Southern District of Florida
Press releases recorded for this federal judicial district.
Los Angeles Man Convicted of Scheming to Sell Fake Art to South Florida GalleryRead the Press Release
Miami – Today, in federal court in Miami, a 43-year-old Los Angeles man pled guilty to defrauding a South Florida art gallery by trying to sell forgeries of works by renowned contemporary artists Keith Haring and Jean-Michel Basquiat to the gallery’s owner for more than $1 million.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court records, Philip Righter’s fraud scheme started with buying art forgeries on-line, at marketplaces and auction sites. Once he had the fakes, Righter tried to make them appear legitimate by creating letters that falsely certified their authenticity. For example, he created letters that appeared to be from “The Estate of Keith Haring” and the “Authentication Committee of the Estate of Jean-Michel Basquiat.” In fact, they were not. Righter even designed and purchased embossers bearing the names of Haring and Basquiat. He stamped the fake letters with the custom embossers, trying to sharpen the look of legitimacy.
With the forgeries and letters in hand, Righter offered to sell the fraudulent art pieces to a South Florida gallery, auction houses, and others. When the gallery owner showed interest, Righter (who was in Los Angeles) shipped a number of the forgeries to a warehouse in South Florida. Righter’s price for the forgeries was $1,056,000. He directed the gallery owner to wire the money to Righter’s bank account.
Righter pled guilty to one count of mail fraud and one count of aggravated identity theft. His sentencing hearing is set for May 18, 2020, at 9:30 a.m. before United States District Judge Marcia G. Cooke. Righter faces up to 20 years in prison on the mail fraud charge. The aggravated identity theft charge carries a minimum prison sentence of two years, in addition to whatever Righter receives for mail fraud.
Righter also faces federal charges in the Central District of California, where he allegedly sold forgeries of works by Jean-Michel Basquiat, Keith Haring, Roy Lichtenstein, and Andy Warhol.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Art Crime Team. Assistant United States Attorney Christopher Browne is prosecuting 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.
Customs and Border Protection Officer Arrested for Child ExploitationRead the Press Release
Fort Lauderdale, Florida -- Today, the federal government charged Fabio Lopez, 61, of Weston, Florida, with enticing a 16-year-old girl into engaging in sexual activity and with attempting to produce child pornography by trying to convince the underage girl to pose for sexually suggestive pictures.
According to the allegations of the criminal complaint affidavit, Lopez met the 16-year-old through her mother. While on duty as a Customs and Border Protection (CBP) officer at Miami International Airport, Lopez allegedly stopped the mother as she was about to board an international flight. Lopez requested the mother’s cell phone number, which she gave him. They developed a friendship. Lopez visited the mother at home, where he met the 16-year-old daughter. Over about eight months, Lopez developed a relationship with the child, texting her often. It allegedly progressed to Lopez fondling the child and offering to pay her money to let him take pornographic pictures of her. The child told her mother about Lopez’s conduct. The mother contacted law enforcement, who later arrested Lopez.
Lopez had his initial appearance today at 11:00 a.m. before U.S. Magistrate Judge Jared M. Strauss in Fort Lauderdale. Lopez’s pretrial detention hearing is set for Monday, March 16 at 10:00 a.m. before Judge Strauss. His arraignment is set for March 25.
Criminal complaints and their affidavits are allegations of criminal conduct. A defendant is innocent until found guilty.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; Anthony Salisbury, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Miami Field Office; Jeffrey Arndt, Special Agent in Charge, CBP Office of Professional Responsibility (CBP-OPR); and Chief Kipp Shimpeno, Pembroke Pines Police Department, made the announcement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, CBP-OPR, and Pembroke Pines Police Department. Assistant U.S. Attorney Jodi L. Anton is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Business Owner Sentenced to 24 Months in Prison for Not Paying $10.8 Million in Employment Tax WithholdingsRead the Press Release
A Miami, Florida, business owner was sentenced to 24 months in prison today for failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and statements made in court, between 2002 and 2017, Ricardo Betancourt owned and operated multiple parcel delivery businesses in the South Florida area. Betancourt’s businesses earned gross revenues of more than $100 million.
Through his businesses, Betancourt employed hundreds of employees and was responsible for collecting and paying over to the Internal Revenue Service (IRS) the taxes withheld from employees’ paychecks. Between 2009 and 2016, Betancourt withheld over $10.8 million in payroll taxes from his employees but instead of paying those funds to the IRS, Betancourt transferred the money to an investment company he used to fund a lavish lifestyle and other business ventures. Betancourt spent over $190,000 on motorcycles, including several Harley-Davidson bikes, purchased classic and sports cars, bought expensive jewelry, and paid for cosmetic surgery.
In addition to the term of imprisonment, U.S. District Judge Marcia G. Cooke ordered Betancourt to serve three years of supervised release and to pay approximately $9,033,318 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael Boteler of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Florida Resident Convicted for Stealing over $2 million from a Texas School DistrictRead the Press Release
MIAMI−Following a three-day trial, a federal jury found Donald Howard Conkright, 63, of Key West, Florida, guilty for his role in laundering more than $2 million that was stolen from a Texas school district.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Matthew J. DeSarno, Special Agent in Charge, Federal Bureau of Investigation (FBI), Dallas Field Office, made the announcement.
According to the evidence presented at trial, a spoofed email was used to trick a Texas school district into sending approximately $2 million to a bank account that Conkright controlled. The school district had that money earmarked for the construction of a new elementary school.
Once the $2 million hit the bank account, Conkright began to spend and conceal the money. He purchased $70,000 worth of Rolex watches, over $13,000 at Apple stores, and a $128,000 BMW, among other transactions. Conkright also withdrew more than $60,000 in cash from the account, in increments below $10,000. He wired out of the country about $875,000, and sent over $70,000 worth of computers to Nigeria. In addition to laundering the school district’s money, there was evidence presented at trial that Conkright had laundered, and attempted to launder, other victims’ money as part of the same conspiracy between 2017 and 2019.
The jury found Conkright guilty of conspiring to commit money laundering and substantive money laundering. Sentencing is scheduled in Key West, Florida for May 11, 2020.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. Assistant U.S. Attorneys Lindsey Lazopoulos Friedman and Yisel Valdes prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Six Defendants Sentenced to Prison Terms for Running South Dade Drug Trafficking RingRead the Press Release
Miami, Florida -- U.S. District Judge Marcia G. Cooke sentenced six defendants, all from South Florida, to prison terms for their roles in an extensive drug trafficking operation located in Perrine, Florida. Their prison sentences are as follows:
- Tedrick King, 45, the leader of the drug ring, received 148 months.
- Wilhemnia Nottage, 35, received 20 months.
- Cory Evans, 28, received 30 months.
- Christopher McCollur (a/k/a “Block”), 32, received 48 months.
- Keyon Harris, 37, received 60 months.
- Jonis Webster (a/k/a “J.J.”), 39, received 18 months.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kevin W. Carter, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Office, and Alfredo Ramirez III, Director, Miami-Dade Police Department (MDPD) made the announcement.
According to court records, from at least October 2018 through June 2019, Defendants ran a 24-hour, seven-day per week drug operation out of two locations in Perrine, Florida. In July 2019, law enforcement officers executed search warrants at the two locations and at the home of defendant King, the leader of the drug operation. They seized approximately 941 grams of cocaine, 221 grams of crack cocaine, 1006 grams of marijuana, and 145 grams of eutylone (which defendants sold as “Molly”).
Prior to receiving their prison sentences, each defendant pled guilty to his or her role in the drug trafficking operation.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The case also involved the U.S. Attorney’s Office Violence Reduction Partnership (VRP) initiative. Through the VRP, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida.
U.S. Attorney Fajardo Orshan commended the FBI, DEA, and MDPD for their investigative efforts and the Miami-Dade State Attorney’s Office for its assistance. Assistant U.S. Attorney Cary O. Aronovitz prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seventy-Five Year Old Man Pleads Guilty to Possessing Child PornographyRead the Press Release
Fort Lauderdale, Florida – Today before a federal judge, Frank Richard Beyer (a/k/a “Rick Beyer”), 75, of Fort Lauderdale, Florida, pled guilty to possessing child pornography that included images of boys under age 12 engaged in sex acts and exposing their genitals.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court records, law enforcement received multiple cyber tips that an on-line user had uploaded child pornography to internet platforms. The cybertips included an email address that led law enforcement officers to Beyer. On November 20, 2019, officers executed a search warrant at Beyer’s home. During the search, law enforcement found external digital storage devices that contained multiple images and videos of children (some under age 12) engaging in explicit sexual conduct with other children or adults.
Beyer’s sentencing is scheduled for May 18, 2020, at 10:00 a.m. before United States District Judge Rodolfo Ruiz in Fort Lauderdale, Florida. Beyer faces up to 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Broward County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney Ajay Alexander is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former American Airlines Mechanic Sentenced to Prison for Attempting to Destroy an AircraftRead the Press Release
MIAMI−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 announced that Abdul-Majeed Marouf Ahmed Alani, 60, of Tracy, California was sentenced today by U.S. District Judge Marcia G. Cooke to 37 months in prison, after previously pleading guilty to the federal charge of attempted destruction of an aircraft.
According to the court record, including the facts admitted at the change of plea hearing, on or about July 17, 2019, Alani, a mechanic then employed by American Airlines at Miami International Airport (MIA), tampered with the air data module (ADM) system of an aircraft that was scheduled to depart MIA for Nassau, Bahamas.
On or about July 17, 2019, approximately two hours after its arrival into MIA, the aircraft pulled out for its scheduled departure to the Bahamas. Passengers and crew members were aboard the aircraft. While on the departure runway, the flight crew increased power to the aircraft engines in preparation for take-off. This resulted in an error reading by the aircraft’s computer related to the ADM system and the take-off was aborted.
Prior to the aircraft’s scheduled take-off from MIA, it was discovered that Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s South Florida Joint Terrorism Task Force (JTTF). She thanked the U.S. Federal Air Marshal Service, Miami-Dade Police Department’s Airport Division, U.S. Department of Homeland Security Transportation and Security Administration (TSA), U.S. Customs and Border Protection, Miami-Dade County Aviation Authority and Federal Aviation Administration (FAA) for their invaluable assistance. The case was prosecuted by Assistant U.S. Attorneys Randy A. Hummel and Maria K. Medetis.
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.
Department of Justice Launches A National Nursing Home InitiativeRead the Press Release
WASHINGTON – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida joined Attorney General William P. Barr in announcing today the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“Senior American need to be cherished. Unfortunately, many nursing home operators forget that. Our Office pledges its strong commitment to the national nursing home initiative announced today,” say U.S. Attorney Fajardo Orshan. “We must make certain that our seniors receive the respect and care that they deserve and that substandard nursing homes pay for their unconscionable acts of neglect.”
“The HHS Office of Inspector General (OIG) continues to pursue nursing home operators who provide potentially harmful care to residents who are often unable to protect themselves,” said Chief Counsel to the Inspector General Gregory Demske of HHS. “Creating this Initiative sends a message to those in charge of caring for these beneficiaries that grossly substandard care will not be tolerated.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Seventeen Defendants Charged in the Southern District of Florida
MIAMI – United States Attorney Ariana Fajardo Orshan joined Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation Miami Field Office; Inspector in Charge Antonio J. Gomez of the United States Postal Inspection Service’s (USPIS) Miami Division; and Special Agent in Charge George L. Piro FBI Miami today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
United States v. Adrianzen, Case No. 1:19-CR-20658: Indictment
United States v. Bindranauth, Case No. 4:19-CR-10016: Indictment
United States v. Burchell, Case No. 0:19-CR-60313: Indictment
United States v. Grossman, Case No. 0:19-CR-60300
United States v. Marchena, Case No. 1:19-CR-20622: Indictment
United States v. Perez, Case No. 1:19-CR-20850: Indictment
United States v. Shapiro, Case No. 1:19-CR-20178: Indictment
United States v. Turk , Case No. 9:19-CR-80148: Information
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Fraudsters who brazenly prey on our seniors will pay for their crimes. Protecting our seniors is top priority of our Office,” said U.S. Attorney Fajardo Orshan. “We will not cease in our efforts, both criminal and civil, to prevent the pernicious crimes and punish the perpetrators.”
