Southern District of Florida
Press releases recorded for this federal judicial district.
Princess Cruise Lines Pleads Guilty to Second Revocation of ProbationRead the Press Release
Miami, Florida — Princess Cruise Lines Ltd. (Princess) has pleaded guilty to a second violation of probation imposed as a result of its 2017 criminal conviction for environmental crimes because it failed to establish and maintain an independent internal investigative office. Under the terms of a plea agreement, Princess was ordered to pay an additional $1 million criminal fine and required to undertake remedial measures to ensure that it and its parent Carnival Cruise Lines & plc establish and maintain the independent internal investigative office known as the Incident Analysis Group (IAG).
Princess was convicted and sentenced in April 2017 and fined $40 million after pleading guilty to felony charges stemming from its deliberate dumping of oil-contaminated waste from one of its vessels and intentional acts to cover it up. This was and remains the largest-ever criminal fine for intentional pollution from ships. While serving five years of probation, all Carnival-related cruise line vessels trading in U.S. ports were required to comply with a court approved and supervised environmental compliance plan (ECP), including audits by an outside and independent third-party auditor (TPA) and oversight by a Court Appointed Monitor (CAM).
In 2019, Princess was convicted of six violations of probation, fined an additional $20 million, and required to undertake more remedial measures. In that case, two of the violations involved interfering with the court’s supervision of probation by sending undisclosed teams to ships to prepare them for the independent inspections required during probation. Documents filed in court showed that one purpose of the vessel visit programs was to avoid adverse findings by the independent outside auditors working on behalf of the court.
Beginning with the first year of probation, there have been repeated findings that the Company’s internal investigation program was and is inadequate. In November 2021, the Office of Probation issued a petition to revoke probation after adverse findings by the CAM and TPA.
In an October 2021 letter to U.S. District Court Judge Patricia A. Seitz, the CAM and TPA concluded that the continuing failure “reflects a deeper barrier: a culture that seeks to minimize or avoid information that is negative, uncomfortable, or threatening to the company, including to top leadership (i.e., the Board of Directors, C-Suite executives and Brand Presidents/CEOs).”
A joint factual basis for today’s guilty plea was submitted to the court in which Princess and Carnival admitted to the failure to establish and maintain an independent investigative office. Princess admitted that internal investigators had not been allowed to determine the scope of their investigations, and that draft internal investigations had been impacted and delayed by management.
Changes required under a plea agreement with the Department of Justice resolving the probation violation include:
- Carnival must restructure so that its investigative office reports directly to a committee of Carnival’s Board of Directors;
- Carnival’s internal investigative office must be given the authority to initiate investigations on its own and to determine their scope;
- Carnival’s management will be restricted in its ability to remove the head of the “Incident Analysis Group” that performs internal investigations;
- Carnival must conduct an assessment to ensure independent investigators have sufficient resources;
- Carnival must assess the effectiveness of required changes and correct deficiencies.
- Failure to meet deadlines in the plea agreement will initially subject the defendant to fines of $100,000 per day, and $500,000 per day after 10 days.
“Just like individual defendants, corporate defendants must also comply with court orders. They are not above the law”, said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The corporate defendant here ignored the court, choosing instead to thwart the compliance plan that was put in place to protect our environment. As this probation violation proceeding demonstrates, the government will not tolerate defendant’s blatant violation of court orders.”
“This case shows the importance of addressing issues of corporate culture and structure, and the root causes of environmental non-compliance,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This was a serious and ongoing violation of probation that reflected Carnival’s failure to prioritize compliance with court orders. I thank the court, the Office of Probation, court appointed monitor and third-party auditor for the close attention that they have devoted to this important matter.”
The plea agreement and factual statement were signed by Micky Arison, Chairman of Carnival’s Board of Directors and Arnold Donald, the Chief Executive Officer and a member of the Board of Directors. Both attended the hearing as they have quarterly status hearings pursuant to court order.
The case is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald, Environmental Crimes Coordinator, Economic & Environmental Crimes Section, Southern District of Florida, and Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice.
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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Man Sentenced to Five Years in Prison for Smuggling a Previously Deported Convicted MurdererRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale has sentenced Jeremy Christoph Rolle, 27, of the Bahamas, to 60 months in prison for trying to smuggle into the United States a migrant previously removed from the country following aggravated felony convictions, including murder. Rolle pleaded guilty on November 2, 2021, to aiding and abetting certain migrants to enter the United Sates.
According to court documents, Rolle operated a 26-foot motorboat to transport himself and sixteen migrants from Bimini, Bahamas to the east coast of Florida on June 17, 2021. One such migrant passenger was Marvin Morris Carridice, 43, of Jamaica, who according to court documents, was removed from the United States in 2018 after serving a 14-year prison sentence for convictions in Florida for murder and other felonies.
Carridice, who was charged in the same indictment as Rolle, pleaded guilty to illegal entry of a removed alien and was sentenced on January 5, 2022, to 42 months’ imprisonment. In addition, migrant passengers Andrew Devaunx, 54, of the Bahamas and Payam Hassanzadeh Zargar, 27, of the United Kingdom, were each charged and pleaded guilty to illegal entry of a removed alien. Devaunx was sentenced on October 26, 2021, to time served and Zargar is scheduled to be sentenced on January 25, 2022.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami investigated this case, with assistance from U.S. Customs and Border Protection, U.S. Customs and Immigrations Enforcement, and the Broward County Sherriff’s Office. Assistant U.S. Attorney David A. Snider prosecuted the case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-60214-CR-AHS.
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Florida Co-Owner of Clinical Trial Company Pleads Guilty to Obstructing FDA InspectionRead the Press Release
A Florida woman pleaded guilty today to obstructing a 2017 regulatory inspection in connection with an alleged scheme to fraudulently falsify clinical drug trial data.
According to court documents, Olga Torres, 49, of Miami, co-owned a clinical research site called Unlimited Medical Research. Unlimited Medical Research was one of many companies hired to conduct a clinical trial designed to investigate the safety and efficacy of an asthma medication in children. As part of her plea agreement, Torres admitted that she knowingly lied to a U.S. Food and Drug Administration (FDA) investigator during a 2017 regulatory inspection concerning the firm. Specifically, Torres admitted that she falsely portrayed the clinical trial as having been conducted legitimately and honestly, when in fact Torres knew that certain data associated with the clinical trial had been falsified. Three other defendants — Yvelice Villaman Bencosme M.D., Lisett Raventos and Maytee Lledo — previously pleaded guilty and were sentenced in connection with falsifying data associated with the clinical trial at Unlimited Medical Research.
“Clinical trials help ensure the safety of new drugs, and falsifying clinical trial data can put the public at risk,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department’s Civil Division. “We will continue to work with our partners at the FDA to investigate and prosecute those who undermine the integrity of the clinical trial process.”
“The public depends on the accuracy and integrity of clinical trial data,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Falsifying clinical data violates the public’s trust and endangers the safety of consumers. Those who unlawfully profit by compromising the public’s health in this way commit serious crimes and will be prosecuted.”
“Reliable clinical trial data is a foundation for FDA drug approval. Falsifying that data leaves consumers at risk of taking drugs that are neither safe nor effective,” said Assistant Commissioner Catherine A. Hermsen for the FDA Office of Criminal Investigations (OCI). “We will continue to investigate and bring to justice those who endanger the public health when they engage in conduct that might subvert the FDA approval process.”
The FDA OCI is investigating the case.
Trial Attorneys Joshua D. Rothman and Marilee L. Miller and Senior Litigation Counsel David Frank of the Civil Division’s Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided critical assistance.
Diabetic Shoe Company Agrees to Pay $5.5 Million to Resolve False Claims Act Allegations Regarding “Custom” Shoe InsertsRead the Press Release
Miami, Florida – Foot Care Store, Inc. d/b/a Dia-Foot (Dia-Foot), a diabetic shoe company based in Wellington, Florida, and its President and CEO Robert Gaynor, have agreed to pay $5,538,338 to settle allegations that the company sold custom diabetic shoe inserts that were not actually custom-fabricated in accordance with Medicare standards. The agreement is part of a civil settlement that resolves claims brought under the False Claims Act.
The United States alleged that between 2013 and 2018, Dia-Foot sold diabetic shoe inserts to customers nationwide, representing that many of those inserts were custom-made for an individual’s foot, when the inserts were actually made using generic foot models. The inserts were dispensed to diabetic patients who had a prescription from a health care provider and who believed they were getting a custom product. According to the government, despite fabricating the inserts using generic models, Dia-Foot billed Medicare and Medicaid for the custom version, or sold the inserts to other providers who then billed government health care programs for custom inserts. This allowed Dia-Foot to produce and sell more inserts and increase profits by cutting corners. The government also alleged that Dia-Foot advertised to customers that it was proud to be Medicare-compliant and had received Medicare approval for its custom diabetic shoe inserts, even though Dia-Foot received the Medicare approvals based on false information.
Individuals with diabetes can in some cases suffer from foot problems, including nerve damage, ulcers, and poor circulation. In severe cases, untreated problems can even lead to amputation. Foot orthotics such as custom shoe inserts are prescribed to help diabetic patients prevent such problems and are covered by Medicare and Medicaid.
In connection with the settlement, Dia-Foot and Robert Gaynor entered into a three-year Integrity Agreement (IA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The IA requires, among other things, that Dia-Foot implement updated policies and procedures as part of its compliance program, and hire an Independent Review Organization to review quarterly Dia-Foot’s claims to Medicare and Medicaid.
The allegations were brought under the qui tam or whistleblower provisions of the False Claims Act by a former Dia-Foot employee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblower who brought the allegations in this case will receive a share of the settlement amount. The case is captioned U.S. ex rel. Newman v. Foot Care Store, Inc. d/b/a Dia-Foot, No. 9:18-CV-80702 (S.D. Fla.).
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the HHS-OIG. Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, HHS-OIG, announced the settlement.
The investigation and resolution of this matter illustrate the government’s emphasis on combatting health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477) or at http://tips.hhs.gov/.
The matter was handled by Assistant U.S. Attorney Clarissa Pinheiro Schild of the Southern District of Florida. The integrity agreement was negotiated by OIG Senior Counsel Tonya Keusseyan.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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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South Florida Towing Company Owner Charged with Tax EvasionRead the Press Release
Miami, Florida – Federal prosecutors in Ft. Lauderdale have charged an owner of a Lauderdale Lakes towing company with underreporting income and failing to pay federal tax on money he received through a Personal Injury Protection (PIP) kickback scheme and other cash-based fraud.
Craig Goldstein, 60, of Boca Raton, Florida was an owner of West Way Towing, a Lauderdale Lakes company that towed, and stored at its yard, disabled vehicles, including ones involved in accidents. According to the information filed today in the Southern District of Florida, Goldstein referred accident victims to certain attorneys and chiropractors who would then illegally charge insurance companies for unneeded services under Florida’s Personal Injury Protection Program. Goldstein received a fee for each patient referral, which he collected in cash and failed to report to the IRS, according to the charges. Goldstein also failed to report cash he received from vehicle storage lien fees and from auctions of vehicles the sales prices of which were manipulated to falsely reflect that Goldstein made no profit, says the information. It is alleged that Goldstein owes the U.S. government over $130,000 in income tax.
The information charges Goldstein with three counts of tax evasion. He faces up to 15 years’ imprisonment and a fine up to $750,000.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Matthew D. Line, Special Agent in Charge, Internal Revenue Service (IRS), made the announcement.
IRS Miami investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Paul Schwartz.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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-60002.
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Dark Web Drug Trafficker Sentenced to 160 Months in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in West Palm Beach, Florida sentenced a 26-year- old Arizona man to 160 months in prison for selling crystal methamphetamine, cocaine, and other illegal drugs on the dark web to buyers across the country, including South Florida.
