Southern District of Florida

Miami, Fl. – South Florida federal prosecutors have charged a 59-year-old woman from Boca Raton with making a communication in interstate commerce that threatened to kill agents from the Federal Bureau of Investigation (FBI). 

According to the allegations in the criminal complaint affidavit, the FBI received an online tip to the National Threat Operation Center (NTOC) on January 16, 2021, that Suzanne Kaye posted information on her Facebook page that she was present at the United States Capitol in Washington, D.C., on January 6, 2021.  On January 28, 2021, agents contacted Kaye by phone and informed her of the FBI’s interest in interviewing her about her travel to Washington, D.C. on January 6, 2021.  Kaye asked the agents if they had proof that she traveled to Washington D.C., says the affidavit.  Agents stated that the FBI would like to interview her about her travel.  Kaye denied having traveled to Washington D.C., but claimed she was aware of individuals who did travel there.  She agreed to speak with the FBI and provided her current address in Boca Raton, Florida.   

The complaint affidavit also alleges that on January 31, 2021, at approximately 10:38 p.m., Kaye posted a video on her Facebook page titled “ANGRY Patriot Hippie” which was captioned, “F--- the FBI!!”  In the video, Kaye announced that she received a telephone call from the FBI asking about her travel to Washington D.C.  Kaye then told her audience in the video that she will not talk to the FBI without counsel, and that she will exercise “my second amendment right to shoot your f------ ass if you come here,” implying that she will use violence against FBI Agents if they come to her residence.  On that same day, Kaye posted the same video to her Instagram and TikTok social media platforms as well, alleges the affidavit.  

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, made the announcement.    

Kaye had her initial appearance this week before a federal magistrate judge in West Palm Beach, where law enforcement officers arrested her.  A bond hearing has been scheduled for February 24, 2021. 

FBI West Palm Beach is handling the investigation.  Assistant U.S. Attorney Mark Dispoto of the Southern District of Florida is prosecuting the case.  

A federal criminal complaint is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-mj-08055. 

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Miami, Fl. – A Florida man pleaded guilty for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini sports car for himself.

Authorities seized the Lamborghini and $3.4 million from the bank accounts of David T. Hines, 29, of Miami, at the time of his arrest. Hines pleaded guilty to one count of wire fraud and is scheduled to be sentenced on April 14.

As part of his guilty plea, Hines admitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies.  Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in PPP loans.

Hines further admitted that within days of receiving the PPP funds, he used the funds to purchase a 2020 Lamborghini Huracan sports car for approximately $318,000. Plea documents indicate that in the days and weeks following the disbursement of PPP funds, Hines did not make payroll payments that he claimed on his loan applications. He did, however, use the PPP proceeds for personal expenses.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s (USPIS) Miami Division, Special Agent in Charge Kevin A. Kupperbusch of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office, Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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 one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

This case was investigated by the FDIC-OIG, USPIS, IRS-CI, the SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG. Assistant U.S. Attorney Michael Berger of the Southern District of Florida and Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and are prosecuting the case.

The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 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.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-20011. 

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A Florida man pleaded guilty today for fraudulently obtaining approximately $3.9 million in Paycheck Protection Program (PPP) loans and using those funds, in part, to purchase a $318,000 Lamborghini sports car for himself.

Authorities seized the Lamborghini and $3.4 million from the bank accounts of David T. Hines, 29, of Miami, at the time of his arrest. Hines pleaded guilty today to one count of wire fraud and is scheduled to be sentenced on April 14.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Office of Investigation’s Atlanta Regional Office, Inspector in Charge Antonio Gomez of the U.S. Postal Inspection Service’s Miami Division, Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration (SBA) OIG, Investigations Division, Eastern Regional Office, Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation (CI) Miami Office, and Acting Special Agent in Charge Stephen Donnelly of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG, Eastern Region, made the announcement.  

As part of his guilty plea, Hines admitted that he fraudulently sought millions of dollars in PPP loans through applications to an insured financial institution on behalf of different companies. Hines caused to be submitted fraudulent loan applications that made numerous false and misleading statements about the companies’ respective payroll expenses. The financial institution approved and funded approximately $3.9 million in PPP loans.

Hines further admitted that within days of receiving the PPP funds, he used the funds to purchase a 2020 Lamborghini Huracan sports car for approximately $318,000. Plea documents indicate that in the days and weeks following the disbursement of PPP funds, Hines did not make payroll payments that he claimed on his loan applications. He did, however, use the PPP proceeds for personal expenses.

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, and in December 2020, Congress authorized another $284 billion in additional 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%. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

This case was investigated by the FDIC-OIG, U.S. Postal Inspection Service, IRS-CI, the SBA-OIG, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection OIG. Trial Attorney Emily Scruggs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case.

The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 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.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A federal grand jury returned an indictment today charging Lucia Andrea Gatta, a former resident of Palm Beach County, Florida, with tax evasion and failing to file Reports of Foreign Bank and Financial Accounts (FBARs), among other offenses, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

According to the indictment, Gatta was born in Chile and became a naturalized U.S. Citizen in 2012. The indictment alleges that, for calendar years 2012 through 2014, Gatta failed to disclose her interest in a Swiss bank account on annual FBARs as required by law. Gatta also allegedly evaded assessment of income taxes on the interest and dividend income she earned in her Swiss bank account and failed to file tax returns with the IRS for tax years 2011 through 2014.

The indictment also charges Gatta with naturalization fraud. According to the indictment, Gatta did not disclose to the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS) that she had failed to report foreign dividend and interest income during her citizenship application process, and she allegedly presented misleading documents to USCIS to substantiate the false statements she made during her naturalization interview.

If convicted, Gatta faces a maximum sentence of five years in prison for each count relating to her failure to file an FBAR and tax evasion. She also faces a maximum sentence of one year in prison for each of the counts concerning the failure to file tax returns. If convicted of naturalization fraud, Gatta faces a maximum sentence of ten years in prison and automatic denaturalization.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

The case was investigated by special agents of IRS-Criminal Investigation and the Department of Homeland Security – Homeland Security Investigations. Trial Attorneys Sean Beaty and Parker Tobin of the Tax Division are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Miami, Fl. – South Florida U.S. Attorney Ariana Fajardo Orshan today issued the following statement on the tragic agent-involved shooting in Sunrise, Florida: 

“It is with heavy hearts that we mourn the deaths of FBI Special Agent Daniel Alfin and Special Agent Laura Schwartzenberger, who were shot and killed today in the line of duty while executing a federal court-ordered warrant in Sunrise, Florida.  We pray for the loved ones of these Special Agents and for their three colleagues who were injured during the shooting.  Today’s tragic events remind us of the bravery of federal agents, who risk their lives to protect our communities and our country. We must never forget that, just as we will never forget the ultimate sacrifice made by Special Agents Alfin and Schwartzenberger.”

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Miami, Florida – Today, Nikolas Cook, 22, of Stuart, Florida, appeared in federal court and was ordered detained pending trial on charges of using a three-year old  girl to produce child pornography and then distributing the images in an internet chat room. Cook is also charged with possessing of child pornography.

According to the allegations in the criminal complaint affidavit, on September 10, 2020, Cook was in a social media chat room used by individuals interested in child sexual abuse material. While participating in the group chat, Cook, while using a pseudonym, distributed multiple pornographic images of a three-year-old girl. FBI learned of the activity and investigated. Within hours, FBI determined Cook’s real identity and residential address and arrested him. During a search of Cook’s residence, agents located a cell phone containing multiple sexually explicit images and videos of minor children being sexually abused.

During a hearing today in federal magistrate court in Ft. Pierce, Cooke was ordered detained pending trial.  His arraignment date is set for February 12.

Ariana Fajardo Orshan, U.S. 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 this case, with assistance from the Martin County Sheriff’s Office. Assistant U.S. Attorney Daniel E. Funk is prosecuting the case. 

A criminal complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-058-SMM.

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Miami, Fl. – Today, federal prosecutors in Ft. Lauderdale filed a criminal complaint charging a 37-year-old West Palm Beach man with kidnapping his ex-girlfriend and her parents at gunpoint from their Pembroke Pines home earlier this month.   

The criminal complaint affidavit alleges the following against Jaddier Thomas Sanchez: Around midnight on January 17, 2020, as the parents of Sanchez’s ex-girlfriend arrived in their truck at their Pembroke Pines home and attempted to go inside, Sanchez appeared with a gun in his hand. Sanchez grabbed the mother by the hair, forced the father into the driver’s seat of their truck, and forced the mother into the bank seat, where Sanchez sat beside her, says the affidavit. With firearm in hand, Sanchez forced the father to drive to several local ATM machines and withdraw thousands of dollars from the couples’ bank accounts. Then, Sanchez directed the couple to drive back to their house for their daughter, whom the defendant had earlier dated for about a month. As with the parents, Sanchez forced his ex-girlfriend into the truck, according to the affidavit. They drove north for several hours, at Sanchez’ direction. Once they reached Belle Glade, Florida, Sanchez left the parents on the side of a road, with their hands and feet bound. Sanchez continued to drive across Florida with the ex-girlfriend, whom he repeatedly hit in the face and threatened to kill, according to the affidavit. On January 18, 2020, police in Alexandria, Virginia stopped the vehicle with Sanchez and the victim inside.  Police arrested Sanchez. He has been in law enforcement custody since then.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.

FBI Miami and its Violent Crimes Task Force investigated the case with assistance from FBI Washington Field Office, Pembroke Pines Police Department, Palm Beach County Sheriff’s Office, Virginia State Police, and Fairfax County Police Department.  Assistant U.S. Attorneys Brooke Latta and Francis Viamontes are prosecuting this federal case. Sanchez also faces state charges in Virginia and Florida.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted in this federal kidnapping case, Sanchez faces a maximum penalty of life imprisonment.  

You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-MJ-6046. 

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The United States has filed a complaint in the U.S. District Court for the Southern District of Florida seeking to bar a Belle Glade, Florida, tax return preparer from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today.

The civil suit against Brandhi Shaw alleges that Shaw prepares returns claiming false refundable fuel credits and American Opportunity tax credits. In addition, the complaint alleges that Shaw prepares returns claiming fabricated businesses income and/or expenses, and related fictitious losses. As a result, the complaint alleges Shaw offset the amount of taxable income reported to make it appear that her customers were entitled to earned income tax credits when they were not.

For example, the complaint alleges that Shaw prepared a return for an individual who did not own a business nor tell Shaw that he or she did. As alleged in the complaint, Shaw claimed a fabricated loss of $37,413 for the non-existent business, which fraudulently reduced the amount of the individual’s taxable income and, in return, his or her reported tax liability.

The complaint further alleges that, by repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of her customers, Shaw has caused her customers to incorrectly report their federal tax liabilities and underpay their taxes, resulting in lost tax revenue to the United States that could exceed $6 million. Moreover, the complaint alleges that Shaw is not and never has been an enrolled return preparer. Rather, according to the complaint, she files tax returns using another tax preparer’s personal identifying information, which makes it difficult to determine the full extent of the harm she has caused.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant (more information can also be found here). The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.

In the past decade, the Justice Department's Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

A federal court in the Southern District of Florida has permanently enjoined a West Palm Beach tax return preparer and her business from preparing federal income tax returns for others, the Justice Department announced today. According to the court’s order, it issued the injunction in response to violations of a prior order in the case that had allowed the preparer and her business to prepare returns subject to certain restrictions.

In April 2017, the United States filed a complaint against Lena D. Cotton and Professional Accounting LDC LLC, that alleged the defendants prepared returns with improper education credits, manipulated filing statuses, and improper vehicle deductions, among other issues. In November 2017, the court permanently enjoined both defendants from this and other specific conduct and required defendants to engage a “neutral monitor” to “determin[e] and/or secur[e] compliance” with injunction.

In an August 2019 order, the court held Cotton and Professional Accounting LDC in contempt of the November 2017 order and “imposed additional limits on [d]efendants’ operations[,]” including restrictions on the number and type of returns they could prepare. The order stated that “[t]hese new restrictions are [d]efendants’ final opportunity” and that the remedy for any further violations “shall be a permanent ban on tax return preparation.”

On Jan. 27, 2021, the court issued an order holding defendants in contempt a second time. According to the order, defendants “have attempted to circumvent the terms of the injunction” and subsequent orders “and have, in some cases, violated the restrictions placed upon them by those [o]rders.” In particular, the court found that Cotton and Professional Accounting LDC “in effect . . . employ[ed] and overs[aw]” other individuals and entities who prepared prohibited returns out of Professional Accounting LDC’s West Palm Beach office, with Cotton and Professional Accounting LDC “retaining a great deal of the profits.” In light of previous violations by Cotton and Professional Accounting LDC, the court found that “any remedy short of a permanent injunction on return preparation is inadequate.”

In addition, the court barred Cotton and Professional Accounting LDC from selling their customer lists to certain non-party individuals or entities, citing the “significant risk” that any such sale could be an “attempt to perpetuate” the “fraudulent schemes” employed by defendants. According to the order, defendants “in effect . . . employ[ed] and overs[aw]” these non-parties and both “individually and through [the non-parties]” attempted to evade and/or violate the restrictions imposed by the injunction and ensuing orders. The order states, “the evidence tends to support a finding that [the non-parties] were aware of” the restrictions that had been placed on defendants and that “most of them worked in active concert or participation” with defendants.

