Southern District of Florida
Press releases recorded for this federal judicial district.
Treasure Coast Corporation and Corporate Officers Sentenced Federally for Conspiring to Conceal and Harbor Aliens for the Purpose of Commercial Advantage or Private Financial GainRead the Press Release
TentLogix, Inc., a Florida corporation headquartered in Fort Piece, Florida, and corporate officer Gary Hendry, 52, of Jenson Beach, Florida, were sentenced today by U.S. District Judge Robin L. Rosenberg, for their participation in a conspiracy to conceal and harbor aliens for the purpose of commercial advantage or private financial gain.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
TentLogix, Inc. and its corporate officers Hendry and Dennis Birdsall, 41, of Stuart, Florida, and Kent Hughes, 53, of Jenson Beach, previously pled guilty for their involvement in the conspiracy (Case No. 19-CR-14035). TentLogix was sentenced to 4 years of probation, to include the implementation of a corporate compliance program. In addition, TentLogix was ordered to forfeit $3,033,946.46 to the United States. Hendry was sentenced to one year and one day in prison. He was also ordered to forfeit $282,789 to the United States and pay a $75,000 fine. Birdsall was previously sentenced to 5 years of probation. Birdsall was also ordered to forfeit $170,943 to the United States and pay a $15,000 fine. Hughes was previously sentenced to 3 years of probation. Hughes was also ordered to forfeit $80,000 to the United States and pay a $7,500 fine.
According to the court record, from January 2016 to March 2018, TentLogix employed approximately ninety-two aliens knowing those individuals had entered and remained in the United States unlawfully. During this time frame, a large portion of TentLogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States. While TentLogix was being investigated by HSI for violations of federal immigration law, Hendry, the chief executive officer of TentLogix, Birdsall, the president of TentLogix, and Hughes devised a scheme to “transfer” the aliens employed by TentLogix to KH Services, LLC, a company owned by Hughes, so that they no longer appeared on TentLogix’s payroll. Hendry was the architect of the unlawful scheme and recruited Hughes, a childhood friend, to participate. Hughes formed KH Services, LLC for the sole purpose of concealing, harboring, and shielding the aliens employed by TentLogix from HSI’s investigation. Hendry directed Birdsall to make a supervisor (“GMC”) at TentLogix aware of the scheme. At Hendry’s behest, Birdsall directed the supervisor to tell the aliens employed by TentLogix to obtain new identities, including social security numbers, which GMC did, so that they could be “transferred” to KH Services, LLC.
Birdsall directed wire transfers to be sent from TentLogix’s bank account to KH Services, LLC’s bank account on a bi-weekly basis to cover the payroll expenses for the aliens who worked for TentLogix but were purportedly employed by KH Services, LLC. Between May 2017 and March 2018, TentLogix transferred over $3,000,000 to KH Services, LLC in 23 separate wire transfers for the express purpose of paying aliens employed by TentLogix who were not authorized to work in the United States.
“The offenses TentLogix, Gary Hendry, Dennis Birdsall, and Kent Hughes stand convicted of are both serious and dangerous to the administration and enforcement of federal immigration law,” stated U.S. Attorney Ariana Fajardo Orshan. “The United States prosecutes harboring by employment cases to protect our domestic economy and the American worker. Corporations and employees that carry out schemes to conceal and harbor aliens, in order to profit from the use of illegal labor, will continue to be held accountable through criminal sanctions and stiff financial penalties.”
“Federal law requires employers hire only U.S. citizens and aliens who are authorized to work in the country,” said HSI Miami Special Agent in Charge Anthony Salisbury. “TentLogix harbored and hired manual laborers with little or no regard for their legal status. Today, they paid a substantial price for that conduct. HSI will continue to vigorously enforce immigration law where we find employers engaging in a pattern or practice of hiring and harboring unauthorized individuals in reckless disregard of the law.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter. This case was prosecuted by Assistant U.S. Attorney Michael D. Porter. Assistant U.S. Attorney Adrienne Rosen is responsible for the asset forfeiture component of 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.
Three Men Extradited for Overseeing Call Centers That Threatened and Defrauded Spanish-Speaking U.S. ConsumersRead the Press Release
WASHINGTON — Three Peruvian men were extradited today to the United States, where they stand accused of operating a large fraud and extortion scheme, the Department of Justice and U.S. Postal Inspection Service announced.
Johnny Enso Hidalgo Marchan, 40, of Lima, Peru; Francesco Flabio Guerra Perez, 24, of Lima, Peru; and Rodolfo Hermoza Vega, 45, of Cajamarca, Peru, will face federal charges in Miami, Florida. The three men were arrested on July 28, 2016, by Peruvian authorities based on a U.S. indictment. All three have remained incarcerated in Peru since that time.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who target and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from schemes, such as this one, is a top priority of this Office and the Department of Justice.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said Miami Division Inspector in Charge, Antonio J. Gomez. “With the continued cooperation of foreign governments these criminals will be aggressively pursued and brought to justice.”
Hidalgo, Guerra, and Hermoza allegedly managed and operated Peruvian call centers called Everglades, which were based in Lima and Cajamarca, Peru, and which worked in partnership with Angeluz Florida Corporation in Miami. According to the indictment, Hidalgo, Guerra, and Hermoza, and their employees in Peru used Internet-based telephone calls to lie to and threaten Spanish-speaking victims in the United States. The callers falsely accused the victims of having failed to accept delivery of certain products and claimed that the victims owed thousands of dollars in fines and that court proceedings would be brought against them. In reality, the victims — many of whom were elderly — had never ordered these products and nothing had been delivered.
The indictment alleges that the defendants and their call center employees claimed that the consumers could resolve the supposed debts and fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to harmed credit, arrest, deportation, or seizure of property.
A 37-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida in June 2015 and was unsealed upon the defendants’ extradition to the United States. Hidalgo, Guerra, and Hermoza were charged with conspiracy, mail fraud, and wire fraud. Hidalgo and Guerra also face attempted extortion charges.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two individuals previously were brought to justice in connection with this scheme. In 2014, charges were brought against Angeluz and Everglades owner-operators, Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru. Luzula pleaded guilty to all counts against her midway through trial and was sentenced to serve 165 months in prison. Rodriguez Cuya was convicted following a two-week trial. U.S. District Court Judge Patricia A. Seitz sentenced Rodriguez Cuya to serve 210 months in prison.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The U.S. Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
Husband and Wife Sentenced to Prison for Roles in $38 Million Health Care Fraud and Wire Fraud SchemeRead the Press Release
Rodolfo Pichardo, 71, of Hialeah, Florida was sentenced to more than 15 years in prison for masterminding a $38 million health care fraud and wire fraud scheme. His wife Marta Pichardo, 66, was sentenced to 8 years in prison for her role in the scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
Rodolfo Pichardo and Marta Pichardo previously pled guilty to conspiracy to commit health care fraud and wire fraud. On December 4, 2019, Rodolfo Pichardo, was sentenced by U.S. District Judge Rodolfo A. Ruiz to 188 months in prison, to be followed by 3 years of supervised release. He was ordered to pay $33,841,576 in restitution. Today, Marta Pichardo was sentenced by Judge Ruiz to 96 months in prison, to be followed by 3 years of supervised release. She was ordered to pay $10,482,178 in restitution.
According to court documents, after arriving in the United States from Cuba on a raft seeking refuge and a better life, the Rodolfo Pichardo and his wife Marta Pichardo settled in Miami-Dade County, Florida where they proceeded to build a vast empire of fraud, consisting of at least six fraudulent home health agencies, three fraudulent therapy staffing companies, and two fraudulent pharmacies. Each of these entities purportedly provided home health services, therapy services, and prescription drugs, respectively, to qualified Medicare beneficiaries, though in fact and as both Rodolfo and Marta Pichardo knew, they did not.
From May 2010 through September 2016, the Pichardos and their co-conspirators used this empire to submit more than $38 million in false and fraudulent claims to Medicare, for which the trust-based program then paid out more than $33 million. The Pichardos then used this money to purchase multiple properties, high-end vehicles, expensive jewelry, plane tickets, vacations, cosmetic procedures, and more, both for themselves and their family members.
As part of the scheme, Rodolfo Pichardo offered and paid kickbacks, both by cash and by check, to numerous patient recruiters, in exchange for the referral of Medicare beneficiaries to home health agencies that he owned. The conspirators also offered and paid cash kickbacks to owners and operators of multiple Miami-Dade medical clinics, in return for acquiring medically unnecessary home health prescriptions for the recruited Medicare beneficiaries. These prescriptions were then used by the Pichardos’ various home health agencies and pharmacies to bill Medicare for purported services and pharmaceutical drugs that were provided to allegedly qualified Medicare beneficiaries
During the long-running scheme, the Pichardos took several calculated steps to conceal the fraud and avoid detection, including using nominee owners, changing names and locations of their fraudulent entities, and creating shell companies to conceal the receipt of the fraud proceeds, hide assets and transactions, and divert proceeds for both personal use and to further the fraud.
Additional co-conspirators previously pleaded guilty and were sentenced in connection with the scheme, including family member Jesus Fonseca, who was sentenced earlier this year by Judge Ruiz to 63 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI and HHS-OIG. This case was prosecuted by Assistant U.S. Attorney Anne P. McNamara. Assistant U.S. Attorney Adrienne Rosen 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.
Hialeah Check Casher Sentenced to 13 Years in Prison for Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead 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, FBI’s Miami Field Office announced that Evelio Suarez, a Hialeah check casher, was sentenced to prison today for laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.
Suarez, 53, of Miramar, Florida, previously pled guilty to one count of money laundering (Case No. 18cr20669). He was sentenced by U.S. District Judge Robert N. Scola, Jr. to 156 months of prison, to be followed by 3 years of supervised release. He was also ordered to forfeit $149,048,366.
According to the agreed upon factual proffer and court documents, from 2013 through 2015, Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud. On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000. Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents.
According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores. Suarez charged this as a personal fee that he took in cash from the stores. Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities.
According to the factual proffer, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes. Assistant U.S. Attorneys Annika M. Miranda and Adrienne Rosen are 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.
Fort Lauderdale Father and Daughter Convicted at Trial 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 a West Palm Beach federal jury convicted Danielle Takeila Edmonson, 35, and Kenneth Roger Edmonson, 51, both of Fort Lauderdale, Florida for their involvement in a scheme that involved the filing of false and fraudulent tax returns seeking large-dollar tax refunds.
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 four counts of filing false, fictitious and fraudulent claims, two counts of mail fraud, and one count of false statements. She faces maximum statutory sentence of 65 years in prison. Sentencing is scheduled for February 20, 2020, at 10:00 a.m., before U.S. District Judge Robin L. Rosenberg.
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. He faces a maximum statutory sentence of 35 years in prison. Sentencing is scheduled for February 20, 2020, at 2:00 p.m., before Judge Rosenberg.
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.
Broward County School Board Employee Charged with Bribery and ExtortionRead the Press Release
A former supervisor of the Broward County School Board Physical Plant Operations Division has been charged with bribery and extortion under color of official right.
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.
Richard Allen Ellis Jr., 49, of Hollywood, Florida, was charged in an 8-count indictment with bribery concerning programs receiving federal funds and extortion under color of official right (Case No. 19cr60369). Yesterday, he was arraigned on the charges before U.S. Magistrate Judge Alicia O. Valle in Fort Lauderdale.
The indictment alleges, between September 26, 2018, and December 17, 2018, Ellis, while working as a Broward County School Board employee in the Custodial/Grounds Department, accepted four cash payments from an individual who worked for a contractor who did work at various Broward County public schools. The indictment further states that these payments had been occurring as early as 2016. The payments were made to Ellis, to ensure a steady flow of work for the contractor and the individual, and timely payment of the contractor’s invoices. Ellis is alleged to have accepted bribe payments wrongfully induced by his official position.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the FBI for its investigative efforts. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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.
American Airlines Mechanic Pleads Guilty to Attempted Aircraft Destruction ChargeRead 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 pled guilty today before U.S. District Judge Marcia G. Cooke, to a single count indictment charging him with 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 number one for taking 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, Alani had inserted a foam substance into the ADM system and used super glue to hold the substance in place.
Alani is currently detained and is scheduled to be sentenced in March of 2020, before Judge Cooke. He faces a maximum statutory sentence of twenty years in prison.
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 is being 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.
U.S. Attorney’s Office for the Southern District of Florida Collects over $60 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
MIAMI, FL - U.S. Attorney Ariana Fajardo Orshan announced today that the U.S. Attorney’s Office for the Southern District of Florida collected $60,236,230.99 in criminal and civil actions in Fiscal Year 2019. Of this amount, $56,913,999.14 was collected in criminal actions and $3,322,231.85 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $110,962,642.62 in cases pursued jointly by these offices. Of this amount, $17,511.44 was collected in criminal actions and $110,945,131.18 was collected in civil actions.