“Elder abuse is a serious crime and IRS Criminal Investigation is committed to investigate individuals who perpetrate schemes against the elderly community and those exhibiting vulnerability in our society. IRS-CI will not stop its efforts as demonstrated in the United States v. Shapiro case until the fraudsters of such cold and calculated crimes are captured and sentenced” said Special Agent in Charge Michael J. De Palma. “With the support and assistance from the U.S. Attorney’s Office in the Southern District of Florida, IRS-CI will continue to enforce the law and foster public trust as an active agency in the Transnational Elder Fraud Strike Force.”
“The U.S. Postal Inspection Service has a long tradition of protecting the American consumer from these types of predatory schemes and bringing those responsible to justice particularly when they target the elderly,” said Inspector in Charge Antonio J. Gomez. “Every day we protect our postal customers and the general public from falling victim to these scams.”
“The greed of fraudsters who target senior citizens knows no bounds. Using a variety of tactics such as false romance and law enforcement impersonation, these scam artists bilk hard earned money from their aging marks – leaving many so financially devastated that they cannot recover because of their stage of life,” said Special Agent in Charge George L. Piro. “The FBI is doing everything we can to be sure our elder fellow citizens are protected and not defrauded.”
This interactive map provides state by state information on the elder fraud cases and education and prevention community outreach efforts highlighted by today’s sweep announcement.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
Watch USA Fajardo Orshan’s related public service announcement here:
For English Speakers
For Spanish Speakers
Transnational Elder Fraud Strike Force
The Transnational Elder Fraud Strike Force prosecuted more than one quarter of the defendants charged as part of the announced sweep. Established in June 2019, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices (Central District of California, Middle and Southern Districts of Florida, Northern District of Georgia, Eastern District of New York, Southern District of Texas), along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Prosecutors in Strike Force districts brought cases against more than 140 sweep defendants. FBI and the Postal Inspection Service served as lead agencies in the Strike Force and committed substantial investigative resources to pursuing elder fraud cases as part of Strike Force efforts. The Strike Force has held dozens of meetings with industry, victim groups, and law enforcement at the federal, state, and local levels to identify the most harmful schemes victimizing American seniors and to bolster preventive measures against further losses.
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man Who Cyberstalked and Threatened Families of Parkland Victims Sentenced to PrisonRead the Press Release
MIAMI –Brandon Michael Fleury, 22, of Santa Ana, California, was sentenced to 66 months in federal prison today for cyberstalking and sending a kidnapping threat to families of victims of a mass shooting in Parkland, Florida, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence introduced during the South Florida jury trial, Fleury used thirteen different Instagram accounts, using aliases including alleged Parkland shooter Nikolas Cruz, notorious serial killer Ted Bundy, and others, to target families and friends of Parkland shooting victims with messages over the course of three weeks between Dec. 22, 2018 and Jan. 11, 2019. Many of the messages, including ones written under usernames referring to Cruz and containing Cruz’s profile picture, taunted the message recipients about the deaths of loved ones in the Parkland shooting. On Dec. 25, 2018, Fleury, sent a message stating, “I’m your abductor I’m kidnapping you fool.” On Jan. 9, 10, and 11, 2019, Fleury continued to harass, intimidate, and threaten the message recipients from multiple Instagram accounts. These included messages sent under the username “the.douglas.shooter,” and using a profile picture of Nikolas Cruz. These messages included statements like, “With the power of my AR-15, you all die,” and “With the power of my AR-15, I take your loved ones away from you PERMANENTLY.”
After examining Fleury’s tablets, law enforcement found thousands of saved images of Ted Bundy, images of the targeted victims, and saved screenshots of the messages that he had sent the victims.
Fleury was convicted of interstate transmission of a threat to kidnap, in violation of Title 18, United States Code, Section 875(c), and interstate cyberstalking, in violation of Title 18, United States Code, Section 2261A (Case No. 19cr60056). He was sentenced by U.S. District Judge Rudolfo A. Ruiz II to 60 months as to Counts 1-3 to run concurrently and 6 months as to Count 4, to run consecutive to Counts 1-3.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s South Florida Violent Crime Fugitive Task Force and Broward Sheriff’s Office in this matter. U.S. Attorney Fajardo Orshan also thanked the FBI’s Los Angeles Field Office and task force members. This case was 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
Miami Resident Sentenced to 25 Years in Prison for Sex Trafficking a MinorRead the Press Release
Jim Lundi, 38, of Miami, was sentenced to a total of 300 months in prison by U.S. District Judge Robert N. Scola, Jr. after pleading guilty to sex trafficking a minor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Alfredo Ramirez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, in November 2017, the defendant met the 16-year-old victim, who was homeless and addicted to drugs, and saw an opportunity. The victim began living with him in an abandoned house in Miami. Shortly thereafter, the defendant discussed going into “business” with the victim. The defendant taught the victim how to use websites such as Backpage to advertise sex for money. He took nude photographs of the victim and then posted them on various websites including Backpage and listed his phone number in the advertisements as the method of contact.The defendant communicated with potential customers who responded to the advertisements and set up dates for the victim. Before meeting with a customer, the defendant often told the victim, “condoms, money, don’t play games.” He set the prices for the commercial sex acts and kept all of the money. The defendant regularly beat the victim for not making enough money from commercial sex acts or for trying to keep some of the money that she had earned. He frequently only gave the victim small amounts of drugs at a time, knowing that she had a strong addiction, in order to maintain control over her.
Also according to the court record, sometime in January 2018, the defendant transported the victim to a motel in Hollywood, Florida, where they stayed for approximately two weeks. During this time, the victim engaged in commercial sex acts inside the motel room while the defendant hid in the closet. The defendant then took the victim back to Miami because he wanted to make more money. After returning to Miami, the victim escaped from the defendant after he beat her and dragged her down a street. The victim broke away from the defendant and ran into a nearby restaurant – scraped, battered, and without pants. A good samaritan called the police and the victim was transported to a hospital.
Following his release from prison, Lundi will be on supervised release for 25 years and must register as a sexual offender (Case No. 19cr20075).
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and assistance from the FBI Behavioral Analysis Unit and Operational Technology Division, National Center for Missing and Exploited Children, and the Miami-Dade State Attorney’s Office.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation and Human Trafficking Task Force, MDPD, and all those who assisted in this matter. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and Rilwan Adeduntan.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Defendants Sentenced in South Florida to Prison Terms for Their Roles in Tricare and Medicare Fraud SchemeRead the Press Release
MIAMI – This week, U.S. District Judge Cecilia M. Altonaga sentenced five defendants, including a doctor, to federal prison terms for their roles in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. The defendants tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests. Their sentences are as follows:
- Dr. Mangala Ramamurthy, 64, of Texas was sentenced to 34 months for her role in the scheme: prescribing compounded pain creams and referring Genetic Cancer tests that were medically unnecessary. Dr. Ramamurthy earlier pled guilty to conspiracy to defraud the U.S. and conspiracy to receive healthcare kickbacks.
- John Scholtes, 56 of Boca Raton, Florida, was sentenced to 97 months for his role in the scheme. Scholtes earlier pled guilty to conspiracy to commit healthcare fraud, conspiracy to defraud the U.S., and conspiracy to receive healthcare kickbacks.
- Anthony Mauzy, 43, of California, was sentenced to 49 months for his role in the scheme. Mauzy earlier pled guilty to conspiracy to commit healthcare fraud.
- Thomas Sahs, 41, of California, was sentenced to 45 months for his role in the scheme. Sahs earlier pled guilty to conspiracy to commit healthcare fraud.
- Rajesh Mahbubani, 46, of Texas, was sentenced to 49 months for his role in the scheme. Mahbubani earlier pled guilty to conspiracy to commit healthcare fraud.
On January 31, 2020, a sixth co-conspirator, Senthil Kumar Ramamurthy, 38, of Texas, was sentenced to 121 months in federal prison for his role in the scheme. S.K. Ramamurthy earlier pled guilty to conspiracy to commit healthcare fraud, conspiracy to defraud the US, and conspiracy to receive healthcare kickbacks. S.K. Ramamurthy is the son of Dr. Ramamurthy.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.
According to court records, the co-conspirators targeted Tricare for about 10 months, starting in 2014. After making their way onto U.S. military bases, co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid the co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders.
In mid-2015, Tricare scaled back its reimbursements for compounded medications. The defendants turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary.
The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019. An indictment is an accusation and a defendant is innocent until proven guilty.
To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG. Assistant United States Attorneys Kevin J. Larsen, Anna Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove is handling the asset forfeiture matters.
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.
- Dr. Mangala Ramamurthy, 64, of Texas was sentenced to 34 months for her role in the scheme: prescribing compounded pain creams and referring Genetic Cancer tests that were medically unnecessary. Dr. Ramamurthy earlier pled guilty to conspiracy to defraud the U.S. and conspiracy to receive healthcare kickbacks.
Palm Beach County Tax Return Preparer Sentenced to Prison for Filing False Returns and Theft of Government FundsRead the Press Release
A West Palm Beach tax return preparer was sentenced to 90 months in prison on Friday for aiding and assisting in the preparation of false tax returns and theft of government funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the evidence presented at trial, from at least 2012 to 2016, Paul Senat was the owner and operator of multiple tax return preparation businesses in Palm Beach and surrounding areas. Through the businesses, Senat falsified his clients’ returns by reporting fictitious business losses and education credits in order to fraudulently inflate their refunds. Senat also stole a federal tax refund check worth nearly $10,000.
A federal jury in Fort Lauderdale, Florida convicted Senat on Nov. 6, 2019. Following the jury verdict, Senat was taken into custody.
At sentencing, U.S. District Judge Rodolfo A. Ruiz found that Senat caused a tax loss of more than $3.5 million to the United States.
In addition to the term of imprisonment, U.S. District Judge Ruiz ordered Senat to serve three years of supervised release and to pay $9,779 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
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.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
Former Florida Department of Corrections officer, Terrance Reynolds, 30, was convicted Friday following a 14-day trial for conspiring to assault youthful offender inmates, announced the Department of Justice. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
Evidence presented at trial established that on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler then instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally 24 years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. Let this be a message to them: If you are an officer who violates the civil rights of those entrusted to your protection, my Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
Reynolds faces a statutory maximum sentence of 10 years in prison.
This case was being investigated by the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections Office of the Inspector General. It was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins of the Southern District of Florida and Special Litigation Counsel Samantha Trepel of the Civil Rights Division.
Former Florida Department of Corrections Officer Convicted of Civil Rights Conspiracy to Assault Youthful OffendersRead the Press Release
MIAMI, Florida — Today, following a 14-day trial, a federal jury found former Florida Department of Corrections Officer Terrance Reynolds, 30, guilty of conspiring to assault youthful offender inmates, announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Eric S. Dreiband, Assistant Attorney General of the Justice Department’s Civil Rights Division, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Division. The jury acquitted Reynolds of two counts of depriving the youthful offender inmates of their civil rights.
According to the evidence presented at trial, on March 27, 2017, Reynolds and former Sergeant Brendan Butler, 30, conspired to physically assault and intimidate youthful offender inmates for being disruptive and disrespectful earlier that morning. Reynolds and Butler instructed three of the inmates to exit their housing unit and took them into a mop closet. Once inside the mop closet, Reynolds and Butler assaulted one of the inmates with a stick, causing him bodily injury, while the other two inmates stood nearby. The following day, Reynolds and Butler assaulted one of the other inmates to punish him for being disrespectful. Inmates may be classified as youthful offenders by a court or the Department of Corrections, and are generally twenty-four years old or younger. Butler previously pleaded guilty to conspiring to violate the inmates’ civil rights.