The order specifically names the following individuals and entities: Anthony Boone, Donellar Wims-Boone, Latesha Temple, Melissa Morgan-Wright, Kelly Dunlop, Matthew Dunlop, Richard Wise, Professional Accounting by R&K, Professional Accounting by MM, and Temple Financial Solutions. The order finds that Morgan-Wright founded Professional Accounting by MM. It further finds that Wise and Kelly Dunlop formed Professional Accounting by R&K, and that Matthew Dunlop and Wims-Boone are also “involved with” that entity. Additionally, the order finds that Temple formed Temple Financial Solutions, and Boone prepared tax returns using Temple Financial System’s federal preparer identification. According to the order, Boone, Wims-Boone, Temple, Morgan-Wright, and Kelly and Matthew Dunlop all “previously worked in some capacity for [defendants],” and Wise is a former customer.

According to the order, defendant Cotton referred customers to Temple Financial Solutions, Professional Accounting by MM, and Professional Accounting by R&K, all three of which operated out of defendant Professional Accounting LDC’s office. The order notes that “[a]s of May 13, 2020, approximately 80% of the returns filed in 2020” by the non-parties “were for customers that previously used [d]efendants as their return preparer.” The order notes that “customers who previously had returns prepared by [d]efendants may have thought they were returning to [d]efendants’ business.” In addition, according to the order, defendants “retained a great deal of the profits” on the returns prepared by the non-parties and at least some of the non-parties were compensated by defendants like employees.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant (more information can also be found here). The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.

In the past decade, the Department of Justice’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

West Palm Beach, FL. – West Palm Beach federal prosecutors have charged three defendants with conspiring to distribute over 30 pounds of crystal methamphetamine.  The three defendants are Mexican nationals.  Two of the defendants made their initial appearances today in federal magistrate court in West Palm Beach. The third defendant made his initial appearance on Friday, January 22, before a federal magistrate judge in Wisconsin, where he was arrested.    

The criminal complaint affidavits filed in federal court allege that Armando Arizmendi-Garcia, 24, Bianey Gonzalez-Arizmendi, 28, and Oscar Daniel Martinez-Nunez, 21, conspired to move methamphetamine from Atlanta, Georgia for distribution in West Palm Beach, Florida. The plan was interrupted on January 22, 2021, when Arizmendi-Garcia and Gonzalez-Arizmendi delivered over 30 pounds of crystal methamphetamine to an undercover officer, say the affidavits. Arizmendi-Garcia and Gonzalez-Arizmendi were arrested on January 22, in West Palm Beach. The third man charged, Martinez-Nunez, was arrested the same day close to Madison, Wisconsin. According to the charges, Martinez-Nunez was responsible for coordinating the drug delivery.

Upon conviction, each defendant faces a mandatory sentence of ten years imprisonment, and up to a maximum of life imprisonment. Arizmendi-Garcia and Gonzalez-Arizmendi made their initial appearances today in federal magistrate court in West Palm Beach.  Martinez-Nunez made his initial appearance on January 22, before a federal magistrate judge in Madison, Wisconsin.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Keith Weis, Special Agent in Charge, DEA Miami Field Division made the announcement.

The DEA West Palm Beach District Office handled the investigation, with assistance from DEA-Chicago, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, and Town of Jupiter Police Department. Assistant U.S. Attorney Adam C. McMichael is  prosecuting the case.

This prosecution is the 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.

Criminal complaints are accusations that contain 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 numbers 21-MJ-8011 and 21-MJ-8017.

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MIAMI, Florida -- The United States Attorney’s Office for the Southern District of Florida and Internal Revenue Service-Criminal Investigations (IRS-CI), Miami Field Office, are warning taxpayers about a new wave of COVID-19-related scams as the agency delivers the second round of Economic Impact Payments.

In the last several months, IRS-CI has seen a variety of Economic Impact Payment (EIP) scams and other financial schemes designed to steal money and personal information from taxpayers. Criminals are taking advantage of the second round of Economic Impact Payments – as well as the approaching filing season – to trick honest taxpayers out of their hard-earned money.

“I have two messages concerning the second round of economic impact payments,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida. “The first is to South Florida residents: As our community continues to grapple with the impacts of the pandemic, know that my office remains committed to protecting you and that we will continue to prioritize the prosecution of Covid-19 fraud. My second message is to those fraudsters who seek to capitalize on this ongoing crisis by trying to cheat South Floridians out of relief money: Don’t do it! You will be found. You will be arrested. You will be prosecuted.”

Tyler R. Hatcher, Acting Special Agent in Charge of the IRS-CI Miami Field Office warned, “Economic relief efforts are meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. But we have other plans for those who try to prey on the public, and we are committed to hold them accountable for their criminal actions. Report any phone calls, emails, or text messages asking for your personal information or offering a deal that seems too good to be true.”

Some common COVID-19 scams include:

• Text messages asking taxpayers to disclose bank account information under the guise of receiving the $1,200 Economic Impact Payments.
• Phishing schemes using email, letters and social media messages with key words such as “Coronavirus,” “COVID-19,” and “stimulus” in varying ways. These communications are blasted to large numbers of people and aim to access personally identifying information and financial account information (including account numbers and passwords).
• The organized and unofficial sale of fake at-home COVID-19 test kits (as well as offers to sell fake cures, vaccines, pills, and professional medical advice regarding unproven COVID-19 treatments).
• Fake donation requests for individuals, groups and areas heavily affected by the disease.
• Bogus opportunities to invest in companies developing COVID-19 vaccines while promising that the “company” will dramatically increase in value as a result.

Although criminals are constantly changing their tactics, taxpayers can help protect themselves by acting as the first line of defense. The best way to avoid falling victim to a scam is knowing how the IRS communicates with taxpayers. The IRS does not send unsolicited texts or emails. The IRS does not call people with threats of jail or lawsuits, nor does it demand tax payments on gift cards.

IRS-CI continues investigating hundreds of COVID-19-related cases with law enforcement agencies domestically and abroad and educating taxpayers about scams.

COVID-19 scams should be reported to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721 or submitted through the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation and prosecution of criminal conduct related to natural and man-made disasters and other emergencies.

Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Reports can be made online at TIPS.TIGTA.GOV.

Taxpayers who receive unsolicited emails or social media attempts to gather information that appear to be from either the IRS or an organization closely linked to the IRS, should forward the message to [email protected]. Taxpayers are encouraged not to engage potential scammers online or on the phone.

To learn more about COVID-19 scams and other financial schemes visit IRS.gov. Official IRS information about COVID-19 and Economic Impact Payments can be found on the Coronavirus Tax Relief page, which is updated frequently.

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Miami, Fl. -- Sergei Nkorina, a 55-year-old American citizen indicted in the Southern District of Florida on kidnapping charges, arrived in Miami last night on a flight from Spain pursuant to a request from the U.S. government to extradite the fugitive.  

According to an indictment returned by a South Florida grand jury, on January 14, 2019, Nkorina and his co-defendant, Justin Boccio, abducted their victim from a Walmart parking lot in Broward County, Florida, by grabbing the victim, blindfolding him, and forcing him into a van.  It is alleged that Nkorina and Boccio drove the victim to a storage facility where they blowtorched the victim’s hands and threatened to kill him with a firearm and other weapons. Nkorina and his co-defendant demanded the address and entry code to the victim’s home, which the conspirators later visited while armed, says the indictment. According to other court documents, on January 15, 2019, local law enforcement officers found the victim, with his hands and feet bound, hands burned, and lacerations on his face, inside a car parked at a Broward County gentlemen’s club.

Nkorina was classified as a fugitive on May 24, 2019. Nkorina was arrested in Spain for purposes of extradition based on a request from the United States in accordance with the U.S.-Spain Extradition Treaty.  He arrived in Miami last night.  

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, of the FBI’s Miami Field Office made the announcement.

Boccio, Nkorina’s co-defendant, pled guilty to the kidnapping charges on September 26, 2019.  On December 5, 2019, United States District Judge Cecilia M. Altonaga sentenced Boccio to more than 11 years in prison.

An indictment is merely an accusation and Nkorina is presumed innocent unless and until found guilty in a court of law. Nkorina made his initial appearance today in federal court.  A pre-trial detention hearing is scheduled for Tuesday, January 26, 2021, at 10:00 a.m., in federal magistrate court in Miami.   

FBI Miami investigated this case. This case is being prosecuted by Assistant U.S. Attorney Stephen Demanovich and Lisa H. Miller, former South Florida Assistant U.S. Attorney, now Chief of the Market Integrity & Major Frauds Unit, within the Department of Justice, Criminal Division’s Fraud Section.

U.S. Attorney Fajardo Orshan extends her gratitude to the FBI Miami Violent Crimes/Fugitive Task Force and the Hallandale Beach Police Department for their work, to the government of Spain for making the extradition possible, and to the Department of Justice, Criminal Division’s Office of International Affairs who provided significant assistance in securing the defendant’s extradition. The U.S. Attorney also extends her gratitude to the Spanish Civil Guard and Interpol for their assistance in capturing this fugitive and in bringing him back to the United States. 

You may find related court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 19-cr-20261.

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Fort Lauderdale, FL. – Two defendants were sentenced last week in federal court for their roles in an international firearms trafficking ring. On Monday, January 11, 2021, Naomi Natal Haynes, 41, a citizen of Canada and United States legal resident, was sentenced to 84 months in prison by United States District Judge Roy K. Altman for conspiracy to make false statements to firearms dealers and to smuggle firearms to Canada from the United States, as well as aggravated identity fraud. On January 14, 2020, Marco Ian Almeida-Barreto, 24, of Pompano Beach, FL, was sentenced to 120 months in prison by United States District Judge James I. Cohn, for possession of firearms as a convicted felon.

According to court records, on September 22, 2018, the Canadian Border Service Agency (“CBSA”) intercepted 19 handguns and one silencer which were hidden inside a vehicle with a trap compartment. The seizure occurred after the vehicle entered Canada from Plattsburg, New York. The Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) traced nearly all of the firearms to South Florida and determined several handguns were purchased at gun shows in Palm Beach and Broward Counties. Additionally, three of the firearms, including a Glock Model 43, 9 mm handgun, a Sig Sauer .45 caliber handgun and a Gemtech .45 caliber silencer were reported stolen.

According to court documents, Ameida-Barreto ensured that firearms made their way to Haynes. Haynes drove the 19 firearms and silencer from South Florida to Plattsburg, New York. A co-conspirator drove them the rest of the way into Canada. 

Others charged for their alleged roles in the scheme are Mackenzie Delmas, Enza Esposito, Shalena Mary Haynes, and Jeremy Ruwan Rosello.

Rosello was sentenced on July 24, 2020 to 108 months in prison for his role in the offense.

Delmas is set for trial in July 2021. Esposito and Shalena Haynes are fugitives.

Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, Robert Cekada, Special Agent in Charge, ATF Miami Field Division, Gregory Tony, Sheriff, Broward County Sheriff’s Office made the announcement.

Ms. Fajardo and Mr. Cekada also wish to acknowledge the assistance of the United States Department of Homeland Security, Homeland Security Investigations, United States Customs and Border Protection, and the cooperation of the many international law enforcement agencies, including CBSA, the Royal Canadian Mounted Police, Montreal Police Services, Toronto Police Services and the Ontario Provincial Police, all of which contributed to the successful prosecution of these defendants.

Assistant United States Attorney Adam C. McMichael and Department of Justice Trial Attorney Paola Henry prosecuted these cases.

Delmas, Esposito, and Shalena Haynes are presumed innocent 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 numbers 19-cr-80045 and 19-cr-60383.

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Miami, Fl. – South Florida federal prosecutors have charged two U.S. Virgin Islands police officers and four others with drug trafficking crimes after federal agents discovered more than 300 kilograms of cocaine being carried inside travel bags on a private passenger flight from the Virgin Islands to Miami this week.   

Criminal complaints filed in federal court identify the defendants as Teshawn Adams, 26, Tevon Adams, 26, Anthon Berkeley, 26, Roystin David, 28, Maleek Leonard, 27, and Shakim Mike, 29. Teshawn Adams and Mike live in St. Thomas and are officers with the U.S. Virgin Islands Police Department. David and Leonard also live in St. Thomas. Tevon Adams lives in St. Petersburg, Florida, and Berkeley lives in Orlando.  

The criminal complaint affidavits allege the following: Teshawn Adams accepted an offer from someone in the Virgin Islands to transport cocaine to South Florida in exchange for money. Together with fellow police officer Mike, Teshawn Adams arranged a private flight from the Virgin Islands to South Florida. On January 12, the two officers boarded the jet, joined by defendants David and Leonard and travel bags containing more than 300 kilograms of cocaine. Customs and Border Protection (CBP) officers discovered the cocaine, packaged as 294 individually plastic-wrapped bricks, during a security check: They saw the bricks on the screen of the X-ray machine that scanned the men’s bags at the Opa Locka Executive Airport on arrival. Tevon Adams, twin brother to one of the police officers, and Berkeley stood ready to transport the jet travelers and the cocaine from the Opa-Locka Airport to other areas of Florida, alleges the complaint affidavits. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), and Vernon T. Foret, Director of Miami and Tampa Field Operations, U.S. Customs and Border Protection (CBP), made the announcement.