“The millions of dollars collected in civil, criminal and forfeiture actions by the U.S. Attorney’s Office is exponentially more than the Southern District of Florida’s operating budget,” stated U.S. Attorney Ariana Fajardo Orshan. “We work tirelessly to ensure that criminals do not profit from their illicit acts, crime victims receive restitution and our tax dollars fund federal programs and initiatives, not criminal enterprises.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $106,739,543 in asset forfeiture actions in Fiscal Year 2019. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
South Florida Doctor Sentenced to 8 Years in Prison for Conspiring to Illegally Distribute OxycodoneRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division announced that Dr. Rodolfo Gonzalez Garcia, 65, of Weston, Florida was sentenced yesterday by U.S. District Judge Roy K. Altman to 8 years in prison, after previously pleading guilty to conspiring to dispense a controlled substance, Oxycodone.
According to the court record, including the agreed upon factual proffers in support of the defendants’ guilty pleas, from November 2016, through and including September 2018, Dr. Rodolfo Gonzalez Garcia, his wife Arlene Gonzalez, 59, also of Weston, Annie Suarez- Gonzalez, 35, of Chicago, Illinois, and Fidel Marrero-Castellanos, 57, of Hialeah, Florida and others, used West Medical Office, Inc. located in Hialeah (later named West Pines Medical Office) for illicit purposes (Case No. 19cr20055). During this time period, the defendants agreed to prescribe purported patients that had been brought to the office by patient recruiters, prescriptions for Oxycodone. They also agreed that patient recruiters could merely bring lists containing the names of purported patients directly to West Medical Office, instead of requiring the patients’ presence. In either scenario, the defendants agreed that the patient or patient recruiters would pay West Medical Office a certain cash amount per patient present in the office or per patient name on a list, in exchange for an Oxycodone prescription. Sometimes, these agreements—money for prescriptions—were directly with the purported patient. The defendants knew that these patients were Medicare and Medicaid beneficiaries, and that filling those prescriptions at pharmacies would result in the submission of claims to Medicare and Medicaid for payment of those prescriptions.
The defendants played various roles in the conspiracy. Marrero-Castellanos acted as a patient recruiter, bringing lists and paying cash in exchange for a prescription for the names on his list. Marrero-Castellanos took the patients with their prescriptions to pharmacies, including Medicare Part D participating pharmacies, to fill the aforementioned prescriptions. When he got the prescriptions based on just a patient list, he provided the aforementioned prescriptions to pharmacies, including Medicare Part D participating pharmacies. Sometimes, the patients went to the pharmacies on their own. All of the recruited patients gave Marrero-Castellanos their Oxycodone pills. Marrero-Castellanos sold those pills to others. Suarez-Gonzalez and Arlene Gonzalez facilitated the exchange of cash for prescriptions and filled out prescriptions. At times, Arlene Gonzalez wore a white lab coat and patients referred to her as a doctor, which she was not. She would bring pre-signed prescriptions to the clinic, and later signed prescriptions for oxycodone in her husband’s name, along with other staff members. These activities occurred even when Dr. Gonzalez Garcia was not in the office.
To facilitate the conspiracy, Dr. Gonzalez Garcia provided prescriptions for Oxycodone, even though he did not provide patients with a meaningful consultation or examination commensurate with prescribing oxycodone according to national standards and norms, nor those of the State of Florida, for such prescriptions. Dr. Gonzalez Garcia referred to himself as “El Chapo of Oxycodone." As a result of the conspiracy, Dr. Gonzalez Garcia unlawfully distributed Oxycodone.
Co-defendants Arlene Gonzalez and Suarez-Gonzalez pled guilty to conspiracy to pay and receive health care kickbacks and were sentenced to 4 months in prison and 1 year of probation, respectively. Co-defendant Marrero-Castellanos pled guilty to conspiracy to pay and receive health care kickbacks and conspiracy to distribute controlled substances and was sentenced to 13 months in prison. The co-defendants were ordered to collectively pay $26,306 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and DEA. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Lindsey Lazopoulos Friedman. 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.
Five Individuals Sentenced Federally for Participating in Global Fraud SchemeRead the Press Release
MIAMI, FL - Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, Miami Field Office, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) announced that five defendants were sentenced today by U.S. District Judge Donald M. Middlebrooks for their respective involvement in a global fraud scheme based upon false claims about the United States military and the Government of Afghanistan.
Six individuals were charged for their involvement in the global fraud scheme (Case No. 18-20668-CR-DMM). Four individuals previously pled guilty, one was convicted at trial and charges are pending against a final defendant.
Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, pled guilty to one count of conspiracy to commit wire fraud. The Court sentenced Javat to 120 months in prison after finding him responsible for a fraud loss of approximately $60 million during the period of the conspiracy. The court also imposed a $150,000 fine and ordered Javat to pay forfeiture and restitution, in amounts to be determined at a future hearing.
Luis Soto, a customs broker residing in Miami, was convicted by a trial jury of one count of conspiracy to commit wire fraud, one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception, two counts of wire and two counts of obtaining pre-retail medical products by fraud or deception. The Court sentenced Soto to 72 months in prison and ordered him to forfeit $100,000. Sunil Chopra and William Armando, both residents of California, pled guilty to one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception and were sentenced to 36 and 18 months in prison, respectively. Emanuel Daskos, of Hallandale Beach, Florida, pled guilty to one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception and was sentenced to 2 years of probation. He was also ordered to pay a $20,000 fine, $501,304 in restitution, and forfeit $18,536. One defendant, James Sipprell, a resident of Georgia, is awaiting trial and is presumed innocent.
According to the superseding indictment, between 2014 and 2017, Javat orchestrated a fraud scheme to purchase FDA-regulated products including medical devices from manufacturers in the United States at deeply discounted prices by lying to them about the destination and purpose of the goods. Javat represented that he was a large supplier of medical and food products to United States troops in Afghanistan, and sought deep discounts from the manufacturers by claiming that he could provide their goods to American troops in Afghanistan or to the Afghan people. In truth, Javat wanted to obtain these products at prices not generally offered in the United States in order to sell those products himself in this country – not abroad, and not to the military – at a significant profit.
To execute this scheme, the conspirators insisted that products be packaged for the United States market, falsely claiming to the manufacturers that this was required by the U.S. military, the Afghan government, or the “Buy American Act.” When the products nonetheless had stickers or other packaging on them stating that the items were for export only, the conspirators secretly removed those labels. After acquiring the products, Javat and the co-conspirators arranged for the diversion of the products to various locations in the United States. To conceal this activity, the conspirators typically shipped the products abroad and then had them immediately shipped back to the United States, or provided the victims with fraudulent shipping documentation showing that the products were exported when actually they had never left this country.
Javat admitted the allegations of the superseding indictment during his guilty plea. During Soto’s trial, the government proved these allegations to the jury and presented additional evidence about the defendants’ scheme. For example, the conspirators often represented that they were purchasing items on behalf of the Afghanistan Reconstruction and Development Services (“ARDS”), which at one time was an agency of the Afghan Government funded in part by the United States. That agency ceased to exist after 2014, yet the conspirators provided victims with fake documents supposedly from ARDS imposing extravagant demands that in reality only suited the conspirators’ needs. In 2016, Uniworld prepared an internal Powerpoint presentation expressly informing its staff that they had to be “good at lying.” Finally, because these goods were moving outside normal channels, they often were mishandled; for example, according to the conspirators’ own emails at the time, the defendants disregarded temperature requirements when transshipping over-the-counter pain medicines, one of the defendants kept a shipment of diabetic test strips that required refrigeration in his car trunk overnight and another shipment of medical products became covered in bird droppings. The products involved in Javat’s scheme included surgical instruments, professional dental care devices, bandages, and aspirin.
The evidence at Soto’s trial demonstrated that Soto knew about Javat’s fraud scheme yet knowingly helped him by supplying paperwork to federal agencies including the FDA to facilitate the re-entry of the diverted products into the United States through the Port of Miami or Miami International Airport. Chopra, Armando and Daskos also knowingly furthered the scheme by helping to transport the products and remove export labels.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FDA-OCI. The case is being prosecuted by Assistant U.S. Attorneys David Turken and John Shipley.
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.
U.S. Attorney’s Office in Miami Hosts Reentry SimulationRead the Press Release
“A Day in the Life”
MIAMI, FL - U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida announced the successful completion of a Reentry Simulation yesterday at the U.S. Attorney’s Office in Miami. More than 40 community members, officials and stakeholders attended the event, which simulates the struggles and challenges faced by individuals who are transitioning from incarceration back into society. The U.S. Attorney’s Office for the Southern District of Florida and its dedicated partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
The Reentry Simulation is just one of many initiatives that support Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction strategy. Locally, PSN is carried out by the Violence Reduction Partnership (VRP), a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida, comprehensive reentry initiatives promote the successful reintegration of returning citizens and strive to reduce recidivism. The goal is to help those who have paid their debt to society best prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety, and sustain the strength of our local communities.
Participants in today’s VRP Reentry Simulation gained an understanding of the significant obstacles faced by men and women, upon their release from incarceration. Employment opportunities, social services, and resources are needed in order to support the returning citizens’ successful transition back into our local community.
In addition to the Reentry Simulations, the U.S. Attorney’s Office and our partners support other invaluable reentry initiatives.
In 2016, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Reentry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions. To date, six individuals have successfully graduated from the program.
To further support our returning citizens, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful re-entry into society and reduce their risk of recidivism. Since 2013, more than 300 individuals have attended the meetings and received a Reentry Resource Guide.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 500 returning citizens and their families.
The success of these initiatives and today’s simulation would not have been possible without community support.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
Hialeah Police Officer Charged with Civil Rights ViolationsRead the Press Release
A federal grand jury in Miami, Florida, yesterday returned a two-count indictment against Hialeah Police Department Officer Jesus Manuel Menocal Jr, 32, for depriving two women of their civil rights.
According to the indictment, in June of 2015, while working as a police officer with the Hialeah Police Department in Florida, Officer Menocal is alleged to have willfully deprived a minor female of her right to be free from unreasonable searches and seizures when, for his own sexual gratification, he directed her to remove her clothing. The indictment further alleges that the offense included kidnapping, and the use and threatened use of a dangerous weapon.
On another date in 2015, while working as a police officer, Officer Menocal is also alleged to have exposed himself to a woman and grabbed her. This offense also included the use and threatened use of a dangerous weapon.
Menocal is scheduled to have his initial appearance today at 2 P.M. before U.S. Magistrate Judge Jacqueline Becerra (Case No. 19-20822-CR-Williams/Torres).
This investigation remains ongoing. Anyone with additional information is encouraged to call the FBI’s Miami Field Office at 754.703.2000.
An indictment is merely a formal accusation of criminal conduct. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The indictment was announced by Assistant Attorney General Eric Dreiband, U.S. Attorney Ariana Fajardo Orshan, and FBI Special Agent in Charge, George Piro, who also acknowledged the efforts of the Hialeah Police Department and the Miami Dade County State Attorney’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Ilham Hosseini and Edward N. Stamm of the Southern District of Florida and Special Litigation Counsel Samantha Trepel of the Civil Rights Division of the U.S. Department of Justice.
Hialeah Police Officer Charged with Civil Rights ViolationsRead the Press Release
WASHINGTON — A federal grand jury in Miami, Florida, yesterday returned a two-count indictment against Hialeah Police Department Officer Jesus Manuel Menocal Jr, 32, for depriving two women of their civil rights.
According to the indictment, in June of 2015, while working as a police officer with the Hialeah Police Department in Florida, Officer Menocal is alleged to have willfully deprived a minor female of her right to be free from unreasonable searches and seizures when, for his own sexual gratification, he directed her to remove her clothing. The indictment further alleges that the offense included kidnapping, and the use and threatened use of a dangerous weapon.
On another date in 2015, while working as a police officer, Officer Menocal is also alleged to have exposed himself to a woman and grabbed her. This offense also included the use and threatened use of a dangerous weapon.
Menocal is scheduled to have his initial appearance today at 2 P.M. before U.S. Magistrate Judge Jacqueline Becerra (Case No. 19-20822-CR-Williams/Torres).
This investigation remains ongoing. Anyone with additional information is encouraged to call the FBI’s Miami Field Office at 754.703.2000.
An indictment is merely a formal accusation of criminal conduct. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
The indictment was announced by Assistant Attorney General Eric Dreiband, U.S. Attorney Ariana Fajardo Orshan, and FBI Special Agent in Charge, George Piro, who also acknowledged the efforts of the Hialeah Police Department and the Miami Dade County State Attorney’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Ilham Hosseini and Edward N. Stamm of the Southern District of Florida and Special Litigation Counsel Samantha Trepel of the Civil Rights Division of the U.S. Department of Justice.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Broward County Fugitive Apprehended and Sentenced to 8 Years in Prison for Possessing Child PornographyRead the Press Release
On December 10, 2019, former fugitive Stanley Simms was sentenced by U.S. District Court Judge Joan A. Lenard to 96 months in prison, to be followed by 40 years of supervised release, for possessing child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
In September of 2012, Simms was observed on a peer-2-peer file sharing program sharing child pornography. A number of videos and images of child pornography were downloaded by an undercover FBI agent. On June 2, 2013, a search warrant was executed on Simms residence in Sunrise, Florida. During the execution of the search warrant Simms asked to leave his residence. He was allowed to leave and did not return. A forensic analysis of the electronic devices seized from Simms’ home, pursuant to the search warrant, revealed images and videos of children engaged in sexual activity. Law enforcement made every attempt to locate Simms, however he could not be found.