“In the Southern District of Florida, abuse by corrections officers will not be tolerated. If you are an officer who violates the civil rights of those entrusted to your protection, know this: My Office will prosecute you,” said Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida.
“Corrections officers who use unjustified force against inmates in their custody violate the Constitution,” said Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously investigating and prosecuting officers who break the public trust in this way.”
“Former corrections officer Terrance Reynolds was found guilty of conspiring to assault youthful offender inmates. Such conduct violates the public’s trust in our institutions and officials,” said George L. Piro, Special Agent in Charge, FBI Miami. “I commend the professionalism and hard work of the Florida Department of Corrections Office of the Inspector General and the FBI’s Miami Area Corruption Task Force with this investigation.”
U.S. Attorney Fajardo Orshan and Acting Assistant Attorney General Gore also commended the investigative efforts of the FBI’s Miami Area Corruption Task Force and the Florida Department of Corrections, Office of the Inspector General. The case was prosecuted by Assistant U.S. Attorneys Robert Senior and Brian Dobbins, of the Southern District of Florida, and Special Litigation Counsel Samantha Trepel, of the Justice Department’s Civil Rights Division.
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
Boca Raton Man Arrested for Producing and Distributing Child PornographyRead the Press Release
West Palm Beach, Florida – Robert Solove, 28, of Boca Raton, Florida, was arrested and charged by federal criminal complaint with production, distribution, and possession of child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, U.S. Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
According to court records, KiK username rsolove99 was observed posting images in an internet chat room of a young girl engaged in sexually explicit acts. The girl in the images appeared to be a female toddler. During a chat, rsolove99 said that he had taken the images of the female toddler. Investigation of the username led law enforcement to Solove and his residence. While executing a search warrant at Solove’s home on February 18, 2020, law enforcement officers observed a female toddler. The officers determined that the toddler needed medical attention and called for an ambulance to transport her to the hospital. Solove had two cellular telephones that contained videos of children who appeared to be under 12 engaged in sexually explicit acts. Federal agents arrested Solove for production, distribution, and possession of child pornography.
Solove’s pretrial detention hearing is set for 10:00 a.m. on March 26, 2020, in federal magistrate court in West Palm Beach, Florida.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of HSI and the Palm Beach County Sheriffs Office. Assistant U.S. Attorney Gregory Schiller is prosecuting this case. Anyone with information about this matter should contact Homeland Security Investigations by telephone at (866) 347-2423 (HSI Tipline Number) or on-line at www.ice.gov/webform/hsi-tip-form.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
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.
Miami Tire Importers Indicted for Excise Tax Conspiracy and Tax EvasionRead the Press Release
Miami, Florida -- A federal grand jury returned an indictment yesterday charging the owners of a Miami, Florida tire import business with conspiracy to defraud the government and tax evasion, announced Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division.
According to the indictment, Marco Parra and Eira Luces-Parra, a married couple, owned and operated Road Tire Plus, Corp (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, the Parras allegedly conspired with others in the tire industry to evade paying federal excise taxes on tires.
Truck tires marked for highway use are subject to excise taxes. A tire importer is liable for the excise tax when the truck tires are sold. Tire importers typically pass on the cost of the excise tax to the tire retailers (their customers) and collect the excise taxes from them. But if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
From 2013 through 2016, the Parras sold taxable truck tires to various tire retailers in South Florida. According to the indictment, the Parras collected from some customers the excise taxes that were due, but did not remit those taxes to the Internal Revenue Service (IRS) and did not file tax returns reporting the tire sales as they were obligated to do.
For other customers, the Parras allegedly never collected the federal excise taxes due on the tire sales. Instead, the Parras allegedly obtained from these coconspirators false bills of lading claiming that the tires were exported, so that the Parras could obtain an excise tax credit even though they knew the tires were not exported.
If convicted, the Parras face a maximum sentence of five years in prison for each count. They also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended IRS-Criminal Investigation, who conducted the investigation. Assistant U.S. Attorney Kevin Larsen, Tax Division Trial Attorney Mara Strier, and Tax Division Assistant Chief Greg Tortella are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Tire Importers Indicted for Excise Tax Conspiracy and Tax EvasionRead the Press Release
A federal grand jury returned an indictment yesterday charging the owners of a Miami, Florida, tire import business with conspiracy to defraud the government and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the indictment, Marco Parra and Eira Luces-Parra, a married couple, owned and operated Road Tire Plus Corp (Road Tire), a tire importer located in Miami, Florida. From 2013 through 2016, the Parras allegedly conspired with others in the tire industry to evade paying federal excise taxes on tires.
Truck tires marked for highway use are subject to excise taxes. A tire importer is liable for the excise tax when the truck tires are sold. Tire importers typically pass on the cost of the excise tax to the tire retailers, their customers, and collect the excise taxes from them. But if the tires are later exported rather than sold domestically, the law provides for a credit for the excise taxes paid.
From 2013 through 2016, the Parras sold taxable truck tires to various tire retailers in South Florida. According to the indictment, the Parras collected from some customers the excise taxes that were due, but did not remit those taxes to the Internal Revenue Service (IRS) and did not file tax returns reporting the tire sales as they were obligated to do.
For other customers, the Parras allegedly never collected the federal excise taxes due on the tire sales. Instead, the Parras allegedly obtained from these coconspirators false bills of lading claiming that the tires were exported, so that the Parras could obtain an excise tax credit even though they knew the tires were not exported.
If convicted, the Parras face a maximum sentence of five years in prison for each count. They also face a period of supervised release, restitution, and monetary penalties.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Mara Strier and Assistant Chief Greg Tortella of the Tax Division and Assistant U.S. Attorney Kevin Larsen, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Fort Lauderdale Father and Daughter Sentenced to Prison Terms for Involvement in $100 Million Fraudulent Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Anthony Ramirez, Assistant Special Agent-in-Charge, U.S. Department of State Diplomatic Security Service (DSS), Miami Field Office; George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office; and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA) announced that U.S. District Judge Robin L. Rosenberg sentenced Danielle Takeila Edmonson, 35, and Kenneth Roger Edmonson, 51, both of Fort Lauderdale, Florida, to prison terms for their involvement in a scheme that involved the filing of false and fraudulent tax returns seeking large-dollar tax refunds. D. Edmonson received a 72-month sentence. K. Edmonson received a 51-month sentence.
According to the evidence presented at trial, from 2015 through 2018, D. Edmonson and K. Edmonson filed large-dollar tax refund claims with the IRS totaling over $100 million, including individual refund claims ranging from hundreds of thousands of dollars to as high as eighty million dollars. Despite the false nature of the claims, the Department of Treasury paid out approximately $3.4 million in refunds through the issuance of U.S. Treasury checks.
In addition, D. Edmonson filed a fraudulent tax return seeking a large refund for tax year 2014, falsely indicating on handwritten forms that she had paid taxes of over $300,000. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax return, the Department of Treasury issued a tax refund check for $239,700 in 2015. D. Edmonson deposited this tax refund check into her bank account and used the funds to purchase a luxury vehicle.
D. Edmonson also filed fraudulent tax returns for each of tax years 2015, 2016, and 2017, seeking refunds of approximately $80 million, $2.4 million, and $9 million, respectively. These tax returns contained forms falsely claiming that she had paid over $145 million in taxes during this period. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax returns, the Department of Treasury issued a tax refund check to K. Edmonson in the amount of $2,405,703 on September 4, 2017. D. Edmonson subsequently deposited this tax refund check into her bank account.
In September 2017, K. Edmonson filed a fraudulent tax return seeking a refund of approximately $725,111. The return contained false and fraudulent claims that he had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account.
Trial evidence also established that in January 2018, law enforcement conducted a search of the Edmonson residence. During the search, in the bedrooms of D. Edmonson and K. Edmonson, law enforcement found letters addressed to both individuals warning them of the frivolous nature of their returns. Shortly after law enforcement left, despite warnings not to do so, K. Edmonson went to his bank to attempt to withdraw the funds from the account that received the fraudulent refund check.
D. Edmonson was convicted on four counts of filing false, fictitious and fraudulent claims, two counts of mail fraud, and one count of false statements.
K. Edmonson was convicted at trial of two counts of filing false, fraudulent, and fictitious claims, one count of mail fraud, and one count of false statements.
U.S. Attorney Fajardo Orshan commended IRS-CI, DSS, FBI and TIGTA for their work on the case. The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Adrienne Rosen.
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.
Former DEA Agent and His Wife Indicted for Alleged Roles in Scheme to Divert Drug Proceeds from Undercover Money Laundering InvestigationsRead the Press Release
A 19-count indictment in Tampa, Florida, was unsealed today against a former Drug Enforcement Administration (DEA) special agent and his wife for their alleged roles to divert drug proceeds from undercover money laundering investigations into bank accounts they, along with family members and criminal associates, controlled.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Byung J. Pak of the Northern District of Georgia, Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General Miami Field Office, Special Agent in Charge Michael F. McPherson of the FBI’s Tampa Field Office and Special Agent in Charge Mary E. Hammond of IRS-Criminal Investigation (CI) and Acting Special Agent in Charge Kevin Sibley of U.S. Immigration and Customs Enforcement's Homeland Security Investigations (HSI) Tampa made the announcement.
The FBI arrested Jose I. Irizarry, 46, and Nathalia Gomez-Irizarry (Gomez), 36, this morning at their residence near San Juan, Puerto Rico. Irizarry and Gomez made their first appearance in U.S. District Court in San Juan today and were released on bond. Their next court appearance is scheduled for Feb. 26.
The indictment alleges that while working as an agent for the DEA in Miami and Cartagena, Colombia, Irizarry engaged in an illegal scheme to divert drug proceeds from undercover money laundering investigations into bank accounts controlled by himself and Gomez, their family members, and their criminal associates. To carry out the plot, Irizarry and his criminal associates are alleged to have opened a bank account with a stolen identity and then utilized the account to secretly send and receive drug proceeds from active DEA investigations.
The indictment further alleges that Irizarry and Gomez used drug proceeds to purchase jewelry, a home and multiple luxury vehicles for themselves and their family. As alleged, Irizarry was in personal bankruptcy proceedings for nearly the duration of this criminal conduct and failed to disclose any of his illicit income to the U.S. Bankruptcy Court.
Irizarry is charged with conspiracy to launder monetary instruments, honest services wire fraud, bank fraud, conspiracy to commit bank fraud, conspiracy to commit identity theft and aggravated identity theft. Gomez is charged with conspiracy to launder monetary instruments.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorney Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section is prosecuting the case.
The Justice Department’s Office of Inspector General, FBI, DEA, IRS-CI, and HSI investigated the case. The U.S. Marshals Service, U.S. Customs and Border Protection, the Criminal Division’s Office of International Affairs, the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office, the U.S. Attorney’s Office for the Middle District of Florida and District of Puerto Rico, the Colombian Attorney General’s Office (Fiscalia General de la Nacion) and the South Florida Money Laundering Strike Force at the Miami-Dade State Attorney’s Office provided valuable assistance.
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.
South Palm Beach Man Sentenced to More Than Eight Years in Prison for Possessing Child PornographyRead the Press Release
WEST PALM BEACH−U.S. District Judge Rodney Smith sentenced Gary Roger Kolligian, 65, of South Palm Beach, Florida, to 97 months in prison for possessing child pornography, some of which depicted children under age 12. The judge also sentenced Kolligian to 15 years of supervised release following his prison term.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
Kolligian pled guilty to possessing child pornography on November 19, 2019.