HSI and CBP investigated the matter, with assistance from Miami-Dade Police Department. Assistant United States Attorney Yeney Hernandez is prosecuting this case.

Criminal complaints are accusations that contain allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

You may find the criminal complaints and related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 21-mj-02049, 21-mj-02050 and 21-mj-02066.   

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Miami, Fl. – On Friday, the former Procurement Director for Broward Health appeared in Ft. Lauderdale federal court to face charges accusing him of awarding lucrative government contracts to vendors in exchange for bribes and of trying to conceal his crimes by directing the bribe money to various bank accounts.  

For about 10 years, Brian Bravo, 46, of Pembroke Pines, Florida, worked as the Corporate Procurement Officer and Director of Materials Management for the North Broward Hospital District, known in the community as Broward Health. According to the five-count indictment, from 2008 to 2015, Bravo engaged in a kickback scheme with vendors that provided products and services to Broward Health, including health care products, linens, compression sleeves, and printer repairs.  During that time, two of the vendors and a consultant for two other vendors made illegal kickback payments totaling hundreds of thousands of dollars to Bravo in order to secure tens of millions of dollars of business from Broward Health, says the indictment. In 2015, Bravo directed the vendors to pay the bribes to two companies that Bravo controlled in order to hide the unlawful nature of the scheme, according to the indictment.

Bravo had his initial appearance and arraignment hearings on Friday before Magistrate Judge Patrick M. Hunt, who sits in Ft. Lauderdale.

Southern District of Florida U.S. Attorney Ariana Fajardo Orshan and FBI Miami Special Agent in Charge George L. Piro made the announcement.

FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey N. Kaplan is prosecuting it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture. 

An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.

You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.  You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-cr-60125.

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Miami, Fl. – Southern District of Florida U.S. Attorney Ariana Fajardo Orshan issued the following statement:

“I condemn Wednesday’s violence at our Nation’s Capitol Building as an intolerable attack on our democracy. My office stands with the Department of Justice and our law enforcement partners as this tragedy is investigated and the offenders are prosecuted. Those responsible for these criminal acts, including any South Florida resident who is found to have participated in the violent attack, will be held accountable.”

Miami, Fl. – Federal prosecutors have charged a Miami nurse with fraud and other crimes in a criminal  complaint that accuses him of lying on coronavirus relief loan applications and fraudulently obtaining close to half a million dollars in relief money intended to help small businesses survive disasters like the current pandemic.

The complaint affidavit alleges that Giraldo Caraballo, 55, falsely applied for and received approximately $420,000 in a Paycheck Protection Program (PPP) loan from a bank on behalf of Professional Skills Inc., a company that he controlled.  According to the affidavit, Caraballo falsely claimed on the PPP loan application that the company had 28 employees and an average monthly payroll of $168,000.  The affidavit also alleges that Caraballo applied for and received approximately $55,000 in Economic Injury Disaster Loan (EIDL) relief. In his EIDL application, Caraballo falsely claimed that his company had four employees and a 12-month gross revenue of $180,000.  In fact, Caraballo’s company had zero employees and no payroll expenses. Caraballo spent the relief money on personal expenses and transferred $239,000 into a personal bank account, says the affidavit.

Caraballo made his initial appearance today before U.S. Magistrate Judge Jacqueline Becerra.  His arraignment is scheduled for January 29, 2020, in federal magistrate court in Miami.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI Miami Field Office made the announcement.

FBI investigated this case. Assistant U.S. Attorney Eli S. Rubin is prosecuting it. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP.  Since its enactment, Congress has authorized hundreds of billions of 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 one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

Another source of relief is funding for the EIDL program, which is administered by the U.S. Small Business Administration.  The EIDL program provides low-interest financing to small businesses, renter, and homeowners in regions affected by declared disasters.  The EIDL Advance is issued to affected employers based on the number of employees the applicant certifies having.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-mj-02014.

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Miami, Fl. -- Jamie Jakia Cofer, a/k/a “Anna Bell,” 24, of Lake Worth, Florida, was charged in a twenty-two count indictment with bank fraud, aggravated identity theft and fraudulent use of unauthorized access devices after using the social security numbers, dates of birth, and other identity and financial information of victims to steal money from their bank accounts, deposit unauthorized checks, make unauthorized credit card purchases, and engage in other fraudulent transactions.  During the alleged crimes, Cofer worked as a home health aide. Cofer’s victims included elderly clients of Cofer’s, whose homes she entered with the supposed purpose of helping them with their home health needs.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office and Brian J. Smith, Chief, Juno Beach Police Department made the announcement.

According to allegations contained in the indictment and previously filed criminal complaint, for over a year starting in January 2019, Cofer worked as a home health aide servicing senior citizens in the South Florida community. During that time, Cofer gained access to her elderly clients’ social security numbers, dates of birth, bank accounts, credit cards, and other information.  Without the knowledge or consent of these elderly clients, Cofer allegedly used the information to steal money from bank accounts, open unauthorized credit card accounts, deposit unauthorized checks, make herself an authorized user on credit accounts, make unauthorized purchases of items such as a mannequin head and wig stand, pay her mobile phone, insurance, and other bills, and send money to a prison inmate, among other things.

For example, Cofer allegedly used one elderly client’s bank account information to set up auto pay on one of Cofer’s utility accounts. Cofer allegedly used her own phone number and email to set up paperless account notifications to prevent this victim from receiving alerts.

Cofer is scheduled to be arraigned on the indictment on January 25, 2021, at 10:00 a.m., before the West Palm Beach Duty Magistrate Judge. 

U.S. Attorney Fajardo Orshan commended the FBI and Juno Beach Police Department for its work on this investigation. She also thanked the Lantana Police Department and Boca Raton Police Department for their assistance.

Assistant United States Attorney Sarah J. Schall is prosecuting this case.

Anyone with information about allegations of elder fraud can report it by calling the National Elder Fraud Hotline at 1-833-FRAUD-11 or 833–372–8311.

More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative at https://www.justice.gov/elderjustice.  For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.

An indictment and criminal complaint are charging instruments containing allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case numbers 20-MJ-8273 and 21-CR-80003-Middlebrooks.  

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Miami, Fl. – A South Florida federal grand jury indicted a former federal agent and three other Miami-Dade residents for their alleged roles in an operation that involved illegal Oxycodone distribution, federal witness tampering, and obstruction of justice.

The indictment charges Alberico Ahias Crespo, 46, a former Special Agent with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), with conspiring to traffic oxycodone, tamper with witnesses, and obstruct justice and with substantive counts of witness tampering.  During the time of the alleged crimes, Crespo worked as part of the South Florida Health Care Fraud Strike Force, made up of interagency teams of federal investigators and prosecutors focused on combating health care fraud and health care-related narcotics trafficking in Southern Florida.  

Also charged in the indictment are Jorge Diaz Gutierrez, 66, Yandre Trujillo Hernandez, 41 and Anais Lorenzo, 32. Diaz Gutierrez, identified in the indictment as a patient recruiter, is charged with drug trafficking, witness tampering, and obstruction of justice crimes.  Hernandez Trujillo and Lorenzo face drug trafficking charges.  

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Derrick L. Franklin, Special Agent in Charge, HHS-OIG, Special Investigations Branch, made the announcement.

Crespo and Diaz Gutierrez were initially charged for their conduct by criminal complaint filed on July 22, 2020.  See case number 20-mj-03211.  According to the criminal complaint affidavit, the illegal Oxycodone distribution system involved patients, pharmacies, and medical clinics.  Patients were recruited and sent to medical clinics to obtain Oxycodone prescriptions that they did not need.  Once the patients obtained the prescriptions, they would give them to the recruiter in exchange for money.  Recruiters would fill the prescriptions at certain pharmacies and sell the Oxycodone pills (at a mark-up) to third party street dealers.  

Also according to the criminal complaint affidavit, Crespo used his position as an HHS-OIG Special Agent working on health care fraud cases to protect the Oxycodone operation by monitoring Strike Force investigations involving the operation, accessing and disclosing sensitive law enforcement information to Diaz Gutierrez, a patient recruiter, updating Diaz Gutierrez on the progress of health care fraud investigations, and coaching Diaz Gutierrez on how to lie to investigators and tamper with evidence.

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG, Special Investigations Branch.  Assistant United States Attorneys Sean T. McLaughlin and Christopher Clark are prosecuting this case.

Indictments and criminal complaints are accusations that contain allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

You may find the indictment and related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20005.   

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Miami, Fl. -- A Florida medical doctor pleaded guilty today in Miami federal court to conspiring to falsify clinical trial data relating to an asthma medication.

Yvelice Villaman Bencosme, 64, of Miami, Florida, was a licensed medical doctor who served as the primary investigator for clinical trials purportedly conducted at a medical clinic called Unlimited Medical Research (Unlimited Medical) in Miami. In pleading guilty, Bencosme admitted that from approximately 2013 to 2016, she participated in a scheme to defraud a  pharmaceutical company by fabricating the data and participation of subjects in a clinical trial at Unlimited Medical. The clinical trial was designed to investigate the safety and efficacy of an asthma medication in children between the ages of four and 11.  Bencosme admitted that she falsified medical records to make it appear that pediatric subjects arrived for scheduled visits at Unlimited Medical, took study drugs as required, and received checks as payment for site visits.

“When those charged with investigating the efficacy of new drugs manipulate the data for personal profit, they violate the public’s trust and pose serious threats to our collective health and safety,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Such selfish and irresponsible behavior is criminal and will be prosecuted.”

“Clinical trials are critical to ensuring the safety and effectiveness of new drugs. Falsifying that data can endanger consumers,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will continue to work hand-in-hand with the FDA to investigate and prosecute fraudsters who put personal profit before public health.” 

“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials. Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review,” said Special Agent in Charge Justin C. Fielder of the Food and Drug Administration (FDA) Office of Criminal Investigations, Miami Field Office. “We will continue to investigate and bring to justice those who deny the public their right to safe and effective medicines.”

Bencosme pleaded guilty before U.S. District Court Judge Beth Bloom. Bencosme faces a maximum penalty of 20 years in prison. Bencosme is the second defendant to plead guilty in this matter. Lisett Raventos, a former study coordinator at Unlimited Medical Research, pleaded guilty to a conspiracy charge in November 2020. Two other defendants were charged in connection with the scheme, and they are presumed innocent until proven guilty beyond a reasonable doubt.

Trial Attorneys Joshua Rothman and Kara M. Traster of the Department of Justice Civil Division’s Consumer Protection Branch are prosecuting the case. The FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida provided critical assistance.

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Miami, Fl. -- A former accountant who assisted in a scam involving valuable artwork and a Swiss bank account has been charged in connection with a scheme to fraudulently obtain a Small Business Administration (“SBA”) loan. 

Daniel Gibson, 57, of Marlboro, New Jersey, was charged today by Information with one count of conspiracy to commit bank fraud, announced United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, Special Agent in Charge for the FBI Miami Field Office George L. Piro, Acting Special Agent in Charge for the IRS  Criminal Investigation Miami Field Office Tyler R. Hatcher, and Special Agent in Charge for the FDIC, Office of Inspector General Kyle A. Myles.

According to court documents, 1 Global Capital LLC was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates beginning in or around 2013.  Gibson was a certified public accountant licensed in the State of New York who served as the accountant for 1 Global, 1 Global’s former chairman, and a number of businesses owend and operated by 1 Global’s former chairman.

The Information alleges that in 2011, 1 Global’s former chairman took out an approximately $3 million loan backed by the SBA, purportedly to be used as working capital for a nutraceutical business that he owned at the time. 1 Global’s former chairman and his wife were required to personally guarantee the SBA loan in full. 

From about 2013 to 2018, Gibson and 1 Global’s former chairmain misrepresented to the SBA that the nutraceutical company failed as a business and that 1 Global’s former chairman had no other assets or income to make his payments on the SBA loan.  According to the Information, Gibson and 1 Global’s former chairman concealed from the SBA certain assets and income that could have been used to repay the loan, including:  (a) money that 1 Global’s former chairman received from 1 Global beginning in 2013, which totaled hundreds of thousands of dollars during the period in question; (b) valuable artwork that belonged to 1 Global’s former chairman; and (c) an offshore Swiss bank account in the name of and controlled by 1 Global’s former chairman, containing at one point over $1 million. Acccording to the Information, the SBA is currently owed $1,783,019.14 on this loan. 

FBI Miami, IRS-CI Miami, and FDIC-OIG investigated the case. Special Assistant U.S. Attorney for the Southern District of Florida Elizabeth Young is prosecuting it, together with DOJ Criminal Division Fraud Section Trial Attorneys Jerrob Duffy, Lisa H. Miller, and L. Rush Atkinson. Assistant U.S. Attorney for the Southern District of Florida Nicole Grosnoff is handling asset forfeiture.

You may find a copy of this press release and more information about the United States Attorney’s Office for the Southern District of Florida at its website:  www.usdoj.gov/usao/fls.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20009.

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Today, the U.S. Department of Justice filed a civil forfeiture complaint in the U.S. District Court for the Southern District of Florida alleging that commercial real estate in Cleveland, Ohio, was acquired using funds misappropriated from PrivatBank in Ukraine as part of a multi-billion-dollar loan scheme. 