On June 7, 2013, a warrant was issued for Simms’ arrest. On September 29, 2016, Simms, who had not yet been located, was indicted for possession of child pornography (Case No.16cr60285). In November of 2016, U.S. District Judge Lenard entered an Order transferring Stanley Simms to fugitive status. Law enforcement continued their search for the defendant. Simms was ultimately located in Jamaica. On May 10, 2019, Simms arrived at Miami International Airport and was arrested.
Simms pled guilty to possessing child pornography on September 11, 2019. A restitution hearing has been scheduled for February 24, 2020 at 11:30 a.m., before Judge Lenard.
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 investigatory efforts of the FBI’s Child Exploitation Task Force in this matter. This case was prosecuted by Special Assistant U.S. Attorney Catherine Koontz.
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.
Fifteen Individuals Charged for Roles in Fraud and Bribery Scheme at Two South Florida VA HospitalsRead the Press Release
Fifteen South Florida residents have been charged by federal authorities in connection with a kickback and bribery scheme involving employees and vendors of U.S. Department of Veterans Affairs (VA) Medical Centers located in West Palm Beach and Miami, Florida. Court filings allege that in exchange for cash bribes and kickback payments, medical center employees, using government credit cards, ordered medical and other hospital supplies through corrupt vendors. In some cases, the prices of the supplies were grossly inflated, while in other cases the orders were only partially fulfilled or not fulfilled at all.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida stated, “It is a very sad day when public employees are alleged to have violated their duty to provide honest services to the VA, a federal agency that furnishes critical medical services to our military veterans. These charges do not reflect the hard work and integrity of the hundreds of thousands of law abiding VA employees throughout the United States. Together, alongside our VA partners, we will continue to protect our federal programs, combat public corruption, and ensure that our veterans receive the care and quality services that they are owed.”
Michael Missal, Inspector General, and David Spilker, Special Agent in Charge at the VA Office of Inspector General (OIG) stated, “VA OIG will vigorously investigate alleged instances when government employees unjustly enrich themselves by soliciting and accepting bribes and kickbacks from vendors for preferential treatment. The defendants’ actions, as alleged in the indictments and informations, breach the public trust, undermine the integrity of VA’s operations, and tarnish the important work that honest VA employees do every day in support of our nation’s veterans.”
West Palm Beach VA employees Clinton Purvis, 52, of West Palm Beach, Christopher Young, 44, of West Palm Beach, and Kenneth Scott, 59, of Riviera Beach, as well as former West Palm Beach VA employee Robert “Bob” Johnson, 62, of West Palm Beach, were charged in a single indictment with offenses that include conspiracy to commit health care fraud, substantive counts of health care fraud, and bribery. Miami VA Medical Center employees Waymon Melvon Woods, 58, of Miami, Don Anderson, 59, of Port St. Lucie, Jose Eugenio Cuervo, 53, of Miramar, Donnie Shatek Hawes, 35, of Cutler Bay, and Robert Lee James Harris, 44, of Miami Gardens, as well as former employee Eugene Campbell, 60, of Miami Gardens, were each charged in separate indictments with bribery offenses. VA supply vendors Jorge Flores, 45, of Delray Beach, Earron Starks, 49, of Hallandale Beach, Carlicha Starks, 40, of Hallandale Beach, and Robert Kozak, 73, of Boca Raton, have been charged in criminal informations with conspiracy to commit health care fraud. Separately, Lisa M. Anderson, 48, of Delray Beach, has been charged with making false statements in connection with an application filed with the VA to have one of the vendor companies falsely designated as a Service Disabled Veteran Owned Small Business.
According to the facts alleged in the indictments and criminal informations, the charged employees worked in logistics departments of the West Palm Beach and the Miami VA Medical Centers and were responsible for ensuring that medical and other hospital supplies were purchased and received. It is alleged that at the West Palm Beach VA, Purvis, Johnson, and Scott would place orders for supplies with the complicit vendors that were either fictitious or contained inflated quantities. The vendors would then invoice the VA for the fictitious or inflated orders. Purvis, Johnson, and Scott would authorize the payment of VA funds to the vendors, who would then kick-back a portion of the proceeds to Purvis, Johnson, and Scott. Purvis and Johnson paid a portion of those proceeds to Young, in exchange for his agreement to falsely enter the supplies as having been received in the VA computer system. At the Miami VA Medical Center, Campbell, Woods, Anderson, Cuervo, Hawes, and Harris each accepted cash bribe payments in exchange for placing orders for supplies with Flores’ and Earron and Claricha Starks’ companies. As a result of these schemes, the defendants caused the U.S. Department of Veterans Affairs to pay millions of dollars for inflated or unfulfilled purchase orders.
Indictments and criminal informations are charging instruments containing allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
These cases were investigated by Special Agents of VA OIG and are being prosecuted by Assistant U.S. Attorneys Roger H. Stefin and Amanda Perwin.
In November of this year, the Justice Department announced the formation of the new Procurement Collusion Strike Force (PCSF) focusing on deterring, detecting, investigating and prosecuting antitrust crimes, such as bid-rigging conspiracies and related fraudulent schemes, which undermine competition in government procurement, grant and program funding. The PCSF is an interagency partnership, including the U.S. Attorney’s Office for the Southern District of Florida and federal law enforcement partners.
To learn more about the PCSF or how to report suspected criminal activity affecting public procurement, please visit https://www.justice.gov/procurement-collusion-strike-force. Anyone with information concerning anticompetitive conduct involving federal taxpayer dollars is encouraged to contact the PCSF directly by emailing [email protected].
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Three South Florida Residents Indicted on Federal Sex Trafficking ChargesRead the Press Release
Law Enforcement Seize www.fosterscareinc.com, an Internet Forum Believed to Facilitate Sex Trafficking
Three South Florida residents face federal charges related to their alleged involvement with a sex trafficking organization. Law enforcement seized a website, www.fosterscareinc.com, which is alleged to have facilitated the sex trafficking.
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 Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations’ (HSI) Miami Field Office made the announcement.
William D. Foster, 48, of Delray Beach, Ashleigh Holloway, 36, of Fort Lauderdale, and Hanah Chan, 30, of Delray Beach, were charged in an indictment unsealed yesterday (Case No. 19-CR-20804). Foster was charged with one count of conspiracy to commit sex trafficking, one count of sex trafficking of a minor and by force, fraud, or coercion, and two counts of sex trafficking by force, fraud, or coercion. Foster, Holloway, and Chan were charged with one count of sex trafficking by fraud and coercion. Foster and Chan were charged with one count of transportation of an individual for prostitution.
Foster was previously arrested on a criminal complaint, following the execution of three residential search warrants in Delray Beach, Florida.
According to the court record, including allegations contained in a criminal complaint, Foster was the leader of a sex trafficking organization. A victim was allegedly recruited into Foster’s sex trafficking organization in or around August 2007 as a minor, and was commercially sex trafficked by Foster both as a minor, and then as an adult, from approximately November 2007 through May 2010.
A second victim was allegedly recruited into Foster’s organization and was commercially sex trafficked by Foster from approximately May 2004 through August 2011.
It is alleged that these victims were moved across state lines for purposes of prostitution. When they were minors, it is alleged Foster arranged for the victims to obtain false identification. In addition, Foster is alleged to have had sex with the victims on multiple occasions, beginning when they were minors.
The court documents allege that at any given time approximately five to fifteen females lived with, and worked for, Foster. The females worked at exotic dance venues in Miami-Dade, Broward, and Palm Beach Counties, and engaged in commercial sex at Foster’s direction. It is alleged that the females were not able to keep any proceeds derived from their prostitution or exotic dancing but instead were compelled to turn over the money to Foster based on his false promises to invest their earnings. The females also reported incidences of domestic violence while living with Foster.
The court filings allege that a third victim contacted law enforcement in September 2019 because she was being pressured to engage in commercial sex by Foster and his organization after being flown from Fort Lauderdale, Florida, to Detroit, Michigan.
Holloway and Chan were charged with Foster in the indictment with sex trafficking by fraud and coercion in connection with the third victim, and Chan and Foster were charged with the transportation of an individual for prostitution in connection with the third victim.
During the course of this investigation, law enforcement identified a website, www.fosterscareinc.com. On November 21, 2019, law enforcement seized the website www.fosterscareinc.com, based on a finding by a U.S. Magistrate Judge that there was probable cause to believe that the website was used, or intended to be used, to commit or facilitate the commission of sex trafficking of children, or by force, fraud, or coercion. It is alleged that Foster had another individual create the website in order to facilitate the sex trafficking enterprise.
On November 19, 2019, Foster was ordered detained pending trial based on a finding by U.S. Magistrate Judge Bruce E. Reinhart in West Palm Beach, Florida, that the defendant poses a danger to the community. Holloway and Chan are scheduled to have their pre-trial detention hearings on December 13, 2019 and to be arraigned on December 19, 2019.
An indictment and criminal complaint are charging documents containing allegations. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, HSI Miami Field Office, HSI Detroit Field Office, Florida Office of Financial Regulation, Delray Beach Police Department, Palm Beach County Sheriff's Office, Hollywood Police Department, Miami-Dade Police Department, and Sebastian Police Department. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Jessica Kahn Obenauf. Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture aspects of the case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Justice Department Announces Deferred Prosecution Agreement with HSBC Private Bank (Suisse) SARead the Press Release
Bank Admits to Helping U.S. Taxpayers Conceal Income and Assets from the United States;
Agrees to Pay $192.35 Million Penalty
MIAMI – HSBC Private Bank (Suisse) SA (HSBC Switzerland), a private bank headquartered in Geneva, has entered into a deferred prosecution agreement (DPA) with the Department of Justice today in the U.S. District Court for the Southern District of Florida, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division, United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, and Chief Don Fort for Internal Revenue Service (IRS), Criminal Investigation. HSBC Switzerland admitted to conspiring with U.S. taxpayers to evade taxes and, as part of the agreement, HSBC Switzerland will pay $192.35 million in penalties.
“HSBC Switzerland conspired with U.S. accountholders to conceal assets abroad and evade taxes that every American must pay,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division. “Banks, asset managers and other financial firms enable such crimes – and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities.”
“Financial institutions that conspire with U.S. accountholders to hide income in undeclared bank accounts abroad, to avoid being held accountable for tax obligations and augment corporate profit, face substantial criminal and civil penalties for their illicit conduct,” said U. S. Attorney Fajardo Orshan for the Southern District of Florida. “In this case, HSBC Switzerland will pay a total civil and criminal fine of more than $192 million, to include a civil forfeiture of $71.8 million, for proceeds illegally derived from their conduct. We remain committed to the investigation and prosecution of individuals who evade their taxes and the financial institutions that assist them in doing so.”
“Taxpayers and financial institutions each have the most basic responsibilities to pay taxes and report suspicious activity regarding financial transactions. When financial institutions devise a massive tax evasion scheme and actually facilitate the activity, they not only must be held accountable, they must take actions to ensure this behavior will not happen again,” said Don Fort, Chief, IRS Criminal Investigation. “The integrity of our nation’s tax system depends on voluntary compliance and fair, consistent enforcement of the law. We owe it to all Americans to hold financial institutions accountable just as we would hold individual taxpayers accountable. Today’s DPA shows that engaging in this type of behavior has consequences.”
According to court documents, HSBC Switzerland admits that between 2000 and 2010 it conspired with its employees, third-party and wholly owned fiduciaries, and U.S. clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. In 2002, the bank had approximately 720 undeclared U.S. client relationships, with an aggregate value of more than $800 million. When the bank’s undeclared assets under management reached their peak in 2007, HSBC Switzerland held approximately $1.26 billion in undeclared assets for U.S. clients.
According to the terms of the DPA, HSBC Switzerland will cooperate fully with the Tax Division and the IRS. The DPA also requires HSBC Switzerland to affirmatively disclose information it may later uncover regarding U.S.-related accounts, as well as to disclose information consistent with the Department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009 and Dec. 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow HSBC Switzerland to demonstrate good conduct. The agreement provides no protection for any individuals.
The $192.35 million penalty against HSBC Switzerland has three parts. First, HSBC Switzerland has agreed to pay $60,600,000 in restitution to the IRS, which represents the unpaid taxes resulting from HSBC Switzerland’s participation in the conspiracy. Second, HSBC Switzerland agreed to forfeit $71,850,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2000 and 2010. Finally, HSBC Switzerland agreed to pay a penalty of $59,900,000. This penalty amount takes into consideration that HSBC Switzerland self-reported its conduct, conducted a thorough internal investigation, provided client identifying information to the Tax Division, and extensively cooperated in a series of investigations and prosecutions, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
According to court documents filed as part of the DPA, the bank assisted U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. To conceal its clients’ assets and income from the IRS, HSBC Switzerland employed a variety of methods, including relying on Swiss bank secrecy to prevent disclosure to U.S. authorities, using code-name and numbered accounts and hold-mail agreements, and maintaining accounts in the names of nominee entities established in tax haven jurisdictions, such as the British Virgin Islands, Liechtenstein, and Panama, that concealed the client’s beneficial ownership of the accounts.