According to court records, Kolligian posted sexual abuse images of minors on Twitter. Twitter reported the activity to the National Center of Missing and Exploited Children. Once law enforcement learned about the activity, they located and spoke with Kolligian. Kolligian admitted to officers that he possessed child pornography, that he chatted with people on-line about child pornography, and that he downloaded child pornography from an on-line chat group. Kolligian saved his collection of child pornography on different devices including a laptop computer, hard drives, and CD/DVDs. In total, he possessed over 300 images and videos of child pornography. Some of the saved material went back 20 years. The child pornography that Kolligian collected on these devices included pictures and videos of children who appeared to be as young as seven or eight-years-old posing sexually or engaging in sexually explicit acts.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of HSI, the South Palm Beach Police Department, and the Lantana Police Department. Assistant U.S. Attorney Gregory Schiller prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Individual Arrested for Acting Within the U.S. on Behalf of the Russian Government Without Notifying the Attorney GeneralRead the Press Release
Hector Alejandro Cabrera Fuentes, a Mexican citizen residing in Singapore, was arrested based on a Complaint charging him with acting within the United States on behalf of a foreign government (Russia), without notifying the Attorney General, and conspiracy to do the same.
John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida; George Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office; and Diane J. Sabatino, Director of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
According to court documents, a Russian government official recruited Fuentes in 2019 and directed Fuentes to rent a specific property in Miami-Dade County, Florida. The Russian official told Fuentes not to rent the apartment in Fuentes’s own name and not to tell his family about their meetings. Fuentes traveled to Russia and informed the Russian government official about the arrangements. The official approved and told Fuentes to see him again on his next trip to Russia.
In February 2020, Fuentes traveled to Moscow again and met with the Russian government official. At this meeting, the Russian government official provided Fuentes with a physical description of a U.S. Government source’s vehicle and told Fuentes to locate the car, obtain the source’s vehicle license plate number, and note the physical location of the source’s vehicle. The Russian official instructed Fuentes to meet the Russian official again in April or May 2020, to inform him of the results of the search for the source’s vehicle.
Furthermore, according to court documents, Fuentes traveled to Miami on Feb. 13, 2020, from Mexico City. The next day, on February 14, Fuentes’s rental car drew the attention of a security guard where the U.S. government source resided because it entered its premises by tailgating another vehicle to gain access. When a security guard approached Fuentes’s rental car, Fuentes’s travel companion, who resides and is legally married to Fuentes in Mexico, walked away from Fuentes’s rental car to the U.S. Government source’s vehicle and took a photograph of the source’s vehicle’s license plate. When security questioned Fuentes and his travel companion on the nature of their business in the building, Fuentes provided a name of an individual whom they were purportedly visiting. Security did not recognize the person as living there and told Fuentes to leave the premises.
On the evening of February 16, 2020, Fuentes and his travel companion arrived at Miami International Airport to leave to United States, on their way to Mexico City. U.S. Customs and Border Protection inspected the phone of Fuentes’s travel companion and found a close-up image of the license plate of the U.S. Government source’s vehicle in the “recently deleted folder” of her phone. When asked about the photo, Fuentes admitted tasking his travel companion to take the photo of the vehicle’s license plate. CBP’s review of Fuentes’s phone revealed a WhatsApp message from his travel companion sent to Fuentes with the same photograph of the vehicle license plate. Fuentes admitted to law enforcement officers that he was directed by a Russian government official to conduct this operation. According to court documents, messages on Fuentes’s phone showed that the Russian official initiated and directed the meetings.
A pretrial detention hearing is set for 10:00 a.m. on Friday, February 21, 2020. Fuentes’s arraignment is set for 10:00 a.m. on March 3, 2020. Both hearings will occur in U.S. magistrate court in Miami, Florida.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CBP.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorneys Thea Kendler and Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
Palm Beach County Resident Sentenced to Prison Term for Defrauding Victim Out of Approximately a Half of a Million DollarsRead the Press Release
WEST PALM BEACH – United States District Judge Robin L. Rosenberg sentenced Scott Woolley, 59, of Delray Beach, Florida, to five months in prison followed by three years of supervised release for scheming to defraud the owner of a skin care product company out of about half a million dollars.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
On December 3, 2020, Woolley pled guilty to two counts of wire fraud. According to court records, the victim was the majority owner of Aubio Life, LLC, Aubio Life Sciences, LLC (Aubio Life), a skin care products company. The victim appointed Woolley as the CEO of Aubio Life, with a salary of $13,000 per month. In 2017, without the victim’s consent, Woolley transferred about $500,000 from Aubio Life bank accounts to bank accounts that Woolley controlled. The bank accounts that Woolley controlled were located in Palm Beach County, Florida. Woolley used the money to make a down payment on a house in Delray Beach, Florida.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and the Delray Beach Police Department in this matter. Assistant U.S. Attorney Lothrop Morris prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Two Former Owners of South Florida Tech Support Scam Sentenced to Lengthy Prison TermsRead the Press Release
EAST ST. LOUIS, ILL. – Two former owners of a fraudulent tech support business known as Client Care Experts, LLC (“Client Care”) are going to prison for a long time. Yesterday, in federal district court in East St. Louis, Illinois, Michael Austin Seward, 32, of Deerfield Beach, Florida, and Kevin James McCormick, 47, of Hollywood, Florida, were sentenced to prison terms of 113 months and 132 months respectively. Both men previously pleaded guilty to a charge of conspiracy to commit wire fraud.
Seward was the founder and chief executive officer of Client Care, while McCormick served as another high-level executive for the Boynton Beach, Florida company, which was formerly known as First Choice Tech Support. For about 15 months, Seward and McCormick also operated a similar tech support business called ABC Repair Tech (ABC), located in Costa Rica.
According to court documents, the defendants purchased pop-up advertisements that appeared suddenly on a person’s computer screen. The pop-ups were made to look like system warnings and falsely informed the victims that serious problems, such as viruses or malware, had been detected on their computers. Often, the pop-ups caused the person’s internet browser to freeze up and stop responding. The pop-ups also typically warned the victims not to shut down their computers or else they would lose all their data. Instead, the ads directed them to call a toll-free number, where they were connected to sales representatives who continued the fraud.
The sales representatives convinced the victims to grant them remote access to their computers, where normal computer functions and routine processes were highlighted as evidence of serious computer problems. Victims were never told that the pop-ups that had hijacked their computers were just advertisements purchased by the tech support company, or that in most instances they could make the pop-ups go away simply by rebooting their computers. Instead, they were sold remote “tune-ups” for $250 and anti-virus protection software for another $400. If victims balked at the steep prices, the sales representatives would offer them discounts, such as senior citizen and veterans discounts.
From 2013 to 2016, the two companies – Client Care and ABC – combined to defraud more than 40,000 people. Victims were located in all 50 States, the District of Columbia, Puerto Rico, several U.S. territories, all 10 Canadian provinces, the United Kingdom, and several other foreign countries. At least 57 victims of the scams were residents of the Southern District of Illinois, representing 22 of the district’s 38 counties, including St. Clair and Madison. All told, the two companies took in over $25 million.
As part of their sentence, the court ordered both Seward and McCormick to pay over $11.5 million in restitution to the victims of their fraud scheme.
“As the court observed, there is a growing gap between our ever-increasing reliance on technology and the average person’s understanding of how that technology works,” said U.S. Attorney Weinhoeft. “These men took advantage of that gap to line their own pockets. What’s even more disturbing is that many of the victims were senior citizens. Following Attorney General Barr’s Elder Justice Initiative, we want would-be scammers to know that if they reach out and defraud people in southern Illinois, we’re going to haul them into federal court in this district and hold them accountable for their crimes.”
Over the past three years, 17 other employees of Client Care and ABC have also pleaded guilty to federal fraud violations in the Southern District of Illinois:
Joseph Ralph Aievoli, IV, 26, of Boynton Beach, FL – Salesperson at Client Care
Cory Steven Bachman, 26, of Boynton Beach, FL – Salesperson at Client Care
Andrew Douglas Broad, 27, of Boynton Beach, FL – Director of Training at Client Care
Ryan Stocker Carr, 24, of Mount Laurel, NJ – Team Leader at Client Care
Joshua Dennis Cortez, 38, of Lake Worth, FL – Director of Training at Client Care
Erica Marie Crowell, 30, of Maple Shade, NJ – Salesperson at Client Care
Nicholas James Davidson, 27, of Boynton Beach, FL – Salesperson at Client Care
Patrick M. Dougherty, 36, of Boynton Beach, FL – Salesperson at Client Care
Tatum Elyse Espenshade, 27, of West Palm Beach, FL – Salesperson at Client Care
Eric M. Iannaccone, 33, of Monroe Township, NJ – Sales Manager at Client Care
Michael Cary Lawing, 34, of Lincolnton, NC – CEO of ABC
Anthony Vincent Ludena, 30, of Boca Raton, FL – Salesperson at Client Care
Robert Thomas McCart, 33, of Boynton Beach, FL – Team Leader at Client Care
Timothy James Miller, II, 28, of Schwenksville, PA – Salesperson at Client Care
Jonathan Matthew Richardson, 28, of Lake Worth, FL – Salesperson at Client Care
Kyle Evan Swinson, 27, of Boynton Beach, FL – Team Leader at ABC/Client Care
Grant Clark Wasik, 36, of Oakland Park, FL – Vice President and Sales Manager of Client Care
All 17 of those defendants have already been sentenced, as follows:
Date
Defendant
Prison Sentence
Restitution
Mar. 8, 2018
Ryan Carr
12 months + 1 day
$20,384.36
May 7, 2018
Joshua Cortez
18 months
$3,034.00
June 8, 2018
Patrick Dougherty
12 months + 1 day
$240,966.94
June 14, 2018
Anthony Ludena
12 months + 1 day
$176,692.26
June 29, 2018
Nicholas Davidson
5 years probation
$181,808.40
July 26, 2018
Timothy Miller
5 years probation
200 hours community service
$127,042.06
Aug. 3, 2018
Tatum Espenshade
1 day + 18 months home detention
$132,683.68
Sept. 11, 2018
Andrew Broad
12 months + 1 day
$55,238.28
Sept. 20, 2018
Jonathan Richardson
12 months + 1 day
$78,638.99
Oct. 4, 2018
Corey Bachman
1 day + 400 hours community service
$156,806.25
Oct. 8, 2019
Grant Wasik
125 months
$10,619,430.95
Oct. 10, 2019
Joseph Aievoli
1 day + 200 hours community service
$106,355.82
Oct. 15, 2019
Michael Lawing
18 months
$266,501.94
Oct. 23, 2019
Eric Iannaccone
12 months + 1 day
(pending)
Dec. 10, 2019
Robert McCart
Time served
100 hours community service
none
Dec. 10, 2019
Kyle Swinson
1 day + 400 hours community service
$7,589.31
Jan. 8, 2020
Erica Crowell
Time served
12 months home detention
$123,815.60
These cases were part of an investigation by the St. Louis Field Office of the Chicago Division of the United States Postal Inspection Service. The cases were prosecuted by Assistant United States Attorneys Scott A. Verseman, Ranley R. Killian, and Nathan D. Stump. The Florida Attorney General’s Office raided Client Care in June 2016 and has been cooperating with the federal investigation, in addition to bringing its own civil enforcement action against the fraudulent company under Florida state law.
The Federal Trade Commission has been working for some time to shut down illegal tech support scams. For more information about the FTC’s “2019 Tech Support Takedown,” please visit https://www.consumer.ftc.gov/blog/2019/03/ftcs-tech-support-takedown-2019.
Some consumers who were victimized by ABC or Client Care / First Choice Tech Support have received additional fraudulent calls. These calls typically come from companies claiming either (a) that the technical support the victims purchased has been transferred to them and additional funds are now needed; or (b) that they can help the victims obtain a refund. Victims should be advised that no companies have been authorized to provide them with any tech support services on behalf of ABC or CLIENT CARE / First Choice Tech Support, or to provide them with a refund for any previous purchases.
