patient therapy records misrepresenting that she had provided physical therapy to insurance beneficiaries, when in fact she had not. Cesar’s co-conspirators at Elite Therapy, who were convicted for the Elite Therapy conspiracy in United States v. Wated et al., Case No. 21-cr-20110-MGC, submitted millions of dollars in claims to BCBS for physical therapy that Cesar purported to provide, but never did. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.

In United States v. Bernal, Case No. 23-cr-20246, Arian Bernal, 43, of Hialeah, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the information, Bernal paid kickbacks to beneficiaries to recruit them to visit several Miami clinics so that his co-conspirators could submit claims to those beneficiaries’ ASO insurance plans managed by BCBS. Those claims fraudulently represented that various health care benefits and services were medically necessary and provided to patients. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.

In United States v. Perez, Case No. 23-cr-20269, Silvana Perez, 44, of Miami, Florida, was charged by information with conspiracy to commit health care fraud in connection with an alleged scheme to defraud health care plans managed by Blue Cross Blue Shield (“BCBS”). As alleged in the information, Perez paid kickbacks to beneficiaries to recruit them to visit a sleep study clinic so that her co-conspirators could submit claims to those beneficiaries’ ASO insurance plans managed by BCBS. Those claims fraudulently represented that various health care benefits and services were medically necessary and provided to patients. FBI Miami investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.

In United States v. Gonzalez, et al., Case No. 23-20248, Ariel Gonzalez, 54, of Naples, Florida, and Linda Taylor, 55, of Miami, Florida, were charged for their roles in an alleged health care fraudulent billing scheme, along with several others who were previously charged in a separate Indictment and have since pleaded guilty. According to the Indictment, Gonzalez was one of the owners of Phoenix Rehab Center Corp., a physical therapy clinic based in Miami, that offered and paid kickbacks to patient recruiters, including Taylor, in exchange for referring beneficiaries of Administrative Services Only corporate insurance plans held by employers JetBlue Airways and AT&T Inc. and administered by Blue Cross Blue Shield to Phoenix Rehab for various forms of physical therapy treatments that they did not need and in many cases never received. The indictment further alleges that Gonzalez provided funding to Phoenix Rehab to further the fraud, including by taking out a loan to obtain sufficient cash to pay kickbacks to patient recruiters and beneficiaries. FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.

In United States v. Gomez, Case No. 23-cr-20249, Carlos Jose Martin Gomez, 36, of Miami, Florida, was charged for his role in an alleged health care fraudulent billing conspiracy in conjunction with Arisleidys Fernandez Delmas, 32, of Miami, Florida and several others who were previously charged in separate indictments. The scheme involved several fraudulent physical therapy clinics that targeted Administrative Services Only corporate insurance plans held by employers JetBlue Airways, AT&T Inc., and TJX Companies Inc. and administered by Blue Cross Blue Shield. Martin Gomez was also charged with five substantive counts of health care fraud related to five clinics involved in the larger conspiracy. According to the indictment, Martin Gomez offered and paid kickbacks and bribes to patient recruiters for referring beneficiaries to the clinics and directly to beneficiaries of these insurance plans in exchange for allowing the clinics to bill these plans for various forms of physical therapy treatments purportedly provided to these beneficiaries that they did not need and in many cases never received. FBI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.

In United States v. Lazo, Case No. 23-cr-20250, Adrian Lazo, 45, of Miami, Florida, was charged with laundering health care fraud proceeds by depositing a $3,303,974 check from the Center for Medicare and Medicaid Services to YG Medical Supplies Inc. in October 2021. The indictment alleges that Lazo conspired with others to deposit the check for the purpose of concealing, among other things, the nature, source, and ownership of those funds. HHS-OIG Miami, DOD-OIG, Southeast Field Office, FDIC-OIG, Atlanta Region, and HSI Miami investigated the case. Assistant U.S. Attorney Will J. Rosenzweig is prosecuting it. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.

In United States v. Moreno, Case No. 23-cr-20266, Jesus Enrique Moreno, 48, of Miami, Florida, was charged by information with unlicensed money transmitting for transmitting health care fraud proceeds between December 2020 and February 2021. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Assistant U.S. Attorney Timothy J. Abraham is prosecuting it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.

In United States v. Blackman, et al., Case No. 23-cr-20271, Brett Blackman, 39, of Johnson County, Kansas, Gary Cox, 77, of Maricopa County, Arizona, and Gregory Schreck, 49, of Johnson County, Kansas, were charged by indictment with conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive kickbacks, and conspiracy to defraud the United States and make false statements, in connection with the submission of $1.9 billion in false and fraudulent claims to Medicare and other government insurers for orthotic braces, prescription skin creams, and other items that were medically unnecessary and ineligible for Medicare reimbursement. As alleged in the indictment, Blackman, Cox, and Schreck owned, controlled, or operated DMERx, which was an internet-based platform that the defendants programmed to generate false and fraudulent doctors’ orders in exchange for illegal kickbacks and bribes. Cox was the CEO of the company that operated DMERx prior to a corporate acquisition, and Blackman was the CEO and Schreck a Vice President of the company that operated it after the acquisition. The defendants are alleged to have offered to connect pharmacies, durable medical equipment (“DME”) suppliers, and marketers to telemedicine companies who would accept illegal kickbacks and bribes in exchange for orders that were transmitted using the DMERx platform. The defendants allegedly received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid for them. The fraudulent orders and prescriptions generated by DMERx falsely represented that doctors had examined and treated the Medicare beneficiaries when in reality, purported telemedicine companies paid doctors to sign these orders and prescriptions without regard to medical necessity and based on a brief telephone call with the beneficiary or sometimes no interaction with the beneficiary at all. In order to conceal and disguise the scheme, and obstruct investigations by Medicare and its contractors, the defendants allegedly removed references to telemedicine in the orders. The DME supply companies and pharmacies that paid illegal kickbacks in exchange for these orders and prescriptions generated through DMERx billed Medicare more than $1,963,000,000 in false and fraudulent claims. HHS-OIG Miami, FBI Miami, VA-OIG, Southeast Field Office, IRS-CI Miami, HSI Miami, OPM-OIG, DOD OIG, Southeast Field Office, investigated the case. Trial Attorneys Darren C. Halverson of the National Rapid Response Strike Force and Andrea Savdie of the Miami Strike Force are prosecuting it. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.

In United States v. Herrera, Case No. 23-cr-20264, Armando Herrera, 42, of Miami, Florida, was charged by information with one count of conspiracy to introduce adulterated and misbranded drugs into interstate commerce in connection with a nationwide scheme to unlawfully distribute adulterated and misbranded prescription medications, including HIV medications, valued at more than $16.7 million. As alleged in the information, Herrera and his co-conspirators illegally acquired these prescription medications through fraud or from individual patients for whom the prescription medications had been prescribed. The information alleges that these medications were then repackaged and resold with false labeling and documentation to conceal their true origin. It further alleges that, in some instances, the prescription medications Herrera distributed contained the wrong medication. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Trial Attorney Alexander Thor Pogozelski of the Miami Strike Force is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.