In an effort to attract new U.S. clients, and maintain existing relationships with U.S. clients, HSBC Switzerland bankers took trips to the United States. Between 2005 and 2007, at least four HSBC Switzerland bankers traveled to the United States to meet at least 25 different clients. One banker also attended Design Miami, a major annual arts and design event in Miami, Florida, in an effort to recruit new U.S. clients to open undeclared accounts with HSBC Switzerland.
In early 2008, in response to a public U.S. criminal investigation into UBS AG, the largest bank in Switzerland, for tax and securities violations in connection with its maintaining undeclared accounts for U.S. clients, HSBC Switzerland began a series of policy changes to restrict its cross-border business with U.S. persons, but the bank did not immediately cease that business. In fact, some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets, such as withdrawing the contents of their accounts in cash.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Fajardo Orshan, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly, Assistant Chief Jason H. Poole, and Trial Attorney Grace E. Albinson of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Fajardo Orshan also thanked Assistant U.S. Attorneys Thomas P. Lanigan and Danielle N. Croke of the Southern District of Florida, Assistant U.S. Attorney Gordon Kromberg of the Eastern District of Virginia, and agents with the United States Postal Service for their assistance in this case.
Justice Department Announces Deferred Prosecution Agreement with HSBC Private Bank (Suisse) SARead the Press Release
HSBC Private Bank (Suisse) SA (HSBC Switzerland), a private bank headquartered in Geneva, has entered into a deferred prosecution agreement (DPA) with the Department of Justice today in the U.S. District Court for the Southern District of Florida, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division, United States Attorney for the Southern District of Florida Ariana Fajardo Orshan, and Chief Don Fort for Internal Revenue Service (IRS), Criminal Investigation. HSBC Switzerland admitted to conspiring with U.S. taxpayers to evade taxes and, as part of the agreement, HSBC Switzerland will pay $192.35 million in penalties.
“HSBC Switzerland conspired with U.S. accountholders to conceal assets abroad and evade taxes that every American must pay,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division. “Banks, asset managers and other financial firms enable such crimes – and we will hold these institutions to account, right along with the taxpayers that use them to facilitate and disguise illegal activities.”
“Financial institutions that conspire with U.S. accountholders to hide income in undeclared bank accounts abroad, to avoid being held accountable for tax obligations and augment corporate profit, face substantial criminal and civil penalties for their illicit conduct,” said U. S. Attorney Fajardo Orshan for the Southern District of Florida. “In this case, HSBC Switzerland will pay a total civil and criminal fine of more than $192 million, to include a civil forfeiture of $71.8 million, for proceeds illegally derived from their conduct. We remain committed to the investigation and prosecution of individuals who evade their taxes and the financial institutions that assist them in doing so.”
“Taxpayers and financial institutions each have the most basic responsibilities to pay taxes and report suspicious activity regarding financial transactions. When financial institutions devise a massive tax evasion scheme and actually facilitate the activity, they not only must be held accountable, they must take actions to ensure this behavior will not happen again,” said Don Fort, Chief, IRS Criminal Investigation. “The integrity of our nation’s tax system depends on voluntary compliance and fair, consistent enforcement of the law. We owe it to all Americans to hold financial institutions accountable just as we would hold individual taxpayers accountable. Today’s DPA shows that engaging in this type of behavior has consequences.”
According to court documents, HSBC Switzerland admits that between 2000 and 2010 it conspired with its employees, third-party and wholly owned fiduciaries, and U.S. clients to: 1) defraud the United States with respect to taxes; 2) commit tax evasion; and 3) file false federal tax returns. In 2002, the bank had approximately 720 undeclared U.S. client relationships, with an aggregate value of more than $800 million. When the bank’s undeclared assets under management reached their peak in 2007, HSBC Switzerland held approximately $1.26 billion in undeclared assets for U.S. clients.
According to the terms of the DPA, HSBC Switzerland will cooperate fully with the Tax Division and the IRS. The DPA also requires HSBC Switzerland to affirmatively disclose information it may later uncover regarding U.S.-related accounts, as well as to disclose information consistent with the department’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009 and Dec. 31, 2017. Under the DPA, prosecution against the bank for conspiracy will be deferred for an initial period of three years to allow HSBC Switzerland to demonstrate good conduct. The agreement provides no protection for any individuals.
The $192.35 million penalty against HSBC Switzerland has three parts. First, HSBC Switzerland has agreed to pay $60,600,000 in restitution to the IRS, which represents the unpaid taxes resulting from HSBC Switzerland’s participation in the conspiracy. Second, HSBC Switzerland agreed to forfeit $71,850,000 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2000 and 2010. Finally, HSBC Switzerland agreed to pay a penalty of $59,900,000. This penalty amount takes into consideration that HSBC Switzerland self-reported its conduct, conducted a thorough internal investigation, provided client identifying information to the Tax Division, and extensively cooperated in a series of investigations and prosecutions, as well as implemented remedial measures to protect against the use of its services for tax evasion in the future.
According to court documents filed as part of the DPA, the bank assisted U.S. clients in concealing their offshore assets and income from U.S. taxing authorities. To conceal its clients’ assets and income from the IRS, HSBC Switzerland employed a variety of methods, including relying on Swiss bank secrecy to prevent disclosure to U.S. authorities, using code-name and numbered accounts and hold-mail agreements, and maintaining accounts in the names of nominee entities established in tax haven jurisdictions, such as the British Virgin Islands, Liechtenstein, and Panama, that concealed the client’s beneficial ownership of the accounts.
In an effort to attract new U.S. clients, and maintain existing relationships with U.S. clients, HSBC Switzerland bankers took trips to the United States. Between 2005 and 2007, at least four HSBC Switzerland bankers traveled to the United States to meet at least 25 different clients. One banker also attended Design Miami, a major annual arts and design event in Miami, Florida, in an effort to recruit new U.S. clients to open undeclared accounts with HSBC Switzerland.
In early 2008, in response to a public U.S. criminal investigation into UBS AG, the largest bank in Switzerland, for tax and securities violations in connection with its maintaining undeclared accounts for U.S. clients, HSBC Switzerland began a series of policy changes to restrict its cross-border business with U.S. persons, but the bank did not immediately cease that business. In fact, some HSBC Switzerland bankers assisted clients in closing their accounts in a manner that continued to conceal their offshore assets, such as withdrawing the contents of their accounts in cash.
Acting Deputy Assistant Attorney General Goldberg, U.S. Attorney Fajardo Orshan, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, as well as Senior Litigation Counsel Mark F. Daly, Assistant Chief Jason H. Poole, and Trial Attorney Grace E. Albinson of the Tax Division, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked Assistant U.S. Attorneys Thomas P. Lanigan and Danielle N. Croke of the Southern District of Florida, Assistant U.S. Attorney Gordon Kromberg of the Eastern District of Virginia, and agents with the U.S. Postal Service for their assistance in this case.
Four South Florida Residents and Jet Link, Inc. Sentenced for Roles in Aircraft Parts Fraud SchemeRead the Press Release
On Friday, December 6, 2019, the last of four South Florida residents was sentenced to prison in connection with the operation of Jet Link, Inc., an aircraft parts broker in Margate, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Wendell W. Palmer, Special Agent-in-Charge, U.S. Air Force Office of Special Investigations - Office of Procurement Fraud, Detachment 5, Dobbins ARB, GA; Special Agent Jozette Gillespie, Acting Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (CID-MPFU); Cyndy Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office; and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office announced the sentencing of Robert Cantone, 74, of Coral Springs, Alex Cantone, 41, of Sunrise, Brenda Snelgrove, 58, of Coconut Creek, Ronald Burns, 45, of Hollywood, and Jet Link, Inc., for their roles in an aircraft parts fraud scheme.
The defendants and the corporation previously pled guilty for their respective criminal conduct (Case No. 18cr60329). On December 6, 2019, U.S. District Judge Roy K. Altman sentenced R. Cantone to 18 months in prison, to be followed by three years of supervised release, and ordered the defendant to pay $91,095.70 in restitution. Previously, co-defendant Burns was sentenced to 12 months in prison, to be followed by three years of supervised release, and was ordered to pay $6,340 in restitution. Co-defendant Snelgrove was sentenced to 3 years of probation, with six months of house arrest, and ordered to pay $18,581 in restitution. Co-defendant A. Cantone was given Pre-trial Diversion. Jet Link, Inc. was sentenced to 3 years of probation and ordered to pay $91,095.70 in restitution.
According to the court record, Jet Link, Inc. and the co-defendants are now prohibited from conducting further business with the Department of Defense, and during the defendants’ terms of supervised release, they will all be prohibited from purchasing, selling, distributing, or acquiring of aircraft parts, both commercial and military, and shall further be prohibited from associating with or being employed by, any company involved with the purchase or sale of aircraft parts, both commercial and military.
According to court records and evidence presented during hearings, R. Cantone, A. Cantone, Snelgrove, and Burns, would unjustly enrich themselves by fraudulently winning contracts for the supply of military aircraft parts to the Defense Logistics Agency (“DLA”), by supplying the DLA with false certifications on their electronic bid quotations, by stating Jet Link “currently possesses the material,” and that the parts were “inspected for correct part number and for absence of corrosion or any obvious defects,” were “in its original package,” and were “new, unused, and not of such age or so deteriorated as to impair its usefulness or safety,” when, in fact, these parts were not purchased until after the contracts had been awarded by DLA. These parts were thereafter shipped to the Department of Defense, and were often either non-conforming or substandard.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the U.S. Air Force Office of Special Investigations, U.S. Army CID-MPFU, DCIS, and ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Marc Anton.
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 Man Sentenced to over Eleven Years in Prison in Connection with Torture and Kidnapping PlotRead the Press Release
Justin Boccio, 33, of Deerfield Beach, was sentenced today to more than 11 years in prison and ordered to pay $83k in restitution for his involvement in a torture and kidnapping plot. Boccio previously pled guilty to conspiracy to commit kidnapping and kidnapping.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
According to court records, Boccio and co-defendant Serge Nkorina (“Nkorina”), along with others, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida. On or about January 5, 2019, the two rented a van from Budget with Florida tag number GHPT19. Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office. Later that same day, January 14, 2019, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County, Florida. Nkorina and Boccio blindfolded the victim and forced the victim into the rental van. The kidnappers then transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons. The kidnappers demanded information about the victim’s home address, including access codes to the victim’s residence. On or about January 15, 2019, Nkorina visited the premises of the victim’s home while carrying a firearm. Ultimately, also on January 15, 2019, Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle, which they relocated to the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida.
During today’s hearing U.S. District Judge Cecilia M. Altonaga stated, “[Boccio] forgot his decency and his values when he participated in the torture of this innocent human being.” Judge Altonaga sentenced Boccio to a concurrent term of 135 months in prison, on each count of conviction, to be followed by 5 years of supervised release. She also ordered that the defendant pay the victim $83,056.80 in restitution (Case No. 19-cr-20261).
Nkorina has not yet made his appearance in the South Florida case and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office in this matter. She thanked the Hallandale Beach Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.
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.
North Carolina Resident Sentenced to 19.5 Years in Prison for Sex Trafficking a MinorRead the Press Release
MIAMI, FL - Willie Dishon Matthew Obadiah, 32, of Charlotte, North Carolina, was sentenced by U.S. District Judge Beth Bloom to 235 months in prison today for sex trafficking a minor.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office, and Juan J. Perez, Director of the Miami-Dade Police Department (MDPD) made the announcement.
According to the court record, including the factual proffer in support of the defendant’s guilty plea, in February 2019, Obadiah met the minor victim through Facebook, and communicated with her via Facebook Messenger and text messages. At the time, both Obadiah and the minor victim lived in North Carolina, where he was already prostituting women. Through his communications with the victim, Obadiah learned that she was a minor. In fact, he asked her to send a photograph of her identification card to him. When he saw her age on the photograph, he sent her a message stating that he wished she had a “fake id” instead. Obadiah continued to communicate with the minor victim online, and learned that she was a runaway. While she was on the run, Obadiah agreed to pick up the minor victim. Shortly thereafter, he began prostituting the minor victim at various hotels, initially in North Carolina and then in Miami. Obadiah told the minor victim how much to charge for sex acts, how to deal with customers or “johns,” and what rules to abide by. Obadiah posted advertisements online for the minor victim, to which customers responded. Obadiah drove the minor victim to South Florida after a few days, where he prostituted her at hotels in Miami. The minor victim ran away from Obadiah, who returned to North Carolina, where he continued to prostitute women. He was arrested on April 19, 2019 by the Charlotte-Mecklenberg Police Department.