Three Individuals Convicted for Participating in International Fraud SchemeRead the Press Release
MIAMI – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, Miami Field Office, United States Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the convictions of three defendants for various offenses relating to an international fraud scheme.
Following a 13-day trial, on February 6, 2020, a jury found Raoul Doekhie, 51, of Suriname, Johnny Grobman 46, of Golden Beach, Florida, and Sherida Nabi, 55, of Suriname, guilty of conspiring to commit wire fraud, wire fraud, money laundering, conspiring to obtain pre-retail medical products worth $5,000 or more by fraud or deception, theft of pre-retail medical products, and smuggling goods from the United States. Sentencing is scheduled in Miami, Florida for April 23, 2020.
A fourth conspirator, Edgar Torres, 61, of Brandford, Florida, pled guilty to wire fraud conspiracy on June 24, 2019. Torres is scheduled to be sentenced in Ft. Lauderdale, Florida on February 11, 2020.
According to the evidence presented at trial, between 2013 and 2018, the defendants, who also maintained residences in Fort Lauderdale, Florida, orchestrated an elaborate scheme to obtain FDA-regulated products from manufacturers in the United States at deeply discounted prices, including infant formula, eye-care products, and other food and medical devices. To get these discounts, Doekhie and Nabi told the manufacturers that they were purchasing the products to ship overseas, to Suriname, often in connection with purported government procurement contracts they held in Suriname. In fact, Defendants did not have government procurement contracts and never intended to export the products to Suriname. Instead, Grobman and others sold the products in the United States for tens of millions of dollars, which the three defendants later split among themselves.
The defendants hid their activity from the victim companies in one of three ways. The first was to send “dummy” shipments abroad. The dummy shipments did not contain the products purchased from the manufacturers, but they did generate documentation to prove that an export occurred. The second method was to “U-turn” the products: The products were shipped abroad, generating export documentation. As soon as they arrived overseas, they were shipped back to the United States. The third method was to create fraudulent export shipping documentation showing that the products were exported when they actually never left the country.
According to the superseding indictment, over $61 million in criminal proceeds is traceable to Grobman. Over $69 million is traceable to Doekhie and Nabi.
This case is the second large-scale prosecution by the South Florida U.S. Attorney’s Office and FDA-OCI targeting fraud schemes related to the so-called “gray market,” which involves the diversion and re-sale of certain goods that were not intended for distribution in the United States. Previously on September 4, 2019, U.S. Attorney Fajardo Orshan announced the convictions of five defendants, including Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, for various offenses relating to a global fraud scheme that relied upon false claims about the United States military and the Government of Afghanistan.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FDA-OCI. She also thanked the Broward County Sherriff’s Office for their assistance. Assistant U.S. Attorneys Shannon Shaw, Christopher Browne, and John Shipley prosecuted the case. Assistant U.S. Attorney Adrienne Rosen is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Loxahatchee Man Sentenced to 20 Years in Federal Prison for Production of Child Pornography and Related CrimesRead the Press Release
U.S. District Judge Donald M. Middlebrooks sentenced Andrew Melendez-Gonzalez, 22, of Loxahatchee, Florida, to 20 years in federal prison, followed by 25 years of supervised release, for coercing a 15-year-old girl from the Philippines into taking sexually explicit photographs and videos of herself and sending them to his cellular telephone.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of Homeland Security Investigations (HSI), Miami Field Office, and Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
Melendez-Gonzalez pled guilty on December 4, 2019, to producing child pornography, possessing child pornography, transferring obscene material to a minor, and stalking.
According to court records, Melendez-Gonzalez met the 15-year-old victim in an on-line chat room in 2018. He was in Florida. The minor was in the Philippines. After the initial on-line contact, Melendez-Gonzalez communicated with the minor through text messages. He texted the minor an image of his penis and directed her to record sexually explicit photographs and videos of herself and send those to him by text message. The defendant told the minor that if she did not continue texting sexually explicit images to him, he would post the ones he had of her on the internet and send them to the press. Melendez-Gonzalez also texted the minor that he knew where she lived and went to school and that if she did not respond to his messages, he would travel to see her. He also threatened to kill himself if she did not respond.
Law enforcement officers located and arrested Gonzalez after receiving a cybertip from the National Center for Missing and Exploited Children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigation efforts of HSI and PBSO. She also thanked the 15th Judicial Circuit Palm Beach County State Attorney Office. Assistant U.S. Attorney Gregory Schiller prosecuted this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two South Florida Residents Sentenced to Prison Terms for Stolen Identity and Tax Refund Fraud SchemeRead the Press Release
Two defendants involved in a stolen identity and tax refund fraud scheme were sentenced to federal prison terms by U.S. District Judge Marcia G. Cooke. The scheme involved using stolen identities to file fraudulent income tax returns that falsely claimed refunds.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Maurice Marcellus, 37, of Miami, Florida, received a prison term of 60 months and three years of supervised release. Ludrick Joseph, 38, of North Miami Beach, Florida, received a prison term of 48 months and three years of supervised release. Both defendants are jointly responsible for paying $563,210 in restitution to the Internal Revenue Service.
A federal grand jury indicted Marcellus and Joseph on February 14, 2019. They pled guilty on November 13, 2019.
According to court documents, Joseph worked for Capital Financial Management, LLC, a tax preparation business incorporated in Miami-Dade County. Marcellus was the manager and sole registered agent of the company and ran the day-to-day operations of the business. Between 2012 and 2014, Joseph and Marcellus prepared and electronically filed federal tax returns for individuals who either did not authorize Joseph or Marcellus to possess their personal identifying information or did not authorize the defendants to file returns on their behalf. Some of the returns were electronically filed under an Electronic Filing ldentification Number (EFIN) assigned to a person later determined by agents to be a victim of identity theft.
Joseph and Marcellus stored thousands of victims’ personal identifying information in electronic and physical files at Capital Financial Management, LLC. One of the lists in Joseph’s folder contained the personal identifying information of people who Joseph knew were deceased. A spreadsheet located in both Joseph’s and Marcellus's computer files contained the names, addresses, phone numbers, and social security numbers of over two thousand students who attended the ATI College of Health in Miami, Florida. Marcellus obtained that spreadsheet while working for the ATI College of Health as an academic advisor. He provided a copy to Joseph in order to file fraudulent tax returns using the student victims’ information.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI. She also thanked the Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service (USSS), Miami Field Office, U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI), and U.S. Postal Inspection Service (USPIS), Miami Division. Assistant U.S. Attorney Shane Butland prosecuted this case. Assistant U.S. Attorney William Zloch is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Eight Miami-Dade Residents Plead Guilty to Offenses Related to Computer Fraud and Embezzlement Scheme Targeting Miccosukee Resort & GamingRead the Press Release
MIAMI – On February 4, 2020, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Division, and Roland D. Pandolfi, Chief of Police, Miccosukee Police Department, announced the convictions of all eight (8) defendants in United States v. Michel Aleu, et al. Case No. 19-20435-Cr-Gayles.
Four of the defendants, Michel Aleu, Lester Lavin, Yohander Jorrin Melhen, and Leonardo Betancourt, all former employees and licensees of Miccosukee Gaming, pled guilty and were convicted of conspiracy to steal funds in excess of $1,000 from Miccosukee Gaming, conspiracy to commit computer fraud, and money laundering conspiracy. Their respective spouses, defendants Maria Del Pilar Aleu, Anisleydi Vergel Hermida, and Milagros Marile Acosta Torres, pled guilty and stand convicted of conspiracy to commit money laundering offenses. Yohander Jorrin Melhen and Milagros Acosta Torres were the last defendants to plead guilty, when they appeared in Court on Friday, January 31, 2020.
As stated in court documents, from January 2011 to May 2015, Michel Aleu, Lavin, Jorrin Melhen, Betancourt, and other co-conspirators, who were employed in the video game department at the Miccosukee Casino, tampered with the computers in electronic gaming machines, causing those machines to generate false and fraudulent credit vouchers or tickets. They then enlisted other conspirators to exchange the vouchers for cash at ATMs located on the casino floor, at floor cashiers, or the casino treasury. Casino records disclose that the defendants and their co-conspirators stole approximately $5.3 million in cash from Miccosukee Gaming. The defendants used the stolen funds to purchase and maintain residences and investment properties, to purchase vehicles, vessels, and Florida Prepaid College Plans for certain of their children, and to pay for travel and household expenses.
The defendants are now awaiting sentencing before United States District Judge Darrin P. Gayles. Each defendant faces a maximum term of 20 years’ imprisonment for money laundering conspiracy. Michel Aleu, Lavin, Jorrin Melhen, and Betancourt face maximum terms of five years on their convictions for conspiracy to steal from Miccosukee Gaming and conspiracy to commit computer fraud.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of FBI and Miccosukee Police Department. This case was prosecuted by Assistant U.S. Attorney Dwayne Williams and Asset Forfeiture Assistant U.S. Attorney Nicole Grosnoff.
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.
Texas Man Sentenced in South Florida to Ten Years in Federal Prison for his Role in Tricare and Medicare Fraud SchemeRead the Press Release
MIAMI – U.S. District Judge Cecilia M. Altonaga sentenced Senthil Kumar Ramamurthy, 38, of Texas, to 121 months in federal prison for his role in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. Ramamurthy and his co-conspirators tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent In Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.
On November 12, 2019, Ramamurthy pled guilty to conspiring to commit health care fraud and conspiring to defraud the United States and receive health care kickbacks.
According to court records, Ramamurthy and his co-conspirators targeted Tricare for about 10 months, starting in 2014. After deceiving their way onto U.S. military bases, Ramamurthy and his co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, Ramamurthy and his co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid Ramamurthy and his co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders.
In mid-2015, Tricare scaled back its reimbursements for compounded medications. Ramamurthy and his co-conspirators turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary. The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019.
“Ramamurthy used our military families, our elderly, and our disabled to bilk millions of dollars from our country’s vital health care programs. He is set to spend the next 10 years in federal prison paying for that,” said U.S. Attorney Fajardo Orshan. “I commit to you that along with its federal law enforcement partners, the U.S. Attorney’s Office will continue to fight health care fraud in South Florida.”
"Senthil Ramamurthy’s conduct was part of a multi-million dollar fraud scheme perpetrated on the military's healthcare program. Today's sentencing is a testament of the Defense Criminal Investigative Service's fierce commitment to protect America's Warfighters and the integrity of their healthcare program. DCIS will work tirelessly with our law enforcement partners and Federal prosecutors in order to bring to justice any unscrupulous individuals or organizations who decide to compromise and abuse the interests, health and well-being of our men and women in the military," said Cyndy Bruce, Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office.
“Ramamurthy preyed upon unsuspecting beneficiaries to enrich himself; however, his unlawful actions led not to riches, but a 10-year prison sentence,” said Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to protect government-funded health care programs and the beneficiaries served by them.”
Additional co-conspirators of Ramamurthy have pleaded guilty to federal criminal charges arising out of the fraud scheme: Asif Uddin, 32, of Missouri, Karl Voeller, 34 of Delray Beach, Florida, Jennifer John Carbon, 48, of Miami, Florida, John Scholtes, 56 of Boca Raton, Florida, Anthony Mauzy, 43, of California, Thomas Sahs, 41, of California, Rajesh Mahbubani, 46, of Texas, and Dr. Mangala Ramamurthy, 64, of Texas. They are scheduled for sentencing in the Southern District of Florida in February 2020.
To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.