In United States v. Vines, Case No. 23-cr-80107, Reginal N. Vines, 47, of Tuscaloosa, Alabama, was charged by indictment with conspiracy to commit health care fraud and wire fraud, health care fraud, conspiracy to defraud the United States and to pay and receive health care kickbacks, and receiving health care kickbacks, in connection with his role in selling doctors’ orders for medically unnecessary genetic tests to several laboratories. Vines obtained the orders by paying kickbacks and bribes to a doctor in exchange for the doctor signing prescriptions for genetic tests, without ever meeting or treating the Medicare beneficiaries for whom the tests were orders. In some instances, Vines allegedly forged the doctor’s signature on the prescriptions. The indictment alleges that the laboratories billed Medicare approximately $10 million for medically unnecessary genetic tests, of which Medicare paid $2.9 million. HHS-OIG Miami and FBI Miami investigated the case. Trial Attorney Reginald Cuyler Jr. of the Miami Strike Force is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.

In addition to the above defendants charged in the Southern District of Florida, a defendant was sentenced earlier this month to 15 years in federal prison in connection with a nationwide scheme to unlawfully distribute diverted, adulterated, and misbranded medications, including HIV drugs:

In United States v. Hernandez, Case No. 22-cr-60129, Lazaro Hernandez, 52, of Miami, Florida, was sentenced on June 15 to 15 years in prison after pleading guilty to conspiracy to defraud the United States and to introduce into interstate commerce adulterated and misbranded drugs and conspiracy to commit money laundering, in connection with a nationwide scheme to unlawfully distribute more than $230 million in diverted, adulterated, and misbranded medications, including HIV drugs. According to court documents, Hernandez and his co-conspirators illegally acquired large quantities of prescription drugs from patients for whom the drugs had been prescribed but intentionally not consumed. Hernandez and his co-conspirators then sold the diverted drugs to pharmacies across the country. The diverted drugs were accompanied by false pedigrees to conceal their true origin. In at least several instances, the diverted HIV medication that Hernandez sold consisted of bottles containing the wrong medication, broken pills, and even pebbles, leading to complaints by pharmacies. Hernandez and his co-conspirators then laundered the proceeds of these illegal sales. Hernandez also used his share of the proceeds to purchase luxury goods, including a $280,000 Lamborghini, a $220,000 Mercedes, and three boats. HHS-OIG Miami and FDIC-OIG, Atlanta Region, investigated the case. Assistant U.S. Attorney Timothy J. Abraham and Trial Attorney Alexander Thor Pogozelski of the Miami Strike Force prosecuted it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.

The Fraud Section uses the Victim Notification System to provide victims with case information and updates related to cases charged by the Fraud Section in the National Enforcement Action. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. Victims with questions about the cases charged by the U.S. Attorney’s Office may contact [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/case/united-states-v-steven-diamantstein.

A complaint, information, or indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt 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.

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MIAMI – Yo arete Sanjay Singh ki gen 43 lane e ki soti Coral Springs, Florida. Yon tribinal federal nan Sid Florid la enkilpe misye pou fròd nan yon envestisman ki rapòte 100 milyon dola ke li monte a travè yon konpayi kamyon li genyen ki rele Royal Bengal Logistics, Inc. (“RBL”).

Genyen yon rekizitwa kont Singh ki gen ladanl akizasyon ki di Singh vyole lwa federal ki penalize konplo pou komèt fwòd elektwonik, fwòd elektwonik ak patisipasyon nan tranzaksyon ki rapòte lajan ilegal.

Dapre enkilpasyon an, Singh, fondatè e prezidan RBL, te òganize epi dirije yon konplo Ponzi ak lòt konplis. Komplo a kòmanse an janvye 2020 e li te kontinye jiskaske yo arete misye. Singh ak konplis li yo te prezante RBL bay potansyèl envestisè yo tankou yon biznis kamyon ki pwospè e k ap byen mache, pandansetan antrepiz la ap pèdi lajan.

Nan mouvman sa, Singh ak akolit li yo te fè fo deklarasyon ak omisyon enpòtan sou risk ki genyen nan envesti nan RBL, rantabilite operasyon kamyon RBL yo, kijan RBL ta pral peye envestisè yo, epi kijan RBL ta pral itlize lajan envestisè yo. Atravè fo deklarasyon ak omisyon enpòtan sa yo, Singh ak konplis li yo pran plis pase 100 milyon dola nan men envestisè yo. Singh ak akolit li yo te itilize yon pati nan lajan sa a pou peye envestisè yo enterè yo te pwomèt yo.

Rekizitwa a akize Singh kòmkwa li detounen plizyè milyon dola ki soti nan lajan envestisè yo pou repare kay li, peye ipotèk li, peye pou depans pèsonèl li ak envesti nan mache bousye a.

Si yo kondane l pou tout akizasyon ki nan rekizitwa a, Singh ap fè fas ak yon maksimòm total 150 lane nan prizon.

Markenzy Lapointe, Avoka Gouvènman Ameriken nan Distri Sid Eta Florid, Jeffery B. Veltri, Ajan Espesyal an Chaj nan Biwo FBI nan Miami, Todd A. Damiani, Ajan Espesyal an Chaj nan Biwo Enspektè Jeneral Depatman Transpò (ʺDOT-OIGʺ), Rejyon Sid ak Russell Weigel III, Komisyonè Biwo Règleman Finansyè Florid (ʺOFRʺ) fè anons la.

Avoka Gouvènman Ameriken an, Lapointe, felisite efò envestigasyon FBI, DOT-OIG ak OFR sou dosye sa. Li remèsye Biwo Rejyonal Komisyon Sekirite ak Echanj Ameriken nan Miami pou asistans yo. Asistan Avoka Gouvènman Ameriken, Kiran N. Bhat, ap pouswiv ka a. Asistan Avoka Gouvènman Ameriken, Marx Calderon, ap okipe konfiskasyon byen yo.

Yon enkilpasyon se sèlman yon akizasyon, epi yon akize inosan jiskaske yo pwouve li koupab.

Si w te envesti nan RBL, si RBL dwe w lajan oswa ou te konn pale ak nenpòt moun nan RBL konsènan yon potansyèl envestisman nan RBL, silvouplè vizite https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors pou w bay FBI bon jan enfòmasyon. Ou ka vizite tou https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-french pou w bay enfòmasyon an Fransè Ayisyen oswa https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-haitian-creole pou bay enfòmasyon an Kreyòl.

Ou ka jwenn dokiman ak enfòmasyon ki gen rapò ak tribinal la sou sit wèb Tribinal Distri pou Distri Sid Florid la nan www.flsd.uscourts.gov oswa nan http://pacer.flsd.uscourts.gov chèche nan nimewo sa : 23-60117-CR (S.D.Fla.).

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MIAMI – Sanjay Singh, 43 ans, de Coral Springs, en Floride, a été arrêté et accusé devant la cour fédérale de Floride du Sud d'avoir orchestré une fraude à l'investissement (Ponzi) de 100 millions de dollars menée par son entreprise de camionnage routier, Royal Bengal Logistics, Inc. (« RBL »).

L’acte d’accusation contre Singh allègue qu’il a violé les lois fédérales criminalisant le complot pour commettre une fraude de fil et se livrer à des transactions de produits illicites.