From 2018 to 2020, Jose Rodolfo Barraza Flores advertised and sold crystal methamphetamine, cocaine, M-30 pills (fentanyl-laced Percocet pills), and other narcotics through vendor accounts that he established on darknet marketplaces like White House Market, Empire Market and Yellowbrick Road. Once a buyer placed an on-line order and paid for it with bitcoin, Barraza Flores would mail the illegal drugs to the buyer. To avoid detection, Barraza Flores concealed the narcotics inside wax candles, which he melted, molded, and packaged inside a trailer in Arizona.
In October 2021, Barraza Flores pleaded guilty to conspiracy to distribute a controlled substance and three counts of distribution of a controlled substance. U.S. District Judge Aileen M. Cannon imposed the sentence.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; Joseph W. Cronin, Inspector in Charge, United States Postal Investigation Service (USPIS), Miami Division; and Deanne L. Reuter, Drug Enforcement Administration (DEA), Miami Field Division announced the sentence.
FBI Miami, USPIS Miami, and DEA Miami investigated the case, with assistance from their Phoenix counterparts. Assistant U.S. Attorney Aurora Fagan is prosecuting the case. Assistant U.S. Attorney William Zloch is handling the asset forfeiture aspect of 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 21-cr-80029.
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South Florida Man Who Recorded Himself Sexually Abusing Child Sentenced to 30 Years in Federal PrisonRead the Press Release
Miami, Florida – Yesterday, United States District Court Judge Aileen M. Cannon sentenced Nicholas Antonio Zamudio-Hernandez, 19, of Vero Beach, Florida, to 360 months in prison, followed by lifetime supervised release, for production and possession of child pornography.
In May 2021, law enforcement agents learned that someone was using multiple social media accounts to store images of child pornography. After an investigation, agents executed a search warrant at Zamudio-Hernandez’s residence in Vero Beach. They recovered several videos and images that Zamudio-Hernandez created of himself sexually abusing a child under the age of 13. Zamudio-Hernandez later admitted to producing the videos and images, and abusing the child.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami (Fort Pierce office) investigated this case, which is being prosecuted by Assistant U.S. Attorney Justin Hoover.
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 21-14031-CR-AMC.
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Man Sentenced to 25 Years in Prison for Sex-Trafficking During Miami Super BowlRead the Press Release
Miami, Florida – A New Haven, Connecticut man who coerced two women and a girl into selling themselves for sex in Miami during Super Bowl LIV was sentenced yesterday in Ft. Lauderdale, Florida to 25 years’ imprisonment.
The sentence of 48-year-old Edward Walker follows his conviction after an eight-day trial in October 2021. In that trial, Assistant U.S. Attorneys Alejandra L. López and Brian Dobbins presented evidence that in January 2020, Walker brought two adult women and a 17-year-old girl to Miami from Connecticut to engage in commercial sex acts during the Super Bowl. While in Miami, Walker emotionally, psychologically, and financially coerced the victims into soliciting customers and having sex with them in exchange for money, all of which Walker kept. Additional evidence showed that after the Superbowl in Miami, Walker planned to take the victims to Chicago, Illinois (during the NBA All-Star Game), New Orleans, Lousiana (during Mardi Gras), Las Vegas, Nevada, and other places to further sexually exploit them. The jury found Walker guilty of sex trafficking by force and coercion, sex trafficking of a minor and by force and coercion, and transporting a person for sexual activity.
United States Senior District Court Judge James I. Cohn imposed the sentence, which also includes a supervised release term of 25 years following incarceration.
Walker will soon be transported to the State of Connecticut where he will face charges in United States District Court for the District of Connecticut for the Production of Child Pornography. As to those charges, Walker is innocent unless and until found guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo “Freddy” Ramirez III, Director, Miami-Dade Police Department (MDPD), announced the guilty verdict.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force. FBI New Haven; Homeland Security Investigations Miami; Department of Health and Human Services, Office of Inspector General, Miami Office; Miami Beach Police Department; and Miami-Dade State Attorney’s Office assisted.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 20-cr-20087.
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U.S. Military Contractor Sentenced to 10 Years in Prison for Attempting to Have Sex with a 13-Year-Old Girl in JapanRead the Press Release
Miami, Florida – A Florida man was sentenced today to 10 years in prison for attempting to entice a minor to engage in illicit sexual conduct while he was working in Japan as a U.S. military contractor.
Garrett Michael Pako, 29, is a United States Citizen who worked for a Department of Defense (DOD) contractor in Japan. For months, Pako engaged in an online “relationship” with someone he believed to be a 13-year-old girl. Pako met the girl on a proximity-based social media dating application while travelling in Okinawa. During the relationship, Pako sent the girl sexually-explicit images and videos, including Hentai cartoons of young toddlers being sexually abused, and a video of himself masturbating. Pako then attempted to arrange to have the purported girl fly to visit him in Northern Japan to have sex. No meeting occurred. Pako was later arrested.
Pako is being prosecuted under the Military Extraterritorial Jurisdiction Act, which provides jurisdiction over certain offenses committed by United States citizens employed by the Department of Defense outside the United States. Pako pled guilty to the charge on October 22, 2021. U.S. District Judge Aileen M. Cannon imposed today’s sentence.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; and Julio Escareno, Resident Agent in Charge, U.S. Army Criminal Investigation Division, Japan Office, announced the sentence.
This case was investigated by the U.S. Army Criminal Investigation Division with support from the Air Force Office of Special Investigation and Naval Criminal Investigative Service. This case was prosecuted by Southern District of Florida Assistant U.S. Attorneys Lacee Monk and Dayron Silverio and Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-14021.
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Multiple Individuals Sentenced to Federal Prison for a Money Laundering ConspiracyRead the Press Release
Miami, Florida – Two Miami residents, Reinier Gonzalez Caballero age 39, and Alexeis Napoles Manresa, age 37, were each sentenced yesterday to 51 months in federal prison for their role in a money laundering conspiracy. The two co-defendants were convicted of money laundering after a jury trial in September 2021.
Based on court documents and the record at trial, from July 2019 to October 2019, these defendants and two other co-defendants, Alfredo Ruiz a/k/a “Mike,” and Pedro Ferreiro Conde a/k/a “Titi,” conspired to launder over $4,366,039 in health care fraud proceeds by setting up shell corporations and opening corporate bank accounts to conceal and disguise the source and the ownership of the illegally obtained money. Gonzalez Caballero and Napoles Manresa established themselves as the sole officers for their own shell corporations, RGC Flooring Corp. and JMP Flooring Corp., respectively, and each laundered over $400,000 through their corporate bank accounts.
A large portion of the money that was being laundered was received directly from a fraudulent durable medical equipment company called Universal Ortho Supplies, Inc. located in Miami, that was filing false claims with Medicare. Between July 2019 and October 2019, Universal Ortho Supplies, Inc. billed Medicare for over $3 million dollars in durable medical equipment, such as orthosis and prosthetics, that were never prescribed by physicians or provided to patients. These four defendants were convicted for participating in a conspiracy to launder those health care fraud proceeds.
On September 14, 2021, the lead defendant Alfredo Ruiz a/k/a “Mike,” age 30 from Miami, was sentenced to 105 months in prison for his role in the money laundering conspiracy and agreed to forfeit over $4,366,039, following his money laundering conviction. Ruiz was also held accountable for at least $648,731 in money laundering based on a separate wire fraud scheme. As part of his plea, Ruiz agreed to forfeit assets valued in excess of $360,000 including: $141,580.76 in proceeds from the sale of a Rolls Royce and Lamborghini; $120,480 in proceeds from the sale of pawned jewelry, and $70,000 in cash seized from him at the time of his arrest. United States v. Alfredo Ruiz et al., 21-CR-20111-CMA.
On October 28, 2021, another co-defendant Pedro Ferreiro Conde a/k/a “Titi,” age 34 from Miami, who participated in the money laundering conspiracy was sentenced to 42 months in prison for money laundering and has agreed to forfeit over $766,155, following his money laundering conviction.
Two other co-conspirators from related cases have been charged with, and pleaded guilty to conspiracy to commit money laundering in connection with this criminal activity:
- Yunior Alberto Lopez Concepcion, 38, of Miami, Florida pleaded guilty on June 4, 2020 was sentenced to 30 months’ imprisonment on September 29, 2020. United States v. Yunior Alberto Lopez Concepcion, 20-CR-20115-RS
- Liliam Maria Castro, 59, of Miami, Florida, pleaded guilty on June 9, 2021 and was sentenced to 48 months’ imprisonment on August 21, 2021. USA v. Liliam Maria Castro et al., 21-CR-20152-JEM
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Special Agent in Charge Omar Pérez Aybar, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office, Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Atlanta Region and Special Agent in Charge Brian Swain, U.S. Secret Service (USSS), Miami Field Office made the announcement.
This case was prosecuted by Assistant United States Attorneys Timothy Abraham, Aimee Jimenez, and Stephanie Hauser. Assistant U.S. Attorney Emily Stone is handling forfeiture proceedings.
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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Rapper Pooh Shiesty Pleads Guilty to Federal Conspiracy ChargeRead the Press Release
Miami, FL – Today, Tennessee rapper Lontrell D. Williams, Jr. (a/k/a Pooh Shiesty) pled guilty to conspiring to possess firearms in furtherance of crimes of violence and drug trafficking.
As part of the plea, Williams, Jr. admitted to participating in the conspiracy on the following three occasions. First, on July 7, 2020, in Memphis, Tennessee, Williams, Jr. was inside a car when an occupant of the car discharged a firearm at a gas station. Second, on October 9, 2020, in Bay Harbor Islands, Florida, Williams, Jr. and his co-conspirators arrived at a meeting to acquire marijuana, codeine, and sneakers. During this meeting, members of Williams’ group brandished firearms and assaulted two victims. Following the assault, the group departed the scene with the victims’ marijuana, codeine, and sneakers. Third, on May 30, 2021, Williams, Jr. assaulted a victim with a firearm at a Miami strip club.
United States District Judge K. Michael Moore will sentence Williams, Jr. on a date to be announced. Williams, Jr. faces up to 20 years in federal prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
FBI Miami investigated the case, with assistance from ATF Miami, ATF Memphis, Miami Dade Police Department, Memphis Police Department, and Bay Harbor Islands Police Department. The Miami-Dade State Attorney’s Office also assisted. Assistant U.S. Attorneys Arielle Klepach, Ignacio J. Vázquez, Jr., and Dayron Silverio are prosecuting the case. Assistant U.S. Attorney William T. Zloch is handling asset forfeiture.
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. The case is also related to “Operation Summer Heat,” a Miami-Dade County antiviolence initiative.
This prosecution was part of Operation Northern Light, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
Anyone with information related to possible gun crimes is asked to call Crime Stoppers at 305-471-TIPS.
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-20357.
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Colombian National Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
A Colombian national was arrested based on a criminal complaint filed in the Southern District of Florida.
Mario Antonio Palacios, 43, is charged with conspiracy to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap.
As alleged in the complaint, which was unsealed today, these charges relate to the July 7, 2021, assassination of the former President of Haiti, Jovenel Moise, in Port-au-Prince, Haiti. As alleged, the defendant and others, including a group of approximately 20 other Colombian citizens and a group of Haiti-based dual Haitian-American citizens, participated in a plot to kidnap or kill the Haitian President, with one conspirator (“Co-conspirator #1”) traveling to the United States on June 28, 2021, to, among other things, provide other individuals with a written request for assistance to further the plot relating to the Haitian President.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the president as part of a purported arrest operation, it ultimately resulted in a plot to kill the Haitian President. The complaint affidavit alleges that, on July 7, 2021, Palacios and others entered the president’s residence in Haiti with the intent and purpose of killing President Moise, and in fact the president was killed.
Co-conspirator #1, a dual Haitian-American citizen, was subsequently arrested by Haitian authorities and remains in custody in Haiti. Palacios eluded arrest and traveled to Jamaica.
Palacios was recently deported from Jamaica and, during a layover in Panama, agreed to travel to the United States. He is currently in custody and will appear in court for his initial appearance later today.
If convicted of the charges in the complaint, Palacios faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge George Piro of the FBI’s Miami Field Office.