U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG. Assistant United States Attorneys Kevin J. Larsen, Ana Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Man Who Flew Drone in Restricted South Florida Air Space During Super Bowl Week Charged FederallyRead the Press Release
MIAMI – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Yorgan Arnaldo Ramos Teran (Ramos Teran), 46, of Weston, Florida, is charged with violating the temporary flight restrictions set up to protect the public during Super Bowl LIV and the week leading up to the game. Super Bowl LIV takes place on February 2, 2020, at the Hard Rock Stadium in Miami Gardens, Florida.
According to the criminal complaint filed in the Southern District of Florida, on the night of January 29, 2020, Ramos Teran illegally flew a drone in the temporarily restricted air space of Ocean Drive and 8th Street in Miami Beach, without the required authorization from the Federal Aviation Administration (FAA). The complaint charges Ramos Teran with violating 49 U.S.C. § 46307, which prohibits knowingly and willfully violating national defense airspace; specifically, with knowingly and willfully flying a drone in an area with a temporary flight restriction imposed by the FAA. If convicted, Ramon Teran faces up to one year in federal prison. Ramos Teran is scheduled for an initial appearance before a federal magistrate judge at 2:00 p.m. today.
A temporary flight restriction is a regulation that temporarily restricts certain aircraft (including drones) from operating within a defined area in order to protect people or property in the air or on the ground. As part of a comprehensive federal, state, and local law enforcement plan to protect the public and secure the events leading up to and including Super Bowl LIV, the FAA established temporary flight restrictions on drone and other aircraft flights in areas of Miami Beach and Downtown Miami, and around the Hard Rock Stadium. Restrictions on drone and other aircraft flights in South Florida remain in effect through February 2, 2020.
For more information on Super Bowl LIV-related “No Drone Zones” and other temporary flight restrictions, visit superbowl.faa.gov.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, FAA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Miami Beach Police Department.
A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.
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.
Cuban National Sentenced to Prison for Alien Smuggling OperationRead the Press Release
MIAMI - On January 28, 2020, Tomas Vale Valdivia, 45, a Cuban national who was living in Isla Mujeres, Mexico, was sentenced to 57 months in prison by U.S. District Kathleen M. Williams in Miami, Florida for his participation in a for-profit alien smuggling conspiracy that transported Cuban nationals to Mexico and then into the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, beginning at least as early as October 2013, and continuing through at least July 2018, a group of individuals, including Vale Valdivia and additional unnamed associates, were members of an alien smuggling conspiracy operating in Miami, Florida, Mexico, the Dominican Republic, and Haiti. Vale Valdivia admitted to being the leader and organizer of the alien smuggling conspiracy, which included five or more participants. Through this conspiracy in excess of 100 migrants were smuggled from Cuba to Mexico and then ultimately to the border of the United States. Generally, the migrants were charged approximately $10,000. Vale Valdivia admitted to knowing that the migrants coming to, entry, and residence in the United States was a violation of law. Vale Valdivia further admitted that this alien smuggling conspiracy, at times, smuggled aliens in a manner that intentionally or recklessly created a substantial risk of death or serious bodily injury to another person. For example, at times vessels used to smuggle migrants were overloaded or were used during foul weather so as to risk capsizing. In addition to smuggling migrants, Vale Valdivia smuggled baseball players from Cuba to the United States. Vale Valdivia also admitted to being involved in a conspiracy that stole engines in the United States and then shipped the engines through a freight forwarding company in Miami to Mexico to be used to further the alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI, FBI, U.S. Customs and Border Protection (CBP), and U.S. Coast Guard Investigative Service (CGIS), Southeast Region in this matter. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Ignacio J. Vázquez, Jr. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Resident Sentenced to 20 Years in Prison for Selling Firearms to a Designated Foreign Terrorist Organization, the ELNRead the Press Release
MIAMI - Francisco Joseph Arcila Ramirez (Arcila), a Colombian national and South Florida resident was sentenced to 240 months in federal prison today by U.S. District Judge Jose E. Martinez for illegally selling firearms to the National Liberation Army (ELN), a designated Foreign Terrorist Organization and a violent paramilitary group operating in South America.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
Arcila pled guilty to providing material support to a foreign terrorist organization October 17, 2019.
According to court records, on August 16, 2018, Arcila instructed two co-conspirators to illegally purchase six firearms in Miami-Dade County on Arcila’s behalf. These firearms included four Draco 7.62mm caliber AK-style pistols and two Zastava M92 7.62mm AK-style pistols. The firearms were then concealed in Husky air-compressors purchased by Arcila at a Miami-area Home Depot and shipped to Barranquilla, Colombia. This shipment also contained approximately one hundred AK-47 ammunition magazines.
On Sept. 5, 2018, Arcila attended a meeting in Colombia, where he met with an ELN weapons broker to discuss the sale of the six firearms Arcila had recently shipped into Colombia. In addition to agreeing to the sale of these six firearms, Arcila and the weapons broker further discussed other future sales, to include firearm magazines and firearm components in the coming months. At the conclusion of this meeting, the weapons broker provided approximately sixty million Colombian pesos as the purchase price for the firearms.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI. This case was prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by DOJ National Security Division Trial Attorney David Smith.
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.
South Florida Resident Sentenced to 20 Years in Prison for Selling Firearms to a Designated Foreign Terrorist OrganizationRead the Press Release
Francisco Joseph Arcila Ramirez (Arcila), a Colombian national and South Florida resident was sentenced to 240 months in federal prison today by U.S. District Judge Jose E. Martinez for illegally selling firearms to the National Liberation Army (ELN), a designated Foreign Terrorist Organization and a violent paramilitary group operating in South America.
John C. Demers, Assistant Attorney General for National Security, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
On Oct. 17, 2019, Arcila pleaded guilty to providing material support to a foreign terrorist organization.
According to court records, on Aug. 16, 2018, Arcila instructed two co-conspirators to illegally purchase six firearms in Miami-Dade County on Arcila’s behalf. These firearms included four Draco 7.62mm caliber AK-style pistols and two Zastava M92 7.62mm AK-style pistols. The firearms were then concealed in Husky air-compressors purchased by Arcila at a Miami-area Home Depot and shipped to Barranquilla, Colombia. This shipment also contained approximately one hundred AK-47 ammunition magazines.
On Sept. 5, 2018, Arcila attended a meeting in Colombia, where he met with an ELN weapons broker to discuss the sale of the six firearms Arcila had recently shipped into Colombia. In addition to agreeing to the sale of these six firearms, Arcila and the weapons broker further discussed other future sales, to include firearm magazines and firearm components in the coming months. At the conclusion of this meeting, the weapons broker provided approximately sixty million Colombian pesos as the purchase price for the firearms.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI. This case was prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by the Department of Justice’s National Security Division Trial Attorney David Smith.
Seventh Defendant Sentenced in Million Dollar Tax Refund SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announced that on January 23, 2020, a defendant involved in a tax refund fraud scheme was sentenced in the Southern District of Florida. The scheme involved the filing of fraudulent income tax returns containing false W-2Gs, claiming false gambling winnings, withholdings, and losses, and seeking large-dollar tax refunds.
Eldrick Wendell Wooding, Sr., 64, of Opa Locka, Florida, received a prison term of 46 months, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $107,421 to the IRS. According to court documents, from October 2011 through April 2013, Wooding conspired with Freddie Howard to defraud the United States by preparing and submitting false and fraudulent federal tax returns and other tax-related documents to the lRS in order to induce the IRS to disburse tax refunds to which he was not entitled. In October 2019, a jury found Wooding guilty of conspiracy to defraud the United States. This case was prosecuted by Assistant U.S. Attorneys Daya Nathan and Eli Rubin.
Six other defendants were previously sentenced in the Southern District of Florida in relation to filing fraudulent income tax returns containing false gambling information. In general, these fraudulent returns included a fake Form W-2G claiming gross gambling winnings and federal tax withholdings on the winnings. The returns also claimed false gambling losses, which were used to offset the purported income from gambling winnings, thereby generating a claimed refund. The IRS determined the federal income tax returns were false and the claimed gambling winnings, withholdings, and losses were fraudulent. The fraudulent misrepresentations on the tax returns resulted in a loss to the IRS.
On August 28, 2018, Anthony Dwight Charles Box, 57, of Plantation, Florida, was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution of $988,175 to the IRS.
On May 1, 2019, Gerald Jerome Spate, 50, of Miramar, Florida, was sentenced to 24 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $421,684.50 to the IRS.
On April 26, 2019, Jean Daniel Julien, 38, of Lauderhill, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $1,547,197 to the IRS.
On May 15, 2019, Ralph Dorsainvil, 63, of Boca Raton, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $335,466.72 to the IRS.
On November 20, 2019, David Sage, a/k/a “Nima Nafei,” 40, of Las Vegas, Nevada, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $278,149 to the IRS.
On July 24, 2019, Ron Pinke Leonard, 53, of West Palm Beach, Florida, was sentenced to four years of probation, and was ordered to pay joint and several restitution of $52,542.85 to the IRS.
These other cases were prosecuted by Assistant U.S. Attorney Daya Nathan.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI and the FBI in this matter.
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.
Man Sentenced to 50 Years in Prison for Orchestrating Snapchat Sextortion Ring that Targeted ChildrenRead the Press Release
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, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, was sentenced yesterday to a total of 600 months in federal prison and a lifetime of supervised release by U.S. District Judge Jose E. Martinez, after having been convicted at trial of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
On September 27, 2019, Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, one count of Distribution of Child Pornography, one count of Sending Extortionate Threats, and one count of Conspiracy.
According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media. Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts. Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.
“Child predators beware - anyone who uses social media and the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses risks spending the rest of their lives in prison,” stated U.S. Attorney Ariana Fajardo Orshan. “We implore the community to help us protect our loved ones by monitoring our children’s social media accounts and reporting all suspected offenses to law enforcement. The U.S. Attorney’s Office stands united with our federal, state and local law enforcement partners to root out child exploitation.”
“Joseph Isaiah Woodson, Jr. is a menace who preyed on the most vulnerable among us, children,” said George L. Piro, Special Agent in Charge, FBI Miami. “Using social media, Woodson would befriend, then coerce numerous minor female victims to send him sexually explicit videos and images. His sentence of 50 years in prison should serve as a warning to others involved in sextortion. Rooting out this type of crime is a cooperative effort. I commend the hard work and professionalism of our partners including; Davie Police Department, Plantation Police Department, Coral Springs Police Department, Fairfax City Police Department, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, U.S. Army Criminal Investigation Command and FBI Miami’s Child Exploitation Task Force.”
“It is through partnerships such as this, that we are able to extend the arm of law enforcement to ensure predators such as Joseph Isaiah Woodson, Jr. are no longer a threat to our children,” stated Davie Police Chief Dale Engle. “We are grateful here at the Davie Police Department that the resources needed were made available to see this case through to a conclusion.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
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.
Leader of Alien Smuggling Operation Sentenced to 9 Years in PrisonRead the Press Release
On January 22, 2020, George Ferrer Sanchez, 46, of Miramar, Florida, was sentenced to 108 months in prison by U.S. District Judge Marcia G. Cooke in Miami, Florida for orchestrating a conspiracy to launder proceeds of alien smuggling operation that transported Cuban nationals to Mexico, into the United States. As part of the Court’s sentence, Ferrer Sanchez was ordered to pay a $5.4 million forfeiture money judgment and to forfeit two real properties to the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Ferrer Sanchez previously pled guilty to participating in a conspiracy to commit money laundering (Case No. 19cr20085).
According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, from or around January 2009 or earlier, and continuing to at least June 2015 or later, Ferrer Sanchez was the leader of an alien smuggling conspiracy operating in Miami, Florida and elsewhere. Ferrer Sanchez directed an operation that stole vessels used to smuggle Cuban nationals to the United States through Mexico. Conspirators brought the migrants out of Cuba, in exchange for payment for their smuggling services. Once migrants were in Mexico, the conspiracy utilized phone calls to family members and friends in South Florida to secure payment for their release. Ferrer Sanchez also conspired with others to acquire funds from the migrants’ family members in South Florida, which were laundered through the business and real property, in order to promote and further their alien smuggling conspiracy.