Selon l'acte d'accusation, Singh, fondateur et président de RBL, a organisé et dirigé un important système de Ponzi avec des complices. Le complot a commencé en janvier 2020 et se poursuivait au moment de son arrestation. Singh et ses complices ont présenté RBL auprès d’investisseurs potentiels comme étant une entreprise de camionnage florissante et prospère, alors que l’entreprise réelle de camionnage de RBL perdait de l’argent. Au cours du processus, Singh et ses collaborateurs ont fait des déclarations erronées et des omissions importantes au sujet du risque d’investir dans RBL, de la rentabilité des activités de camionnage de RBL, de la façon dont RBL paierait ses investisseurs et de la façon dont RBL utiliserait les fonds des investisseurs. Par ces fausses déclarations et omissions importantes, Singh et ses complices ont recueilli plus de 100 millions de dollars auprès des investisseurs, laquelle somme a été utilisée en partie par Singh et ses complices pour payer les rendements promis aux investisseurs existants.

L'acte d'accusation allègue également que Singh a détourné des millions de dollars de fonds d'investisseurs pour rénover sa maison, effectuer des paiements hypothécaires, payer pour ses dépenses personnelles et faire du commerce des actions sur marge.

S’il est reconnu coupable de toutes les accusations portées dans l’acte d’accusation, Singh risque une peine maximale totale de 150 ans d’emprisonnement. Un juge du tribunal fédéral de district déterminera toute peine après avoir pris en considération les Lignes directrices des États-Unis statuant sur la condamnation et d'autres facteurs légaux.

Markenzy Lapointe, Procureur du district sud de la Floride aux États-Unis; Jeffrey B. Veltri, Agent spécial du FBI en charge au Bureau régional de Miami ; Todd A. Damiani, Agent spécial du Bureau de l’inspecteur général pour le département des transports (« DOT-OIG »), région sud; et Russell Weigel III, Commissaire, Office de régulation financière de Floride (« OFR »), ont fait l'annonce.

Le procureur des États Unis Lapointe a salué les efforts d'enquête du FBI, du DOT-OIG et de l'OFR dans cette affaire.  Il a remercié le bureau régional de la La Securities and Exchange Commission (SEC) des États-Unis à Miami pour son assistance. Le procureur adjoint des États Unis Kiran N. Bhat poursuit l'affaire. Le procureur adjoint des États Unis Marx Calderon s’occupe de la confiscation des biens.

Un acte d'accusation n'est qu'une accusation et un accusé est présumé innocent jusqu'à preuve du contraire.

Si vous avez investi dans RBL, si RBL vous doit de l’argent ou si vous avez eu des interactions avec une personne de RBL au sujet d'un investissement potentiel, veuillez consulter le site https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors pour fournir des informations pertinentes au FBI. Vous pouvez également visiter le site https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-french pour fournir des informations en français haïtien, ou https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-haitian-creole pour fournir des informations en créole haïtien.

Des documents et des informations judiciaires connexes peuvent être trouvés sur le site Web du tribunal du district sud de la Floride à www.flsd.uscourts.gov ou à http://pacer.flsd.uscourts.gov sous le numéro de dossier 23-60117-CR (S.D. Fla.).

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MIAMI – Personnel from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida recently joined numerous community partners for a Walking One Stop to assist residents of Miami’s Liberty City.

Walking One Stops originated in Miami-Dade County and partner community stakeholders with law enforcement to bring social and economic resources to neighborhoods that have experienced gun or gang violence. This particular area in Liberty City already has seen at least one homicide this year. Law enforcement strives to have a more visible presence in these areas so residents will know that police are there to serve.

During this Walking One Stop, a large group of community partners and police officers broke into several groups to cover a large apartment complex. They knocked on doors and reached more than 30 families.

“Thank you for coming out,” said a 74-year-old resident. “I want my medical equipment fixed and I need my oxygen; that’s why I’m breathing like this.”

She was assured that someone would contact her within 48 hours.

“It’s about doing what we can to make a difference in peoples’ lives,” said Law Enforcement Coordination Specialist Mark McKinney, LEC/COS. “Some of our most vulnerable residents can go unnoticed and not get the help they need. But these walks lead to tangible results.”

Results like employment. At a previous Walking One Stop, many residents wanted help finding jobs. Walking One Stop partners were able to get nearly half of them employed. At this most recent one, a Mobile Career Assistance Center was parked down the block from the apartments to help job seekers.

It comes down to trust and building relationships. Community stakeholders hope that by frequently hosting these walks, residents will feel empowered to make their communities better.

An officer recounted a previous walk in which a young resident opened the door but didn’t want to be seen talking to police. However, he told officers he would reach out if they left a contact card.  

“It’s a partnership between the community and law enforcement,” said Community Outreach Specialist and former police officer Corey Mackay, LEC/COS. “Being more approachable and having positive contact with the community builds trust and helps save lives.”

In addition to local partners, law enforcement personnel from both Philadelphia and the country of Denmark participated in the walk to learn how to implement Walking One Stops in their communities.

“We’re gathering information and getting inspired to learn techniques and methods to reduce gang violence throughout Denmark,” said a Danish police officer following his first walk.

Walking One Stops are a testament to the power of outreach. They are an example of what can happen when law enforcement, community stakeholders, and residents come together.

Law Enforcement Coordination Specialist Mark McKinney, Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida, knocks on doors at a Liberty City apartment complex during a recent Walking One Stop.

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MIAMI – A federal magistrate judge in Miami has unsealed an indictment charging Patrick Ductant, 35, of Pembroke Pines, Fla., Kervens Saint-Hilaire, 35, of Hollywood, Fla., and Vladimir Saint-Hilaire, 35, of Hollywood, Fla., with felony offenses, including conspiracy, bank and wire fraud, money laundering, and aggravated identity theft. Terri Shana Davis, 33, of Marietta, Ga., was also charged in the indictment with conspiracy and aggravated identity theft offenses. 

According to the indictment, from October 2019 through May 2021, the defendants unlawfully obtained and used personally identifiable information (“PII”) of unknowing victims to apply for and receive bank loans, open bank accounts, acquire credit and debit cards, and conduct financial transactions. Additionally, the indictment alleges that the defendants unlawfully used PII to apply for and obtain COVID-19 pandemic relief funds made available by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP). The indictment also alleges that Davis sold and supplied some of the PII used to carry out the crimes stated in the indictment, which Davis accessed through her employment at a company in Atlanta, Ga. 

If convicted, Ductant faces up to 256 years in prison, Kervens Saint-Hilaire faces up to 260 years in prison, Vladimir Saint-Hilaire faces up to 216 years in prison, and Davis faces up to 34 years in prison. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Sheriff Gregory Tony of the Broward County Sheriff’s Office (BSO) made the announcement. 

BSO investigated the case, with assistance from U.S. Secret Service (USSS), Miami Field Office. Assistant U.S. Attorney David Snider is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

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.  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.  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 23-cr-60119.

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MIAMI – Sanjay Singh, 43, of Coral Springs, Florida, has been charged in South Florida federal court with orchestrating a $100 million investment fraud (Ponzi) scheme run through his over-the-road trucking company, Royal Bengal Logistics, Inc. (“RBL”).