The FBI is investigating the case with other law enforcement partners, including Homeland Security Investigations.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin are prosecuting the case with assistance from National Security Division Trial Attorneys Frank Russo and Emma Ellenrieder. The Criminal Division’s Office of International Affairs provided valuable assistance.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Florida Man Charged with Covid-19 Relief Fraud, Buying Lamborghini, Rolex, and Louis Vuitton with Loan MoneyRead the Press Release
Miami, Florida — A Florida man charged with fraudulently obtaining COVID-19 relief loans under the Paycheck Protection Program (PPP) made his first appearance today in federal magistrate court in Ft. Lauderdale.
According to the allegations in the indictment, Valesky Barosy, 27, of Ft. Lauderdale, submitted fraudulent loan applications on behalf of himself and his accomplices, seeking more than $4.2 million in PPP loans. In each loan application, Barosy falsified the applicant’s prior-year expenses, net profit, and payroll, and submitted fraudulent IRS tax forms, says the indictment.
According to the charges, Barosy and his accomplices received approximately $2.1 million in PPP loans from the fraudulent scheme. Barosy used the fraudulently-obtained proceeds to purchase a Lamborghini Huracán EVO, Rolex and Hublot watches, and designer clothing from Louis Vuitton, Gucci, and Chanel, it is alleged.
The indictment charges Barosy with five counts of wire fraud, three counts of money laundering, and one count of aggravated identity theft. If convicted, Barosy faces up to 132 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
USSS Miami investigated the case. Assistant U.S. Attorney Jonathan Bailyn is prosecuting the case. Assistant United States Attorney Nicole Grosnoff is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses 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.
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.
An indictment is a mere allegation. A defendant is presumed innocent until found 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, under case no. 21-cr-60345.
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Federal Prosecutors Charge South Florida Man in Murder-for-Hire PlotRead the Press Release
Miami, Florida – A 43-year-old Pembroke Pines, Florida man made his first appearance in Fort Lauderdale federal magistrate court today to face a charge that he used the U.S. mail system to solicit, plan, and pay for the murder of his former girlfriend’s new love interest.
According to the criminal complaint affidavit, Ryan Hadeed’s first piece of murder correspondence was his request to the intended hitman that said: “I need someone eliminated. I've been told you can arrange that. $10,000 All in cash and upfront. Person located in Tampa.” It is alleged that in that first letter, mailed in September, and in two subsequent mailings, Hadeed instructed the intended hitman to signal acceptance of the offer by posting marked sheets of paper on his store-front window, among other things. According to the complaint affidavit, on November 10, the intended hitman received a final mailing from Hadeed that included a description and pictures of the man that Hadeed wanted killed, the victim’s home address and likely travel schedule, as well as a deadline for the murder. Also inside the envelope was $10,000 cash, says the affidavit. It is alleged that Hadeed left the country on a one-way ticket the same day the hitman received the cash and pictures of the intended victim.
Law enforcement officers learned of the plan. During a secondary customs inspection of Hadeed when he returned from his international trip, additional evidence of the crime was uncovered, according to the affidavit. Pursuant to a court-issued warrant, law enforcement officers arrested Hadeed on December 22.
The intended victim, who remains alive, is romantically involved with Hadeed’s former girlfriend, says the criminal complaint affidavit.
Hadeed is charged with one count of using interstate commerce facilities – the U.S. mail system – in the commission of murder for hire, in violation of 18 U.S.C. §1958. If convicted, Hadeed faces up to 10 years in federal prison and a $250,000 fine.
A pretrial detention hearing for Hadeed is scheduled for December 29, at 11:00 a.m., in federal magistrate court in Fort Lauderdale.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge, Homeland Security Investigation (HSI), Miami Field Office; Joseph W. Cronin, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Region; and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Region, announced the charges.
HSI Miami, USPIS Miami, and FDLE investigated the case, with assistance from Florida Highway Patrol. Assistant U.S. Attorneys Joseph A. Cooley and Deric Zacca are prosecuting the case.
A criminal complaint contains mere allegations, and a defendant is presumed innocent unless and until found 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, under case no. 21-mj-6697.
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Mexican National Living in California Sentenced to over Eight Years in Federal Prison for Attempting to Purchase Five Kilograms of CocaineRead the Press Release
Miami, Florida – Drug trafficker, Pablo Alexander Reyes-Sanchez, a 33-year-old Mexican national, was sentenced yesterday in federal court in Miami to 97 months in prison by Chief United States District Court Cecilia M. Altonaga.
Reyes-Sanchez brokered a deal involving the purchase of five kilograms of cocaine for $160,000. Reyes-Sanchez traveled to Miami with a co-conspirator, obtained a sample of cocaine for inspection, and then completed the transaction by providing the seller the cash in exchange for the cocaine. Law enforcement officers arrested Reyes-Sanchez and his co-conspirator and seized the currency for forfeiture.
Reyes-Sanchez previously pled guilty to a three-count indictment charging him with conspiracy to possess with intent to distribute cocaine, attempted possession with intent to distribute cocaine, and reentry of a removed alien.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, made the announcement.
DEA Miami and Hialeah Police Department investigated this case. Assistant U.S. Attorney Christopher Hudock prosecuted it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-20032.
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Former U.S. Navy Member Who Possessed Child Pornography Headed to Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in Miami sentenced Anthony Louis Cardona, 30, of Key West, Florida, to 97 months in federal prison, followed by 25 years of supervised release as a sexual offender, for possession of child pornography. Cardona was also ordered to pay restitution to his victims.
In December 2020, FBI agents learned that an individual located at a residence in Key West, Florida was downloading child pornography using peer-to-peer software. On January 25, 2021, FBI agents executed a search warrant at the residence, where Cardona lived. Agents found that Cardona possessed multiple hard drives containing thousands of images and videos of child pornography.
A search of Cardona’s electronics produced over 89,000 images and videos of child pornography dating from 2010-2021. The images and videos included infants and pre-pubescent children engaged in sadomasochism and bestiality. In addition to those images, agents found a videoconference chat message from 2014 where Cardona distributed and received child pornography. In the chat message, Cardona stated that he previously fondled a pre-pubescent female child over her pants.
At the time of his arrest, Cardona was an air traffic controller as an active-duty member of the United States Navy.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence imposed by United States District K. Michael Moore.
FBI Miami, Key West Office, investigated the case. Assistant United States Attorney Hillary T. Irvin prosecuted it. Assistant United States Attorney Nicole Grosnoff is handling asset forfeiture.
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-10003.
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Colorado Woman and South Florida “Master” Guilty of Producing Child Pornography of Six-Year-Old Boy; Woman Sentenced to 20 YearsRead the Press Release
Miami, Florida – On Friday, a Lake Worth man and registered sex offender who produced child pornography together with a Colorado woman with whom he shared a dominant-submissive relationship pled guilty to child exploitation crimes in Miami federal court. The Colorado woman pled guilty last year and was sentenced to 20 years in prison.
In November 2019, Robert Dunn and Tonya Bagley began chatting on social media and developed an online relationship. Bagley and Dunn, both in their early forties, agreed in writing for Bagley to photograph herself performing oral sex on a six-year-old boy. Bagley, who was in Colorado, did so and sent the child sexual abuse images to Dunn in Lake Worth, Florida through a social media messenger application. Law enforcement officers arrested Dunn at his home on March 10, 2020. After later learning about Bagley, the FBI arrested Bagley at her Colorado home.
Dunn pleaded guilty to conspiring to produce, producing, receiving, and possessing child pornography. U.S. District Judge Roy K. Altman will sentence Dunn in federal court in Miami on February 25, 2022. Dunn faces a mandatory minimum sentence of 25 years imprisonment and a maximum sentence of 120 years’ imprisonment.
On December 10, 2020, Bagley pled guilty in West Palm Beach federal court to conspiring to produce child pornography and transmitting information about a minor. On May 19, 2021, U.S. District Judge Donald M. Middlebrooks sentenced Bagley to 20 years in a federal prison. In addition, the judge ordered Bagley to pay restitution to the abused boy.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the matter. Grand County Colorado Sheriff’s Office assisted.
Assistant U.S. Attorney Gregory Schiller prosecuted the cases. Assistant U.S. Attorney William T. Zloch handled asset forfeiture.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov., under case numbers 20-cr-80069 and 20-cr-80085.
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Child Sex Trafficker and Armed Robber Sentenced to Decades in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in Miami last week sentenced 35-year-old Christopher Grant Proby to 30 years in prison for sex trafficking a minor and for participating in the armed robbery of a Riviera Beach plumber.
In December 2017, Proby initiated a social media conversation with a 14-year-old girl. Proby asked about the minor’s sexual experience and said that he wanted to have sex with her. In late January 2018, the girl ran away from her foster home to meet with Proby in Riviera Beach. They engaged in sexual activity.
In June 2018, Proby used on-line social media to advertise the girl for commercial sex. When men responded to the advertisement requesting to have sex with the minor, Proby communicated with them by text message to arrange a price, meeting location, and specify the sex acts that the minor would perform. Proby drove the minor to meet with these men to engage in commercial sex acts, and took any money that she earned.
On July 11, 2018, Proby and his codefendants, Jamal Lamar Head and Keon Travy Glanton, worked together to rob a Roto-Rooter plumber of valuable plumbing equipment in Riviera Beach, Florida. Head, Proby, and Glanton directed the minor to place a service all to Roto-Rooter. At their direction, the minor lured the Roto-Rooter plumber to an abandoned residence in Riviera Beach, where Head assaulted him with a firearm. Proby and Glanton took valuable plumbing equipment from the vehicle while Head held the victim at gunpoint.
Head and Glanton were previously sentenced to 60 and 33 years in prison, respectively, for the armed robbery of the Riviera Beach plumber, as well as for other crimes, including the murder of a different plumber from Miami.
U.S. District Judge Roy K. Altman imposed the sentences.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Christopher Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office; and George L. Piro, Special Agent in Charge, FBI Miami made the announcement.
This case was investigated by ATF Miami, the FBI’s Child Exploitation and Human Trafficking Task Force, and Miami Dade Police Department. The Palm Beach County Sheriff’s Office and Riviera Beach Police Department assisted. This case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Jessica Kahn Obenauf. AUSA Richard Brown is handling asset forfeiture.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20063.
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Highlands County Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
Miami, Florida – U.S. District Judge Aileen M. Cannon has sentenced a 49-year-old man from Highlands County, Florida, to 130 months in prison for drug trafficking.
According to the court record, Michael Barnett sold methamphetamine on two separate occasions in 2019. Specifically, on April 4, 2019, Barnett sold 27.60 grams of methamphetamine to a buyer in Avon Park, Highlands County, Florida, and on April 17, 2019, Barnett sold 28.00 grams of methamphetamine to a buyer in Avon Park.
Barnett previously pled guilty to distribution of five grams or more of methamphetamine.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division made the announcement.
DEA Miami investigated the case. The case was prosecuted by Assistant U.S. Attorney Michael D. Porter. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14026.
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Two Florida Men Plead Guilty to $35 Million COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men pleaded guilty this week in the Northern District of Ohio for leading a nationwide scheme to fraudulently obtain over $35 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, James R. Stote, 55, of Hollywood, and Phillip J. Augustin, 52, of Coral Springs, conspired to obtain millions of dollars in fraudulent PPP loans. Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began working to obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. The applications they submitted for all of the loans in the scheme relied on fake payroll numbers, falsified IRS forms and phony bank statements. They submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million and planned to submit more.
“These convictions, and the numerous convictions of others involved in this wide-ranging conspiracy, demonstrate that people will be held accountable for defrauding the PPP Program,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Fraud against PPP programs directly harms taxpayers and undermine public trust in essential government support during the pandemic. We will continue to combat fraud and ensure that COVID-19 relief goes to those who deserve it.”