Deputy Assistant Attorney General Kevin Driscoll of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Justin E. Herdman for the Northern District of Ohio and Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office made the announcement.

In August 2020, two other civil forfeiture complaints were filed in the Southern District of Florida involving properties in Louisville, Kentucky and Dallas, Texas, in which it was alleged that those properties were also acquired using funds misappropriated from PrivatBank in Ukraine.  All three properties are alleged to be subject to forfeiture based on violations of federal money laundering statutes.

The three complaints allege that Ihor Kolomoisky and Gennadiy Boholiubov, who owned PrivatBank, one of the largest banks in Ukraine, embezzled and defrauded the bank of billions of dollars.  The two obtained fraudulent loans and lines of credit from approximately 2008 through 2016, when the scheme was uncovered, and the bank was nationalized by the National Bank of Ukraine.  The complaints allege that they laundered a portion of the criminal proceeds using an array of shell companies’ bank accounts, primarily at PrivatBank’s Cyprus branch, before they transferred the funds to the United States.  As alleged in the complaint, the loans were rarely repaid except with more fraudulently obtained loan proceeds.

As alleged in the complaints, in the United States, associates of Kolomoisky and Boholiubov, Mordechai Korf and Uriel Laber, operating out of offices in Miami, created a web of entities, usually under some variation of the name “Optima,” to further launder the misappropriated funds and invest them.  They purchased hundreds of millions of dollars in real estate and businesses across the country, including the properties subject to forfeiture: the office tower known as 55 Public Square in Cleveland, Ohio, the Louisville office tower known as PNC Plaza, and the Dallas office park known as the former CompuCom Headquarters.  The buildings have a combined value of more than $60 million.

A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

FBI’s Cleveland Division is investigating the case with support from FBI’s International Corruption Unit, IRS Criminal Investigation, and U.S. Customs and Border Protection.  International Unit Chief Mary K. Butler, Senior Trial Attorney Michael C. Olmsted, Trial Attorneys Shai D. Bronshtein and Peter Steciuk, and Law Clerk Robert Blaney of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Adrienne Rosen of the U.S. Attorney’s Office for the Southern District of Florida are handling these cases.  The Justice Department’s Office of International Affairs has provided substantial assistance in the investigation.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.  In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected] (link sends e-mail) or https://tips.fbi.gov/.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

West Palm Beach, FL. – On Monday, December 28th, Laura Luz Maria Torres Romero a/k/a Antonieta Mena, a/k/a Antonieta Vinkelried, a/k/a Antonieta Winkelried, of Lake Worth, Florida, the lead defendant in a $4 million scheme to defraud the US immigration and tax systems, pled guilty before U.S. District Judge Kenneth Marra, in the Southern District of Florida.  Torres pled guilty to one count of conspiracy to commit immigration and mail fraud, one count of conspiracy to steal and launder government money, and one count of false statements to the US Department of Agriculture’s food assistance program.  Co-conspirator Melanie Wilhelm, of West Palm Beach, previously pled guilty to the two conspiracy charges. 

According to court documents, from approximately 2012 through March 2020, Torres, with the assistance of Wilhelm and other co-conspirators, operated a multiservice business, which provided immigration and other services to the public. The business operated under different names, including El Latino Multiservices, Inc., M&K Multiservices, Inc., L&L Document Services, Inc., and AYE Services, Inc. from different locations in Lake Worth and West Palm Beach, Florida.  Torres was the true owner and controlled all aspects of the business.  

Torres solicited clients primarily by word of mouth.  Most of the clients who sought her assistance had illegally entered the United States many years earlier and were ineligible for asylum benefits.  Most of her clients were from Guatemala or Honduras, did not speak English, had little formal education, and minimal knowledge of the immigration rules and procedures in the United States.  Torres represented herself as an experienced and knowledgeable immigration document preparer, who could assist them with identifying the proper immigration program to secure legal status.  

Torres would obtain background information from the clients, but never asked them if they had suffered persecution in their native countries.  Although she had no information to support that the clients were eligible for asylum or other immigration benefits, Torres falsely prepared fraudulent asylum applications for her clients.  Torres knowingly made up false and fictitious narratives of persecution the clients had purportedly suffered in their native countries.  Most of the applications contained similar, and at times identical, stories of persecution. 

Torres never showed the false and fraudulent asylum applications to the clients.  Instead, she presented the clients with only the signature page and had them sign the asylum application in blank.  More often, Torres, Wilhelm or another co-conspirator would simply forge the client’s name on the fraudulent asylum application.  Torres never completed or signed the preparer section of the asylum application so that she could conceal from the United States Citizenship and Immigration Services (USCIS) her role in preparing the false applications.  Torres, Wilhelm or another co-conspirator sent the false asylum applications to USCIS for processing. 

Torres required the clients to pay up-front cash fees for her services.  Torres’ fees varied from client to client and increased as the scheme went on, but typically ranged from $2,500 to $4,000 for the initial asylum application. 

Torres knew the clients would be eligible to apply for employment authorization cards (“work permits”) if their asylum applicants were pending for more than 150 days.  Torres routinely filed such applications for her clients, claiming that the clients were eligible for work permits based on the pending false asylum applications.  Torres, Wilhelm or another co-conspirator forged the clients’ names on the fraudulent applications for employment authorization.  Torres falsely listed her office address as the mailing address on the employment authorization applications so she would receive the work permits and all USCIS correspondence.  When the work permits arrived, Torres demanded additional fees from the clients.  If a client declined to pay the additional fees, Torres threatened to return the client’s work permit which, she claimed, would result in the client’s arrest and deportation.

Torres or a co-conspirator met with the clients at her office to prepare them for their asylum interviews.  At the meetings, the clients saw the false and fraudulent asylum applications for the first time.  Torres directed the clients to memorize the details of the false asylum claims and repeat them to the asylum officers.  Torres warned the clients they would not be permitted to stay in the United States if they did not tell the asylum officer exactly what was written in their application. 

During the course of the scheme, Torres collected more than $2 million in cash fees from hundreds of clients and filed approximately 1,000 false and fraudulent asylum and employment authorization applications.  The false applications caused USCIS to issue work permits to hundreds of ineligible aliens.  In addition, Torres, Wilhelm and their co-conspirators deceived and misled hundreds of clients by promising to provide them with legitimate immigration services and instead filing false immigration applications in their names and providing them with fraudulently procured work permits. 

Throughout the immigration scheme, Torres and her co-conspirators obtained personal identifying information, including names, dates of birth, and social security numbers, from her immigration clients. Without the knowledge or consent of her clients, Torres used the information to prepare false and fraudulent tax returns, seeking significant refunds. The returns included one or more materially false statements, including false addresses, fake education credits, fictitious dependents, false childcare and earned income credits, and false business income, expenses and deductions.

Torres and the co-conspirators forged the clients' names on the fraudulent tax returns and then submitted the returns to the IRS. In support of the false and fraudulent tax returns, Torres, Wilhelm and the co-­conspirators created and submitted to the IRS false and fictitious documents, including fake leases, fake childcare receipts, and fake business receipts.

During the first few years of the scheme, Torres directed the IRS to direct deposit the fraudulent refunds into a TD bank account, which Torres opened using a stolen identity. Later in the scheme, Torres had the IRS mail the fraudulent refund checks to the "home addresses" listed on the returns. These "home addresses" were in fact properties owned and/or controlled by Torres. Wilhelm and the co-conspirators would retrieve the fraudulent tax refund checks from the home addresses listed on the returns and deliver them to Torres. Torres, Wilhelm and other co-conspirators forged the names of the clients on the back of the refund checks. To conceal her receipt of and control over the refund checks, Torres arranged to have a co-conspirator attorney in California launder the refund checks through her attorney trust account, in return for a 10 percent fee. The co-conspirator attorney issued checks drawn on her attorney trust account for 90 percent of the value of the refund check. At Torres' direction, the co-conspirator attorney made the resulting checks for 90 percent of the proceeds payable to companies owned or controlled by Torres and then mailed the checks to Torres' office. Torres, Wilhelm or another co-conspirator deposited the checks issued by the co-conspirator attorney into business accounts controlled by Torres. The monies from these checks were withdrawn from the Torres company accounts by ATM withdrawals, checks or wire transfers and used by Torres to benefit herself, Wilhelm and the other co-conspirators.

During the course of the tax and money laundering scheme, which ran from approximately 2011 through April 2019, Torres used the names, dates of birth and social security numbers of the immigration clients to file over 200 false tax returns with the IRS, seeking fraudulent refunds totaling approximately $1.8 million.

While Torres was collecting millions of dollars from the immigration and tax fraud schemes, she also applied for benefits from the Supplemental Nutrition Assistance Program (SNAP).  She received SNAP benefits from at least as early as 2008 through 2020.  To establish her continued eligibility for SNAP benefits, Torres submitted annual recertification applications to the United States Department of Agriculture, through the Florida Department of Children and Families.  In the recertification forms, Torres knowingly and willfully made numerous materially false statements, including that her name was “Antonieta A. Mena,” that she was a US citizen, that she had received no income other than Social Security benefits, and that her deceased mother was a member of the household.  Based on her false statements, Torres received approximately $67,000 in SNAP benefits for which she was not eligible, during the period 2008 through 2020.  

At sentencing, Torres faces a maximum penalty of 15 years in prison.   Wilhelm faces a maximum penalty of 10 years in prison.  Both Torres and Wilhelm also will be sentenced to supervised release, penalties, and restitution. Torres’ sentencing hearing is scheduled for March 12, 2021, in West Palm Beach before the Honorable U.S. District Judge Marra and Wilhelm is scheduled for sentencing on March 5, 2021.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Miami Field Office, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

HSI Miami and IRS-CI Miami investigated the case. Assistant U.S. Attorneys Adrienne Rabinowitz and Ellen Cohen prosecuted this case.  

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

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 on http://pacer.flsd.uscourts.gov, under case number 20-80072-CR-MARRA/MATTHEWMAN.

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Miami, Fl. – A federal district judge has sentenced a Miami man convicted of running a nationwide counterfeit check cashing and identity theft scheme while illegally possessing a firearm to 129 months in prison.  The man, who used fraud proceeds to buy personal luxury items, including a 39-foot Midnight Express powerboat with triple 400 horsepower Mercury engines, also was ordered to pay over $1.8 million in restitution to victims.  

Defendant Carlos Miguel Rodriguez, Sr. a/k/a “Il Padrino,” 45, executed the fraud scheme with help from his son, daughter, and others, who are also convicted defendants in this case.  The swindle operated as follows: Rodriguez, Sr. and his daughter would purchase names, dates of birth, addresses, and social security numbers of unwitting bank customers on the dark web.  With the stolen information, Rodriguez, Sr.’s son accessed the victim’s bank accounts to change contact information to a phone number that he and his father controlled.  He also downloaded checks signed by the account holders to use as templates for counterfeit checks.  Once the counterfeit checks were ready, Rodriguez, Sr. would give them to other co-conspirators, tasking them with finding people who would visit the banks to cash the checks.  Sometimes, Rodriguez, Sr. recruited the check cashers himself, using people living on the street or in homeless shelters.  The fraudsters had counterfeit checks cashed at banks in South Florida and in California, Texas, and Utah – states to which they traveled for that purpose.  Rodriguez, Sr. deposited the cash from the counterfeit checks into different bank accounts to disguise the source of the money.

Rodriguez, Sr.’s sentence follows his guilty plea and conviction on January 29, 2020, on one count of conspiracy to commit bank fraud and wire fraud, one count of aggravated identity theft, and one count of possession of a firearm by a convicted felon.

Also sentenced yesterday for their roles in the fraud scheme were Rodriguez, Sr.’s son, Carlos Miguel Rodriguez, Jr., and Kenny Alfaro, to 52 months imprisonment and 46 months imprisonment, respectively.  Each was ordered to pay over $1.8 million in restitution.  On September 21, 2020, Raul Alpizar Gonzalez was sentenced to 52 months imprisonment and ordered to pay over $1.8 million in restitution.  On July 23, 2020, Rodriguez, Sr.’s daughter, Taily Rodriguez, and Maipu Fonseca, were sentenced to 24 months’ imprisonment and credit time served, respectively.  Taily Rodriguez was ordered to forfeit her home.  All defendants are from Miami.

Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Brian Swain, Special Agent in Charge, United States Secret Service, Miami Field Office, made the announcement.

FBI Miami and Secret Service Miami investigated this case.  Special Assistant U.S. Attorney Elizabeth Young prosecuted it.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.  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-20631.

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FORT LAUDERDALE – On December 16-17, 2020, Kejuan Brandon Campbell, 26, Tamarac, Florida, and Dionte Alexander-Wilcox, 24, Miramar, Florida, were arrested for kidnapping and conspiracy to kidnap pursuant to a criminal complaint, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives.