The indictment alleges that Singh violated federal laws criminalizing conspiracy to commit wire fraud, wire fraud, and engaging in transactions in unlawful proceeds.

According to the indictment, Singh, RBL’s founder and president, organized and ran a substantial Ponzi scheme with co-conspirators. The conspiracy began in January 2020 and was ongoing at the time of his arrest. Singh and his co-conspirators held RBL out to potential investors as a thriving and successful trucking business, all while RBL’s actual trucking business lost money. In the process, Singh and his co-conspirators made material misrepresentations and material omissions about the riskiness of investing in RBL, the profitability of RBL’s trucking operations, how RBL would pay its investors, and how RBL would use investor funds. Through these material misrepresentations and omissions, Singh and his co-conspirators raised over $100 million from investors, which Singh and his co-conspirators then used in part to pay existing investors promised returns.

The indictment also alleges that Singh misappropriated millions of dollars of investor funds to renovate his home, make mortgage payments, pay for personal expenses, and trade stocks on margin.

If convicted of all charges in the indictment, Singh faces a maximum penalty of 150 years’ imprisonment. 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; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Todd A. Damiani of the Department of Transportation Office of Inspector General (“DOT-OIG”), Southern Region; and Russell Weigel III, Commissioner, Florida Office of Financial Regulation (“OFR”), made the announcement.

U.S. Attorney Lapointe commended the investigative efforts of the FBI, DOT-OIG, and OFR in this matter. He thanked the United States Securities and Exchange Commission Miami Regional Office for their assistance. Assistant U.S. Attorney Kiran N. Bhat is prosecuting the case. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.

An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.

If you invested in RBL, are owed money by RBL, or had interactions with anyone at RBL about a potential investment, please visit https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors to provide relevant information to the FBI. You can also visit https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-french to provide information in Haitian French, or https://www.fbi.gov/how-we-can-help-you/victim-services/seeking-victim-information/rblinvestors-haitian-creole to provide information in Haitian Creole.

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-60117.

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MIAMI – A federal grand jury in Fort Pierce, Florida has returned an indictment charging Shannima Yuantrell Session, aka Shalamar, 46, of Lake Placid, Fla. with 10 counts of sex trafficking.

According to court documents, between 2011 and 2019, Session allegedly trafficked 10 female victims (7 adults and 3 minors). It is alleged that Session recruited his victims through violence and threats, among other things; including offers of drugs, employment, and romantic relationships. Once Session had gained compliance from his victims, he then trafficked them for sex primarily in rural areas of Highlands County for his own profit.

If convicted, Session faces a mandatory minimum sentence of 15 years in prison, with a maximum sentence of life imprisonment, as well as a maximum of lifetime supervised release. Session is being held in custody pending trial.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Sheriff Paul Blackman of Highlands County Sheriff’s Office made the announcement.

FBI Miami and Highlands County Sheriff’s Office investigated the case. Assistant U.S. Attorney Justin Hoover and Trial Attorneys Leah Branch and Elizabeth Hutson of the Justice Department’s Civil Rights Division are 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 22-cr-14074.

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MIAMI — A West Palm Beach man has pleaded guilty to operating an illegal sports gambling business, conspiring to commit money laundering, using a facility of interstate commerce to carry on prostitution activities, and tax evasion. As part of his guilty plea, Dion De Cesare, 53, has agreed to forfeit to the United States two commercial properties, five condos, six vehicles, a Rolex watch, and approximately $93,000 in criminal proceeds.

During a hearing before United States Magistrate Judge Bruce E. Reinhart, De Cesare admitted that from around April 2008 to November 2022, he owned two social clubs: Whispers All Girls Staff and NXT. During various times, the businesses provided an array of prostitution services regularly to its customers. De Cesare collected the proceeds from those businesses and laundered them through third party bank accounts and the payment of mortgages and expenses owed on several of his properties in West Palm Beach.  

De Cesare also admitted that from about May 20, 2015 to October 2022, De Cesare also operated an online sports gambling business through a website whose server was located in Costa Rica. De Cesare laundered the gambling proceeds by having the gamblers send their debt payments to third party individuals and entities for De Cesare’s benefit. 

Finally, De Cesare admitted that from 2011 to 2017, he owned Renegades, a restaurant and nightclub in West Palm Beach. From various times between 2011 and 2013, and from 2015 to 2016, De Cesare failed to pay personal and payroll taxes. De Cesare has agreed to pay $1,177,438.65 in restitution to the IRS.   

De Cesare is scheduled to be sentenced before United States District Court Judge Robin L. Rosenberg later this year. He faces 20 years in prison on the conspiracy charge, and five years on the gambling, prostitution, and tax charges. In total, De Cesare is facing a maximum sentence of 35 years in prison, 12 years’ supervised release, and a $1,000,000 fine – all in addition to restitution.  

U.S Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami; Sheriff Ric Bradshaw of Palm Beach County Sheriff’s Office (PBSO); and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement. 

HSI West Palm Beach Office, PBSO, and IRS-CI investigated the case. Assistant U.S. Attorney Mark Dispoto and Trial Attorney Francesca Bartolomey of the Justice Department’s Tax Division are prosecuting it. Assistant U.S. Attorneys Peter Laserna and William T. Zloch are handling asset forfeiture.

You may find related court documents and information 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-80188.

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MIAMI – A 29-year-old man from Martin County, Florida, German Oliver Jose Martin, was sentenced to 180 months followed by 20 years supervised release, for producing child pornography. In addition, the court ordered Martin to pay $3,000 restitution. Upon his release from prison, Martin will report to Immigration officials for deportation.

On May 26, 2022, Martin picked up a 15-year-old girl from her school bus stop, drove her to his trailer, and used his cellular telephone to produce several videos of them engaging in sexually explicit conduct. After law enforcement learned of the activity, in early June 2022, they executed a federal search warrant on Martin’s phone. A Martin County Sheriff’s Office Forensic Examiner located sexually explicit videos involving the minor victim.

On February 3, Martin pleaded guilty to one count of production of visual depictions of sexual exploitation of a minor. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced the sentence imposed by U.S. District Court Judge Robin L. Rosenberg, who sits in West Palm Beach.

FBI Miami, Fort Pierce Resident Agency, and the Martin County Sheriff’s Office investigated the case.  Managing Assistant U.S. Attorney Carmen Lineberger 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.

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-14043.

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MIAMI – An Alabama man pleaded guilty yesterday for his involvement with a website dedicated to the advertisement and distribution of images and videos depicting child sexual abuse.

According to court documents, William Michael Spearman, 57, of Madison, was the lead administrator of the website, which had been operating for many years. The website included a section devoted to the sexual abuse of infants and toddlers, a section devoted to images and videos depicting children being subjected to pain and torture, and a section devoted to avoiding detection by law enforcement. As the lead administrator, Spearman managed numerous other “staff” members, directed them how to help run the site, recommended other users for promotion, kept records of child pornography files advertised and distributed over the site, presided over staff meetings, praised and scolded users, and counseled users and other managers about the function and expectations of the website. Spearman also advertised and distributed images over the website.