This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami. In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones.
If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, and additional languages.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI and FBI in this matter. This case is being prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr., and J. Mackenzie Duane. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Russian Brothers Sentenced to 12 Years in Prison for Running Massive Identity Theft and Credit Card Fraud Factory from their Fort Lauderdale ResidenceRead the Press Release
Igor Grushko, 33, and Denis Grushko, 29, Russian nationals who were residing in Fort Lauderdale, Florida were sentenced yesterday to 145 months in prison, after having been previously convicted by a South Florida federal jury of aggravated identity theft, conspiracy to possess and use stolen credit cards, production of fraudulent credit cards, and production of counterfeit identification documents.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office, made the announcement.
According to the trial record, brothers Igor and Denis Grushko were running a sophisticated credit card fraud factory out of their Fort Lauderdale residence. When USSS agents executed a search warrant at their home, law enforcement discovered rubber molds and plastic resin which the Grushkos used to manufacture their own credit card skimming devices; dozens of skimming devices, ATM overlays, pinhole cameras, and similar devices used to steal credit and debit card information; a credit card embosser, encoder, and magnetic stripe reader used to create counterfeit cards; sheets of Maryland state identification holograms and an identification card printer which was used to create fake identification cards (ID’s); hundreds of fraudulent credit cards and fake ID’s; and thousands of unauthorized credit and debit card numbers on the Grushkos’ computers.
Law enforcement also discovered several tutorials appearing to instruct the Grushko brothers how to commit identity theft and credit card fraud. For example, one document in their possession read, “What is carding? Well, carding is the art of credit card fraud. The motive is usually tied to money. Handling a $9,000 plasma TV knowing that you didn’t pay one cent for it is definitely a rush. But real carders seem to card for something more. The rush that the federalles could bust down your door at any minute? The defiance of knowing that every day that you are walking among the public is another day that you have gotten away with a federal crime?”
Evidence at trial further established that the Grushko brothers conspired with Vadym Vozniuk to use the personal identifying information of hundreds of unsuspecting victims across South Florida, including victims’ credit card numbers, names, addresses, and phone numbers, to fraudulently obtain over $100,000 in high-end electronics from local Target retail stores.
Vozniuk, 24, a Ukrainian national who was also residing in Fort Lauderdale, was sentenced to 27 months in prison, after having been convicted at trial of conspiracy to possess and use stolen credit cards. The three defendants were sentenced by U.S. District Judge Rodney Smith in Fort Lauderdale (Case No. 18cr20859).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office in this matter. She also thanked Target’s Special Investigations team for their assistance. This case was prosecuted by Assistant U.S. Attorneys Michael B. Homer, Kiran Bhat, and Jonathan Stratton.
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.
Palm Beach County Resident Sentenced to More than 12 Years in Prison for Bank Robbery and Armed Bank RobberyRead the Press Release
On January 16, 2020, Palm Beach County resident Rodrick Domonique Jones was sentenced to 12½ years in prison, following his jury trial conviction for bank robbery and armed bank robbery.
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.
Jones, 38, of Lake Park, Florida was sentenced to 150 months in prison by Senior U.S. District Judge James I. Cohn following his conviction for four counts of bank robbery, in violation of Title 18, United States Code, Section 2113(a), and five counts of armed bank robbery, in violation of Title 18, United States Code, Section 2113(a) and (d) (Case No. 19cr80013).
According to evidence presented at trial, Jones committed nine bank robberies at Chase banks throughout Southern Florida between December 11, 2015 and February 17, 2018. In each robbery, Jones approached a bank teller and presented a demand note stating that he had a gun and demanding that the teller give him money. Each time Jones wore a baseball cap, acted like a normal customer to avoid attention, and tried to keep from touching anything at the bank. In two of the robberies, Jones pointed his gun into the side of the customer next to him when the teller did not give him money fast enough. In two of the robberies, Jones left behind his fingerprints on demand notes.
During a search of Jones’ residence, investigators recovered guns and evidence on Jones’ cell phones showing that he researched the banks before robbing them, often conducting web searches for the target banks and saving Google Maps images of the banks and surrounding areas. Evidence also linked Jones to the vehicles seen leaving the scenes of the robberies. The trial evidence included witness testimony, surveillance video from the banks and nearby businesses, fingerprint analysis, and images and messages from Jones’ phones and Facebook account.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris and Trial Attorney Christina Brown from the Antitrust Division.
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.
Three South Florida Residents Sentenced to Prison for Their Roles in $21 Million Sober Homes Fraud SchemeRead the Press Release
Sober Homes Co-Owner Sentenced to Ten Years in Prison
MIAMI, FL – Three former co-owners and clinical directors of a group of purported substance abuse treatment centers and sober homes were sentenced to prison today for their roles in a conspiracy to commit health care fraud and wire fraud that resulted in an actual loss of more than $3.8 million, and through which the conspirators sought to obtain more than $21 million.
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 Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.
Ali Ahmed, 38, Hector Efrain Alvarez, 49, and Mauren Morel, 45, all of Broward and Palm Beach Counties, previously pled guilty to one count of conspiracy to commit health care fraud and wire fraud (Case No. 19cr60200). U.S. District Judge Federico A. Moreno of the Southern District of Florida sentenced Ahmed to 120 months in prison, Alvarez to 32 months in prison and Morel to 32 months in prison. In addition, the defendants were ordered to forfeit certain property and pay forfeiture money judgments, as well as to pay restitution. Specifically, Ahmed owes $4,204,336 in restitution; Alvarez owes $3,884,035; and Maurel owes $320,301 in restitution.
In recent years, South Florida has become the locus for drug and alcohol addicts seeking assistance in an effort to become and remain sober. Substance abuse treatment centers that assist such persons undergoing detoxification from an intoxicating or addictive substance are regulated under state and federal law. These substance abuse treatment centers, or detox centers, offer a continuum of care including, from most intensive to least intensive, as follows: inpatient detox, Partial Hospitalization Programs (PHP’s), Intensive Outpatient Programs (IOP’s), and Outpatient Programs (OP’s). Persons undergoing treatment on an out-patient basis, whether in PHP, IOP, or OP, typically elect to live in a “recovery residence,” also known as a “sober home” or “halfway house,” with other persons who are also in treatment and committed to a drug and alcohol-free lifestyle.
Jacob’s Well, Inc. (Jacob’s Well) was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida. Jacob’s Well was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.
Medi MD, LLC. (Medi MD) was a Florida corporation, located at 7950 SW 30th Street, Suite 200, Davie, Florida. Medi MD was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.
Arnica Health was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida. Arnica Health was a purported medical treatment center co-located with the purported substance abuse treatment centers. Together with Medi MD and Jacob’s Well, Arnica Health operated as a part of Serenity Living and was affiliated with sober homes known as Serenity Ranch.
Ali Ahmed was Treasurer of Jacob’s Well, Director of Operations for Medi MD, and co-owner of Jacob’s Well, Medi MD, and Arnica Health.
Sebastian Ahmed was the CEO and co-owner of Jacob’s Well, Medi MD, and Arnica Health.
Hector Efrain Alvarez was Clinical Director of Medi MD.
Mauren Morel was Clinical Director and co-owner of Jacob’s Well.
Medi MD, Jacob’s Well, and Arnica Health together operated as Serenity Ranch/Serenity Living.
According to court documents, from June 2016 through April 2019, Ali Ahmed, Sebastian Ahmed, and Mauren Morel, submitted and caused others to submit, via interstate wire communications, approximately $1,693,276 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Jacob’s Well to insurance beneficiaries of Aetna, BCBS, Cigna and UHC. As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, and UHC made payments to the corporate bank accounts of Jacob’s Well in the approximate amount of $320,301.
Furthermore, during the same approximate time period, Ali Ahmed, Sebastian Ahmed, and Hector Efrain Alvarez submitted and caused others to submit, via interstate wire communications, approximately $21,899,439 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Medi MD to insurance beneficiaries of Aetna, BCBS, Cigna, Humana and UHC. As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, Humana and UHC made payments to the corporate bank accounts of Medi MD in the approximate amount of $3,884,035.
Ali Ahmed, Sebastian Ahmed, Hector Efrain Alvarez, and Mauren Morel used the proceeds of the health care fraud for their personal use and benefit, the use and benefit of others and to further the fraud scheme.
As set forth in Court documents, the scheme involved not only financial exploitation but also sexual exploitation of vulnerable, drug-addicted patients, whom were attracted and induced to attend Serenity Ranch facilities with free flights, free housing, vapes, clothing, spa days, benzodiazepine medications, and even drugs. Indeed, the evidence showed that patients were permitted to keep using drugs, and even provided drugs – including heroin and cocaine – by conspirators such as Ali Ahmed. Ali Ahmed also engaged in sexual relationships with patients and, as a result of the destabilizing environment at the facilities, many patients did not get the treatment that they so desperately needed.
Co-defendant Sebastian Ahmed, the former CEO of Jacob’s Well, Medi MD, and Arnica, who was charged in the same indictment, has pleaded not guilty and is set for trial on February 18, 2020, before Senior U.S. District Judge James I. Cohn. He is presumed innocent of the charges.
The FBI and HHS-OIG investigated the case, with assistance from the Davie Police Department, Broward County Sheriff's Office and U.S. Drug Enforcement Administration (DEA). Assistant U.S. Attorneys Christopher J. Clark and Lisa H. Miller are prosecuting the case, and Assistant U.S. Attorneys Nicole Grosnoff and Peter A. Laserna are handling the asset forfeiture issues related to this matter.
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.
Martin County Man Sentenced to 30 Years in Prison for Producing Videos of Child Sexual ExploitationRead the Press Release
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 Sheriff William D. Snyder of the Martin County Sheriff’s Office announced that Torrie Chermaine Austin, 35, of Stuart, Florida, was sentenced today to 360 months in prison and a lifetime of supervised release by U.S. District Judge Robin L. Rosenberg in Ft Pierce, Florida after previously pleading guilty to producing visual depictions of the sexual exploitation of a minor.
According the court documents, between April and Nov. 2018, Austin produced video recordings of his sexual exploitation and abuse of an 11 year old child.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Martin County Sheriff’s Office in this matter. The case was prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
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.
Former Executive Director of Non-Profit Sentenced for EmbezzlementRead the Press Release
Donna Carman, 60, of Indiantown, Florida, was sentenced today for embezzling federal funds for her own personal profit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General (DOE-OIG), Tyrone Hardy, Acting Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE) made the announcement.
According to the court record, beginning as early as August 21, 2014, Carman began siphoning funds from Indiantown Nonprofit Housing, Inc. (“Indiantown”), a Florida not-for-profit corporation, for her own personal use, including repairs and upgrades made to a rental property she owned in Martin County, and unauthorized purchases on Indiantown’s American Express credit card. Indiantown provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County. Indiantown applied for and received funds through various federal programs. Carman was the Executive Director for Indiantown in 2013, 2014, and 2015. As the Executive Director, Carman was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases. Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission. In total, Carman embezzled and converted to her own use at least $50,000.00 from Indiantown between January 2013 and September 2015.
After having previously pled guilty to committing a theft from an organization receiving federal funds, Carman was sentenced by U.S. District Judge Jose E. Martinez to 5 years of probation (to include 360 days of home confinement) (Case No. 19-CR-14039). She was also ordered to pay $50,000 in restitution and a $10,000 fine.
U.S. Attorney Fajardo Orshan commended the investigative efforts of DOE-OIG, HUD-OIG, and FDLE in this matter. This case was prosecuted by Assistant U.S. Attorney Michael D. Porter.
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.