According to the criminal complaint, Campbell, Alexander-Wilcox, and another individual forcefully gained entry into the residence of the two victims, brandishing firearms and threatening to kill them if they did not provide them with twenty thousand dollars ($20,000.00) in United States currency. After multiple failed attempts to obtain the money through Cash App, Campbell forced the female to travel with him to multiple businesses in order to cash checks or withdraw money from the victim’s debit card; however, when Campbell could not get the requisite amount of money, he, Alexander-Wilcox, and the other individual spent the night at the victims’ residence, eating their food and drinking their liquor.  During the evening, Alexander-Wilcox sexually assaulted one of the victims at gunpoint. The next day, after forcing the victims to increase their withdrawal limit, Campbell took one of the victims to multiple banks to withdraw over $20,000.00 in cash while Alexander-Wilcox and the other individual remained at the victims’ residence and held the other victim at gunpoint. After obtaining the money, Campbell, Alexander-Wilcox, and the other individual departed from the scene and recorded themselves counting the large stacks of money. During the course of its investigation, law enforcement recovered forensic evidence linking Campbell, Alexander-Wilcox, and the other individual to the scene of the home invasion, video surveillance and other documents of Campbell with one of the victims, and one of the firearms used during the home invasion through the use of trained canines.

The criminal complaint is only an allegation. Campbell and Alexander-Wilcox are innocent until such time that they are proven guilty. If convicted, both Campbell and Alexander-Wilcox face a maximum sentence of life imprisonment and a term of supervised release of up to 5 years.  

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, the FBI Miami Violent Crime Task Force, ATF, Miramar Police Department, U.S. Marshal Service, Broward Sheriff’s Office and Lauderhill Police Department in this matter. This case is being prosecuted by Assistant U.S. Attorney Ajay Alexander.

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 on http://pacer.flsd.uscourts.gov, under case number 20-mj-06653.

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Miami, Fl.-- Today, Marquies McGirt, 32, a former Miami-Dade Police Department (“MDPD”) public service aide (“PSA”) pled guilty to conspiring to commit mail fraud, by accepting bribes from a co-conspirator who operated a for-profit credit repair business.

According to court documents, a PSA is an unarmed civilian employee with no arrest powers, whose duties essentially involve providing support to sworn police officers.  A PSA performs duties that can include investigations of non-violent crimes, minor crime scene processing, and other routine non-emergency law enforcement activities – such as directing traffic and responding to accidents without serious injury.  As part of a PSA’s official duties, a PSA may respond to a reported incident of the offense under Florida state law of “criminal use of personal identification,” which is commonly known as identity theft. 

The credit repair business operated by McGirt’s co-conspirator assisted individuals in improving their credit scores, including individuals residing in Miami-Dade County.  The essence of the conspiracy involved McGirt agreeing to assist his co-conspirator’s business by creating police reports known as Offense-Incident Reports (“OIRs”) that alleged certain customers of the co-conspirator’s credit repair business had been victims of identity theft.  In return for creating the OIRs, McGirt would receive bribes from the co-conspirator in the form of cash and lifetime free credit monitoring, as well as discounted credit repair services for McGirt’s family members and friends.

In furtherance of the conspiracy, McGirt’s co-conspirator would provide McGirt with the customers’ names and other identifying information, so that McGirt in turn could create OIRs that claimed those customers had been victims of the Florida state law offense of criminal use of personal identification.  McGirt would create OIRs, consistent with this plan.  In the OIRs, McGirt would falsely represent that the alleged “victims” personally had reported to him facts consistent with having been victims of identity theft, when in fact McGirt had never met with the alleged victims.

The co-conspirator would send letters, via the United States Postal Service, to Experian, TransUnion, and Equifax, which were credit reporting agencies that collected and maintained data relevant to the credit worthiness of individual consumers.  In order to induce the credit reporting agencies to remove negative items from the credit histories of the co-conspirator’s customers, the letters would claim that the co-conspirator customers had been victims of identity theft.  To support the claims in these letters, the co-conspirator could include a copy of the relevant OIR provided by McGirt.

Records obtained through the investigation of this case reflect that the defendant created approximately twenty-four (24) OIRs in the manner described above, which the co-conspirator in turn sent to one or more of the credit reporting agencies. 

McGirt’s sentencing hearing is scheduled for February 23, 2021, at 11:00 a.m. before U.S. District Judge Ursula Ungaro.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Alfredo Ramirez III, Director, Miami-Dade Police Department, made the announcement.

FBI Miami investigated this case, with assistance from the MDPD Professional Compliance Bureau.  Assistant U.S. Attorney Michael S. Davis is prosecuting the case. 

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

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20202.

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Miami, Fl. -- A South Florida male escort who lied to the IRS about his income pled guilty today in federal court in Ft. Lauderdale to filing a false tax return.

According to court documents, 46-year-old Jami Kopacz worked as a paid escort for clients across the United States.  Kopacz received payments directly from his escort clients and from a private business for whom he worked as an independent contractor.  From 2015 to 2018, Kopacz used his corporation, JK Training, LLC, to receive income. Then, he filed false corporate tax returns (Forms 1120S) that substantially underreported the company’s gross receipts and total income.  The understatement on JK Training’s corporate tax returns consequently passed through to Kopacz’s individual tax returns, which were also false as they underreported his total income. Kopacz caused a total tax loss of $278,325.

Kopacz’s sentencing hearing is scheduled for March 5, 2021, in Ft. Lauderdale before the Honorable U.S. District Judge Roy K. Altman.  Kopacz faces up to three years in prison plus supervised release, penalties, and restitution.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Tyler R. Hatcher, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.

IRS-CI Miami investigated the case. Assistant U.S. Attorney Christopher Browne and Trial Attorney Grace Albinson are prosecuting it.  

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

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 on http://pacer.flsd.uscourts.gov, under case number 20-cr-60096.

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Miami, Fl. -- A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme.  An alleged co-conspirator was previously charged in the original indictment.

Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering. 

Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same conspiracy and money laundering counts.  He is currently a fugitive residing in Venezuela.  

The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government.  Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches and a fashion line.  To conceal the bribe payments, Gorrin made payments through multiple shell companies. 

Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2017 for his role in the conspiracy to commit money laundering.  As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, Special Agent in Charge Peter C. Fitzhugh and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

HSI Miami, HSI Houston, HSI Boston, FBI Miami, and FDIC D.C. investigated this case. Assistant U.S. Attorney Kurt Lunkenheimer, of the Southern District of Florida, and Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff and Assistant U.S. Attorney Nalina Sombuntham, of the Southern District of Florida, are handling asset forfeiture. The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant assistance.

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

You may find court documents on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 18-cr-80160.

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A former Venezuelan National Treasurer and her spouse were charged in a superseding indictment filed Tuesday for their alleged participation in a previously indicted billion-dollar currency exchange and money laundering scheme.  An alleged co-conspirator was previously charged in the original indictment.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Acting Special Agent in Charge David Magdvcz of HSI Boston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office, and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG) made the announcement.

Claudia Patricia Diaz Guillen (Diaz), 47, and her spouse, Adrian Jose Velasquez Figueroa (Velasquez), 41, Venezuelan citizens who reside in Madrid, Spain, were charged in a superseding indictment filed in the Southern District of Florida with one count of conspiracy to commit money laundering and two counts of money laundering. 

Raul Gorrin Belisario (Gorrin), 52, a Venezuelan billionaire businessman who owns Globovision news network, was charged by indictment in August 2018 and remains charged in the superseding indictment as a co-conspirator in the same money laundering conspiracy and money laundering counts.  He is currently a fugitive residing in Venezuela.  

The superseding indictment alleges that Gorrin paid millions of dollars in bribes to two former Venezuelan national treasurers, Alejandro Andrade Cedeno (Andrade) and Diaz, and to Velasquez, for the benefit of Diaz, to corruptly secure the rights to conduct foreign currency exchange transactions for the Venezuelan government at favorable rates.  Gorrin wired money to and for the benefit of Andrade and Diaz, including money for private jets, yachts, homes, champion horses, high-end watches, and a fashion line.   

Andrade, 56, a Venezuelan citizen, was previously sentenced to 10 years in prison in November 2018 for his role in the conspiracy to commit money laundering.  As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC OIG are investigating this case.  This case is being prosecuted by Assistant Chief Vanessa Sisti and Trial Attorney Paul A. Hayden of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Kurt Lunkenheimer and Nalina Sombuntham of the Southern District of Florida.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant assistance.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Miami, Fl. -- Today, 38-year-old rapper Lil Wayne pled guilty in federal district court to illegally possessing a loaded, gold-plated .45-caliber handgun while traveling to South Florida on a private plane last Christmas season. 

According to court documents, an anonymous tip led officers to Opa Locka Executive Airport on December 23, 2019, where Lil Wayne, whose official name is Dwayne Michael Carter, arrived on a private flight from California. Officers spoke with Carter, who told them that he had a gun in his bag.  After securing a search warrant, officers looked in the bag containing Carter’s personal items and found a gold-plated Remington 1911, .45-caliber handgun loaded with six rounds of ammunition. The bag also contained personal use amounts of cocaine, ecstasy, and oxycodone. Prior to December 23, 2019, Carter had been convicted of a felony, which made his possession of the gun and ammunition on that day illegal.

Carter’s sentencing hearing is scheduled for January 28, 2021, at 2:00 p.m., before U.S. District Judge Kathleen M. Williams.  Carter faces up to 10 years in federal prison.

Ariana Fajardo Orshan, 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 this case, with assistance from the Miami-Dade Police Department and Miami-Dade State Attorney’s Office. Assistant U.S. Attorney Daniel J. Marcet is prosecuting the case. 

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

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20222.

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Miami, Fl. -- Two Miami residents accused of stealing 192 U.S. government-owned medical ventilators worth about three million dollars were indicted on federal charges. According to court documents, the ventilators were heading to a COVID-19 intensive care facility in El Salvador as part of a United States Government COVID-19 aid program when they were stolen in South Florida, while in transit. 

The indictment charges Yoelvis Denis Hernandez, a/k/a "Guajiro," 42, and Luis Urra Montero, a/k/a "Flaco," 24, with federal conspiracy, possession of stolen goods being shipped interstate, and theft of government property. According to the indictment and other court documents, on August 9, 2020, Hernandez and Montero stole a tractor trailer loaded with 192 medical ventilators, during its transport by truck to Miami International Airport. USAID had acquired the ventilators and was sending them to the Government of El Salvador as part of an aid program to treat critically ill COVID-19 patients there. According to court documents, Hernandez and Montero stole the trailer from a lot where the driver had left it overnight. Following an investigation, law enforcement found most of the stolen ventilators. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ann Calvaresi Barr, Inspector General, United States Agency for International Development, Office of Inspector General ("USAID-OIG"), made the announcement. 

FBI, FBI Miami's Major Theft Task Force, and USAID-OIG investigated this case, with assistance from Boynton Beach Police Department, Miami Dade Police Department, Medley Police Department, City of Miami Gardens Police Department, and Broward Sheriff's Office. Assistant U.S. Attorney Lindsey Lazopoulus Friedman is prosecuting it. 

An indictment is merely a charging document and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 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 Hotline at 866-720-5721. 

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-20252.

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Miami, Florida – A South Florida federal district judge sentenced a Washington D.C. man who operated a fraudulent diamond investment scheme to serve 84 months in federal prison and pay over $23 million in victim restitution. 

From about May 2014 through May 2019, defendant Jose Angel Aman and his partners solicited people throughout the United States and Canada to invest in diamond contracts.  Aman and his partners promised investors that they would use the money to purchase rough colored diamonds for Aman to cut, polish and resell at a profit.  They reassured investors that their money was safe because it was secured by Aman’s inventory of diamonds (purportedly valued at $25 million). Aman and his partners presented the investment as a high return, no risk deal.

These promises and statements were false.  Aman rarely used investors’ money to purchase, cut, and resell rough diamonds.  Nor did Aman have a $25 million diamond inventory.  To conceal the fraud, Aman made purported interest payments to existing investors with money from new investment victims.  At the end of the investment period, Aman and the partners would convince the investors to roll over their money by falsely claiming that the investors had the full value of their investments to put into new deals.  They provided sham “Reinvestment Contracts” to the investors, a tactic they used to buy time until Aman could locate new investors and additional money.

When this scheme was about to collapse, Aman set up a new business, Argyle Coin, LLC, which was purportedly in the business of developing a cryptocurrency token backed by diamonds.  Aman solicited new investors for Argyle, promising high rates of return with no risk.  Aman used only a fraction of the money received from Argyle investors to develop a cryptocurrency token.  He used most of it to pay purported interest payments to the earlier investors and to benefit himself and his partners.

During the course of the Ponzi scheme, Aman and his partners collected over $25 million from hundreds of investors.  Among other things, Aman used the money to support his lavish lifestyle.

Aman was sentenced by U.S. District Judge Rodolfo A. Ruiz II, who sits in Fort Lauderdale.  This matter was investigated by FBI West Palm Beach, with assistance from the Florida Office of Financial Regulation.  AUSAs Ellen Cohen and Adrienne Rabinowitz prosecuted this case.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office, made the announcement.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-cr-80062.

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A dual Venezuelan-Italian citizen who controlled multiple companies via U.S. based bank accounts was charged in an indictment returned Tuesday for his role in laundering the proceeds of inflated contracts that were obtained by making bribe payments to officials at Venezuela’s state-owned and state-controlled energy company Petróleos de Venezuela S.A. (PDVSA).

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, and Acting Special Agent in Charge Tyler R. Hatcher of the IRS Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.

Natalino D’Amato, 61, of Venezuela, was charged in an 11-count indictment filed in the Southern District of Florida.  D’Amato was charged with one count of conspiracy to commit money laundering, four counts of international money laundering, three counts of promotional money laundering, and three counts of engaging in transactions involving criminally derived property.