Spearman pleaded guilty to engaging in a child exploitation enterprise. He is scheduled to be sentenced on Aug. 31, and faces a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The following defendants have also been convicted in the Southern District of Florida for their involvement with the same website:

Name

Residence

Charges

Status

Selwyn David Rosenstein

Boynton Beach, Florida

Conspiracy to advertise child pornography; five counts of advertisement of child pornography; possession of child pornography

Sentenced to 28 years in prison and ordered to pay $85,000 in restitution to victims

Gregory Malcolm Good

Silver Springs, Nevada

Conspiracy to advertise child pornography; conspiracy to distribute child pornography

Scheduled to be sentenced on Aug. 22

Robert Preston Boyles

Clarksville, Tennessee

Conspiracy to advertise child pornography; conspiracy to distribute child pornography

Scheduled to be sentenced on Aug. 15

Matthew Branden Garrell

Raleigh, North Carolina

Conspiracy to advertise child pornography; conspiracy to distribute child pornography

Scheduled to be sentenced on Aug. 1

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.

The FBI’s Child Exploitation Operational Unit, West Palm Beach Resident Agency, and Miami Field Office investigated the cases. Substantial assistance for the case was provided by FBI Field Offices and Resident Agencies in: Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; and Madison, Wisconsin. Substantial assistance was also provided by the U.S. Attorneys’ Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, and Western District of Wisconsin.

Assistant U.S. Attorney Gregory Schiller and Trial Attorneys Kyle P. Reynolds and William G. Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting 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 CEOS, Project Safe Childhood 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 Project Safe Childhood, please visit www.justice.gov/psc.

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-80173.

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MIAMI – Rodolphe Jaar, 49, was sentenced to life in federal prison by U.S. District Judge Jose E. Martinez for his participation in the events leading to the July 7, 2021, assassination of President Jovenel Moïse of Haiti, after pleading guilty on March 24.

From at least February to July 2021, South Florida served as a central location for planning and financing the plot to oust President Moïse from power and replace him with someone who would serve the coconspirators’ political goals and financial interests. Jaar helped secure weapons and provided other support. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, announced the sentence imposed by U.S. District Judge Martinez.

FBI Miami and HSI Miami investigated this case, with valuable assistance provided by Department of State, Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Department of Commerce, Bureau of Industry and Security Office of Export Enforcement, and the Department of Defense’s Criminal Investigative Service.

Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro of the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.

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-20104.

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MIAMI – Aurelio Luis Perez, a 55-year-old Miami resident, was sentenced to 30 months in federal prison for retaliating against a witness in violation of Title 18, United States Code, Section 1513(b)(2), after pleading guilty on March 24.

Perez assaulted a federal cooperating witness at a local club just several days after the victim was identified as a government witness in a federal criminal trial. Specifically, Perez followed the victim into the restroom and assaulted him while yelling, “This is for snitching” in Spanish. As a result of the assault, the witness suffered a cracked front tooth, inflammation, bruising, and lacerations to his lip. The victim did not know Perez. Perez was a close associate of another individual under investigation at the time of the attack. Perez’s associate has been convicted for his role in distributing over $230 million of adulterated HIV medication. 

U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, announced the sentence imposed by U.S. District Judge Robert N. Scola Jr.

HHS-OIG Miami and FDIC-OIG investigated the case. Assistant U.S. Attorney Timothy Abraham and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud 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 under case number 22-cr-20253.

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A Florida man was sentenced yesterday to two years and eight months in prison for conspiring to defraud the United States and conspiring to harbor aliens and induce them to remain in the United States.

According to court documents and statements made in court, between November 2010 and October 2020, Batyr Myatiev owned and operated several Key West labor staffing companies, including Best Results Total Services, Inc, Ameri Hosp LLC, and Golden Sands Management, LLC, that facilitated the employment of non-resident aliens in hotels, bars, and restaurants operating in Key West and elsewhere who were not authorized to work in the United States. Myatiev encouraged workers to enter the United States illegally and induced them to remain in the country, in violation of immigration laws. Myatiev’s labor staffing companies paid alien workers without withholding federal income and employment taxes from their wages and did not report said wages to the IRS.

In addition to the term of imprisonment, U.S. District Court Judge K. Michael Moore ordered Myatiev to serve three years of supervised release and to pay approximately $6,869,869.80 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

IRS-Criminal Investigation and Homeland Security Investigations are investigating the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling, Jr., Matthew C. Hicks, and Wilson Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida are prosecuting the case.

MIAMI – As summer approaches, many schools are holding graduations. But for staff of the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida, two recent graduations were particularly special.

LEC/COS staff regularly hold monthly readings for pre-kindergarten students in an effort to develop in them a love of reading. And children from two of the reading program’s mainstay schools—Paul L. Dunbar K-8 Center in Miami and Trinity Christian Academy in Miami Gardens—have moved on … to kindergarten.

The students looked so excited on stage, hugging and high fiving one another as family members applauded and yelled words of encouragement. The elegantly dressed 4 and 5-year-olds beamed with pride.

“It’s tough to see them move on,” said Law Enforcement Coordination Specialist Mark McKinney. “You read to them many times during the year and develop a certain relationship. I’m proud of them for taking the next step in their education, but I am going to miss them.”

Law Enforcement Coordination Specialist Darcey Lindsley can relate.

“I have attended many graduations over the years and it’s always bittersweet,” she said. “We try to attend their graduation ceremonies to show our support and have one last group hug with them. It’s a special moment.”

In addition to the hug, Lindsley had a final message for the young students.

“Do you know what you have to do over the summer?” she asked to a group of future Dunbar K-8 Center kindergartners. “Read! Promise me, okay? I want you to continue to work on your reading skills so you’ll have good momentum heading into next school year.”

According to national literacy data, approximately 25 percent of children in America grow up without learning how to read. Also, upward of 80 percent of preschool programs in low-income neighborhoods lack age-appropriate books for their students. To help combat this, LEC/COS staff provide books for children to take with them to build up their home libraries. 

“Reading is crucial to a child’s educational development and future success,” said LEC/COS Chief J.D. Smith. “We’ve seen the data. We know how important it is to get children interested in reading at a young age. If we can help a parent or teacher reinforce the importance of reading, we are glad to do it.”

Smith and staff have done these readings for about seven years and soon will have a fresh group of pre-K students to hear how difficult it is to catch that gingerbread man.

Anyone interested in donating children’s books may do so by emailing U.S. Attorney’s Office staff at [email protected] or by calling (305) 961-9134.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.

Parents, family members, and a whole bunch of balloons filled the auditoriums of two graduating pre-K classes at local South Florida schools. The students in these classes were part of a reading program put on by the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida.

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MIAMI – Two tobacco company owners from the Dominican Republic have been sentenced to prison for their participation in a fraudulent scheme to avoid the payment of millions of dollars in excise taxes on imported tobacco products.

Remberto Antormachy Estrella Jimenez, 38, and Remberto Andres Estrella Gomez, 64, both of Santiago, were the managing members of Dominican Tobacco Products, LLC—a Florida company that imported tobacco products, including large cigars and cigarillos, from the Dominican Republic through Miami. Dominican Tobacco Products, LLC was authorized by the Alcohol and Tobacco Tax and Trade Bureau (TTB) to import tobacco products.