Federal Correctional Officer Pleads Guilty to Bribery IndictmentRead the Press Release
MIAMI, FL - Victor Manuel DeJesus, 47, of Miami-Dade County, a correctional officer at the Federal Correctional Institution (FCI) in Miami, pled guilty today to a 14-count indictment which included charges of conspiracy to defraud the United States and commit bribery, bribery, and other offenses in connection with a scheme to provide contraband items to inmates at the federal prison.
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.
According to the court record, including the federal indictment, DeJesus and others were charged with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami. From at least as early as December 2018 through September 2019, inmates and those acting on their behalf supplied DeJesus with bribe payments. DeJesus then deposited these monies in his personal bank account. In exchange for these bribe payments, DeJesus used his official position to bring in prohibited items into the prison. DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.
DeJesus is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on April 1, 2020 (Case No. 19cr20660).
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, U.S. Postal Inspection Service, and FCI-Miami in this matter. She thanked the U.S. Department of Justice, Office of the Inspector General for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorney Alejandra L. López.
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.
Miami-Dade Resident Charged Federally for Importing Cocaine into Key LargoRead the Press Release
Today, a federal grand jury indicted a Miami-Dade resident with importing cocaine into Key Largo, Florida.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement
Elio Diaz Hernandez, 55, of Miami, was arrested on January 3, 2020 and initially charged by criminal complaint with possession with intent to distribute five or more kilograms of cocaine (Case No. 20-mj-05001). U.S. Magistrate Judge Lurana Snow is scheduled to arraign Diaz Hernandez on the federal indictment in Key West tomorrow, January 17, 2020, at 2:00 p.m. (Case No. 20-CR-10003-MOORE).
According to allegations in the court record, Diaz Hernandez was operating his boat at night without navigation lights, on the waters east of Key Largo. The crew of the U.S. Coast Guard cutter Charles Sexton was also in the area and launched a pursuit boat with law enforcement officers to investigate. As the U.S. Coast Guard boat approached, Diaz Hernandez threw a bag into the water and attempted to flee. After a brief chase, the officers were able to stop Diaz Hernandez.
The officers recovered the bag Diaz Hernandez threw into the water. Inside the bag were fifteen packages that contained a substance which field tested positive for cocaine. The approximate combined weight of the packages is thirty-six pounds.
If convicted of the charged offense, he faces a statutory maximum sentence of life in prison.
A criminal complaint and indictment are charging documents that contain allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
This case is being prosecuted by Special Assistant United States Attorney Brian Sattler.
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.
Miami-Dade County Resident Charged with Mail and Wire Fraud Targeting the United States Postal ServiceRead the Press Release
A Miami-Dade County resident was arrested on federal charges in connection with a $1.5 million mail and wire fraud scheme that targeted the United States Postal Service.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division made the announcement.
Edwin Jim Garcia-Albarracin, 45, of Miami, Florida, was charged in a thirty-two count indictment, that was unsealed today, with ten counts of mail fraud, ten counts of wire fraud, and twelve counts of money laundering (Case No. 20-cr-20012-WILLIAMS). He is scheduled for a detention hearing on January 21, 2020.
According to the indictment, Garcia-Albarracin through his company, Rambos Market, sold a variety of products online and used the United States Postal Service to mail the purchased products to consumers throughout South Florida and the United States. The indictment charges that from at least as early as July 2016 and continuing through November 2019, Garcia-Albarracin submitted false and fraudulent claims through the United States Postal Service Customer Inquiry and Claims Response System certifying that contents of certain packages that he had mailed were damaged, when in truth they were not. As a result of Garcia-Albarracin’s false and fraudulent claims, the United States Postal Service made payments to Garcia-Albarracin of over $1.5 million.
If convicted, Garcia-Albarracin faces a maximum statutory sentence of twenty years in prison for each mail fraud count; twenty years in prison for each wire fraud count; twenty years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1956; ten years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1957; a fine of up to $250,000 for the mail and wire fraud counts; and a fine not more than $500,000 or not more than twice the value of the loss as to each money laundering count of conviction.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of USPS OIG and USPIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Christine Hernandez. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Maryland Man Pleads Guilty to Making Multiple Threats to Injure and Kill HispanicsRead the Press Release
MIAMI - Eric Lin, 35, of Clarksburg, Maryland, pled guilty today in South Florida to a felony charging him with knowingly and intentionally transmitting a threatening communication in interstate commerce, in violation of Title 18, United States Code, Section 875(c). Lin made repeated on-line threatening communications that targeted Hispanics.
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.
According to the facts admitted at the change of plea hearing, between May 30, 2019, and August 14, 2019, Eric Lin made multiple threatening communications via Facebook to injure and kill a South Florida resident and to kill all Hispanics in Miami and other places. Among the threatening communications that Lin admitted to making included: “I’m coming to Rape and kill you” and “I will stop at Nothing until you, your family, your friends,, your entire WORTHLESS LATIN RACE IS RACIALLY EXTERMINATED!” Lin also admitted that in his messages he discussed mass shootings of Hispanics and the idolization of Adolf Hitler.
Lin pled guilty before U.S. District Judge Federico A. Moreno (Case No. 19cr20551). Lin faces a maximum statutory term of five years in prison and three years of supervised release, when he is sentenced by Judge Moreno on March 30, 2020 at 9:45 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis.
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.
Guatemalan National Sentenced to Prison for Labor Trafficking a 12 Year-Old BoyRead the Press Release
On January 10, 2020, a Guatemalan national was sentenced in the Southern District of Florida to eight years in prison for labor trafficking a minor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office made the announcement.
Walfre Eliseo Camposeco-Montejo, 35, of Guatemala, previously pled guilty to providing and obtaining forced labor, alien smuggling, and unlawfully transporting aliens. On Friday, U.S. District Judge Roy K. Altman sentenced Camposeco-Montejo to a total of 96 months in prison, to be followed by 3 years of supervised release. Judge Altman also ordered Camposeco-Montejo to pay $34,000 in restitution to the minor-victim.
According to court records, Camposeco-Montejo obtained false Guatemalan documents to claim a 12-year-old Guatemalan boy as his son. Camposeco-Montejo promised the boy’s mother he would provide the minor with an education upon their arrival into the United States. Camposeco-Montego and the minor illegally entered the United States, crossing the Rio Grande in November 2016. Upon their arrest by U.S. Customs and Border Protection, when crossing the border, Camposeco-Montejo lied about being the boy’s father. Based upon Camposeco-Montejo’s false representations, he and the boy were released as a family unit and subsequently made their way to Florida. Beginning in December 2016, Camposeco-Montejo obtained false identification for the 12 year-old boy and forced him to work at agricultural farms throughout Palm Beach County for more than 6 months to repay a debt from the human smuggling venture. The boy was eventually able to escape and reported his victimization during the course of the labor trafficking scheme.
U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of ICE-HSI and the partnership with the Palm Beach County Human Trafficking Task Force. This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.
If you believe you are a victim of labor trafficking or know someone who is, you are encouraged to call the National Human Trafficking Hotline at 1-888-373-7888, or visit https://humantraffickinghotline.org/ for help and victim resources. The service is available 24 hours a day, seven days a week.
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.
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Pleads Guilty for Role in Wire and Securities Fraud Conspiracy Related to $287 Million SchemeRead the Press Release
Today, a former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC pled guilty for his role in connection with a $287 million securities fraud scheme involving a commercial payday loan business that operated from early 2014 through July 2018 and impacted more than 3,400 investors in 42 different states.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Steven Allen Schwartz, 75, of Delray Beach, Florida, pled guilty before U.S. Magistrate Judge Patrick M. Hunt to the single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60003). Schwartz is scheduled to be sentenced on March 13, 2020 at 3:00 p.m. before U.S. District Judge Roy K. Altman. He faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the court record, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money in 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, the commissions were not fully disclosed to investors.
Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor. On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.
In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. In reality, 1 Global business lost money and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1. 1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to the court record, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were made in monthly statements mailed to investors that falsely showed profitable investments. The statements gave the false impression that the finances had been independently verified by an outside audit firm. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018.
According to the court record, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law. Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described. Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.
1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
In connection with a parallel civil enforcement action, the SEC announced the filing of civil fraud charges against Schwartz on January 6, 2020. In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).
Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller, as well as Assistant Chief Rush Atkinson from the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
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.
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud in Relation to $287 Million SchemeRead the Press Release
Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud In Relation to $287 Million Scheme
A former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC has been charged in connection with a $287 million securities fraud scheme that impacted more than 3,400 investors in 42 different states, in relation to a commercial payday loan business that operated from early 2014 through July 2018.
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office made the announcement.
Steven Allen Schwartz, 76, of Delray Beach, Florida, was charged today by information with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 20-CR-60003. The defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”). To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money iMCAs. 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.
Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials. Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor. On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.
In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. In reality, according to allegations the information, the 1 Global business lost money, and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1. 1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to allegations in the information, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly statements mailed to investors that falsely showed profitable investments. The statements gave the false impression that the finances had been independently verified by an outside audit firm. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018.
According to allegations in the information, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law. Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described. Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.
1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
A criminal information is a charging instrument containing allegations. All defendants are presumed innocent unless proven guilty in a court of law.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Schwartz. In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).
Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.
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.
Miami Man Sentenced to More Than 5 Years in Prison for Role as Money Mule and Mule Recruiter in International Cybercrime Money Laundering NetworkRead the Press Release
Yamel Guevara Tamayo, 36, of Miami, was sentenced Friday, December 20, 2019 to 63 months in prison for his role in serving as a money mule, and recruiter of more than 15 additional money mules, in an international money laundering operation for business email compromise (BEC) and other cyber-schemes.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Tamayo previously pled guilty before U.S. District Judge Ursula Ungaro to conspiracy to commit money laundering. In addition to the prison sentence, U.S. District Judge Ursula Ungaro ordered Tamayo to serve three years of supervised release and pay $700,474.97 in restitution.
According to the court record, from November 2016 through June 2019, Tamayo, together with co-conspirators Roda Taher a/k/a “Rezi,” and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Tamayo, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Tamayo, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
A related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Tamayo and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Tamayo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. Tamayo and co-conspirators also rapidly transferred victims’ funds to foreign bank accounts that co-conspirators controlled as soon as the funds came in. Tamayo and other co-conspirators kept a fraction of the proceeds as payment after doing so.
Tamayo’s role expanded over time. He ultimately recruited more than fifteen individuals to participate as mules in the money laundering scheme, serving as their manager and directing them to open new accounts. His involvement in the scheme lasted until in or around June 2019. In total, Tamayo and his mules intended to launder more than $1.4 million dollars, and succeeded in laundering more than $700,000 before banks were able to freeze and claw back some of the funds due to suspected fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU; and United States v. Alfredo Veloso, et al., 18-20759-CR-KMW. Assistant U.S. Attorneys Dwayne E. Williams and Lisa H. Miller prosecuted those cases.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
This case was part of the Department of Justice’s Operation reWired, which followed “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.
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.
West Palm Beach Man Sentenced to Prison for Stealing Dozens of Letters from Residence in Lantana with over $170,000 in Checks InsideRead the Press Release
FORT LAUDERDALE - Marchello Wilbon, 34, of West Palm Beach, Florida was sentenced today to one year and a day in prison, to by followed by two years of supervised release by U.S. District Judge Rodolfo A. Ruiz II, after previously pleading guilty to mail theft (Case No. 19-CR-80119).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Lesley Allison, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
According to court documents, including the indictment, criminal complaint and factual proffer in the plea agreement, on July 15, 2019, at approximately 8:30 am, a Lantana resident who lives on S.E. Atlantic Drive placed letters containing 39 checks with face value of approximately $171,599 in the mailbox located outside the resident’s home for pick up by the U.S. Postal Service. Wilbon was charged with stealing the mail, containing the checks, from the resident’s mailbox.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Lantana Police Department, and USPIS. This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
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.