“While many businesses in our communities relied upon relief funds to keep their doors open and employees paid, these defendants profited off a scheme that stole millions of taxpayer dollars intended for struggling businesses and spent it lavishly on themselves,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Theft of government funds will not be tolerated, and prosecuting PPP fraud remains a priority for law enforcement.”
Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud. They are scheduled to be sentenced at a later date and each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In addition, Diamond Smith, 37, of Miramar, was sentenced today to 20 months after pleading guilty on Aug. 4 in the Southern District of Florida to conspiracy to commit wire fraud. Smith, a recording artist, admitted to obtaining a PPP loan of $426,717 for his company, Throwbackjersey.com LLC, using falsified documents and false information. Upon completion of that loan, Smith then sought and obtained another PPP loan of $708,065 for his other company, Blue Star Records LLC, using falsified documents and false information. Smith admitted to using PPP loan proceeds at the Seminole Hard Rock Hotel and Casino and on luxury items, including a Ferrari. Authorities seized the Ferrari at the time of Smith’s arrest. Smith further admitted that he paid more than $250,000 to Stote and Augustin as kickbacks for their assistance in preparing and submitting the fraudulent loan applications. Smith was ordered to pay $1,111345.23 in restitution and $1,134,782 in forfeiture in addition to his term of imprisonment.
“When the Paycheck Protection Program was implemented over one year ago, our Office committed to protecting South Floridians from those trying to exploit the Covid-19 pandemic,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Our work is not done. We will continue to hold accountable those who wrongfully obtain funds intended to help struggling small businesses survive the current health and economic crisis.”
“From submitting false documentation to recruiting other individuals, the defendants went to great lengths to defraud the Paycheck Protection Program of millions of dollars,” said Special Agent in Charge Bryant Jackson of IRS Criminal Investigation (IRS-CI), Cincinnati Field Office. “IRS-CI will continue to work with our law enforcement partners to hold those accountable that defraud programs designed to help struggling Americans and businesses.”
“This sentencing serves as a deterrent to anyone who would commit fraud targeting COVID-19 relief programs,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “Programs like these were created to help individuals during a pandemic, not for fraudsters to take advantage for personal gain. The FBI will continue to pursue criminal actors who engage in this activity.”
“Conspiring to fraudulently use SBA program funds is unacceptable,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General’s (SBA-OIG) Central Region. “OIG will aggressively root out fraud to protect the integrity of SBA’s programs, which are intended to provide vital assistance to the nation’s small businesses. I want to thank the Department of Justice and our law enforcement partners for their dedication and commitment to seeing justice served.”
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida and Middle District of North Carolina. To date, 20 of those defendants have been convicted.
The IRS-CI, FBI and SBA-OIG are investigating the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Elliot Morrison of the Northern District of Ohio and David Turken and Aimee Jimenez of the Southern District of Florida are prosecuting the cases.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Two Men Convicted of Conspiring to Smuggle Wildlife into the United States from AustraliaRead the Press Release
Miami, Florida – Two men pled guilty to willfully and knowingly conspiring to acquire, sell, transport, and import three species of spiny-tailed skinks into the United States from Australia in violation of federal regulations.
Jose Francesco Munoz Di Rocco, of Miami, Florida, and Francisco Manuel Rodriguez, of Medford, Oregon, pled guilty to the charge in Miami. In connection with their guilty plea, Munoz and Rodriguez admitted that they traveled from their respective hometowns in the United States and met up in Broome, Western Australia for the purpose of capturing spiny-tailed skinks in their native habitat and importing them into the United States for resale. Once in Western Australia, Munoz and Rodriguez captured various species of spiny-tailed skinks and prepared them for shipping to the United States, knowing it was illegal to export the wildlife from Australia. While in Australia, Munoz mailed two packages containing a total of 33 spiny-tailed skinks, one to Miami, Florida and the other to Medford, Oregon. In order to conceal the illegally imported wildlife, Munoz packaged the spiny-tailed skinks within gift-wrapped containers with other souvenirs and neither Rodriguez nor Munoz declared them on the Customs Declaration forms attached to the shipping boxes or via a Declaration for Importation or Exportation of Fish and Wildlife (Form 3-177) with the U.S. Fish and Wildlife Service. Australian law prohibits the exportation of its native wildlife.
Rodriguez’s sentencing has been set on February 4, 2022 at 3 p.m. and Munoz’s sentencing has been set on February 23, 2022 at 2 p.m. before District Court Judge Kathleen M. Williams. Rodriguez and Munoz face a possible prison sentence of up to five years in jail, a term of supervised release thereafter of up to three years, and a criminal fine of up to $250,000.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Stephen Clark of the U.S. Fish & Wildlife Service (USFWS), Southeast Region made the announcement.
USFWS investigated the case with assistance of the Australian Border Force. Assistant U.S. Attorney Marty Fulgueira Elfenbein of the U.S. Attorney’s Office for the Southern District of Florida 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 21-cr-20361.
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Former NFL Player Sentenced to Federal Prison for COVID-19 Relief FraudRead the Press Release
Miami, Florida – A former National Football League (NFL) player was sentenced Friday to 37 months in federal prison for fraudulently obtaining over $1.2 million through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Joshua J. Bellamy, 32, of St. Petersburg, Florida, a former NFL player pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on June 9. As part of the fraud scheme, Bellamy obtained a PPP loan of $1,246,565 for his company, Drip Entertainment LLC, using falsified documents and false information. Bellamy admitted to using the PPP loan proceeds on personal items, such as jewelry, and a stay at the Seminole Hard Rock Hotel and Casino. Bellamy also sought PPP loans on behalf of his family members and close associates. Bellamy further admitted that he paid more than $311,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Bellamy was ordered to serve three years of supervised released and pay $1,246,565 in restitution and $1,246,565 in forfeiture.
In addition, a Florida woman was sentenced on Dec. 9 to two years in federal prison for fraudulently obtaining a PPP loan as part of this criminal scheme. According to court documents, Yashica Bain, 38, of Miramar, Florida, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Sept. 30. As part of the fraud scheme, Bain obtained a PPP loan of $415,232 for her company, Microblading Brow Studio LLC, using falsified documents and false information. Bain used the PPP loan proceeds to enrich herself and others who never worked for her company. She falsely described those payments as “payroll” and “wages” to perpetrate this fraud. Bain admitted that she paid more than $28,000 to Stote as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to her prison sentence, Bain was ordered to serve three years of supervised released and pay $415,232 in restitution and $415,232 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. His case remains pending.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Turken and Yisel Valdes of the Southern District of Florida prosecuted the cases.
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.
A complaint is merely an allegation, and Stote is 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 Resident Charged with Committing $38 Million Health Care Fraud Scheme, Spending Proceeds on Beachfront Condos and Luxury VehiclesRead the Press Release
Miami, Florida – A Miami man charged with submitting approximately $38 million in fraudulent health care claims to United Healthcare and Blue Cross Blue Shield was arrested this morning by federal law enforcement agents.
According to allegations in the federal grand jury indictment, from February 2015 through July 2021, 63-year-old Armando Valdes owned and operated Gasiel Medical Services, Corp. (“Gasiel”) a medical clinic in Miami, Florida. It is alleged that Gasiel submitted approximately $38 million in false and fraudulent claims to United and Blue Cross for infusions of Infliximab which were medically unnecessary and not provided to patients as billed. Infliximab, known by the brand name Remicade, is an expensive prescription immunosuppressive drug approved for the treatment of Crohn’s disease, pediatric Crohn’s disease, ulcerative colitis, pediatric ulcerative colitis, rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis, and plaque psoriasis. The indictment alleges that United and Blue Cross paid Gasiel nearly $8 million as a result of the fraudulent claims for Infliximab submitted by Valdes. According to the indictment, Valdes used his ill-gotten proceeds to purchase four real estate properties, including a beachfront condo in Pompano Beach, as well as luxury vehicles including a Cadillac Escalade and a Tesla Model S.
The indictment charges Valdes with ten counts of health care fraud. If convicted, Valdes faces up to 100 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Valdes will make his initial appearance today at 1:30 p.m., before U.S. Magistrate Judge Jacqueline Becerra, who sits in Miami.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office announced the charges.
Assistant U.S. Attorney Michael B. Homer is prosecuting this case. Assistant U.S. Attorney Annika Miranda is handling asset forfeiture.
An indictment is a charging instrument containing allegations. A defendant is 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 21-cr-20590.
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Miami Federal Jury Convicts Man Who Kidnapped and Tortured VictimRead the Press Release
Miami, Florida – This week, a federal jury in Miami returned a guilty verdict against 56-year-old Serge Nkorina, a man who kidnapped a victim at gunpoint and later tortured him inside a storage container with a blow torch.
At trial, Assistant U.S. Attorneys Robert F. Moore and Marc Chattah presented evidence that from late 2018 to early 2019, Serge Nkorina and his co-conspirator, Justin Boccio, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. The victim was a South Florida plastic surgeon who had treated Nkorina’s wife. To learn the victim’s daily movements, Nkorina and Boccio stalked the victim at home and work and placed a GPS tracker on the bottom of his car. To get ready for the torture session, Nkorina and Boccio purchased devices from hardware and medical supply stores and rented a storage container in Margate, Florida to use as the torture site.
Prosecutors presented evidence that on January 14, 2019, Nkorina and Boccio followed the victim from work to a supermarket. When the victim returned to his car with groceries, they tased his neck and threw him into a van. Nkorina and Boccio took the victim to the Margate storage container, where they tortured him for hours. Nkorina burned the victim’s hands with a blow torch, forcing the victim to reveal the security gate and door codes to his home. When Nkorina and Boccio tried to use the information that night to enter the victim’s home, they were scared off by a light connected to the doorbell camera. Nkorina and Boocio aborted the plan and dumped the victim at a strip club parking lot.
The jury found Nkorina guilty of conspiring to commit kidnapping and kidnapping. Senior U.S. District Judge Paul C. Huck will sentence Nkorina on February 15, 2022, at 9:30 a.m., in federal district court in Miami. Nkorina faces a maximum sentence of life in prison.
Justin Boccio previously pled guilty and is currently serving a 135-month sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
FBI Miami investigated the case. Assistant U.S. Attorneys Robert F. Moore and Marc Chattah are 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 19-cr-20261.
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Former NFL Player Sentenced to More Than Three Years in Prison for COVID-19 Relief FraudRead the Press Release
A former National Football League (NFL) player was sentenced today to 37 months in federal prison for fraudulently obtaining over $1.2 million through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Joshua J. Bellamy, 32, of St. Petersburg, Florida, a former NFL player, pleaded guilty on June 9 in the Southern District of Florida to conspiracy to commit wire fraud. As part of the fraud scheme, Bellamy obtained a PPP loan of $1,246,565 for his company, Drip Entertainment LLC, using falsified documents and false information. Bellamy admitted to using the PPP loan proceeds on personal items, such as jewelry, and a stay at the Seminole Hard Rock Hotel and Casino. Bellamy also sought PPP loans on behalf of his family members and close associates. Bellamy further admitted that he paid more than $311,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Bellamy was ordered to serve three years of supervised released and pay $1,246,565 in restitution and $1,246,565 in forfeiture.
In addition, a Florida woman was sentenced on Dec. 9 to two years in federal prison for fraudulently obtaining a PPP loan as part of this criminal scheme. According to court documents, Yashica Bain, 38, of Miramar, Florida, pleaded guilty on Sept. 30 in the Southern District of Florida to conspiracy to commit wire fraud. As part of the fraud scheme, Bain obtained a PPP loan of $415,232 for her company, Microblading Brow Studio LLC, using falsified documents and false information. Bain used the PPP loan proceeds to enrich herself and others who never worked for her company. She falsely described those payments as “payroll” and “wages” to perpetrate this fraud. Bain admitted that she paid more than $28,000 to Stote as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to her prison sentence, Bain was ordered to serve three years of supervised released and pay $415,232 in restitution and $415,232 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. His case remains pending.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Turken and Yisel Valdes of the Southern District of Florida prosecuted the cases.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
A complaint is merely an allegation, and Stote is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Florida Woman Sentenced to Federal Prison Term for Illegal Importation of Prescription DrugsRead the Press Release
Miami, Florida – A Boynton Beach, Florida woman who illegally imported unapproved prescription drugs was sentenced today in federal district court in Ft. Pierce to six months in federal prison, to be followed by three years of supervised release.