Previously, Estrella Jimenez admitted that he partnered with his co-defendant father, Estrella Gomez, and a California tobacco distributor named Akrum Alrahib to fraudulently lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on cigars their companies manufactured and imported into the United States. Over the course of several years, the conspirators consistently evaded taxes by concealing the price Alrahib actually paid for the cigars.

Alrahib sent Estrella Jimenez and Estrella Gomez’s companies over $5.6 million in exchange for Dominican cigars, according to the indictment.

Estrella Jimenez and Estrella Gomez each pleaded guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. Estrella Jimenez was sentenced today to a term of imprisonment of eight months. His father, Estrella Gomez, was previously sentenced to a 14-month prison term. In addition to a term of imprisonment, both Estrella Jimenez and Estrella Gomez were ordered to serve an additional term of supervised release and jointly paid more than $1.98 million in restitution. The sentences were handed down by U.S. District Judge Robert N. Scola in Miami.

Alrahib, Estrella Jimenez’s co-conspirator, was charged in a separate case (19-cr-20165). He pleaded guilty, was sentenced to five years in prison, and was ordered to pay $7,207,970.66 in restitution by U.S. District Judge Rodney Smith in Fort Lauderdale.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Administrator Carrie May for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), Acting Special Agent in Charge Kareem Carter of the IRS - Criminal Investigation (IRS-CI), Washington, D.C. Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.

TTB, IRS-CI, and HSI Miami investigated this case. Assistant U.S. Attorney Christopher Browne 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 22-cr-20006.

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MIAMI – Palm Beach art dealer Daniel Elie Bouaziz was sentenced today to 27 months in federal prison, followed by three years of supervised release, for laundering money derived from his scheme to sell counterfeit artwork. U.S. District Judge Aileen M. Cannon also ordered Bouaziz to pay a $15,000 fine. The restitution hearing is set for August 16.

Bouaziz was the owner of art galleries, to include Danieli Fine Art and Galerie Danieli, located at 226A and 230 Worth Avenue, respectively, in Palm Beach County, Florida. Bouaziz knowingly engaged in and attempted to engage in a monetary transaction, by, through, and to, a financial institution, affecting interstate and foreign commerce, in criminally derived property of a value greater than $10,000, such property having been derived from the unlawful sale of counterfeit art, using means of interstate commerce to carry out the sale and transfer of proceeds.

On October 25, 2021, Bouaziz sold counterfeit artwork to a customer, to include pieces purportedly by artist Andy Warhol (“Warhol”) out of his Palm Beach art galleries. Bouaziz had told the customer that the works that he was selling, for between $75,000 and $240,000, were authentic, original Warhol pieces, and that some of the pieces were signed by the artist. Relying upon these false and fraudulent representations, the customer purchased artwork from Bouaziz. The customer gave Bouaziz a $200,000 down payment for the artwork. The money was deposited into Bouaziz’s account and then the comingled funds were wired to other accounts, to include an account controlled by Bouaziz.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, announced the sentence imposed by U.S. District Judge Cannon.

FBI Miami, West Palm Beach Resident Agency, and IRS-CI Miami investigated this matter. Assistant U.S. Attorney Sarah J. Schall is prosecuting this case. Assistant U.S. Attorneys Peter A. Laserna and Daren Grove are handling asset forfeiture.

If you believe you have been a victim of art fraud, please contact the FBI’s Art Crime Team at 1-800-CALL-FBI.

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-80099.

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MIAMI – Three classes of fifth-grade students—dressed in their Sunday best—recently brought their resumes and interview skills to “prospective employers” from various community stakeholders during Career Day 2023 at Rock Island Elementary School in Fort Lauderdale, Fla.

Staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office for the Southern District of Florida participated in multiple rounds of mock job interviews. The interviews consisted of 10 scripted questions which the students saw ahead of time. However, interviewers were given free rein to go off script.

“I thought the kids did an amazing job,” said Community Outreach Specialist Robin McCowen. “They were so young yet so well prepared for the interview. They were ready for anything and I threw plenty of questions at them that were not on the list.”

Why get them started so early? According to Rock Island Elementary School staff, it was so they’d be able to compete in the job market...that years down the road they would reflect on this experience and remember lessons learned.

Some of those lessons may seem basic, but many children are not taught them. However, during a job interview they become of paramount importance.

“Future employers will seek out candidates that look them in the eye and have a firm handshake,” said Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith. “That was part of what I emphasized with them. It’s more than just what you say. Sit up straight, gesture with your hands periodically, be engaged, and show enthusiasm for the job. Speak up. I’ve hired a lot of people during my time as a supervisor and that’s what I look for in a candidate. That said, I was highly impressed with the young men and women I spoke with.”

Many of the students had the handshake and eye contact down, but there are always areas in which to improve. Interviewing is a skill that requires practice. It can be a nerve-wracking experience to speak about oneself in front of a four-person panel, which is why these skills are good to acquire early. 

“It’s fortunate that these students got to participate in this training,” said Law Enforcement Coordination Specialist Mark McKinney. “Not everyone gets this type of opportunity.”

Exercises like these challenge students to get out of their comfort zones and give them an idea of what’s to come.

“The situation for these students is changing,” said McKinney. “They are moving from elementary school to middle school and it’s important to give them an idea that more will be required from them moving forward. Exercises like these help them prepare for that.”

In addition to Smith, McCowen, and McKinney, three others from the U.S. Attorney’s Office participated in the mock interviews. Those included Re-entry & Community Outreach Specialist Keisha Bazile, Public Affairs Specialist Todd Goodman, and Community Outreach Specialist Jorge Lorente.

Law Enforcement Coordination and Community Outreach Section staff from the U.S. Attorney’s Office for the Southern District of Florida participate in mock job interviews for fifth graders at Rock Island Elementary School in Fort Lauderdale, Fla.

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MIAMI – Today, Rene Pedrosa, 51, pleaded guilty in federal court in Miami to receiving child pornography in 2019 from a 16-year-old boy.

According to a factual proffer filed with the court, in November 2019, Pedrosa connected with the boy on social media. Pedrosa, who at the time worked as an aide to the City of Miami mayor, communicated with the boy on social media and in person about a website design job for Pedrosa’s boss.

One meeting took place at Miami City Hall on November 25, 2019. Pedrosa admitted that during the meeting, he kissed and sexually touched the boy, who had been dropped off at City Hall for a website design follow-up meeting by his mother. Pedrosa also admitted that he continued communicating with the boy through an internet-based messaging application and that on December 22, 2019, Pedrosa knowingly received sexually explicit images of the boy.

Pedrosa is scheduled for sentencing on August 14, at 8:30 a.m. before U.S. District Judge Robert N. Scola. Pedrosa faces between five and 20 years in federal prison.

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, made the announcement.

FBI Miami investigated the case, with assistance from City of Miami Police Department. Assistant U.S. Attorneys Jessica Obenauf and Dayron Silverio are prosecuting it.

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.

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-20259.