In rendering the sentence imposed, Judge Bloom considered the significant mental and physical trauma incurred by the minor victim as a result of Obadiah’s crime. A restitution hearing has been scheduled for February 28, 2020.
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 FBI’s Child Exploitation and Human Trafficking Task Force investigated this case in partnership with the Federal South Florida Human Trafficking Task Force, which includes the Miami-Dade Police Department’s Human Trafficking Squad, International Rescue Committee, and Florida Department of Children and Families (DCF). FBI Charlotte, Charlotte-Mecklenberg Police Department, Polk County Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of North Carolina assisted with the case.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, International Rescue Committee, DCF, and all those who assisted in this matter. Assistant U.S. Attorney Vanessa Singh Johannes prosecuted this case.
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.
Justice Department Announces Landmark Money Mule InitiativeRead the Press Release
Federal, State, and International Law Enforcement Join Forces Against Transnational Schemes
WASHINGTON – Attorney General William P. Barr and law enforcement partners today announced a concentrated effort across the country and around the world to halt money mule activity. Money mules assist fraud schemes by receiving money from victims, many of them elderly, and forwarding proceeds to foreign-based perpetrators. During the two-month initiative announced today, U.S. law enforcement disrupted mule networks that spanned from Hawaii to Florida and from Alaska to Maine. Actions were taken to halt the conduct of over 600 domestic money mules, exceeding a similar effort against approximately 400 mules last year. The Department of Justice also tripled the number of criminal prosecutions brought against money mules as compared to last year’s initiative.
Attorney General Barr thanked the FBI, the U.S. Postal Inspection Service, and the Department of Justice’s Consumer Protection Branch for coordinating the effort. The coordinators recruited a broad coalition of law enforcement partners, including the U.S. Secret Service, the IRS Criminal Investigation, the Department of Treasury Inspector General for Tax Administration, the Social Security Administration Office of Inspector General, and the Office of the Attorneys General for the States of Indiana and Wyoming. The U.S. initiative coincided with the European Money Mule Action (EMMA), https://www.europol.europa.eu/activities-services/public-awareness-and-prevention-guides/money-muling, a simultaneous global effort to halt money mule activity announced by Europol today.
U.S. federal and state law enforcement activity included the following:
- Actions were taken to halt the conduct of more than 600 money mules, spanning over 85 federal districts.
- Actions addressed a variety of elder fraud scheme types, including grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, veteran and social security benefit redirection scams, and technical-support scams.
- Law enforcement interviewed more than 550 individuals and served over 500 warning letters on individuals who recently served as money mules for fraud schemes. The letters informed recipients that they could be prosecuted if they continue aiding and abetting fraud schemes.
- More than 30 individuals were criminally charged, in part, for their roles in receiving victim payments and providing the fraud proceeds to accomplices.
- Search warrants were executed to secure evidence from money mules who knowingly aided and abetted fraud schemes, including a number of transnational elder fraud schemes.
“Protecting our senior citizens from criminals who target them is one of the Trump Administration’s highest priorities,” said Attorney General William P. Barr. “Money mules – wittingly and unwittingly – supply the lifeblood of transnational elder fraud schemes. This landmark initiative has significantly impaired certain ways criminals steal from its elderly victims. The Department of Justice and its federal, state, and international partners are committed to shutting down these despicable enterprises that exploit the most vulnerable in our society.”
“The Money Mule initiative highlights the importance of partnership to stop fraud schemes, and it sends a message to all who are engaged in money mule activity that they will be caught and prosecuted,” said FBI Director Christopher Wray. “I want to thank our state and local partners for all their efforts to protect the American people from these threats.”
As part of the money mule initiative, members of the Department’s Transnational Elder Fraud Strike Force—which the Attorney General established in June 2019 to combat foreign elder fraud schemes—brought criminal cases alleging that defendants knowingly funneled fraud proceeds to perpetrators including:
- On Nov. 27, the U.S. Attorney’s Office for the Northern District of Georgia announced an indictment against Nnamdi MgBodile for his alleged role in a romance scam and business email compromise fraud;
- On Nov. 25, the U.S. Attorney’s Office for the Southern District of Florida announced an indictment against alleged perpetrators of a veteran and social security benefit redirection scam, which involved extensive use of money mules; and
- On Nov. 14, the Department’s Consumer Protection Branch announced the indictment of six individuals for an alleged mass mailing fraud scheme in which a co-conspirator was charged with knowingly receiving payments from elderly victims and supplying them to scheme leaders; and
Additional criminal cases were brought as part of the two-month money mule initiative by the U.S. Attorney’s Offices in the Eastern District of Texas, the Eastern District of Kentucky, the District of Arizona, the Criminal Division’s Fraud Section, the Northern District of Oklahoma, the Southern District of New York, the District of Puerto Rico, the Eastern District of Missouri, the District of Delaware, and the District of Rhode Island.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“Since Congress passed the Mail Fraud Statute over 100 years ago, the U.S. Postal Inspection Service has protected citizens from fraud schemes,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service. “Deceptive solicitations take advantage of the American public with promises of easy money, when in reality, the scammers are the only ones making money. Postal Inspectors are working hard to protect the American public and ensure their confidence in the U.S. mail.”
Attorney General Barr thanked the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) for its support of the money mule initiative. Financial analysis and data supplied by FinCEN allowed law enforcement to identify and prevent money mule activity and elder fraud schemes, as highlighted by a report FinCEN issued today. Attorney General Barr also expressed appreciation for financial institutions across the nation that identify suspicious activity and report it to FinCEN, enabling federal, state, and local law enforcement to take rapid action against ongoing schemes.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of EAPPA. In October, the Department also partnered with the Oak Ridge Boys and AARP in issuing a public service announcement to raise awareness about the grave financial threat posed by elder fraud.
The Department of Justice has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website.
Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
Former FAA Aviation Safety Inspector Sentenced to More than Six Years in Prison for Bribery and Fraud SchemeRead the Press Release
MIAMI, FL - A former Federal Aviation Administration (FAA) Safety Inspector Manuel R. Fernandez, 42, of Miami, was sentenced to 75 months in prison today, after having been convicted by a trial jury of twenty-one criminal counts related to his participation in a bribery and fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Todd A. Damiani, Regional Special Agent in Charge, U.S. Department of Transportation, Office of Inspector General (DOT-OIG), and George L. Piro, Special Agent in Charge, FBI’s Miami Field Office made the announcement.
According to the evidence at trial, from 2010 through June 28, 2013, Fernandez served as a FAA Aviation Safety Inspector with the FAA South Florida Flight Standards District Office (“FSDO”). Patricia Suarez and Rolando Suarez were the co-owners, officers, and directors of AVCOM, a Miami aviation repair company, which was subject to the jurisdiction and official responsibility of the FAA South Florida FSDO. The evidence showed that, at the same he was working for the FAA, Fernandez held various positions at AVCOM, including Vice President of Operations.
In exchange for Patricia Suarez and Rolando Suarez corruptly providing over $150,000 in cash, as well as jewelry, a cruise, clothing, and approximately $15,000 funneled to Fernandez’s mother, Fernandez violated his lawful and official duties as an FAA Aviation Safety Inspector. Fernandez provided AVCOM with advanced notice and warnings as to pending FAA inspections of AVCOM, disclosed financial information about AVCOM’s competitors, and provided AVCOM with improperly obtained aviation repair manuals produced by original equipment manufacturers such as Honeywell and Delta, saving AVCOM from paying vast sums of money for this proprietary information. The evidence further showed that Fernandez provided materially false statements to the FAA and DOT in order to hide his participation in these AVCOM-related activities. Additionally, Fernandez submitted a fraudulent sick leave request to the FAA, utilizing a forged doctor’s note.
Fernandez was convicted on June 13, 2019. Today, U.S. District Court Judge Marcia G. Cooke sentenced Fernandez to concurrent terms of 51 months in prison for his convictions on one conspiracy to commit bribery, fifteen counts of bribery, one count of providing false statements to a federal agency, and two counts of wire fraud. He was also ordered to serve 24 months in prison, to run consecutively to the sentence of 51 months in prison, for his conviction on the two counts of aggravated identity theft (Case No. 17-20780-Cr-Cooke).
The Court ordered Fernandez to surrender to authorities on January 6, 2020, to begin his federal prison sentence. A restitution hearing is scheduled for February 26, 2020 at 2:00 p.m.
Rolando Suarez previously pled guilty and was sentenced to 24 months in prison. Patricia Suarez previously pled guilty and was sentenced to 5 years’ probation with 240 days of electronic monitoring. Rolando and Patricia Suarez were ordered to jointly pay $711,940.46 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOT-OIG and FBI in this matter. She also thanked the Hialeah Police Department, Miami Beach Police Department, and Miami-Dade Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorneys Michael Davis and Yeney Hernandez. Assistant U.S. Attorney Alison Lehr 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.
Justice Department Announces More Than $376 Million in Awards to Promote Public SafetyRead the Press Release
More than $12 Million Will Support Crime-Fighting Efforts in the Southern District of Florida
MIAMI – The Department of Justice today announced that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States. More than $12 million will support public safety activities in the Southern District of Florida. The awards were made by the Department’s Office of Justice Programs.
“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”
The awards announced today support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants (JAG) Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.
“Keeping our communities and people safe is a top priority for us,” stated U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida “The millions of dollars in grant money awarded to our South Florida community and law enforcement partners will help us enhance the quality of life of our local residents, strengthen the integrity of our justice system, provide critical services for crime victims, and take back our neighborhoods from the violent grasp of those who threaten our safety and security. We are grateful to the Department of Justice for its invaluable financial support of our collective crime-fighting initiatives.”
The following awards were given to police departments and organizations in the Southern District of Florida:
Florida's FY 2019 Edward Byrne Memorial Justice Assistance Grant (JAG)
Florida Department of Law Enforcement
$10,551,399
Video Analytics Solution for Private Video Footage Evidence
City of Miami Beach
$67,845
Monroe County Drug Court
Monroe County Board of County Commissioners
$13,800
Florida City Police Cruiser and Laptops
City of Florida City
$24,258
Criminal Justice Initiatives
Palm Beach County Board of County Commissioners
$141,531
FY 19 Local JAG
St Lucie County
$41,135
2019 Enhanced Law Enforcement Programs
City of North Miami
$34,163
FY 2019 JAG Application - Police Cruiser
City of Hialeah
$43,755
2019 JAG Camera project
City of Greenacres
$13,583
Behavioral Health Deferred Prosecution Program
Highlands County
$18,824
Enhance Law Enforcement Capabilities
City of Port St. Lucie
$17,214
SWAT Robot and Marked Police Canine Vehicle
West Palm Beach City of
$66,931
Law Enforcement Safety and Wellness Equipment Project
City of North Miami Beach
$21,517
Delray Beach Police Department's Holiday Robbery and Burglary Task Force
City of Delray Beach
$29,379
City of Miami FY 19 JAG
City of Miami
$283,688
FY 19 Local JAG
City of Lake Worth
$35,966
Crime-Fighting Toolkit: Data Analysis and Prioritized Response
Miami Dade County
$442,697
Youth Empowerment Program
City of Belle Glade
$19,329
Purchase analytic/community engagement software.
City of Boynton Beach
$34,740
Homestead Violent Crime Reduction
City of Homestead
$56,858
Indian River County FY19 JAG Project
Indian River County
$19,738
Miami Gardens Police Department Focus on Public Safety Program FY 19/20
City of Miami Gardens
$56,401
FY 19 JAG
City of Pompano Beach
$501,886
SMART Adam Walsh Act Implementation Grant Program
St. Lucie County Sheriff’s Office
$149,848
Information about the programs and awards announced today is available here: Public Safety Fact Sheet. For more information about OJP awards, visit the OJP Awards Data webpage.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Honors Rank-And-File Law Enforcement Officers and Deputies in Third Annual Attorney General’s Award for Distinguished Service in PolicingRead the Press Release
Two Detectives Recognized in the Southern District of Florida
WASHINGTON – Attorney General William P. Barr and Justice Department leadership today announced the recipients of the Third Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 19 law enforcement officers and deputies from 12 jurisdictions across the country.
Detectives Kenneth Sealy and Sandra Marquez of the Aventura Police Department, in the Southern District of Florida, are being recognized for their investigative work in solving several high-dollar fraud schemes targeting multiple businesses and retail stores. During an intense investigation involving a large credit card fraud ring operating in South Florida, the detectives identified approximately $194,000 in fraudulent transactions and seized another $218,000. Another case involved money laundering and widespread credit card fraud committed in multiple states, which included a loss of almost $4 million over three years. The detectives are continuing this important work in coordination with several federal agencies.
“Honoring and supporting the work of law enforcement officers and deputies is a top priority for the Trump Administration, and today is an opportunity for me to personally express my gratitude and commitment to those who risk their lives daily to protect our communities,” said Attorney General Barr. “The Attorney General’s Award for Distinguished Service in Policing honors exceptional police officers and the vital public service they provide. The brave men and women in law enforcement are engaged in an unrelenting and often unacknowledged fight to keep our communities safe each and every day. It is an honor to thank them for their service.”