In August 2018, Jhanna Novikov, 58, agreed to provide “Botox” treatments to an undercover investigator with the Florida Department of Health for $600. Agents of the Food and Drug Administration, Office of Criminal Investigations then searched Novikov’s home, which included an area set up to look like a medical treatment office. Agents seized various drugs containing botulinum toxin, the active ingredient in Botox. However, those drugs had not been approved by FDA and were not properly labeled for shipment in the United States. Agents did not find any Botox or other FDA-approved drugs containing botulinum toxin in Novikov’s home. Forensic analysis of Novikov’s cell phone revealed that Novikov had imported the drugs from Mexico, in violation of the Federal Food, Drug, and Cosmetic Act, and had been importing such drugs since 2016.
Novikov previously pled guilty to one count of importation of merchandise contrary to law. U.S. District Judge Aileen M. Cannon imposed today’s sentence, which also included a fine, a special assessment, and a $6,813.15 restitution order.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Special Agent in Charge Justin Fielder, Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, announced the sentence.
FDA-OCI Miami investigated the case, with assistance from Palm Beach Sheriff’s Office. Assistant U.S. Attorney Marc Osborne prosecuted this case. Assistant U.S. Attorney Gabrielle Charest-Turken is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-80108.
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Palm Beach Gardens Resident Charged with Threatening Members of Congress Appears in Federal CourtRead the Press Release
Miami, Florida – This week, 60-year-old Paul Vernon Hoeffer was arraigned in federal court in West Palm Beach on charges that he called and threatened to injure two members of Congress and a district attorney.
The indictment charges Hoeffer with three counts of interstate transmission of threats to injure. According to allegations made by prosecutors during a court hearing, in March 2019, Hoeffer called a congresswoman in Washington, D.C., and threatened to come a “long, long, way” to rattle her head with bullets and cut her head off. On the same day, Hoeffer called a district attorney in the State of Illinois, telling her bullets were going to “rattle her brain,” it is alleged. In November 2020, Hoeffer called another congresswoman, this time in New York. Hoeffer told her that he would “rip her head off” and cautioned her to sleep with one eye open, according to allegations made by prosecutors.
If convicted, Hoeffer faces a total of up to 15 years in prison. Hoeffer pled not guilty during the arraignment. His trial is set to start during the two-week period beginning January 18, 2022. Particular trial dates will be addressed during calendar call before U.S. District Judge Aileen M. Cannon on January 11, 2022.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated this case. Assistant U.S. Attorney Luisa Honora Berti is prosecuting it.
An indictment is a charging instrument containing allegations. A defendant is 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 21-cr-14042.
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Justice Department Awards More Than $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
Miami, Florida – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core. The Southern District of Florida was awarded $350,485 to administer PSN grant funds throughout the district.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the 88 grant awards, which are being made to designated fiscal agents to support local PSN projects that work in partnership with U.S. Attorneys’ Offices.
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
This fall, U.S. Attorney’s Offices across the country have enhanced their violent crime reduction efforts to ensure alignment with the department’s comprehensive violent crime reduction strategy. U.S. Attorneys’ Offices have engaged in outreach to law enforcement and other agencies and organizations serving communities to identify the most significant drivers of violence in their districts. Working together with a broad coalition of stakeholders, the U.S. Attorneys’ Offices are addressing the most pressing violent crime issues in their district to make our neighborhoods safer for all.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For a list of all grantees, please visit: FY21-Project-Safe-Neighborhoods-Awards.
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The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Former Miami Lawyer Sentenced to 40 Months of Imprisonment for Five Bank RobberiesRead the Press Release
Miami, Florida – Former Miami lawyer Aaron Patrick Honaker, 42, of Miami, was sentenced to 40 months of imprisonment for committing a string of five bank robberies and attempted bank robberies in South Florida in September and October of 2020.
On August 18, 2021, Honaker pleaded guilty to attempting to rob a Citibank in Coral Gables on September 30, 2020. He admitted that days later he robbed a Chase Bank in Aventura. Two days later, on October 5, 2020, Honaker then attempted to rob a Wells Fargo Bank in Coral Gables. Five days later, he robbed a Chase Bank in Coral Gables. Then, again, five days later, he attempted to rob a HSBC Bank in Coral Gables.
The Defendant also admitted to police that he knew each of the tellers that he approached during the robberies were scared as a result of his conduct. The Defendant told law enforcement that he carried a hammer with him during the commission of the robberies to escape any glass mantraps potentially triggered by bank security.
On December 1, 2021, the Honorable United States District Court Judge Marcia G. Cooke varied downward from a recommended sentencing guidelines range of 60 months’ incarceration and sentenced Honaker to a term of imprisonment of 40 months, to be followed by a term of supervised release of 4 years.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement.
FBI Miami investigated this case, with cooperation and assistance from Coral Gables Police Department and Aventura Police Department. Assistant United States Attorneys Michael Gilfarb, Lauren Astigarraga and Christopher Hudock of the Southern District of Florida prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20063.
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Palm Beach County Adventure Park Zookeeper Headed to Federal Prison for Possessing Child PornographyRead the Press Release
Miami, Florida – Yesterday, a federal district judge in Fort Lauderdale sentenced 31-year-old Justin David Alban to 70 months in federal prison and 15 years of supervised release for possessing child pornography.
Over 18 months between 2019 and 2020, Alban used an on-line peer-2-peer network to obtain child sexual abuse material. In 2020, law enforcement officers found the child pornography on Alban’s computers. At the time, Alban worked as a zookeeper at a safari adventure park in Palm Beach County, Florida.
On October 15, 2020, Alban pled guilty to one count of possession of child pornography. United States District Judge Raag Singhal imposed Alban’s sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the case. Assistant U.S. Gregory Schiller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80067.
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Two Peruvian Nationals Plead Guilty to Defrauding Thousands of Spanish-Speaking U.S. ImmigrantsRead the Press Release
Two Peruvian nationals responsible for operating a series of call centers in Peru that defrauded Spanish-speaking U.S. residents by falsely threatening them with arrest, deportation and other legal consequences pleaded guilty to federal charges in the U.S. District Court for the Southern District of Florida.
Josmell Espinoza Huerta (Josmell Espinoza), 32, and his brother Carlos Alberto Espinoza Huerta (Carlos Espinoza), 40, both from Lima, Peru, pleaded guilty for their roles in conspiring to commit mail fraud and wire fraud through several call centers in Peru that they owned and operated.
According to court documents, Josmell and Carlos Espinoza co-owned and operated the JFC Peru call center in Peru. In addition, Josmell Espinoza owned and operated the Camino Al Progreso and Latin Shop call centers, and Carlos Espinoza separately owned and operated the Latinos en Accion and Latin Force call centers in Peru.
From April 2011 until July 2019, the Espinoza brothers and their co-conspirators in Peru called victims — many of whom were recent immigrants from Central America, Mexico and other Spanish-speaking countries — and fraudulently threatened them with legal consequences if they did not make payments for purportedly delivered products and settlement fees for English-language classes. The defendants and their co-conspirators used false statements and threats to obtain money from victims across the United States by falsely telling the victims that they were required to accept and pay for English-language courses and other educational products and that failure to do so placed them in legal jeopardy. The defendants and their co-conspirators then falsely threatened to have their victims arrested and deported in order to collect payments from many vulnerable victims in southern Florida and across the United States.
In pleading guilty, both defendants admitted that they and their employees falsely claimed to be lawyers, court officials, federal agents and representatives of a so-called “minor crimes court,” which does not exist. The callers falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment and immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Carlos Espinoza caused victims to lose over $1.3 million, and Josmell Espinoza caused victims to lose over $700,000.
“The Department of Justice’s Consumer Protection Branch will steadfastly pursue and prosecute transnational criminals who defraud vulnerable U.S. consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Those who impersonate U.S. government officials and use threats to prey on our immigrant communities will be brought to justice and held accountable in U.S. courts.”
“This case demonstrates that the long arm of justice has no limits when it comes to reaching fraudsters who prey on our nation’s most vulnerable populations,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “We will continue to bring American justice to transnational criminals who use fear tactics and intimidation to steal money from immigrants, seniors and others who live in this country.”
“For many years, the U.S. Postal Inspection Service and their law enforcement partners have investigated and prosecuted international criminal rings targeting U.S. consumers to steal their hard-earned money,” said Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service Miami Division. “We will continue to aggressively pursue these criminals to ensure that they are prosecuted to the fullest extent of the law.”
With Carlos Espinoza’s guilty plea in Miami today, all seven defendants indicted in this matter have now pleaded guilty. Four of the defendants’ co-conspirators were arrested in July 2019, and another was arrested in January 2020. All five of those defendants were extradited to the Southern District of Florida in October 2020, and were sentenced to serve significant prison sentences earlier this year. Henrry Milla was sentenced to 110 months in prison, Jerson Renteria was sentenced to 100 months in prison, and Evelyng Milla, Fernan Huerta and Omar Cuzcano and were each sentenced to serve 90 months in prison.
Carlos Espinoza and Josmell Espinoza evaded arrest at the time of their co-defendants’ arrests and were subsequently located in Peru and extradited to the United States on June 25. U.S. District Judge Robert N. Scola, Jr. will sentence Josmell Espinoza in Miami on Feb. 9, 2022, and will sentence Carlos Espinoza on Feb. 14, 2022.
The U.S. Postal Inspection Service and the Civil Division’s Consumer Protection Branch investigated the case. Senior Trial Attorney Phil Toomajian and Trial Attorney Max Goldman of the Consumer Protection Branch are prosecuting the case. The Federal Trade Commission, the Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, the State Department’s Diplomatic Security Service and the Peruvian National Police provided critical assistance.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. Additional information about the Consumer Protection Branch and its elder fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
South Florida Police Officer Charged in Federal Court with Attempting to Sexually Exploit ChildRead the Press Release
Miami, Florida – On Friday, 30-year-old Stuart, Florida resident Juan Antonio Garcia appeared in United States magistrate court in Ft. Pierce to face a federal charge that he attempted to produce pornography of a 15-year-old boy. Garcia is a law enforcement officer with the Sewall’s Point Police Department.
According to the recently unsealed criminal complaint affidavit, law enforcement officers received a report on November 22, that Garcia was sending sexually explicit text messages to a 15-year-old boy. According to the affidavit, in text messages, Garcia asked the minor to accompany Garcia to a nude beach in Saint Lucie County. It is alleged that Garcia instructed the minor via text message to put on a condom (which Garcia provided to the minor), masturbate, and send Garcia a photograph of the condom after the minor ejaculated. It is also alleged that Garcia sent text messages to the minor’s phone instructing him to send Garcia a video of the boy masturbating and asking the boy whether he would consider performing oral sex on Garcia. On November 23, Garcia texted the minor’s phone, asking the minor to meet Garcia at a local park for oral sex, according to the allegations. When Garcia arrived at the park, law enforcement officers apprehended him.
Garcia’s detention hearing is set for December 10, and his arraignment is set for December 17. Both proceedings will take place in federal magistrate court in West Palm Beach, Florida. If convicted, Garcia faces between 15 years and 30 years in federal prison.
Sewall’s Point Police Department has placed Garcia on administrative leave without pay, pending investigation.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Miami (Ft. Pierce Office) and Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
Criminal complaints contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-mj-00078-SMM.
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Four Defendants Sentenced in Connection with Trafficking 13-year-old Minor VictimRead the Press Release
Miami, Florida – Four defendants were sentenced in connection with their roles in trafficking a 13-year-old minor victim through the use of online advertisements. The sentences ranged from 16 to 10 years of imprisonment, 15 to 10 years of supervised release, plus restitution and a life-time of registration as a sexual offender.