The indictment alleges that, beginning in January 2013 and continuing through  December 2017, D’Amato conspired with others, including officials at joint ventures between PDVSA and various foreign companies in the oil-rich Orinoco belt of Venezuela, to launder the proceeds of an illegal bribery scheme to and from bank accounts located in South Florida.  These joint ventures were majority owned and controlled by PDVSA.  According to the indictment, D’Amato offered and paid bribes to numerous Venezuelan officials who worked at the PDVSA joint ventures in order to obtain highly inflated and lucrative contracts to provide goods and services to the PDVSA joint ventures.  The indictment further alleges that over the course of the conspiracy, companies controlled by D’Amato received approximately $160 million from the PDVSA joint ventures into accounts he controlled in South Florida.  According to the charges, D’Amato used a portion of those funds to make payments to or for the benefit of the Venezuelan officials.

The indictment also includes allegations seeking criminal forfeiture of bank accounts involved in the charged offenses, with funds totaling approximately $45 million.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.         

This case was investigated by the HSI Miami Field Office and IRS-CI Miami Field Office.  Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case.  Assistant U.S. Attorney Adrienne E. Rosen of the Southern District of Florida is handling asset forfeiture.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Miami, Fl. -- A former federal correctional officer was sentenced today to 70 months in prison for sneaking contraband items into the Miami prison where he worked and distributing them to inmates in exchange for bribe money. 

From as early as December 2018 through September 2019, Victor Manuel DeJesus (“DeJesus”), 48, used his official position as a correctional officer at FCI-Miami federal prison to bring prohibited items, including controlled substances, cellular telephones, and SIM cards, into the prison and distribute them to inmates who lived there. In exchange for this service, DeJesus accepted bribe payments from inmates and their associates. DeJesus used inmate co-conspirators to distribute the contraband within FCI-Miami.

In connection with this criminal conduct, DeJesus pled guilty earlier this year to conspiracy, bribery, and other charges. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and James F. Boyersmith, Special Agent in Charge, Department of Justice Office of the Inspector General, Miami Field Office, made the announcement. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, Department of Justice Office of the Inspector General, the United States Postal Service, and the Bureau of Prisons in this matter. Assistant U.S. Attorney Alejandra L. López prosecuted this case. 

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

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 19-cr-20660-RNS.

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Miami, Fl. -- A Florida man, recently named one of Florida’s high school basketball coaches of the year, was arrested and charged with fraudulently obtaining $984,710 in a Paycheck Protection Program (PPP) loan.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General (OIG), and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI) made the announcement.

Terrence Deshun Williams, 40, of Tamarac, Florida, was charged by criminal complaint in the Southern District of Florida with one count of bank fraud, one count of money laundering, one count of engaging in transactions in unlawful proceeds, and one count of making false statements to a financial institution.

The complaint alleges that Williams, the head coach of the boys’ varsity basketball team at a Fort Lauderdale high school, applied for and received $984,710 in a PPP loan from an insured financial institution on behalf of Williams Consulting Group LLC, a company Williams owned.  The complaint alleges that although Williams claimed the company had 67 employees and an average monthly payroll of $393,884.00, the company in fact paid no such payroll and did not have any recorded employees with the State of Florida.  The complaint alleges that after receiving the loan proceeds, instead of using the money for an approved purpose, Williams laundered the vast majority by transferring the proceeds to several accounts he controlled at a different financial institution.  The complaint also alleges that Williams received into his company’s bank account Florida Unemployment Insurance benefits.

Williams is scheduled for an initial appearance today at 11:00 a.m. before U.S. Magistrate Judge Lurana Snow, who sits in Ft. Lauderdale.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 29, 2020.  It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.  One source of relief provided by the CARES Act is 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 one percent.  Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Fajardo Orshan commends FDIC-OIG and the FBI.  Assistant U.S. Attorney Eli S. Rubin of the Southern District of Florida is prosecuting the case.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-mj-6580.

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Miami, Fl. – A recently unsealed criminal complaint charges Miami-Dade County Police Officers Roderick Michael Flowers, 30, and Keith Maurice Edwards Jr., 28, with conspiring to traffic cocaine. It also charges Manuel Carlos Hernandez, 23, in the cocaine trafficking conspiracy, and Hernandez, Durojaiye Obafemi Monsuru Lawal, 24, and Trevanti McLeod, 23, all from South Florida, with money laundering crimes.      

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Keith Weis, Special Agent in Charge for DEA Miami, made the announcement.  

According to allegations in the criminal complaint affidavit, on September 16, 2020, Officers Flowers and Edwards provided protection for the transport of what they believed to be 10 kilograms of cocaine connected to a Mexican drug cartel from its pick-up point in Homestead, Florida to its drop-off point in Aventura, Florida. Officers Flowers and Edwards, each in his own car, escorted a third vehicle containing the purported cocaine: Flowers drove immediately in front of the loaded vehicle and Edwards drove immediately behind it on the Palmetto, 836, and I-95 highways. The affidavit alleges that the officers also escorted the purported cocaine and its handlers on foot, as they went into and out of buildings to pick up and drop off the load. In exchange for the protection service, Flowers and Edwards each made $5,000 in cash, according to the complaint. Unknown to Flowers and Edwards at the time, the cocaine was fake and the Mexican cartel dealers were actually law enforcement confidential sources and undercover agents.

In addition, the complaint affidavit describes Hernandez’s alleged money laundering operation, including transactions during which Hernandez and his associates, Lawal and McLeod, laundered $200,000 in purported drug proceeds. According to the complaint, prior to the protection job on September 16, Officer Flowers had been on Hernandez’s payroll and had improperly used his position as an officer to obtain information for Hernandez. The affidavit accuses Hernandez of investing in the load that Flowers and Edwards protected on September 16, believing that it was real cocaine connected to a Mexican cartel.

All defendants have made their initial appearances in federal magistrate judge court in Miami.

DEA Miami investigated this case, with assistance from FBI Miami, DEA Detroit, and Miami Dade Police Department, Internal Affairs. Assistant United States Attorneys Frederic “Fritz” Shadley and Eduardo Sanchez are prosecuting this case.

A criminal complaint is a charging instrument that contains allegations.  A defendant is presumed innocent unless and until proven guilty in a court of law.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 20-mj-3922.

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Miami, Fl. -- Today, a federal district judge in Ft. Lauderdale sentenced defendant Sebastian Ahmed, 42, of Delray Beach, Florida, to a term of 210 months’ imprisonment and restitution in the amount of $ 4,231,288 following his conviction after a six-week jury trial of conspiracy to commit health care fraud and wire fraud, five counts of health care fraud, conspiracy to commit money laundering, and eleven counts of money laundering. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, and Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services-Office of Inspector General made the announcement.

As part of the scheme, the conspirators exploited vulnerable drug addicts, the majority of whom were 18 to 26 years ago; falsified paperwork; and entered into various kickback arrangements, all in order to receive millions of dollars of falsely and fraudulently obtained funds for their own personal use and benefit.  As demonstrated by the trial record, of all the conspirators, no one profited more than Sebastian Ahmed, who netted more than $2.8 million in less than three years. 

The government established at trial that Sebastian Ahmed was the CEO, president and CFO of the two substance abuse treatment centers: Jacob’s Well and Medí MD; and the medical health clinic, Arnica Health, all of which he operated under the umbrella of Serenity Treatment Center, Serenity Living, and “Serenity Ranch Recovery” in Davie, Florida.  Ahmed operated the three clinics from in or around June 2016 through May 2019.  He employed his brother, Ali a/k/a “Al” Ahmed as the COO.  Testimony revealed that Al Ahmed had previously declared bankruptcy having been found liable in a civil suit brought by his former employer, Kaplan University, for stealing confidential lead information from Kaplan. 

The government emphasized  at trial that defendant  (1) engaged in illegal billing to private insurance plans through Jacob’s Well prior to the clinic being certified by DCF in February 9, 2017; (2) provided unlawful inducements to the approximately 500 patients consisting of free airline travel, housing, vapes, manicures, cash, and failure to collect patient responsibilities for co-pays and deductibles; and (3) billed for medically unnecessary therapeutic services consisting of therapy and urine analyses, the former having not been provided but billed by defendant’s substance abuse clinics.  The patients were also permitted to reside in co-ed housing in which destructive sexual relationships, not conducive to real addiction treatment, formed – sometimes between the staff and patients, according to the testimony and evidence.

According to court documents and evidence presented at trial, the patients consisted of young adults in their twenties who primarily were addicted to opioids and other drugs of abuse.  Many of the patients were permitted to remain on their parents’ private insurance plans up to age 26.

The patients resided in a series of so-called sober homes maintained by defendant in Davie, Southwest Ranches, Hollywood and Pompano.  None of these homes were certified by DCF as approved community housing for persons engaged in a substance abuse treatment program.

Former Serenity employees including co-defendants Mauren Morel and Hector Alvarez, both  Clinical Social Workers in the State of Florida,  testified that they prepared fake progress notes to support fraudulent billing for daily group therapy sessions that patients did not attend.  They testified that they did so at the defendant’s direction, and that claims were even submitted for dates when patients were not physically present.

Government expert witness Dr. Kelly Clark was a board certified addiction medicine specialist and clinical psychiatrist.  She focused her career on issues of addictive disease.  She testified that the manner in which Serenity’s medical providers prescribed buprenorphine and benzodiazepines to a drug abusing population was medically inappropriate and potentially dangerous.  Patient-witnesses and the parent of a former patient likewise testified that Serenity caused their addictions to intensify rather than improve, and that multiple patients suffered overdoses and relapses that went unaddressed by the staff at Serenity.  Indeed, the record showed that Sebastian Ahmed failed to report a single overdose incident to DCF as required by law, and that multiple patients were cycled back and forth between detox centers and Serenity without apparent improvement in their condition.  Evidence that Serenity permitted and even procured addictive drugs for its patients was presented at trial, and medical records introduced as trial exhibits revealed that the doctors did not check the expensive urine screens that were being ordered until well after patients’ discharge.  These urine screens revealed repeat positives for, among other drugs, methamphetamine, heroin, cocaine, and prescription narcotics.

From June 2016 through May 2019, the government attributed approximately $38 million in fraudulent billing submitted by defendant’s clinics which resulted in the reimbursement of over $6 million in payments.

Co-conspirators and former co-defendants Ali a/k/a Al Ahmed, the defendant’s brother; and Hector Alvarez and Mauren Morel, the clinical directors at two of the facilities, were also charged and pled guilty in connection with the fraud.  Ali a/k/a Al Ahmed, who served as a Chief Operating Officer and co-owner of the facilities, was sentenced to ten years’ imprisonment.  Hector Alvarez and Mauren Morel, both of whom testified at trial against Sebastian Ahmed, each received sentences of 32 months’ imprisonment.  These three former co-defendants were sentenced by United States District Judge Federico A. Moreno prior to the trial.

Ms. Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG. Support for the investigation was also provided by the Drug Enforcement Administration, Davie Police Department, Broward Sheriff’s Office, Palm Beach Sober Homes Task Force, and the Florida Department of Children and Families.  The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Lisa H. Miller.  Assistant U.S. Attorneys Nicole Grosnoff and Peter Laserna are 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 on http://pacer.flsd.uscourts.gov.

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Miami, Florida – Federal prosecutors have charged 41-year-old Miami lawyer Aaron Patrick Honaker with committing a series of bank robberies and attempted bank robberies in South Florida over the past three weeks.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro made the announcement. 

The criminal complaint charges Honaker with robbing $1050 from an Aventura bank on October 3, and robbing $800 from a Coral Gables bank on October 10. It also charges him with attempting to rob four banks in Coral Gables around that same time.

According to allegations in the complaint affidavit, Honaker followed a consistent approach during the six robbery attempts, two of which were successful: Honaker would enter each bank alone, walk up to a teller window, and ask the teller for assistance in making a withdrawal. Honaker would pass a note to the bank teller that contained hand-written instructions and warnings, such as “[d]on’t touch the alarm or call the police,” “empty all of your $50s and $100s and put it in an envelope,” and “[k]eep calm, and give me all the money in the drawer, I have a gun.” Honaker would take his note with him on the way out of the bank, says the affidavit.   

FBI Miami issued law enforcement bulletins containing descriptions and bank surveillance images of the robber. According to the complaint, on October 20, officers spotted a man matching the FBI bulletin descriptions who appeared to be casing the area around a Coral Gables bank. Officers approached the man and identified him as Honaker.

At the time of his arrest, Honaker had a ball-point hammer tucked in his waistband and carried what appeared to be bank robbery demand notes and instructions on “how-to” commit bank robberies, says the affidavit. The affidavit also describes items that officers found inside Honaker’s backpack, including draft and final versions of two bank robbery notes.

Honaker had his initial appearance today before U.S. Magistrate Judge Alicia M. Otazo-Reyes. His pretrial detention hearing is set for Friday, October 23, at 11:00 a.m., in federal magistrate court in Miami. 

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 are prosecuting this case.

A criminal complaint is merely an accusation containing allegations. A defendant is presumed innocent unless and until found guilty in a court of law.

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

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-03861.

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Miami, Fl. – Today, United States Attorney Ariana Fajardo Orshan of the Southern District of Florida and FBI Miami Special Agent in Charge George L. Piro jointly announced their District’s 2020 Election Day Program, including the appointment of a District Election Officer for the U.S. Attorney’s Office. 