“We commend Aventura Police Department Detectives Kenneth Sealy and Sandra Marquez for their exceptional police work,” stated U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “By directly engaging with the community and carrying out proactive investigations, they are providing invaluable policing and are worthy of this special recognition. We owe a tremendous debt of gratitude to Detectives Sealy and Marquez, and law enforcement officers throughout our country who work tirelessly to keep us safe from harm and protect our national interests.”
President Donald J. Trump established clear directives for the Department of Justice – with three Executive Orders – demonstrating his strong support of the law enforcement community. These Executive Orders commit the Department to working in tandem with state and local law enforcement to restore the rule of law, reduce violent crime, dismantle criminal gangs, and combat the growing drug epidemic. Today the Department of Justice continues to support the President’s directive to honor law enforcement officers by announcing the third annual Attorney General’s Award for Distinguished Service in Policing.
The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations, or innovations in community policing. The Department received 199 nominations for 414 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that troopers, officers and deputies do to prevent, intervene in, and respond to crime and public safety issues. The individuals recognized today also include:
- Detective William Maldonado of the Suffolk County Police Department, New York
- Detectives George Duarte and Jeffrey Richards of the Providence Police Department, Rhode Island
- Officers Evan Jurgensen, Nicholas Kelly, Rachel Mynier, and John Yenchak of the Prince William County Police Department, Virginia
- Deputy Richard Hassna of the Alameda County Sheriff’s Office, California
- Deputy Ross Jessop of the Missoula County Sheriff’s Office, Montana
- Officers Aaron Bates and Alexander Stotik of the Cohasset Police Department, Massachusetts
- Officer Phalon McFate of the Las Vegas Metropolitan Police Department, Nevada
- Officer Jesse Guardiola of the Tulsa Police Department, Oklahoma
- Detective Anthony Roberson of the Providence Police Department, Rhode Island
- Officer Jonathan Plunkett of the Irving Police Department, Texas
- Detective Kathleen Lucero of the Isleta Tribal Police Department, New Mexico
- Officer Troy Quick of the Conyers Police Department, Georgia
Miami Resident Sentenced to Life in Prison for Sex Trafficking a Minor, Producing Child Pornography and Witness TamperingRead the Press Release
Jason Gatlin, 42, of Miami, was sentenced today to life in prison by U.S. District Judge Rodney Smith, after having been convicted by a trial jury of sex trafficking a minor, producing child pornography and witness tampering (Case No. 19cr20163).
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 Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, in October of 2018, the defendant met the 17-year-old victim through another 17-year-old girl. Gatlin knew the victim had a history of running away and being trafficked by others for prostitution. Over the course of the next two months, the defendant tricked the victim into believing that he loved her and wanted to marry her. He enticed her with his attention and drugs, gave her money for sex, took photos of them having sex, and lied to her. Gatlin made the victim believe that he wanted to marry her, that he did not want her to prostitute, and that he wanted her to get a real job. Instead, after gaining her trust, Gatlin bought the victim a cell phone that was used to set up prostitution dates, transported her to motels, and rented motel rooms for her so that she could commit prostitution, and harbored her for days in the Keys while she was advertised on an escort website. Then, at the end of November, when Gatlin felt that victim was not living up to his rules, he beat her up and left her at a gas station down in the Keys with a swollen face, and bloody, ripped clothes. The victim called the police and the defendant was arrested a few days later.
While incarcerated, Gatlin began bribing the victim into committing perjury. Gatlin had a relative give the victim money and Gatlin promised more money if the victim told the authorities that she was never trafficked by the defendant and never had sex with him. In addition, Gatlin’s relative housed the victim for a short period and then drove her to a defense attorney’s office for her to recant in a sworn statement.
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 Monroe County Sherriff’s Office, Plantation Police Department, FBI Chicago, and the Miami-Dade State Attorney’s Office.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, and all those who assisted in this matter. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and J. Mackenzie Duane. Assistant U.S. Attorney Adrienne Rosen is handling the asset forfeiture aspects of the case.
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.
South Florida Pain Management Doctor Sentenced to 17 ½ Years in Prison for Illegally Dispensing Opioid Drugs and Jumping BondRead the Press Release
Dr. Jeanne E. Germeil, 55, of Aventura, Florida was sentenced today to a total of 210 months in prison after having been convicted at trial of illegally dispensing opioid pain medications and contempt of court pending sentencing.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida made the announcement.
“You cannot run from the law,” stated U.S. Attorney Fajardo Orshan. “Dr. Jeanne Germeil was apprehended and brought back to the United States to face justice for her crimes of conviction. She will now serve years in prison for dispensing pain medications without a legitimate medical purpose and fueling the opioid epidemic. The U.S. Attorney’s Office and our law enforcement partners will continue to target medical professionals who seek to profit off of a public health crisis and evade prosecution.”
“Upon Dr. Germeil’s guilty verdict at trial, she fled to her native country of Haiti to avoid her punishment. DEA, and our law enforcement partners worked tirelessly to find and capture Dr. Germeil, ensuring she answers for her crimes”, said DEA Miami Field Division Special Agent in Charge Adolphus P. Wright. “In light of the current opioid crisis this country is facing, DEA is committed to targeting criminals who sell and dispense these dangerous and deadly substances to our communities.”
“The capture and subsequent extradition of fugitives to face justice is what the U.S. Marshal Service endeavors on a daily basis,” stated U.S. Marshal Seralta. “Dr. Germeil’s capture, extradition and sentencing is another example of law enforcement partners working together to bring those complicit in the furtherance of the opioid crisis, to justice.”
On January 31, 2019, Dr. Germeil was convicted of eleven counts of dispensing controlled substances, opioid pain medications, without a legitimate medical purpose. According to evidence admitted at trial, Dr. Germeil ran Germeil Medical, Inc., a family medicine and pain management clinic, in North Miami Beach, Florida. Beginning in or around March 2016 and continuing through November 2017, Dr. Germeil prescribed controlled opioid pain medication to patients. The true and intended purpose of the consultations was to improperly issue prescriptions to patients for opioids, such as Hydromorphone, Oxycodone, and Oxycodone-Acetaminophen, in exchange for cash, cash co-pays, and other payments. Pursuant to Dr. Germeil’s instructions, office staff were required to obtain an MRI from patients to create a façade of legitimacy before an office consult. After passing the gate-keeping function, Dr. Germeil prescribed opioids at levels consistent with treating end of life, cancer, and terminally ill patients and maintained those prescription levels throughout the duration of the patient visits. Between February 1, 2016 and September 26, 2017, Dr. Germeil wrote 13,759 prescriptions to patients for 1,458,727 units of Hydromorphone, Oxycodone, and/or Oxycodone-Acetaminophen. Dr. Germeil was not providing a medically meaningful consultation but was in fact acting outside the scope of her professional practice and without legitimate medical purpose.
Dr. Germeil was originally scheduled to be sentenced on April 19, 2019, but failed to appear in court. A warrant was issued for her arrest. Dr. Germeil was apprehended in Haiti on July 18, 2019 and pled guilty to failure to appear and contempt of court on August 29, 2019. U.S. District Judge Ursula M. Ungaro sentenced Dr. Germeil to a term of 188 months in prison for illegally dispensing opioids (Case No. 18cr20769), to run consecutively to a sentence of 22 months in prison for failing to appear and contempt of court (Case No. 19cr20474).
U.S. Attorney Fajardo Orshan commended the investigation conducted by the DEA, the U.S. Marshals Service and the Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, Miami Gardens Police Department, North Miami Beach Department and Florida Department of Health’s Prescription Drug Monitoring Program, E-FORCES. This case was prosecuted by Assistant U.S. Attorneys Andy R. Camacho and Kurt Lunkenheimer of the Southern District of Florida.
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.
Chinese National Sentenced to Prison for Entering the Restricted Grounds at Mar-a-Lago and Lying to U.S. Secret Service AgentsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Yujing Zhang, 33, a Chinese national, was sentenced today to prison after having been previously convicted by a South Florida federal jury of unlawful entry of restricted buildings or grounds and making false statements to U.S. Secret Service agents.
Zhang was sentenced by U.S. District Judge Roy K. Altman, in Fort Lauderdale, Florida to a total of eight months in prison, to be followed by two years of supervised release (Case No. 19CR80056).
According to the trial record, Zhang fraudulently gained entry onto the restricted grounds at the Mar-a-Lago Club where the U.S. President and other persons protected by the U.S. Secret Service were temporarily visiting. U.S. Secret Service agents detained Zhang at the main reception area due to her suspicious actions. Zhang was then escorted off the property for further questioning. During questioning, Zhang repeatedly misrepresented to U.S. Secret Service agents that she was at the Mar-a-Lago Club to attend a “United Nations Friendship Event.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office and the FBI’s Miami Field Office in this matter. The case was prosecuted by Assistant U.S. Attorneys Rolando Garcia and Michael Sherwin.
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 Resident Arrested for Soliciting Another to Commit a Violent Crime Against College DeansRead the Press Release
Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.
John C. Demers, Assistant Attorney General for National Security; 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 court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.
Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.
Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra). If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, Nov. 27, 2019 at 10 a.m. and his arraignment is scheduled for Dec. 9, 2019.
A criminal complaint is a charging document containing allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.
South Florida Resident Arrested for Soliciting Another to Commit a Violent Crime against College DeansRead the Press Release
MIAMI - Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
According to court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.
Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.
Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra). If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, November 27, 2019 at 10 a.m. and his arraignment is scheduled for December 9, 2019.
A criminal complaint is a charging document containing allegations. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the FBI in this matter.
This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.
Justice Department Seeks to Shut down South Florida Tax Return PreparersRead the Press Release
WASHINGTON – The United States filed a civil injunction suit seeking to bar Dimary Cordero, aka Dimary Cordero Torres, and her businesses—NMB Accounting and Tax Services LLC (NMB), and WFS Accounting and Tax Services LLC (WFS)—from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also seeks an order that Cordero, NMB and WFS disgorge ill-gotten fees that they obtained through their alleged misconduct.
According to the complaint, filed in the U.S. District Court for the Southern District of Florida, Cordero operates tax preparation stores in North Miami Beach and Miami, Florida through her businesses. The complaint alleges that the defendants falsely increase their customers’ refunds and profit through high, often undisclosed fees, at the expense of their customers and the Treasury.
The complaint alleges that the defendants engage in the following misconduct:
- Falsely claiming the Earned Income Tax Credit;
- Fabricating businesses and related business income and expenses;
- Fabricating deductions, such as personal expenses and phony job-related expenses;
- Claiming education credits based on fabricated education-related expenses and
- Charging deceptive and unconscionable fees.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Four Georgia Residents Charged in South Florida with Participating in a Scheme to Defraud Retirees and Federal Benefit ProgramsRead the Press Release
On November 21, 2019, four Georgia residents had their initial appearances in South Florida on charges related to their alleged involvement in an international scheme to defraud retirees of their veterans and social security benefits.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge David Spilker of the Veteran Affairs Office of Inspector General (VA OIG), Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Charlotte Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations’ (HSI) Miami Field Office, and Special Agent in Charge Rodregas W. Owens of the Social Security Administration Office of the Inspector General (SSA OIG), Atlanta Field Division made the announcement.
Jamare Mason, 25, of Lithonia, Ronaldo Garfield Green, 27, of Snellville, Mario Andre Ricketts, 24, of Carrollton, and Omar Shaquille Bailey, 24, of Snellville, all of Georgia, and three other individuals were charged with conspiracy to commit bank fraud and wire fraud (Case No. 19-CR-60313). The four Georgia residents had their initial appearances before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida.
According to allegations in the indictment, between May 2012 and July 2017, the defendants and three other individuals participated in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration by fraudulently redirecting retirees’ benefits to accounts controlled by them. The scheme, which was international in scope, involved conspirators in Jamaica, Georgia, and Florida. The conspirators obtained the personal identifying information of veterans and social security beneficiaries and used that information unlawful access and gain control of beneficiaries’ accounts at the U.S. Department of Veterans Affairs and/or Social Security Administration. After doing so, the conspirators redirected the benefits to bank accounts, as well as prepaid debit cards and accounts, which they controlled. The subjects then withdraw the funds from ATM machines or transferred funds to other accounts, for their own personal use.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless proven guilty in a court of law.
A calendar call for defendants Mason, Green, Ricketts and Bailey has been scheduled for January 14, 2020 at 1:30 p.m. in Fort Lauderdale before U.S. District Judge Roy K. Altman. A jury trial has been scheduled for January 21, 2020.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the VA OIG, USPIS, HSI, and SSA OIG. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers. Assistant U.S. Attorney Alison Lehr is responsible for the asset forfeiture component of the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
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.
Convicted Sex Offender Sentenced to 17 years in Prison for Possessing Child PornographyRead the Press Release
On November 14, 2019, sex offender Corey Laquan Witty, 49, of Miami, Florida was sentenced by U.S. District Court Judge Federico A. Moreno to 17 years in prison for possessing child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), 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.