From approximately May 29, 2019, to June 4, 2019, Jeremiah Horenstein, 24, Racquel Lavette Bijou, 22, and Ashton Gary Lewinson, 26, took the minor victim to engage in at least 100 commercial sex acts at hotels and private residences throughout Miami-Dade, Broward, and Palm Beach counties. On June 5, 2019, Bijou recruited the minor victim to work for Souprina Blanc, 29, who further posted online advertisements for minor victim to engage in commercial sex acts.
Each defendant previously pled guilty to sex trafficking of a minor. U.S. District Judge Raag Singhal, who sits in Ft. Lauderdale, imposed the sentences.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo Ramirez III, Director of the Miami-Dade Police Department (MDPD), announced the sentences.
FBI Miami, in particular FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force, investigated the case. FBI Omaha, Nebraska, assisted. Assistant United States Attorney Daniel Cervantes prosecuted the case. Assistant U.S. Attorney Daren Grove is handling asset forfeiture matters.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to 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.projectsafechildhood.gov.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20535.
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Dos ciudadanos peruanos se declaran culpables de defraudar a miles de inmigrantes estadounidenses de habla hispana.Read the Press Release
Dos ciudadanos peruanos responsables de operar una serie de centros de llamadas en Perú, que defraudaron a residentes estadounidenses de habla hispana al amenazarlos falsamente con arresto, deportación y otras consecuencias legales, se declararon culpables de cargos federales en el Tribunal de Distrito de Estados Unidos para el Distrito Sur de Florida.
Josmell Espinoza Huerta (Josmell Espinoza), de 32 años, y su hermano Carlos Alberto Espinoza Huerta (Carlos Espinoza), 40 de años, ambos originarios de Lima, Perú, se declararon culpables por su papel en la conspiración para cometer fraude postal y fraude electrónico por medio de varios centros de llamadas en Perú de los que ellos era propietarios y operaban.
De acuerdo con los documentos judiciales, Josmell y Carlos Espinoza eran copropietarios y operaban el centro de llamadas JFC Perú, en Perú. Además, Josmell Espinoza era propietario y operaba los centros de llamadas Camino Al Progreso y Latin Shop y Carlos Espinoza era propietario y operaba por separado los centros de llamadas Latinos en Acción and Latin Force en Perú.
Desde abril de 2011 hasta julio de 2019, los hermanos Espinoza y sus cómplices en Perú le llamaron a las víctimas, muchos de ellos habían inmigrado recientemente de Centroamérica, México y otros países de habla hispana, y los amenazaron de forma fraudulenta con consecuencias legales si no cumplían con los pagos de productos que supuestamente se habían entregado y el pago de clases del idioma inglés. Los acusados y sus cómplices utilizaron falsas declaraciones y amenazas para obtener dinero de las víctimas en todo Estados Unidos al decirle a las víctimas que debían aceptar y pagar cursos del idioma inglés y otros productos educativos y de no hacerlo se pondrían en riesgo legal. Los acusados y sus cómplices entonces amenazaban falsamente a las víctimas con arresto y deportación para obtener los pagos de muchas víctimas vulnerables en el Sur de Florida y en todo Estados Unidos.
Al declararse culpables, ambos acusados admitieron que ellos y sus empleados afirmaron falsamente se abogados, funcionarios judiciales, agentes federales y representantes del llamado “tribunal de delitos menores”, que no existe. Las personas que llamaron amenazaron falsamente a las víctimas con procedimientos judiciales, marcas negativas en sus reportes de crédito, cárcel y consecuencias migratorias si no pagaban de inmediato los productos que supuestamente se entregaron y las cuotas de liquidación. Carlos Espinoza provocó que las víctimas perdieran más de $1.3 millones y Josmell Espinoza provocó que las víctimas perdieran más de $700,000.
“La rama de Protección del Consumidor del Departamento de Justicia perseguirá y enjuiciará firmemente a los criminales transnacionales que defrauden a consumidores estadounidenses vulnerables”, dijo el Secretario de Justicia General Interino, Brian M. Boynton, de la División Civil del Departamento de Justicia. “Quienes se hagan pasar por funcionarios del gobierno de Estados Unidos y amenacen para aprovecharse de nuestras comunidades de inmigrantes se enfrentarán a la justicia y se harán responsables ante los tribunales de Estados Unidos”.
“Este caso demuestra que el gran brazo de la justicia no tiene límites cuando se trata de llegar hasta los estafadores que se aprovechan de las poblaciones más vulnerables de nuestra nación”, dijo el Fiscal Federal Interino de Estados Unidos, Juan Antonio González, del Distrito Sur de Florida. “Continuaremos llevando la justicia a los criminales transnacionales que utilizan tácticas de miedo e intimidación para robar dinero de los inmigrantes, personas mayores y otras personas que viven en este país”.
“Durante muchos años, el Servicio de Inspección Postal de Estados Unidos y sus socios del orden público encargados de investigar y procesar las redes criminales internacionales que tienen como objetivo consumidores estadounidenses para robar el dinero que tanto les costó ganar”, dijo el Inspector a Cargo, Joseph Cronin, de la División de Miami del Servicio de Inspección Postal de Estados Unidos. “Continuaremos persiguiendo a estos criminales para garantizar que se procesan con todo el peso de la ley”.
Al declararse culpable Carlos Espinoza hoy en Miami, ya se declararon culpables los siete acusados en este asunto. En julio de 2019 se arrestó a cuatro de los cómplices acusados y en enero de 2020 se arrestó a otro. Esos cinco acusados se extraditaron al Distrito Sur de Florida en octubre de 2020 y fueron sentenciados a cumplir importantes condenas de prisión a principios de este año. Se sentenció a Henrry Milla a 110 meses de prisión, Jerson Rentería fue sentenciado a 100 meses en prisión y Evelyng Milla, Fernan Huerta y Omar Cuzcano cada uno fue sentenciado a 90 meses en prisión.
Carlos Espinoza y Josmell Espinoza evitaron ser arrestados cuando se arrestó a sus cómplices y después fueron localizados en Perú y se extraditaron a Estados Unidos el 25 de junio. El Juez de Distrito de Estados Unidos Robert N. Scola, Jr. sentenciará a Josmell Espinoza en Miami el 9 de febrero de 2022 y a Carlos Espinoza el 14 de febrero de 2022.
El Servicio de Inspección de Estados Unidos y la División de Protección al Consumidor de la División Civil investigaron el caso. El Abogado Litigante Principal Phil Toomajian y el Abogado Litigante Max Goldman de la Rama de Protección al Consumidor están procesando el caso. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Oficina del Fiscal de Estados Unidos para el Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional de Perú proporcionaron asistencia de crítica importancia.
La información sobre la iniciativa contra el fraude a personas mayores del Departamento de Justicia se encuentra disponible en www.justice.gov/elderjustice. Se puede encontrar información adicional sobre la Rama de Protección al Consumidor y sus esfuerzos para hacer cumplir el fraude a personas mayores en www.justice.gov/civil/consumer-protection-branch. Si usted o alguien que conoce que tiene 60 años o más y fue víctima de fraude financiero, puede encontrar ayuda en la Línea Directa Nacional Contra el Fraude a Personas Mayores: 1-833-FRAUD-11 (1-833-372-8311).
Daytona Beach Drug Trafficker Pleads Guilty in the Southern District of FloridaRead the Press Release
Miami, Florida – Daytona Beach drug trafficker, Maxwell A. Vega, pled guilty today in federal court in Ft. Pierce to one count of distribution of over 50 grams of methamphetamine, one count of distribution of methamphetamine and one count of distribution of fentanyl.
According to court documents, on July 2, 2021, Vega traveled from Daytona Beach, Florida to a hotel in Martin County, where he had prearranged a meeting to sell methamphetamine. During the course of arranging the drug deal, Vega offered to sell fentanyl in addition to the methamphetamine. The purchaser initially declined, stating that fentanyl was too dangerous a drug. Vega encouraged the sale, and offered to bring a sample of fentanyl to the meeting. Vega told the purchaser that the fentanyl was the “real deal” and to be careful not to touch it. Lab results showed that the 54.81 grams of meth that Vega sold was 98% pure.
On July 7, 2021, Vega again traveled from Daytona Beach, Florida to the same hotel in Martin County, where he had prearranged a second meeting to sell methamphetamine and fentanyl. Vega again arrived and proceeded to the room where he sold an ounce of fentanyl, and 1.170 grams of methamphetamine which had a purity of 99%. Vega was arrested shortly after this transaction.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
The Department of Homeland Security, together with the Martin County Sheriff’s Office, investigated this case. Assistant U.S. Attorney Luisa Honora Berti is prosecuting this case.
Vega will be sentenced on a date to be announced. He faces a minimum term of imprisonment of ten years and a maximum of life.
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-14030.
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Three South Florida Men Sentenced for Conspiring to Launder Fraudulently Obtained Covid-19 Relief Money and Proceeds from Business Email Compromise SchemesRead the Press Release
Miami, Florida – A South Florida federal district judge sentenced three Broward County residents to prison terms this week for conspiring with each other to launder proceeds obtained from business email compromise schemes and fraudulently obtained Covid-19 relief loans.
Jimpcy One, 35, was sentenced to 36 months’ imprisonment. Frantz Guillaume, Jr. a/k/a Sandro Saintfloeur, 44, was sentenced to 46 months in prison. Gousman Lemy, 43, was sentenced to 51 months in prison. In addition, they were each ordered to pay approximately $1.8 million in restitution.
A business email compromise scheme is a type of computer intrusion that occurs when an employee of a company is fooled into interacting with an email message that appears to be, but is not, legitimate. The bogus email usually contains either an attachment or a link to a malicious website or program. When an unwitting user clicks on either the link or the attachment, it releases some form of malware (i.e., a virus, spyware, or other program application) that subsequently infects the employee’s email and/or computer. The malware may affect an employee’s individual account or spread throughout the computer network. The malware, once executed, can harvest information including but not limited to credentials and passwords, thereby giving the intruder access to sensitive company information.
According to court documents, in July of 2017, Lemy and Guillaume laundered a little over $425,000 obtained from a business email compromise of a Texas based university. Then, in 2019, One joined Lemy, and Guillaume in laundering over $900,000 obtained from a business email compromise of another U.S. based victim company. In each business email compromise scheme, co-conspirators sent false and fraudulent emails from a hacked account which tricked the victims into wiring money into accounts controlled by the defendants and their co-conspirators. One, Gousman, and Lemy then sought to conceal the origin of this fraudulently obtained money by transferring it among the bank accounts of various shell companies that One, Gousman, and Lemy controlled.
When the coronavirus pandemic hit the United States in 2020, One, Gousman, and Lemy allegedly initiated a new fraud scheme using existing shell companies from the email compromise scheme, as well as newly created and reactivated shell companies. Defendants allegedly submitted false and fraudulent loan applications under two U.S. government relief programs authorized by the CARES Act to help small businesses and their employees survive the Covid-19 economic crisis: the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan Program (“EIDL”). In June and July 2020, through false submissions in the names of their shell companies, One, Gousman, and Lemy fraudulently applied for and received close to $2 million in PPP and EIDL funds, which was laundered amongst the co-conspirators.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Atlanta Region; and Amaleka McCall-Brathwaite, Special Agent in Charge of U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Eastern Regional Office announced the sentences imposed by U.S. District Judge Rodolfo A. Ruiz, who sits in Ft. Lauderdale.
FBI Miami, FDIC-OIG, and SBA-OIG handled the investigation, with assistance from the United States Secret Service Miami Field Office and the Treasury Inspector General for Tax Administration Cybercrimes Division. Assistant U.S. Attorney Brooke Watson is prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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 no. 21-cr-60126.
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Four Men Sentenced to Prison for Roles in Construction Insurance Fraud SchemeRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced three men from different parts of the country to federal prison terms for their roles in a conspiracy to defraud companies by issuing worthless bonds to insure large-scale construction projects. A fourth defendant was sentenced earlier this year.