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MIAMI – Today, two Miami residents, Carlos Orlando Ledesma, 57, and Nadia Esperanza Ledesma, 46, were sentenced to federal prison for conspiring to export nearly 600 stolen outboard engines to Mexico through a Miami-based freight forwarding company. Carlos Ledesma was sentenced to 36 months in prison and Nadia Ledesma was sentenced to 18 months in prison.

On May 19, co-defendants Roberto Marrero-Cisneros, 66, from Miami, and Osmani Valdivia Perez, 56, from Lehigh Acres, were each sentenced to 60 months incarceration for their roles in the conspiracy.

The sentencing hearings were held before U.S. District Judge Robert N. Scola, Jr. Judge Scola also ordered the defendants to forfeit the proceeds they each received from the scheme, and to pay $420,668.47 in restitution to the identifiable victims.

Nadia Ledesma is the President of Netcycle Trading Corp., a freight forwarding company in Miami, and Carlos Ledesma is the warehouse manager. From 2015 to 2018, Carlos and Nadia Ledesma received almost 600 stolen outboard engines for export to Mexico. The replacement cost of the stolen engines was over $11 million.

Dozens of individuals delivered the stolen engines to Netcycle. The engines had visible damage from the thefts, and cables and lines had been cut rather than properly detached. The individuals delivered the stolen engines in non-commercial vehicles without bills of sale or any other documentation for the engines.

Marrero-Cisneros created false serial number stickers to place on most of the stolen outboard engines. Nadia and Carlos Ledesma, and their co-conspirators, created false bills of sale and submitted false export information to the United States. 

Many of the stolen engines were directed to Tomas Vale Valdivia, a co-conspirator who was then in Mexico. Later, on January 28, 2020, Vale Valdivia was sentenced to 57 months for alien smuggling, in a separate case before U.S. District Judge Kathleen M. Williams. 

Vale Valdivia is the nephew of defendant Osmani Valdivia Perez. Valdivia Perez made many cash payments to co-conspirators in this case, on behalf of Vale Valdivia. The cash payments included payments to Netcycle for the fees for exporting the stolen outboard engines, payments to Marrero-Cisneros for the false serial numbers, and payments to the individuals who stole the outboard engines.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury, Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Zinnia P. James, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, announced the sentences.

HSI Miami and CGIS investigated the case, with assistance from the U.S. Customs and Border Protection (CBP), and the Florida Department of Law Enforcement (FDLE). Assistant U.S. Attorney Ana Maria Martinez is prosecuting the case. Assistant U.S. Attorney Daren Grove 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 22-cr-20269.

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MIAMI – Yesterday, Christopher Jon Bauer, 46, of Micco, Florida, was sentenced by U.S. District Judge Aileen M. Cannon, sitting in Fort Pierce, to 15 years for possession with intent to distribute fentanyl and methamphetamine.

Sebastian Police Department (SPD) received a Treasure Coast Crime Stopper complaint about Bauer making fentanyl purchases on the dark web and mailing them to a codefendant. After the U.S. Postal Inspection Service (USPIS) confirmed that several packages were mailed to a codefendant in Sebastian, Florida; SPD officers and Homeland Security Investigations (HSI) agents set up surveillance at a U.S. Post Office (USPS), located in Sebastian. During the surveillance, they observed that Bauer had arrived in a red Cadillac SUV, with a passenger, who went into the post office and returned to Bauer’s vehicle carrying a USPS Express package. When SPD detectives attempted to stop the vehicle, Bauer fled, leading police on a lengthy high-speed pursuit, which resulted in the vehicle becoming disabled. SPD officers apprehended Bauer and the passenger of the vehicle and took both into custody. The total quantities of narcotics seized following Bauer’s arrest were about 65 grams of fentanyl, 12.53 grams of methamphetamine, and a small amount of cocaine. Bauer received at least 16 shipments of fentanyl, totaling nearly one kilogram.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, announced the sentence.

HSI Fort Pierce Office and USPIS Miami investigated the case, with assistance from SPD. Assistant U.S. Attorney Christopher Hudock prosecuted it. Assistant U.S. Attorney Marx Calderon 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 22-cr-14068.

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MIAMI – Elie Floradin, 59, the self-described head pastor of the New Bethel Baptist Church in Miami, Florida, was sentenced to 48 months in federal prison for participating in a fraudulent scheme seeking more than $1 million in Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Floradin caused an intermediary to repeatedly file false and fraudulent PPP applications, which sought federal COVID-19 assistance funds for companies that did not exist. Among these was a fake employment agency through which Floradin claimed to pay approximately $960,000 in yearly wages to dozens of employees when, in fact, no such business existed. After successfully receiving an initial PPP loan of approximately $200,000, Floradin caused the submission of three (3) more fraudulent PPP applications on behalf of his non-existent hiring agency, seeking approximately $600,000 in additional PPP loans—though these additional funds were denied.

Following Floradin’s guilty plea, however, the government learned of yet another prior fraudulent PPP loan, successfully filed on behalf of yet another corporate entity under Floradin’s name, causing the disbursement of approximately $336,000 in additional PPP funds to Floradin. At sentencing, Floradin admitted that he fraudulently applied for more than $1 million, and that he received more than half that amount, in fraudulently obtained COVID-19 assistance funds. In addition to his sentence of imprisonment, Floradin was ordered to pay back $535,996 in the form of restitution to the United States.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Mark H. Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southern Field Division, announced the sentence imposed by U.S. District Judge Jose E. Martinez.

TIGTA Southern Field Division investigated the case, along with the Florida Office of Financial Regulation (OFR), Bureau of Financial Investigations (BFI), Miami Region. Assistant U.S. Attorney Eduardo Gardea Jr. prosecuted the case. Assistant U.S. Attorneys Annika Miranda and Peter Laserna are 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’s PPP program allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds had to be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the PPP loan to be forgiven if the business spent the loan proceeds on these expense items within a designated period of time after receiving the proceeds and used at least a certain percentage of the PPP loan proceeds on payroll expenses.

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-20361.

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MIAMI – Aifa Seafood, Inc., (Aifa), a Florida company operating in Florida City, and company president Jiu Fa Chen, 57, of Parkland, were sentenced today after pleading guilty earlier this year to exporting falsely-labeled spiny lobster from Florida to China.  

From May through August 2019, Aifa purchased seafood products for export to China.  To meet the high demand for spiny lobster, Aifa imported lobster from Haiti for reexport to China. Aifa reexported approximately 5,900 pounds of lobster and falsely labeled the product in shipping documents as “Live Florida Spiny Lobsters, Product of U.S.A.”

U.S. District Judge Federico Moreno imposed the following sentences. AIFA must pay a fine of $250,000, with $150,000 payable immediately and the balance by the end of this year. AIFA also must serve five years of probation, establish and implement a compliance plan, retain a compliance officer to be approved by the Court, and submit to a complete audit of its books and records by a court-approved third-party auditor. Chen must immediately pay a $100,000 fine and serve five years of probation, subject to the same terms as AIFA. Both fines are payable to the NOAA Lacey Act Fund.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Director Manny Antonaras of the National Oceanic & Atmospheric Administration (NOAA), Southeast Division, Acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, and the Statewide Investigations Section of the Florida Fish & Wildlife Conservation Commission (FWC), Division of Law Enforcement, announced the sentences.