Witty had previously been convicted of offenses, including possession of child pornography and lewd and lascivious battery on a child. As a result, he was ordered to register as a sex offender. His first conviction for lewd and lascivious battery on a child occurred in 1999. After Witty repeatedly failed to attend sex offender treatment, his probation was revoked and he was incarcerated for two years. In 2005, Witty was convicted of failing to register as a sex offender and for lewd and lascivious battery on a child. In 2008, he was convicted of possession of child pornography and sentenced to 121 months in federal prison and a lifetime of supervised release, by U.S. District Court Judge Marcia G. Cooke (Case No. 7-CR-20699).
In July 2019, during Witty’s semiannual sex offender registration meeting, he was found in possession of two cell phones, one of which was a smart phone, which Witty was prohibited from possessing. As a registered sex offender, Witty was barred from accessing the Internet. The phone contained child pornography, in violation of Witty’s supervised release conditions. On August 27, 2019, Witty pled guilty to possessing child pornography (Case No. 19-CR-20453).
Judge Moreno considered Witty’s background and criminal history, when sentencing him above the guideline range to 204 months in prison.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of HSI and the MDPD in this matter. Assistant U.S. Attorney Michele S. Vigilance prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Charged with Defrauding Retiree Out of Her Retirement SavingsRead the Press Release
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 announced that Michael Jerome Atkins, 60, was arraigned today by U.S. Magistrate Judge Patrick M. Hunt, in Fort Lauderdale, on mail fraud and aggravated identity theft charges.
According to allegations in the indictment, between July 2015 and October 2015, Atkins devised a scheme to defraud the victim of her entire retirement savings, totaling over $400,000. Atkins promised the victim that if she loaned him her retirement savings he would use it for his business, All Points Aviation and Associates, LLC and would repay her the money within two months. The disbursement checks were made jointly payable to Atkins’ business All Points Aviation and Associates LLC and the victim, who was to cosign the checks. The funds were disbursed in three installments. With respect to the third installment check, which was the largest, and was drawn in the amount of $317,916.02, the indictment alleges that Atkins forged the victim’s signature and deposited the funds into his business account - which he controlled. The indictment further alleges that Atkins used the funds for his personal benefit and did not repay the funds to the victim.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless proven guilty, beyond a reasonable double, in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
California Resident Pleads Guilty to Telemarketing Conspiracy to Defraud U.S. ConsumersRead the Press Release
On Nov. 21, 2019, Angel Armando Adrianzen, 45, of California pleaded guilty to conspiracy to commit mail fraud and wire fraud for partnering with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was arrested on Sept. 16 and has remained incarcerated since then.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Miami Division Postal Inspector in Charge Antonio J. Gomez announced today’s guilty plea.
“The Department of Justice will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department’s Consumer Protection Branch, working alongside the Postal Inspection Service and our Transnational Elder Fraud Strike Force partners, will bring to justice those who threaten and defraud consumers.”
“Protecting vulnerable and elderly members of our community from international fraud schemes is a top priority of the Department of Justice. Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
“This case highlights the U.S. Postal Inspection Service’ commitment to investigating and combating these kinds of schemes that are designed to defraud innocent victims no matter where they operate from,” said Antonio J. Gomez, Postal Inspector in Charge of the Miami Division.
According to the court record, Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. These callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products. The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees. Many victims made monetary payments based on these baseless threats. Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.
Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case. The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Perrine Resident Sentenced to Twenty Years in Prison for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
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 Juan J. Perez, Director, Miami-Dade Police Department (MDPD) announced that on November 12, 2019, Fabian Perpall, 28, of Perrine, Florida was sentenced to twenty years in prison after having been convicted at trial of being a felon in possession of a firearm and ammunition.
Perpall was sentenced by U.S. District Court Judge Rodolfo A. Ruiz II to 240 months in prison, to be followed by 3 years supervised release following his trial conviction on two counts of Possession of a Firearm and Ammunition by a Convicted Felon (Case No. 18cr20664).
According to evidence presented at trial, on July 11, 2018, Perpall encountered a victim, threatened him with a black handgun, and demanded all he had. The victim reported the incident to the police. Two days later, Perpall again approached the victim in his car and fired nine shots at the victim, inflicting multiple gunshots and striking the victim with the vehicle. The victim required emergency medical attention and was placed in a medically-induced coma, as a result of his injuries.
Four days after the shooting, as the police attempted to arrest Perpall for the attempted murder, he led the police on a high-speed chase through a residential neighborhood. The pursuit ended when Perpall’s car caught fire and crashed into a fence. Found inside Perpall’s car, on the center console, was a loaded black handgun. The shell casings found at the July 13th shooting scene were fired from the gun that was later recovered from Perpall’s car.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the MDPD. The case was prosecuted by Assistant U.S. Attorneys Shannon Shaw and Michael Homer.
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.
Leesburg Resident Sentenced to More than 12 ½ Years in Prison for Attempting to Entice a Minor Online to Engage in Illegal Sexual ActivityRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Chief John Bolduc of the Port St. Lucie Police Department announced that Jonathan Anthony Mahowald, 39, of Leesburg, Florida was sentenced to more than twelve and a half years in federal prison for attempting to entice a minor, online, to engage in illegal sexual activity.
Mahowald was sentenced by U.S. District Court Judge Kenneth A. Marra to a total of 152 months in prison, followed by 30 years supervised release for Attempted Use of a Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity (Case No. 18-CR-14072-KAM). Upon his release from prison, Mahowald will also have to register as a sex offender.
According to the court record, on July 6, 2018, a Port St. Lucie Police Department Detective was investigating undercover computer crimes against children. Between July 6, 2018 and July 17, 2018, the detective, posing as a 14-year-old girl, responded to an internet advertisement Mahowald had posted. During the course of text and online communications Mahowald, discussed sexually explicit activity he wished to engage in with the “14-year old.” In addition, Mahowald sent sexually explicit images to the person he believed was a minor. On the morning of July 17, 2019, Mahowald set up a meeting with the “14 year old” to meet at a restaurant in Port. St Lucie. Upon his arrival, Mahowald was arrested by members of the Port St. Lucie Police Department.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Port St. Lucie Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen 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.
Hollywood Resident Sentenced to 55 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
Colin McLean, 29, of Hollywood, Florida was sentenced today by U.S. District Judge William P. Dimitrouleas to fifty-five years in federal prison for producing child pornography of an infant and 7 year old child, and possessing child pornography.
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 Chief Chris O’Brien of the Hollywood Police Department made the announcement.
McLean previously pled guilty to an indictment which charged him with two counts of production of child pornography and one count of possession of child pornography.
According to court records, in January of 2018 and continuing through January 2019, McLean sexually abused an infant and 7 year old child. McLean recorded the abuse by taking photos and videos, which he saved on his cell phone. In addition to those images and videos, law enforcement recovered images and videos of other child pornography on McLean’s cell phone.
The FBI Miami’s Child Exploitation Task Force investigated this case in partnership with the Hollywood Police Department. This case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
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.
News Release: Sixth and Final Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
WASHINGTON – A citizen and resident of the Dominican Republic pleaded guilty today in Miami, Florida, to multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edgar Estarlin Peralta Lopez, 42, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 24, 2020, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
In the plea agreement, Peralta admitted that he played at least two roles in the conspiracy. First, he was a telecommunications trafficker. Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States. Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic, and other countries with high calling rates. The calls were later billed to United States customers’ compromised accounts. Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.
In addition, in the plea agreement, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators. Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000. Peralta admitted to a loss amount of at least $315,800.
Peralta is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States, extradited to Miami in August where he is currently in custody.
Peralta is the sixth and last defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Three South Florida Residents Plead Guilty for Their Roles in $21 Million Sober Homes Fraud SchemeRead the Press Release
MIAMI – Three former co-owners and clinical directors of a group of purported substance abuse treatment centers and sober homes pleaded guilty yesterday 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, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida, to one count of conspiracy to commit health care fraud and wire fraud. The defendants are scheduled to be sentenced on Jan. 21, 2020 at 10:30 a.m. (Case No. 19cr60200)
As alleged in the indictment, 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.
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.
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 in this matter to begin on Nov. 25, 2019, before Judge Moreno. 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.
Palm Beach County Resident Convicted at Trial of Wire Fraud and Money Laundering Relating to Scheme to Steal over $2.7 Million by Compromising Employer’s Computer NetworkRead the Press Release
On November 8, 2019, a federal jury found Anthony Michael D’Amico, 39, of Boca Raton, Florida, guilty of wire fraud and money laundering, in a scheme where he secretly accessed his employer’s computer network to steal $2.7 million in propriety information.
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 evidence presented at trial, from approximately September 2017 through January 2018, D’Amico improperly accessed the computer network of his employer, an Austin-based company called All Web Leads. All Web Leads was in the business of, among other things, connecting people searching for health insurance on the internet with insurance companies who wanted potential customers. The evidence showed that D’Amico logged into the All Web Leads computer system late at night to reroute marketing calls generated by All Web Leads to companies paying him directly on the side. According to witnesses from All Web Leads, the proprietary information that D’Amico stole would have generated over $2.7 million for the company. Employees of All Web Leads further testified that D’Amico’s fraud significantly impacted the performance of the company that year and prevented All Web Leads employees from receiving bonuses.
Banking evidence demonstrated that D’Amico personally received over $1 million, in less than six months, by selling the proprietary information he stole from All Web Leads. According to the evidence presented at trial, D’Amico used the criminal proceeds he received from the scheme to buy a luxury automobile and pay a variety of personal expenses.
Sentencing has been scheduled for January 23, 2020 at 9:30 a.m. before Senior Judge James I. Cohn in Fort Lauderdale (Case No. 18cr80179).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. This case is being prosecuted by Special Assistant U.S. Attorneys Elizabeth Young and Leila Babaeva, and Assistant U.S. Attorney Lisa Miller. Assistant U.S. Attorney Peter A. Laserna is 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 on http://pacer.flsd.uscourts.gov
Highlands County Man Sentenced to 18 years in Prison for Armed Drug TraffickingRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Paul Blackman, Sheriff, Highlands County Sheriff’s Office announced that Samuel Martinez, 41, of Avon Park, Florida, was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to 18 years in prison for armed drug trafficking.
Martinez previously pled guilty to possession with intent to distribute 500 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime (Case No. 19cr14022).
According to the court record, on March 12, 2019, law enforcement officers from the Highlands County Sheriff’s Office executed a search warrant for a hotel room in Avon Park. Martinez was found inside the hotel room, along with over three pounds of methamphetamine, some of which had been packaged for resale, and a loaded Springfield Armory .45 caliber semi-automatic pistol.
Methamphetamine is a dangerous and highly addictive controlled substance. This case involved one of the largest single seizures of methamphetamine in Highlands County, to date.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Highlands County Sheriff’s Office. The 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.
Fort Lauderdale Resident Sentenced to 30 Years in Prison for Distributing Fentanyl Resulting in DeathRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department announced that Jean Jameson, 36, of Fort Lauderdale, Florida was sentenced to 30 years in prison today for distributing the fentanyl that resulted in the death of another individual.
Jameson was sentenced by U.S. District Judge Jose E. Martinez to a total of 365 months in prison, to be followed by 3 years of supervised release, after previously pleading guilty to one count of distribution of fentanyl resulting in death and two counts of distribution of fentanyl (Case No. 19cr60083). He was also ordered to pay $8,000 in restitution to the victim’s family to cover funeral expenses.
According to the court record, on September 25, 2018, Jameson distributed fentanyl, a Schedule II controlled substance, to an individual who died as a result of ingesting the drug. Thereafter, on two separate occasions, Jameson distributed a controlled substance, to wit, fentanyl.
“Men and women in our community are losing their lives to the drug trade,” stated U.S. Attorney Fajardo Orshan. “Fentanyl, a highly potent controlled substance, is being illegally distributed with deadly results. We implore the public to educate themselves, friends and loved ones about the dangers of drug abuse and addiction. Federal law enforcement authorities will continue to prosecute those who endanger our residents by fueling the opioid epidemic.”
“The DEA takes the distribution of any illegal drug very seriously,” said DEA Special Agent in Charge Wright. “The recent spike in opioid sales, which correlates to an increased death toll, only heightens our commitment to continue in this fight. The DEA Miami Field Division will continue to work very closely with our law enforcement partners in the Tri-County area along with the U.S. Attorney’s Office to fully investigate and prosecute those responsible for illicit drug trafficking activities to ensure that they are held accountable for their actions, especially when the consequences from those actions result in the tragic death of another individual.”
Fort Lauderdale Police Chief Maglione stated, “Individuals who knowingly distribute a substance that often results in death should absolutely be held accountable for the results of their actions. Hopefully these individuals will begin to think twice before taking advantage of people who are suffering from an addiction now that they realize the severity of the charges and potential penalties that can be associated with their crimes.”