On December 2, Alexander Robert Xavier, 57, formerly of Boca Raton, Florida was sentenced to 72 months in prison; Timothy Castracane a/k/a “Guy” Castracane, 51, of Saratoga Springs, New York, was sentenced to 46 months in prison; and Henry John Hattendorf, 73, of Las Vegas, Nevada was sentenced to 24 months in prison. On November 16, Robert Michael Wann, 64, of Rancho Mirage, California, was sentenced to 54 months in prison. Each defendant was also sentenced to a term of supervised release of three years and ordered to pay over $2.6 million in restitution to victims of the fraud.
From approximately March 2015 through December 2015, the defendants devised a scheme to unlawfully enrich themselves by issuing various performance and payment bonds – a type of insurance required on major construction contracts. During the course of the fraud, Defendant Xavier, acting as a so-called “individual surety,” pledged over $30 million in assets to builders working on large-scale infrastructure and residential construction projects. In truth, and as the defendants well knew, there were no such assets; only worthless securities that the defendants referred to as “gold certificates.”
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida; Sean Earle, Special Agent in Charge, Eastern Region Field Office, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG); and David Spilker, Special Agent in Charge, Southeast Field Office, United States Department of Veterans Affairs, Office of Inspector General (VA-OIG), made the announcement.
United States District Judge Donald M. Middlebrooks imposed the sentences. Previously, the defendants all pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349.
At the time of his sentencing, Defendant Xavier was already serving a 150-month prison sentence imposed in a different Southern District of Florida criminal fraud case, Case No. 15-80149-cr-Marra.
EPA-OIG and VA-OIG investigated the case, with assistance from the United States Department of Transportation OIG, Internal Revenue Service, Criminal Investigation Division, in Albany, New York, and The Port Authority of New York & New Jersey OIG.
It was prosecuted by Assistant U.S. Attorneys Christopher B. Browne and Stephanie Hauser. Annika Miranda handled the asset forfeiture component of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 20-cr-80054.
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California Tobacco Executive Sentenced to Five Years in Prison for Conspiring to Evade Federal Excise Taxes on Dominican CigarsRead the Press Release
Miami, Florida – A California tobacco company executive was sentenced to 60 months’ imprisonment yesterday for his participation in a fraudulent scheme to avoid the payment of millions of dollars in excise taxes on imported tobacco products.
Akrum Alrahib, 43, of Los Angeles, California, was the President and Owner of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” most of which were imported from the Dominican Republic through Miami.
Previously, Alrahib admitted that he partnered with Gitano Pierre Bryant, Jr., a tobacco importer authorized by the Alcohol and Tobacco Tax and Trade Bureau (TTB), to import large cigars. Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. They consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.
During the course of the scheme, Alrahib paid over $21 million for Dominican tobacco products and received over $700,000 in kickbacks from Bryant.
Alrahib also admitted his participation in a witness tampering scheme, in which he sought to prevent a witness from testifying before a South Florida Grand Jury.
Alrahib previously pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. In addition to a term of imprisonment, Alrahib was ordered to serve an additional three years on supervised release and pay more than $7 million in restitution. The sentence was handed down by District Judge Rodney Smith in Fort Lauderdale.
Bryant, Alrahib’s partner, was charged a separate case (16-cr-20838). He pled guilty, was sentenced to four years in prison, and ordered to pay over $9 million in restitution.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Carrie May, Acting Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Darrell J. Waldon, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
TTB and IRS-CI investigated this case with the assistance of Homeland Security Investigations in Miami. Assistant United States Attorney Christopher Browne and Jerrob Duffy of the Justice Department’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture component of 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 19-cr-20165.
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South Florida Felon Sentenced to Federal Prison for Building “Ghost Guns” and Manufacturing Ammunition in GarageRead the Press Release
Miami, Florida – This week, Mark Gene George, 58, of Port St. Lucie, Florida, appeared in federal court in Fort Pierce and was sentenced to 27 months in prison after being convicted of possessing a firearm and ammunition while being a convicted felon.
According to court documents, special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) executed a federal search warrant at George’s residence in Port St. Lucie in December of 2020. During the search, agents recovered an AK-style rifle, multiple pistols, and six firearms that had no serial number or manufacturer information. Agents also found over 5,000 rounds of, and parts of, assorted ammunition, as well as machines and tools to manufacture ammunition. George later admitted to building unserialized AR-style rifles, as well as ammunition, and to having previously sold firearms online.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Acting Special Agent in Charge Christopher Robinson of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Miami Field Division, made the announcement.
ATF Miami led the investigation, and Assistant U.S. Attorney Justin Hoover 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 21-cr-14009.
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Miramar Man is Sentenced to 40 Years in Prison for an On-Line Child Exploitation Scheme to Produce Child PornographyRead the Press Release
Miami, Florida – A federal district judge in Fort Lauderdale has sentenced Andres Camilo Ruiz, 31, of Miramar, Florida, to 40 years in federal prison, followed by lifetime supervised release as a sexual offender, for production of child pornography, enticement of a minor, and possession and distribution of child pornography. Ruiz was also ordered to pay restitution to his victims.
Beginning in November of 2018 and continuing through May 14, 2019, Ruiz pretended to be a 12-year-old child named “June” on social media platforms where he met other children throughout the country and tricked and coerced them into creating sexually explicit videos. Ruiz would befriend these children on social media using web-based applications. While pretending to be a child himself, Ruiz would prey upon the unsuspecting child victims by sending them sexually explicit videos of other children and encouraging them to perform the same sexual conduct, record it and send it back to him. Ruiz exploited over 50 children. The youngest child who was coerced by Ruiz into making a sexually explicit video of herself was only nine years old. When Ruiz was arrested, law enforcement found an extensive collection of child pornography on his cell phone and in his cloud account: over 1100 images and videos including images of children engaged in sadomasochistic acts.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the sentence imposed by United States District Judge Roy K. Altman.
FBI Miami investigated the case. Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes 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 no. 19-cr-060223.
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South Florida Federal Jury Convicts Woman of COVID-19 Relief FraudRead the Press Release
Miami, Florida – A federal jury in Fort Lauderdale found a 32-year-old Florida woman guilty of conspiracy and wire fraud for fraudulently obtaining a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Keyaira Bostic, of Pembroke Pines, obtained a PPP loan of $84,515 for her company, I Am Liquid Inc., based on false information about the company’s number of employees and average payroll, and based on false supporting tax and bank documents. Bostic also paid more than $21,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. The evidence also showed that Bostic, in exchange for kickbacks, referred other co-conspirators to the scheme on whose behalf Stote submitted fraudulent PPP loan applications. Those loan applicants sought more than $3.3 million in fraudulent PPP loans and obtained nearly $2 million in PPP loan proceeds.
Bostic was convicted of conspiracy to commit bank fraud and wire fraud and three counts of wire fraud. She was found not guilty of bank fraud. She is scheduled to be sentenced on Feb. 3, 2022, and faces a maximum penalty of 20 years in prison for each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Stote was charged by information on Nov. 10 with wire fraud, bank fraud, and conspiracy to commit wire fraud. His case remains pending.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
The IRS-CI, FBI, and SBA-OIG investigated the cases.
Assistant U.S. Attorney David Turken of the Southern District of Florida and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Criminal complaints, informations, and indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
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 20-cr-60139.
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40-Year Federal Prison Sentence for South Florida Man Who Exploited ChildrenRead the Press Release
Miami, Florida – Today, U.S. District Judge Rodney Smith handed down a 40-year federal prison sentence for Breshawn Hamilton, a 21-year-old Fort Lauderdale man who produced and possessed sexual abuse material of children, coerced minors to engage in sexually explicit conduct, and engaged in sextortion.
From October 2019 through November 2020, defendant Breshawn Hamilton used social networking platforms to meet and communicate with at least seven minor females between the ages of 11 and 15. During chats, Hamilton misrepresented his age, often pretending to be younger than he actually was in order to gain the minors’ trust. He would convince the minors to send him sexually explicit images and videos of themselves. After obtaining the images and videos in question, Hamilton threatened to disseminate them unless the minors agreed to meet him for sexual intercourse or continue to provide him with additional videos and images. Even after the victims complied, Hamilton nevertheless disseminated the videos and images. Law enforcement confirmed that Hamilton met with some of the minor victims who resided in the Fort Lauderdale area in person and raped them, often in their own homes. At times, Hamilton recorded himself having sex with the minors and sold those videos to others.
On August 17, 2021, Hamilton pled guilty to two counts of coercing a minor, four counts of production of child pornography, three counts of sending interstate extortionate threats, and one count of possession of child pornography.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of the Department of Homeland Security, Homeland Security Investigations (HSI), announced the sentence.
“Those who exploit children are the worst of criminals and today’s sentence reflects that,” said U.S. Attorney Gonzalez. “Our Office is committed to protecting our precious children. We will use every available federal resource to investigate and prosecute these abhorrent crimes.”
“Today’s 40-year sentence sends a clear message to those looking to exploit and victimize our children. We will spare no resource to find you and ensure your prosecuted to the fullest extent of the law.” said HSI Miami SAC Salisbury. “HSI and its partner law enforcement agencies are committed to protecting the most vulnerable members of our society and will always be there to protect these innocent victims and put these predators behind bars.”
Anyone with additional information about this crime or potential victims is asked to call 866-347-2423.
Homeland Security Investigations (HSI) Fort Lauderdale investigated the case with assistance from the Florida Department of Law Enforcement, Broward Sheriff’s Office Special Victims Unit, and the South Florida Internet Crimes Against Children (ICAC) Task Force.
Assistant United States Attorney Ajay Alexander prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-60144.
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Tax Preparer Sentenced in COVID-19 Fraud SchemeRead the Press Release
A South Florida tax preparer was sentenced today to two years in prison for perpetrating a scheme to fraudulently obtain over 100 COVID-19 relief loans under the Paycheck Protection Program (PPP).
According to court documents, Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 loan applications sought more than $2.3 million in PPP funds. On each loan application, Rivero falsified the applicant’s prior-year sole proprietorship income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices received approximately $900,000 in PPP loans as a result of the fraud. As part of his plea agreement, Rivero agreed to forfeit that entire amount.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Matthew Line of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG) Investigations Division, Eastern Regional Office made the announcement.
The IRS-CI investigated the case with assistance from the SBA-OIG.
Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff handled the asset-forfeiture component of the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
South Florida Tax Preparer Sentenced in COVID-19 Fraud SchemeRead the Press Release
Miami, Florida – A South Florida tax preparer was sentenced today to 24 months in prison, followed by three years of supervised release, for carrying out a scheme to fraudulently obtain over 100 COVID-19 relief loans under the Paycheck Protection Program (PPP). He was also ordered to pay over $1 million in restitution.
Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 loan applications sought more than $2.3 million in PPP funds. On each loan application, Rivero falsified the applicant’s prior-year sole proprietorship income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices received approximately $900,000 in PPP loans as a result of the fraud. As part of his plea agreement, Rivero agreed to forfeit that entire amount.
U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Matthew Line of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amelake McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
The IRS-CI investigated the case with assistance from SBA-OIG.
South Florida Assistant U.S. Attorney Christopher Browne and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section prosecuted the case. South Florida Assistant U.S. Attorney Nicole Grosnoff handled asset-forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For 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 21-cr-20160.
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Miami Resident Sentenced to 42 Months’ Imprisonment for COVID-19 Relief FraudRead the Press Release
Miami, Florida – Carlos Vazquez, 57, of Miami, was sentenced yesterday to 42 months’ imprisonment for fraudulently obtaining $921,875 through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
On September 13, 2021, Vazquez pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud. According to court documents, Vazquez obtained a PPP loan worth $921,875 for his company, Big League LLC. Vazquez admitted that he submitted fraudulent tax documents and false information about the number of employees and average payroll.