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said United States Attorney Fajardo Orshan. “The Department of Justice will always act appropriately to protect the integrity of the election process.”

“As Americans get ready to vote, the FBI is asking each citizen to remain vigilant and report any suspected criminal scheme targeting voters to the FBI immediately,” said Special Agent in Charge Piro.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

Contact Information

The right to vote is the cornerstone of American democracy.  We all must ensure that those who are entitled to the right to vote exercise it if they choose, and that those who seek to corrupt it are brought to justice. 

In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Fajardo Orshan stated that Counselor to the U.S. Attorney and District Elections Officer Harry Wallace will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number: 786-439-3288.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at Miami.fbi.gov or (754) 703-2000.

To learn more about the FBI’s role investigating election crime, visit https://www.fbi.gov/news/pressrel/press-releases/fbi-warns-voters-about-election-crimes-ahead-of-the-november-2020-election

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

United States Attorney Fajardo Orshan said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”

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Miami, Florida – A Miami Beach postal carrier has been charged with theft of mail and deprivation of the right to vote, announced U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Scott Pierce of the U.S. Postal Service, Office of Inspector General, Southern Area Field Office (USPS-OIG).  

According to a criminal complaint affidavit, Crystal Nicole Myrie, 31, of Tamarac, Florida, stole a vote-by-mail ballot, approximately 36 political flyers, gift cards and pre-paid debit cards, and other articles of mail instead of delivering them to the intended recipients located within her official postal route. The stolen mail was discovered in the backseat of Myrie’s personal vehicle on October 16, 2020.

Myrie had her initial appearance today in federal court before U.S. Magistrate Judge Alicia M. Otazo-Reyes.

USPS-OIG is the investigative agency handling this matter, including the continuing investigation of the deprivation of the right to vote and theft of mail charges. Assistant United States Attorneys Harry Wallace and Hayden P. O’Byrne of the Southern District of Florida and Richard C. Pilger, Director of the Election Crimes Branch, Public Integrity Section, U.S. Department of Justice, are prosecuting this case.

A criminal complaint is merely an accusation containing allegations.  A defendant is presumed innocent unless and until found guilty in a court of law.

You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.    

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Miami, Florida – Two South Florida residents have been charged with federal  conspiracy, armed robbery, and firearms offenses in connection with a series of convenience store robberies in Miami-Dade, Florida. 

The criminal complaint charges Floyd Ellis Wyche, 53, of Lauderhill, Florida and Willie Lee Smith, 48, of Hialeah, Florida, with conspiring to rob several convenience stores at gunpoint. According to the affidavit, on August 29, September 2, September 12, and October 13, robbers used firearms to steal approximately $8,000 in total from four convenience stores. During one of the robberies, a firearm was stolen from a store clerk.

As to the October 13 robbery, in addition to conspiracy, the complaint charges Wyche and Smith with substantive armed robbery and firearms counts. The complaint affidavit alleges the following against Wyche and Smith:  On October 13, Wyche and Smith drove to a gas station in Miami, Florida. Wyche was behind the wheel. Once there, Smith exited the vehicle and entered the gas station. He pointed a firearm at the gas station clerk and demanded money. Smith then  grabbed money from the cash register, left the store, and returned to the vehicle.

According to the affidavit, officers attempted to stop the vehicle, but Wyche refused to pull over,  leading law enforcement on a vehicle chase into Broward County. It is alleged that during the pursuit, Smith exited the vehicle. Law enforcement ultimately stopped the vehicle and arrested Wyche. Officers located and arrested Smith. They also located the firearm stolen from a store clerk during one of the robberies.

Wyche and Smith had their initial appearances in federal court today before U.S. Magistrate Judge John J. O’Sullivan.  Smith’s detention hearing is set for October 15. Wyche’s detention hearing is set for October 19. Both hearings will occur in federal magistrate court in Miami. 

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge Robert Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Director Alfredo Ramirez III of the Miami-Dade Police Department (MDPD), Chief of Police Jorge R. Colina of the City of Miami Police Department, and Chief of Police Sergio Velazquez of the Hialeah Police Department, made the announcement.

ATF, MDPD, City of Miami PD, and City of Hialeah PD investigated this case, with assistance from Florida Highway Patrol and Miramar Police Department. Assistant U.S. Attorney Elena Smukler is prosecuting this case.  

This case is part of Project Safe Neighborhoods, 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. 

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing to address when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

A criminal complaint is merely an accusation that contains allegations.  A defendant is innocent unless and until found guilty in a court of law.   

You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case number 20-mj-03812.   

Miami, Fl. -- South Florida federal prosecutors have charged 21-year-old Mario F. Perez, of Spring, Texas, with cyberstalking by making repeated threats on social media to kill a young woman.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.

The criminal complaint filed in the Southern District of Florida alleges that over the past six months, Perez created dozens of fake social media profiles to cyber stalk his victim, a young woman. Perez posted racist and derogatory comments in connection with the victim, including racist comments about black Americans.  According to the complaint, Perez posted the location of the Florida home of the victim’s parents. He threatened to go to the home and hurt them.

When the victim moved from South Florida to Los Angeles in July 2020, the harassment and threats continued. The complaint alleges that Perez found the young woman’s home address and shared it on-line under a fake social media account and threatened to hurt or kill her. 

Perez was arrested in Texas. He made his initial appearance in the Southern District of Texas before U.S. Magistrate Judge Frances Stacey, who sits in Houston.  Hearings will occur in the Southern District of Texas and the Southern District of Florida. If convicted, Perez faces up to five years in federal prison.

FBI Miami and FBI Houston investigated this case.  Assistant U.S. Attorney Hillary Irvin is prosecuting it.

A criminal complaint is merely an accusation that contains allegations.  A defendant is innocent unless and until found guilty in a court of law.   

You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.  A copy of the complaint is attached.  

Miami, Fl. – A 45-year-old Pembroke Pines woman has been charged with disaster relief fraud and other federal crimes in connection with her application and receipt of federal relief funds following Hurricane Irma.  

According to allegations contained in the complaint, in September of 2017, after Hurricane Irma, Desmicia Mathis filed a fraudulent property damage claim with the Federal Emergency Management Agency (“FEMA”), and received disaster and rental assistance money to which she was not entitled. Mathis used the fraudulently obtained FEMA funds and moved into a rental apartment. She utilized a stolen identity to obtain a new residence and establish utility accounts, according to the complaint. 

Mathis made her initial appearance today in Fort Lauderdale before U.S. Magistrate Alicia O. Valle. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, James DePalma, Special Agent in Charge, Department of Homeland Security – Office of Inspector General (DHS-OIG), Miami Field Office, and Rodregas Owens, Special Agent in Charge, Social Security Administration - Office of the Inspector General (SSA-OIG), Atlanta Field Division, made the announcement.  

DHS–OIG and SSA-OIG investigated the case. Assistant U.S. Attorney Marc S. Anton is prosecuting the case. 

A complaint is merely an accusation that contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.  

You may find a copy of this press release on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 20-mj-6441. 

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Miami, Fl. -- Ten Florida residents and one Boston resident have been charged in the Southern District of Florida for their roles in a massive nationwide prescription medication telemedicine scheme.  The announcements are part of a federal law enforcement effort to crack down on health care fraud nationwide.

Telemedicine is the use of telecommunications technology to provide health care services remotely.  The eleven defendants charged in this telemedicine scheme are: 

• Mark L. Vollaro, 38, of Boynton Beach, Florida,
• Anthony J. Loveland, 43, of Boynton Beach, Florida,
• Luis Garcia, 30, of Boca Raton, Florida,
• Robert C. Clark, 54, of Boca Raton, Florida,
• Jason T. Faley, 39, of Deerfield Beach, Florida,
• Joseph A. Cavallo, 42, of Cooper City, Florida, 
• James D. Engimann, 37, of Lake Worth, Florida,
• Benjamin C. Heath, 37, of Boca Raton, Florida,
• Antonio J. Gousgounis, 34, of Boca Raton, Florida, 
• Christopher Margait, 43, of West Palm Beach, Florida, and
• Margaret Chiasson, 32, of Boston, Massachusetts (formerly of Pompano Beach). 

The information charges defendants with unjustly enriching themselves by recruiting patients who were insured by various health benefit insurance plans, including Tricare, and causing the submission of fraudulent and invalid prescriptions for compounded medications that were not medically needed by the recruited individuals. According to the information, the defendants’ activities caused the various health benefit insurance plans to reimburse compounding pharmacies for the fraudulent compounded medication prescriptions, which were much more expensive than mass-produced prescription medications. Telemedicine consultations were used in the scheme. 

Several of the defendants are also charged with money laundering crimes, in connection with their activities concerning the proceeds from the scheme. 

All defendants had their initial appearances today in federal court. The 10 defendants who live in Florida appeared before United States Magistrate Judge Patrick Hunt, who sits in Fort Lauderdale. The defendant who lives in Boston appeared before Magistrate Judge Marianne B. Bowler in the District of Massachusetts.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and Cynthia A. Bruce, Special Agent in Charge, Department of Defense, Office of the Inspector General, Southeast Field Office, made the announcement.

Assistant U.S. Attorney Cynthia R. Wood is prosecuting this case.  Assistant U.S. Attorney William Zloch is handling asset forfeiture.

This announcement is part of a nationwide federal law enforcement effort to combat telemedicine and prescription fraud.  As part of this effort, the Department of Justice announced last week the largest amount of alleged fraud loss ever charged - $4.5 billion in allegedly false and fraudulent claims submitted by more than 86 criminal defendants in 19 judicial districts around the country – related to nationwide schemes involving telemedicine. See DOJ press release.

The charges and allegations contained in an information are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

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

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-60104.

Florida Recording Artist Accused of Buying Ferrari with Relief Money 

Miami, Fl. -- A Florida recording artist and a Pennsylvania towing company owner have been charged for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Diamond Blue Smith, 36, of Miramar, Florida, and Tonye C. Johnson, 28, of Flourtown, Pennsylvania, were charged in federal criminal complaints filed in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.  Smith was arrested and appeared yesterday before U.S. Magistrate Judge Regina D. Cannon of the Northern District of Georgia.  Johnson was arrested on Oct. 1, 2020, and appeared on Oct. 2, 2020, before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania. The complaints were unsealed today.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Acting Special Agent in Charge Tyler R. Hatcher of the IRS-Criminal Investigation (CI) Miami Field Office, Special Agent in Charge George L. Piro of FBI’s Miami Field Office, and Special Agent in Charge Kevin A. Kupperbusch of the U.S. SBA-Office of Inspector General (OIG), Investigations Division, Eastern Regional Office, made the announcement.

The criminal complaint against Smith alleges the following: Smith, a recording artist, obtained a PPP loan of $426,717 for his company, Throwbackjersey.com LLC, using falsified documents.  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.  Smith purchased a Ferrari for $96,000 and made other luxury purchases using PPP loan proceeds.  Authorities seized the Ferrari at the time of Smith’s arrest.  He also  withdrew $271,805 in loan proceeds.  The complaint further alleges that Smith sought PPP loans on behalf of others in order to receive kickbacks for those confederates.

The criminal complaint against Johnson alleges the following: Johnson obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC using falsified documents. Johnson paid a portion of the loan proceeds to co-conspirators in the scheme.

According to the complaints, Smith and Johnson conspired with others to obtain millions of dollars in fraudulent PPP loans. It is alleged that early in their scheme, Smith and Johnson’s co-conspirator, Phillip J. Augustin, obtained a fraudulent PPP loan for his talent management company using falsified documents. After submitting that application, Augustin then began to work with other co-conspirators on a scheme to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining the forgivable loans for them, say the court documents. The complaints allege that the scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted.  According to the complaints, Augustin, Smith, Johnson, and other conspirators in the scheme applied for PPP loans that are together worth more than $24 million.  Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million.

The following 11 defendants are accused in other unsealed complaints of being involved in this fraud scheme:

• Joshua J. Bellamy, 31, of St. Petersburg, Florida, was charged in a federal criminal complaint filed on Sept. 9, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Tiara Walker, 37, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Sept. 3, 2020, in the Southern District of Florida, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud; 
• Damion O. Mckenzie, 38, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Andre M. Clark, 46, of Miramar, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Keyaira Bostic, 31, of Pembroke Pines, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Phillip J. Augustin, 51, of Coral Springs, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction;
• Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• James R. Stote, 54, of Hollywood, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Ross Charno, 46, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
• Deon D. Levy, 50, of Bedford, Ohio, was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud; and
• Abdul-Azeem Levy, 22, of Cleveland, Ohio was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud.

The 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 one percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses. 

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Smith and Johnson cases were investigated by the IRS-CI Miami and Cincinnati Field Offices, the FBI’s Miami and Cleveland Field Offices, and the SBA-OIG.  Assistant U.S. Attorneys Aimee Jimenez and David Snider for the Southern District of Florida and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section are prosecuting the cases.  The Justice Department also acknowledges and thanks the U.S. Attorney’s Office for the Northern District of Ohio, the IRS-CI Philadelphia Field Office, the FBI’s Philadelphia Field Office, and the Federal Deposit Insurance Corporation Office of Inspector General for their assistance investigating this matter.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Florida recording artist and a Pennsylvania towing company owner have been charged for their alleged participation in a scheme to file fraudulent loan applications seeking more than $24 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Acting Special Agent in Charge Tyler R. Hatcher of the IRS-Criminal Investigation (CI) Miami Field Office, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Kevin A. Kupperbusch of the U.S. SBA-Office of Inspector General (OIG), Investigations Division, Eastern Regional Office, made the announcement.