NOAA Office of Law Enforcement, HSI Key Largo, and FWC Division of Law Enforcement investigated the case. Assistant U.S. Attorney Thomas Watts-FitzGerald prosecuted the case.

If you have any information regarding wildlife crimes, you may contact the NOAA Office of Law Enforcement Hotline: (800) 853-1964 and the U.S. Fish & Wildlife Service at 1-800-344-9453. Locally, environmental crimes, including wildlife violations and environmental justice matters may be reported to the U.S. Attorney’s Office at 305-961-9001 or [email protected] .

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-20479.

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MIAMI – The last of seven defendants in a Paycheck Protection Program (PPP) fraud scheme has been sentenced. Yunior Barrera Almaguer (Barrera) 39, of Miami, Florida was sentenced to 87 months in prison for leading a conspiracy to defraud the PPP out of loan proceeds. These loans are guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security Act.

Barrera was the leader of the conspiracy, who conspired with Jorge S. Alvarez, Dariel Garcia Carmona, Jose Raul Amaro, Leiner Pena Infante, Yandre Garcia Hernandez, Eduardo Ramos Leyva, and others to submit approximately 20 fraudulent PPP loan applications. According to facts admitted by the defendants as part of their guilty pleas, Barrera recruited his co-conspirators and others for necessary information to apply for the PPP loans, such as each business name and bank account routing number, and the business owner’s personal identifying information. Barrera then applied for the loans with an unindicted co-conspirator, causing approximately $9 million in fraudulently issued PPP loans. After each business received their PPP loans, Barrera instructed the co-conspirator business owners to give him blank, pre-signed checks drawn on the business so that Barrera could access the PPP funds. Barrera also instructed the co-conspirator business owners to write checks on the companies’ accounts at his direction. By doing so, Barrera and his co-conspirators laundered the fraudulently obtained loan funds by transferring the proceeds between their companies, to each other, and to others.

Barrera pled guilty on November 9, 2022, to one count of conspiracy to launder money. In addition to prison time, Barrera must pay $9,007,887 in restitution. Alvarez, Garcia Carmona, Amaro, Pena Infante, Garcia Hernandez, and Ramos Leyva also pled guilty for their roles in the conspiracy, were sentenced to imprisonment terms ranging from one year and one day to 36 months and must pay restitution in amounts ranging from $381,600 to $720,860.

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 sentence imposed by U.S. District Judge Donald M. Middlebrooks.

FBI Miami, West Palm Beach Resident Agency investigated the case. Assistant U.S. Attorney Susan Osborne prosecuted it. Assistant U.S. Attorneys Emily Stone and William T. Zloch are 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.

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-80118.

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MIAMI – Abel Raphael, 65, of Key West, Florida has been sentenced to 18 months in federal prison, followed by one year of supervised release, and ordered to pay almost $150,000 in restitution for aiding and assisting the preparation and presentation of false tax returns. Following his guilty plea in October 2022.

Raphael was a professional tax return preparer and operated Abel Income Tax Service Inc., in Monroe County. In connection with his guilty plea, Raphael admitted that he obtained an Electronic Filing Identification Number (EFIN) to submit tax returns electronically to the IRS in the names of others. Raphael prepared the returns using false deduction and tax credit figures, then electronically filed them with the IRS.

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge K. Michael Moore.

IRS-CI Miami and FBI Miami, Key West Resident Agency investigated the case. Assistant U.S. Attorney Jeremy Thompson 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 22-cr-10016.

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MIAMI – Five of dozens of defendants charged in the Southern District of Florida for their alleged participation in a scheme that created an illegal licensing and employment shortcut for aspiring nurses have pleaded guilty to wire fraud conspiracy.

Krystal Lopez and Damian Lopez (both of Palm Beach County, Fla.); Francois Legagneur (of Nassau County, N.Y.), Reynoso Seide (of Union County, N.J.); and Yelva Saint Preux (of Suffolk County, N.Y.) will be sentenced by U.S. District Judge Raag Singhal in federal district court in Fort Lauderdale on July 27. They each face up to 20 years in federal prison.

During guilty plea hearings before U.S. District Judge Raag Singhal, D. Lopez, Legagneur, Seide, and Saint Preux admitted to soliciting and recruiting people who sought nursing credentials that would allow them to work as registered, licensed practical, or vocational nurses. They also admitted to working with Palm Beach School of Nursing to create and distribute fraudulent diplomas and transcripts representing that the aspiring nursing candidates had attended the school and completed the necessary courses and clinicals to obtain their nursing diplomas. In fact, the aspiring nurses had not completed the courses and clinicals. K. Lopez admitted that, in her role as Palm Beach School of Nursing’s Finance Director, she processed applications for individuals who were issued fraudulent nursing school diplomas and transcripts and that each student paid the school $15,000 for the documents. The defendants all admitted to profiting from the scam.  

U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region, made the announcement.

FBI Miami and HHS-OIG Miami investigated, with valuable assistance from Homeland Security Investigations, Miami Field Office; U.S. Department of Veterans Affairs-Office of Inspector General; United States Postal Inspection Service, Miami; and Florida Attorney General-Florida Medicaid Fraud Control Unit, Mid-Atlantic Field Office.

Assistant U.S. Attorney Christopher J. Clark is prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

This case is being prosecuted in conjunction with a related criminal matter in the District of Maryland.

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-60007. Related cases in the Southern District of Florida are case nos. 22-cr-60111, 22-cr-60118, 23-cr-60005, 23-cr-60010, 23-cr-60012, and 23-cr-60013.

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MIAMI – Xavier Daughtry, 25, of Fort Pierce, Florida, has been sentenced to 13 years in federal prison, including a sentencing enhancement for obstruction of justice during the trial, for carjacking and brandishing a firearm during a crime of violence. Following his conviction by a South Florida federal jury in February.

Just before midnight on May 9, 2022, the Fort Pierce Police Department received a 911 call from the victim advising that she had parked her vehicle at a gas station on U.S. Hwy 1 in Fort Pierce. After going inside the store, the victim returned to find Daughtry attempting to enter her vehicle. The victim confronted Daughtry, who then raised a loaded .45 caliber pistol and pointed it at the victim’s face and told her to “back the f--- up.” Daughtry then got inside the vehicle and left the area. As a result of the call, the police department issued a BOLO “be on (the) lookout” for the vehicle, a 2022 Nissan Altima, including the license plate number. 

Less than eight minutes later, law enforcement observed the Nissan Altima turning onto Saint Frances Drive in Fort Pierce and initiated a traffic stop. After apprehending Daughtry, police officers located a fully loaded Llama Minimax .45 caliber semi-automatic handgun on the driver’s seat of the vehicle.

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 sentence imposed by U.S. District Judge Donald M. Middlebrooks.

FBI Miami, Fort Pierce Resident Agency investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Fort Pierce Field Office, the St. Lucie County Sheriff’s Office, and the Fort Pierce Police Department. Assistant U.S. Attorneys Michael D. Porter and Justin Hoover prosecuted the case.

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 22-cr-14047.

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