On November 16, 2021, the Honorable United States District Court Judge Donald M. Middlebrooks sentenced Vazquez to a term of imprisonment of 42 months, to be followed by a term of supervised release of 3 years. Vazquez was also ordered to pay $921,875 in restitution.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI) Miami Field Office made the announcement.
Assistant U.S. Attorney Hayden Patrick O’Byrne of the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Annika Miranda of the Southern District of Florida handled asset forfeiture. The IRS-CI investigated the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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 21-cr-20231.
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Former Miami-Dade County Employee Sentenced to Federal Prison for COVID-19 Relief FraudRead the Press Release
Miami, Florida – Today, 58-year-old Miami-Dade County resident Willie Curry was sentenced to six months in federal prison by Senior United States District Judge James Lawrence King after having pled guilty to wire fraud in connection with Curry's fraudulent application to the U.S. Small Business Administration (SBA) for a low-interest COVID-19 relief loan. In determining the sentence, Senior Judge King took into consideration Curry’s seven years of honorable service in the United States Army.
Curry was a long-time employee of Miami-Dade County. In 2019 and 2020, the County employed Curry full-time as a Network Manager. As a County employee, Curry suffered no loss of salary due to the COVID-19 pandemic. Despite this, on June 24, 2020, Curry submitted to the SBA an Economic Injury Disaster Loan (EIDL) application stating that he was the 100% owner of a sole proprietorship operating under the name “Will Curry Computers.” In that application, Curry falsely and fraudulently certified that Will Curry Computers was established on January 1, 2015, and that during the twelve-month period prior to January 31, 2020, Will Curry Computers had gross revenues of approximately $755,416, a cost of goods sold of approximately $170,664, and 10 employees. In reality, Curry established Will Curry Computers in 2020, it had only minimal gross revenues and cost of goods sold during the twelve-month period prior to January 31, 2020, and it had no employees.
Based on the defendant’s materially false and fraudulent EIDL application, the SBA disbursed a $10,000 advance and then $150,000 in loan proceeds to Curry’s listed financial institution for Curry’s benefit. The financial institution instead returned the money to the SBA, and after Curry was notified of this, he made numerous contacts to the SBA in an ultimately unsuccessful attempt to have the money sent to an account he maintained at another financial institution. In the end, his fraudulent efforts were uncovered by law enforcement.
The full sentence imposed by Senior Judge King was six months imprisonment, to be followed by one year of supervised release, with the first six months of supervised release to be served in home confinement. A $100.00 special assessment was also imposed.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Amaleka McCall-Brathwaite, Special Agent in Charge, Small Business Administration, Investigations Division’s Eastern Region (SBA-OIG) announced the sentence.
FBI Miami’s Area Corruption Task Force, which includes task force officers from the Miami-Dade Police Department’s Professional Compliance Bureau, Criminal Conspiracy Section, and SBA-OIG investigated this matter. The Miami-Dade County Office of Inspector General and United States Secret Service provided invaluable assistance. Assistant U.S. Attorney Edward N. Stamm prosecuted this 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.
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 21-cr-20415.
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Convicted Felon Who Staged Robbery with Loaded Glock Sentenced to Federal Prison TermRead the Press Release
Miami, Florida – A South Florida federal district judge has sentenced 34-year-old Ft. Pierce resident and prior convicted felon Terry Burney Delion to five years in federal prison for possessing a firearm during a robbery that he and others staged to try to game the United States immigration system.
On August 29, 2019, law enforcement responded to a 911 call regarding an alleged robbery that took place at a grocery store in Fort Pierce. The alleged victims told law enforcement they were just robbed at gunpoint while taking out the trash behind the grocery store and described the alleged robber as a tall male dressed in dark clothing wearing a ski mask and sweater.
Shortly after that, law enforcement recovered a sweatshirt, loaded Glock, Model 26, 9mm semi-automatic pistol with an extended magazine, and ski mask from a carport less than mile from the grocery store. A law enforcement K-9 tracked the scent from the sweatshirt recovered from the carport to the parking lot of a nearby dollar store, where Delion was arrested. DNA recovered from the sweatshirt and ski mask matched Delion’s profile.
Delion admitted to law enforcement that he possessed the Glock, Model 26, 9mm semi-automatic pistol on August 29, 2019. Delion explained that he was paid by the wife of one of the alleged victims to stage the robberies so that the alleged victims, neither of whom were United States citizens, could obtain status as crime victims and remain in the United States.
Delion has prior felony convictions out of the Southern District of Florida for bank robbery (2010) and brandishing a firearm during and in relation to a crime of violence (2010).
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Christopher Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, announced the sentenced imposed by U.S. District Judge Donald L. Graham.
ATF Miami (Port St. Lucie Office) investigated the case with assistance from Fort Pierce Police Department. Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-14028.
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Fort Lauderdale Jury Convicts Two Defendants for Stealing Veteran and Social Security Benefits: Three Others Plead GuiltyRead the Press Release
Miami, Florida – After an eight-day trial at the Federal Courthouse in Fort Lauderdale, and following three days of deliberations, a jury found Omar Shaquille Bailey and Ronaldo Garfield Green guilty for their roles in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration of over $1.8 million. Senior District Court Judge James I. Cohn read the jury’s verdict and ordered the defendants imprisoned while they await sentencing in January.
A third co-defendant, Jamare Mason, pled guilty to his role in the conspiracy on the second day of trial. Two other co-defendants, Kadeem Gordon and Mario Ricketts, had pled guilty prior to trial. Two remaining co-defendants have yet to be apprehended.
The jury heard testimony from several witnesses that members of the conspiracy obtained the personal information (including names, dates of birth and Social Security numbers) of disabled veterans and Social Security beneficiaries. The conspirators used this information to fraudulently open bank accounts and prepaid debit cards in the victims’ names. They also forged documents in the victims’ names which directed the U.S. Department of Veterans Affairs and the Social Security Administration to deposit benefit payments into those fraudulent accounts, instead of the victims’ legitimate bank accounts.
The trial evidence showed that the defendants, together with other co-conspirators, withdrew these funds from ATMs and banks throughout South Florida and Georgia for their own personal use. Much of the funds were ultimately funneled to the architects of the scheme in Jamaica.
According to evidence presented at trial, over the course of five years, from 2012 to 2017, members of the conspiracy attempted to redirect over $1.8 million in benefits from more than a hundred disabled veterans and Social Security beneficiaries. Although several of these attempts were blocked, the defendants’ scheme resulted in the actual loss of nearly $1 million, money that was diverted from disabled veterans and Social Security beneficiaries. In each instance, the federal government reimbursed these victims for the full amounts of their stolen benefits.
“We remain vigilant in our efforts to defend and protect our disabled veterans and our elderly,” said U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez. “This successful prosecution demonstrates that, despite recent challenges, our Office continues to prosecute anyone who targets vulnerable members of the community.”
“Yesterday, a jury held these defendants accountable for their roles in a large-scale, transnational fraud scheme that preyed upon veterans—many of whom were elderly and at risk—by redirecting VA compensation and pension benefits to other bank accounts or by taking over veterans’ bank accounts,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, is steadfast in our commitment to ensure that veterans are protected from schemes designed to steal the benefits that they earned while defending our country.”
“The jury’s verdict holds Omar Bailey and Ronaldo Green accountable for their greedy and unscrupulous actions that deprived Social Security beneficiaries and disabled veterans of their benefits,” said Rodregas W. Owens, Special Agent in Charge, Social Security Administration Office of the Inspector General, Atlanta Field Division. “I appreciate the investigative efforts of the Transnational Elder Fraud Strike Task Force and our law enforcement partners in dismantling this conspiracy and U.S. Attorney’s Office for prosecuting this case.”
U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez, Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field, and Special Agent in Charge Rodregas W. Owens, Social Security Administration Office of the Inspector General, made the announcement.
U.S. Attorney Juan Antonio Gonzalez commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the Department of Veterans Affairs’ Office of the Inspector General, United States Postal Inspection Service, Homeland Security Investigations, and the Social Security Administration’s Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Sajjad Matin.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
Criminal complaints, informations, and indictments contain mere allegations and defendants are innocent unless and until found 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 19-cr-60313.
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Florida Man Pleads Guilty to Unlawfully Distributing Opioids at His Pain Management ClinicRead the Press Release
Miami, Florida – A Florida man pleaded guilty yesterday to unlawfully distributing opioids at his pain management clinic in Miami, Florida.
According to court documents, Habib Geagea Palacios, 40, of Miami, owned a cash-only pain management clinic in Miami, Florida named General Care Center, Inc. At General Care Center, Palacios paid doctors to prescribe opioids to nearly all patients who visited the clinic, resulting in the illegal distribution of more than two million tablets of Oxycodone 30 mg and generating more than $3 million in cash that was deposited into various bank accounts associated with the clinic and Palacios. Five doctors who worked at General Care Center have already pleaded guilty in connection with their unlawful prescribing practices at the clinic.
Palacios pleaded guilty to one count of conspiracy to distribute a controlled substance and one count of distributing a controlled substance. He is scheduled to be sentenced on January 26, 2022 at 11:00 a.m. and faces a maximum penalty of 40 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 Juan Antonio Gonzalez of 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 the Inspector General (HHS-OIG), Miami Regional Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Deanne L. Reuter of the DEA Miami Field Division; and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), Miami Field Office, made the announcement.
HHS-OIG, FBI, DEA, and USSS are investigating the case.
Assistant U.S. Attorney Kevin J. Larsen of the Southern District of Florida and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section are prosecuting the case.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, and other priority transnational criminal organizations that threaten the citizens of the United States using a prosecutor-led, intelligence driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms.
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 Man Who Laundered Tax and Computer Scam Money Sentenced to Federal PrisonRead the Press Release
Miami, Florida – Fifty-one-year-old Kevin Dewayne Kirby was sentenced yesterday in federal district court in Ft. Lauderdale to 57 months in federal prison for laundering over $500,000 connected to two wire fraud scams.
The first was an IRS tax scam, which generally worked the following way: A fraudster, pretending to be from the IRS, called victims and convinced them that they owed back taxes to the IRS. The fraudster would threaten arrest and other legal action if the tax obligations were not immediately paid. Fearing the threats, victims wired their money to bank accounts that Kirby or his co-conspirators controlled.
The second scam was one involving computer services, which generally worked the following way: Fraudsters, pretending to work for a fake computer service company, called victims and told them that they had to pay a fee to fix or update their computers. Alternatively, the fraudsters told the victims that the fake computer company owned them refunds. Victims allowed the fraudsters remote access to their computers, which the fraudsters used to transfer funds from the victims’ savings accounts, brokerage accounts, or home equity accounts into the victims’ checking accounts. During this process, the fraudsters manipulated the online appearance of the victims’ accounts so that the transfers could not be seen or detected. After making the transfers, the fraudsters would contact the victims and convinced them that the fake computer company had made accidental refund payments to their checking accounts. They instructed victims on how to repay the money by wire transfer. The victims then unwittingly sent their own money (previously transferred by the fraudsters from the victims’ other accounts to their checking accounts) to bank accounts that Kirby and his co-conspirators controlled.
To execute the money laundering conspiracy, Kirby and his co-conspirators used bank accounts connected to eight different companies. After money was wired to these accounts, Kirby and his co-conspirators drained the funds from the accounts by wire transfers, cash withdrawals, money order purchases, and cashier check purchases. Kirby knew that the transactions were designed to conceal the nature of the proceeds. During the conspiracy, over half a million dollars was laundered.
On July 22, 2021, Kirby pled guilty to two counts of money laundering conspiracy and one count of money laundering. U.S. District Judge Rodney Smith imposed Kirby’s sentence.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Mark H. Morini, Jr., Special Agent in Charge, U.S. Treasury Inspector General for Tax Administration (TIGTA), Southern Field Division; Brian Swain, Special Agent in Charge, United States Secret Service, Miami; and Acting SAC is Matthew D. Line, Acting Special Agent in Charge, IRS-Criminal Investigation, Miami made the announcement.
Assistant U.S. Attorney Deric Zacca prosecuted 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 21-cr-60074.
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