Diamond Blue Smith, 36, of Miramar, Florida, and Tonye C. Johnson, 28, of Flourtown, Pennsylvania, were charged in federal criminal complaints filed in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud.  Smith was arrested and appeared yesterday before U.S. Magistrate Judge Regina D. Cannon of the Northern District of Georgia.  Johnson was arrested on Oct. 1, 2020, and appeared on Oct. 2, 2020, before U.S. Magistrate Judge Henry S. Perkin of the Eastern District of Pennsylvania.

The complaints, which were unsealed today, allege that Smith and Johnson conspired with others to obtain millions of dollars in fraudulent PPP loans. 

Smith, a recording artist, is alleged to have obtained a PPP loan of $426,717 for his company, Throwbackjersey.com LLC, using falsified documents.  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.  Smith allegedly purchased a Ferrari for $96,000 and made other luxury purchases using PPP loan proceeds.  Authorities seized the Ferrari at the time of Smith’s arrest.  He is also alleged to have withdrawn $271,805 in loan proceeds.  The complaint further alleges that Smith sought PPP loans on behalf of others in order to receive kickbacks for those confederates.

Johnson is alleged to have obtained a PPP loan of $389,627 for his own company, Synergy Towing & Transport LLC, using falsified documents.  The complaint alleges that Johnson then paid a portion of the loan proceeds to co-conspirators in the scheme.

The complaints allege that Smith and Johnson conspired with others to obtain millions of dollars in fraudulent PPP loans.  Early in their scheme, Smith and Johnson’s co-conspirator, Phillip J. Augustin, allegedly obtained a fraudulent PPP loan for his talent management company using falsified documents.  After submitting that application, Augustin then began to work with other co-conspirators on a scheme to submit numerous fraudulent PPP loan applications for confederate loan applicants, in order to receive kickbacks for obtaining the forgivable loans for them.  The complaints allege that the scheme involved the preparation of at least 90 fraudulent applications, most of which were submitted.  Augustin, Smith, Johnson, and other conspirators in the scheme are alleged to have applied for PPP loans that are together worth more than $24 million.  Many of those loan applications were approved and funded by financial institutions, paying out at least $17.4 million.

The other 11 defendants allegedly involved in this scheme whose complaints were previously unsealed are the following:

• Joshua J. Bellamy, 31, of St. Petersburg, Florida, was charged in a federal criminal complaint filed on Sept. 9, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Tiara Walker, 37, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Sept. 3, 2020, in the Southern District of Florida, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud; 
   
• Damion O. Mckenzie, 38, of Miami Gardens, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Andre M. Clark, 46, of Miramar, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Keyaira Bostic, 31, of Pembroke Pines, Florida, was charged in a federal criminal complaint filed on Aug. 3, 2020, in the Southern District of Florida with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Phillip J. Augustin, 51, of Coral Springs, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, conspiracy to commit wire fraud and bank fraud, and obstruction;
   
• Wyleia Nashon Williams, 44, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on July 28, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• James R. Stote, 54, of Hollywood, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Ross Charno, 46, of Ft. Lauderdale, Florida, was charged in a federal criminal complaint filed on June 24, 2020, in the Northern District of Ohio with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud;
   
• Deon D. Levy, 50, of Bedford, Ohio, was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud; and
   
• Abdul-Azeem Levy, 22, of Cleveland, Ohio was charged in a federal complaint filed on June 8, 2020, in the Northern District of Ohio with wire fraud and conspiracy to commit wire fraud.

The 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 one percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses. 

A federal criminal complaint is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Smith and Johnson cases were investigated by the IRS-CI Miami and Cincinnati Field Offices, the FBI’s Miami and Cleveland Field Offices, and the SBA-OIG.  Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aimee Jimenez and David Snider for the Southern District of Florida are prosecuting the cases.  The Justice Department also acknowledges and thanks the U.S. Attorney’s Office for the Northern District of Ohio, the IRS-CI Philadelphia and Atlanta Field Offices, the FBI’s Philadelphia Field Office, and the Federal Deposit Insurance Corporation Office of Inspector General for their assistance investigating this matter.

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

Miami, Fl. -- Two United States citizens who were detained by the Syrian Democratic Forces (SDF) and recently transferred to the custody of the FBI have been charged with material support violations relating to their support for the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Emraan Ali, 53, a U.S. citizen born in Trinidad & Tobago, was charged in a complaint with providing and attempting to provide material support to ISIS, in violation of Title 18, United States Code, Section 2339B.  Emraan Ali had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Friday, October 2, 2020 at 1:30 P.M. before U.S. Magistrate Judge Edwin G. Torres.

Jihad Ali, 19, a U.S. citizen born in New York, was charged in a complaint with conspiracy to provide material support to ISIS, in violation of Title 18, United States Code, Section 371.  Jihad Ali had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Monday, October 5, 2020 at 1:30 P.M. before U.S. Magistrate Judge Chris M. McAliley.

According to the criminal complaints, in March 2015, Emraan Ali traveled to Syria with his family, including his son, Jihad Ali, to join ISIS.  Both Emraan Ali and Jihad Ali received military and religious training and served as fighters in support of the terrorist organization.  In addition to serving as a fighter, Emraan Ali served in various other roles in support of ISIS.  Emraan and Jihad Ali finally surrendered to the SDF near Baghuz in March 2019, during the last sustained ISIS battles to maintain territory in Syria.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, John C. Demers, Assistant Attorney General for National Security, George Piro, Special Agent in Charge, FBI, Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.  

Ms. Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the FBI and the JTTF.  The case is being prosecuted by Assistant U.S. Attorneys Rick Del Toro and Jonathan Kobrinski, with assistance from Trial Attorney Elisa Poteat of the National Security Division’s Counterterrorism Section.

A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Two United States citizens who were detained by the Syrian Democratic Forces (SDF) and recently transferred to the custody of the FBI have been charged with material support violations relating to their support for the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

John C. Demers, Assistant Attorney General for National Security, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, FBI, Miami Field Office, and the members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.  

Emraan Ali, 53, a U.S. citizen born in Trinidad & Tobago, was charged in a complaint with providing and attempting to provide material support to ISIS.  Jihad Ali, 19, a U.S. citizen born in New York, was charged in a complaint with conspiracy to provide material support to ISIS.  Both defendants had their initial appearances today in federal court in the Southern District of Florida before U.S. Magistrate Judge Edwin G. Torres.

According to the criminal complaints, in March 2015, Emraan Ali traveled to Syria with his family, including his son, Jihad Ali, to join ISIS.  Both Emraan Ali and Jihad Ali received military and religious training and served as fighters in support of the terrorist organization.  In addition to serving as a fighter, Emraan Ali served in various other roles in support of ISIS.  Emraan and Jihad Ali finally surrendered to the SDF near Baghuz in March 2019, during the last sustained ISIS battles to maintain territory in Syria.

Assistant Attorney General Demers and Ms. Fajardo Orshan commended the investigative efforts of the FBI and the JTTF.  The case is being prosecuted by Assistant U.S. Attorneys Rick Del Toro and Jonathan Kobrinski, with assistance from Trial Attorney Elisa Poteat of the National Security Division’s Counterterrorism Section.

A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Miami, Fl. -- A Florida attorney and former outside counsel for 1 Global Capital LLC (1 Global), has been charged today with conspiring to commit wire fraud and securities fraud in connection with an investment fraud scheme that, as alleged, impacted more than 3,600 investors in 42 different states, and involved him personally and fraudulently raising more than $100 million from investors. 

Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, made the announcement. 

Andrew Dale Ledbetter, 78, of Fort Lauderdale, Florida, is charged in an information with conspiracy to commit wire fraud and securities fraud.  The case is assigned to U.S. District Judge Darrin P. Gayles of the Southern District of Florida. 

According to the allegations in the information, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans with high interest rates to small businesses, termed merchant cash advance loans (MCAs).  To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money onto MCAs.  The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid.  1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions.  In many cases, according to court documents, the commissions were not fully disclosed to investors.  Ledbetter was an attorney licensed in the State of Florida who worked at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015.

Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission.  These questions were raised by investors, investment advisors, and regulators.  Ledbetter and Jan Douglas Atlas, a partner at Law Firm #1 who also acted as outside counsel for 1 Global, knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements.  Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.   

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

According to the information, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global.  Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions.  Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials.  However, Ledbetter did not disclose the commissions that he received from 1 Global to investors, according to the information.  Ledbetter also made misrepresentations to investors regarding the involvement of an outside auditing firm. 

A number of individuals have entered guilty pleas in connection with the 1 Global fraud scheme.  Alan G. Heide, the former 1 Global chief financial officer, was charged via information and sentenced to 60 months, in Case No. 19-60231-CR-RKA.  Atlas, former outside counsel for 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 19-60258-RKA, currently scheduled for Nov. 17, 2020.  Steven Schwartz, a former director of 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 20-60003-RKA, currently scheduled for Nov. 13, 2020.  Information about the related cases can be found here:  https://www.justice.gov/criminal-vns/case/1Global-Capital.

In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Ledbetter.  In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (Sothern District of Florida) SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (Southern District of Florida), and SEC v. Jan Atlas, Case No. 19-62303-WPD (Southern District of Florida).  The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (Southern District of Florida), remains pending.

A criminal information is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law

This case was investigated by the FBI’s Miami Field Office, IRS-CI, and FDIC-OIG. Special Assistant U.S. Attorney Elizabeth Young, of the Southern District of Florida, and Deputy Chief Jerrob Duffy, Principal Assistant Deputy Chief Lisa H. Miller, and Assistant Chief L. Rush Atkinson, of the Criminal Division’s Fraud Section, are prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture. The SEC’s Miami Regional Office is also thanked for their contributions.

You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no.: 20-cr-60103.

A Florida attorney and former outside counsel for 1 Global Capital LLC (1 Global), has been charged today with conspiring to commit wire fraud and securities fraud in connection with an investment fraud scheme that as alleged impacted more than 3,600 investors in 42 different states, and involved him personally and fraudulently raising more than $100 million from investors. 

Andrew Dale Ledbetter, 78, of Fort Lauderdale, Florida, is charged in an information with conspiracy to commit wire fraud and securities fraud.  The case is assigned to U.S. District Judge Darrin P. Gayles of the Southern District of Florida. 

According to the allegations in the information, 1 Global was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans with high interest rates to small businesses, termed merchant cash advance loans (MCAs).  To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money onto MCAs.  The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid.  1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions.  In many cases, according to court documents, the commissions were not fully disclosed to investors.  Ledbetter was an attorney licensed in the State of Florida who worked at Law Firm #1 and acted in a fundraising capacity at 1 Global beginning in or around 2015.

Substantial questions arose during the operation of the business as to whether 1 Global was offering or selling a security and whether the investment offering was required to be registered with the U.S. Securities and Exchange Commission.  These questions were raised by investors, investment advisors, and regulators.  Ledbetter and Jan Douglas Atlas, a partner at Law Firm #1 who also acted as outside counsel for 1 Global, knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements.  Such a classification would undermine the profits and fees that Ledbetter and other principals at 1 Global would be able to obtain from 1 Global’s operations.

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

According to the information, Ledbetter was personally involved in raising more than $100 million in investor funds that went to 1 Global, through his own pitches as well as through investment advisors he attracted to 1 Global.  Over the years, Ledbetter received approximately $3 million from 1 Global, the majority of which was for commissions.  Ledbetter routinely held himself out to investors and investment advisers as outside counsel to 1 Global, and also personally vouched for 1 Global in pitches and marketing materials.  However, Ledbetter did not disclose the commissions that he received from 1 Global to investors, according to the information.  Ledbetter also made misrepresentations to investors regarding the involvement of an outside auditing firm. 

A number of individuals have entered guilty pleas in connection with the 1 Global fraud scheme.  Alan G. Heide, the former 1 Global chief financial officer, was charged via information and sentenced to 60 months, in Case No. 19-60231-CR-RKA.  Atlas, former outside counsel for 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 19-60258-RKA, currently scheduled for Nov. 17, 2020.  Steven Schwartz, a former director of 1 Global, was charged via information, pleaded guilty, and is awaiting sentencing in Case No. 20-60003-RKA, currently scheduled for Nov. 13, 2020.  Information about the related cases can be found here:  https://www.justice.gov/criminal-vns/case/1Global-Capital.

In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Ledbetter.  In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (Sothern District of Florida) SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (Southern District of Florida), and SEC v. Jan Atlas, Case No. 19-62303-WPD (Southern District of Florida).  The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (Southern District of Florida), remains pending.

A criminal information is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by the FBI’s Miami Field Office, IRS-CI, and FDIC-OIG.  Deputy Chief Jerrob Duffy, Principal Assistant Deputy Chief Lisa H. Miller, and Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section, and Special Assistant U.S. Attorney Elizabeth Young are prosecuting the case.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.  The SEC’s Miami Regional Office is also thanked for their contributions. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.