In December of 2014, the DEA, the Fort Lauderdale Police Department, and the Broward County Sheriff's Office formed a partnership with the Broward Medical Examiner's Office to track both synthetic drug and heroin related overdoses. From that, and as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) National Heroin strategy to combat heroin/fentanyl trafficking and related overdose deaths, Operation Phantom Chase emerged. The operation, begun in July 2017, is a multi-jurisdictional heroin/fentanyl initiative between the DEA, the U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, Fort Lauderdale Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Hollywood Police Department, Coral Springs Police Department and the U.S. Attorney’ Office in Broward County which operates as a data collection clearinghouse to analyze intelligence gathered from fatal and non-fatal heroin and fentanyl overdoses that occur in Broward County. The charges being announced today result from the diligent investigative work of this successful federal-local partnership.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and the Fort Lauderdale Police Department. She also thanked the Broward County Sheriff’s Office for their support during the course of this investigation. This case was prosecuted by Assistant U.S. Attorney Robert Juman.
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.
Broward County Resident Sentenced to Prison for Knowingly Making False Statements in Order to Unlawfully Acquire FirearmsRead the Press Release
MIAMI - Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division announced that Bill K. Kapri, a/k/a “Kodak Black,” a/k/a “Dieuson Octave,” 22, of Pompano Beach, Florida, was sentenced today by U.S. District Judge Federico A. Moreno to 46 months in prison, to be followed by 3 years of supervised release (Case No. 19-cr-20273). Kapri previously pled guilty to knowingly making false and fictitious written statements in connection with the acquisition and attempted acquisition of firearms from a federally licensed firearms dealer.
According to the court record, including the agreed upon factual proffer, Kapri, on January 25, 2019 and March 1, 2019, completed ATF Form 4473. On both occasions, Kapri answered “No” when asked, “Are you under indictment or information in any court for a felony, or any other crime for which the judge could imprison you for more than one year?” On both occasions, as Kapri then and there well knew, Kapri was, in truth and in fact, under indictment for a felony offense. On January 25, 2019, Kapri transposed several digits of his social security number and thus was able to pick up three firearms on February 1, 2019. On March 1, 2019, Kapri used his true social security number and, as a result, was not permitted to pick up a fourth firearm.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter. This case was prosecuted by Assistant U.S. Attorney Bruce Brown. Assistant U.S. Attorney Richard Brown is responsible for the asset forfeiture component of the case.
Court documents and information related to this case 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.
Attorney General Announces Launch of Project Guardian - A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Initiative emphasizes enforcing gun prohibitions based on domestic violence convictions and mental health denials
Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“Firearms in the hands of convicted felons and domestic abusers are a dangerous, and often deadly, combination,” stated U.S. Attorney Ariana Fajardo Orshan “Our top priority in South Florida is to protect our residents from harm. By using all available law enforcement resources, we are targeting individuals who illegally buy and sell guns and those who use guns to terrorize our communities. Through the Project Guardian initiative, the U.S. Attorney’s Office stands ready to enhance our enforcement of federal firearms law through the targeted prosecution of gun crimes.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
Palm Beach County Tax Return Preparer Convicted of Filing False Tax Returns and Theft of Government FundsRead the Press Release
WASHINGTON – A federal jury in Fort Lauderdale, Florida, convicted Paul Senat today of 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.
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 false education credits in order to fraudulently inflate their refunds.
Following the jury verdict, Senat was taken into custody. United States District Judge Rodolfo A. Ruiz scheduled sentencing for Jan. 27, 2020.
Senat faces a statutory maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman 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.
Joint Statement from DOJ, DOD, DHS, ODNI, FBI, NSA, and CISA on Ensuring Security of 2020 ElectionsRead the Press Release
WASHINGTON – Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:
“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.
In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.
Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.
While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.
The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”
Director of Guatemalan Bank Arrested on Federal Money Laundering Charge and Money Laundering Charges Unsealed Against Former Guatemalan Presidential CandidateRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Timothy M. Dunham of FBI's Washington Field Office Criminal Division, and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division, announced today the arrest of Alvaro Estuardo Cobar Bustamante, the director of a national Guatemalan bank, on a charge of money laundering, and the unsealing of a money laundering case against Manuel Antonio Baldizon Mendez, a former candidate for president of Guatemala.
The criminal complaint and indictment charging Cobar Bustamante with money laundering was unsealed today in the Southern District of Florida (Case Nos. 19mj03536, 18cr20706). According to allegations in the complaint, after multiple cooperating witnesses, who were prosecuted for narcotics trafficking, informed the FBI that Cobar Bustamante was involved in helping the traffickers to launder their drug proceeds, the FBI initiated a sting operation to gather evidence of Cobar Bustamante’s money laundering activity. In recorded conversations, Cobar Bustamante is alleged to have agreed to accept what was represented to be money earned from drug trafficking and to secretly move that money to the United States by using his position as the director of a national Guatemalan bank. Tomorrow, Cobar Bustamante is scheduled to have his initial appearance before U.S. Magistrate Judge Edwin G. Torres in Miami.
Baldizon Mendez was prosecuted in a separate case that was unsealed today in the Southern District of Florida (Case No. 19cr20706). According to court documents, including a Stipulated Factual Proffer, as a campaign supporter and later as a presidential candidate, Baldizon Mendez solicited money to fund his political campaigns. Baldizon Mendez accepted campaign contributions knowing they were being made by narcotics traffickers and were the proceeds of narcotics trafficking. Thereafter, Baldizon Mendez engaged in financial transactions, including the purchase of property in Miami, to hide the fact that he had knowingly accepted campaign contributions (money) from narcotics traffickers.
Baldizon Mendez previously pled guilty to money laundering and was sentenced to 50 months in prison.
U.S. Attorney Ariana Fajardo Orshan stated, “Narcotics trafficking is a very serious crime that not only poisons our communities and the people who use drugs, but can also contaminate some of the highest levels of business and politics. Purportedly upstanding members of society who help narcotics traffickers wash their money are no better in the eyes of the law than the traffickers themselves. Money launderers and their conspirators will be treated with the same justice meted out to the traffickers.”
“These prosecutions are another example of the Department of Justice and our foreign partners working together to identify, disrupt and dismantle criminal enterprises engaged in narcotics trafficking and related corruption," said FBI Special Agent in Charge Timothy M. Dunham. "We will aggressively pursue and bring justice to the corrupt business and community leaders who help drug traffickers poison the communities with their criminal activity."
“The laundering of illicit funds derived from drug trafficking is a serious crime,” said DEA Special Agent in Charge Adolphus P. Wright. “Those responsible, whether domestic or foreign, will be subject to investigation by law enforcement authorities if they attempt to foster this criminal activity against the United States. The DEA will continue to work with our local, state, federal, and foreign partners to target and investigate illegal drug related activities which put our communities in harm’s way.”
The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with these cases: the government of Guatemala, the Narcotics and Dangerous Drugs Section of the U.S. Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.
The prosecution of these cases is being handled by Assistant U.S. Attorney Walter M. Norkin.
The charges contained in the complaint against Cobar Bustamante are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
DOJ Awards More Than $100 Million to Combat Human Trafficking and Assist Victims – Awards Given to South Florida PartnersRead the Press Release
WASHINGTON – The Department of Justice announced today it has awarded more than $100 million in funding, through the Office of Justice Programs (OJP), to combat human trafficking and provide vital services to trafficking victims throughout the United States.
“Human traffickers remain a dire threat to human rights across the globe and their actions pose a serious danger to public safety right here in our own country,” said Attorney General William P. Barr. “I’m proud that these resources will help our law enforcement officers and victim service providers hold perpetrators accountable and give victims of these abominable crimes a place to turn for refuge and support.”
“The fight against human trafficking is never ending, and it is our front-line law enforcement officers and an army of compassionate service providers who are leading the charge,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Attorney General has made it clear that the Department of Justice will use every means at its disposal to bring traffickers to justice and serve trafficking victims. We are proud to support his vision of a nation, and a world, free of the scourge of human trafficking.”
Approximately $80 million of the funds were awarded under five Office for Victims of Crime (OVC) grant programs. The remaining $20 million were awarded by OJP's Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) to jurisdictions, service providers and task forces all over the country.
Grants awarded under FY 2019 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs being funded include:
- The Direct Services to Support Victims of Human Trafficking program gives nearly $53 million to 77 organizations to enhance the quality and quantity of services available to victims of all forms of trafficking.
- The Integrated Services for Minor Victims of Human Trafficking program awards over $15 million total to 32 programs to provide minor victims of trafficking with high-quality services that are developmentally appropriate and tailored for their individual needs.
- The Improving Outcomes for Child and Youth Victims of Human Trafficking program gives over $6 million total to four organizations to integrate human trafficking policy and programming at the state level and to enhance coordinated, multidisciplinary and statewide approaches to serving trafficked youth.
- The Field-Generated Innovations in Assistance to Victims of Human Trafficking program awards $4 million total to five programs to fill gaps and improve the victim services field’s response to human trafficking.
- The Specialized Human Trafficking Training and Technical Assistance and Resource Development program awarded $1 million to provide efficient and streamlined technical assistance and training to improve services offered to labor trafficking victims nationwide.
Grants awarded under FY 2019 OJJDP programs will support organizations in developing their capacity to respond to the needs of children and youth who are victims of domestic sex trafficking and labor trafficking. The Specialized Services and Mentoring for Child and Youth Victims of Sex Trafficking and Sexual Exploitation and the Preventing Sex Trafficking of Girls and Involvement in the Juvenile Justice System grant programs provide more than $4 million to nine organizations to support child and youth victims of sexual exploitation and domestic sex trafficking and girls involved in the juvenile justice system.
BJA awarded 13 grants totaling nearly $11 million under the Enhanced Collaborative Model to Combat Human Trafficking: Supporting Law Enforcement’s Role. This initiative helps law enforcement organizations build capacity and operational effectiveness as core members of collaborative, multidisciplinary human trafficking task forces.
NIJ awarded over $2 million to five research organizations under the Research and Evaluation on Trafficking in Persons Program, which funds research and evaluation projects that help federal, state, local and tribal criminal justice agencies and victim service providers respond to the challenges posed by human trafficking in their jurisdictions.
For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://ojp.gov/newsroom/pressreleases/2019/ojp-news-10082019_a.pdf
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
Deputy Attorney General Jeffrey A. Rosen Delivers Remarks at Wake Forest School of LawRead the Press Release
Remarks as prepared for delivery
Good morning. Thank you Matt Martin for your kind introduction and for your leadership in the Middle District of North Carolina. We have a really incredible group of US Attorney’s across the nation, including Matt.
I also want to thank Dean Aiken and the Wake Forest School of Law for hosting this important discussion about public safety, the progress we’ve made, and impediments we face to continuing the positive trend of reducing violent crime.
At the Department of Justice, reducing violent crime is one of our top priorities. To pursue that goal, I have the good fortune every day of working closely with our law enforcement components and our prosecutors in Washington, DC and all across the country, again including Matt Martin and his team here in North Carolina.
So let me start this discussion about violent crime with this simple observation: To understand what works in combating crime, one need look no further than the highly successful efforts of state and federal law enforcement over recent decades. In the early 1990s, crime reached an all-time high. Violent crime and murder rates in particular had steadily increased over the preceding decades. Many major American cities and communities were not safe places to live or work.
In response to this troubling trend, legislatures increased penalties for gun offenders, prosecutors pursued stiff penalties for violent criminals, and the Department of Justice did its part by launching a series of nationwide initiatives to stem the tide of rising crime. For instance, in 1991, the Department created Project Triggerlock, a highly successful program that vigorously pursued firearms cases by targeting the most-violent offenders. A decade later, the Department launched Project Safe Neighborhoods or “PSN.” As a crime reduction strategy, PSN focuses federal and state resources on the most pressing violent crime problems in our communities, and each district develops comprehensive solutions to address them.
A common element of both programs – and really the hallmark of any successful crime-fighting initiative – is cooperation among all levels of law enforcement. Through such programs, federal, state, local, and tribal law enforcement partnered to identify and prosecute the offenders that were driving violent crime rates. The results were impressive.
After reaching a peak around 1993, crime steadily declined for the next 20-plus years. Violent crime was cut in half. A study published in 2009 concluded that PSN successfully reduced violent crime with case studies showing reductions as high as 42 percent in certain locations.
Unfortunately, after decades of improvement, a reversal took place, with stunning increases in violent crime in 2015 and 2016. Homicides alone increased by more than 20 percent. Concerned that we were at risk of losing ground, the incoming Trump Administration and the Justice Department snapped into action and returned to tried-and-true strategies for reducing crime.
In his first month in office, President Trump issued a series of executive orders “designed to restore safety in America.” In response, the Attorney General announced the reinvigoration of Project Safe Neighborhood as a centerpiece of the Administration’s strategy to reduce violent crime. In October 2017, Attorney General Sessions directed all 93 U.S. Attorneys to implement enhanced violent-crime reduction programs and to reinvigorate partnerships with state, local, and tribal law enforcement.
As recent data shows, the U.S. Attorney community put Attorney General Sessions’ words into action. They joined with local partners to identify and combat the most significant violent crime problems facing their districts. Since redoubling our efforts in this way, we have increased federal firearm prosecutions by over 40 percent compared to the last two years of the previous administration. The joint state-and-federal efforts have worked, and the objective statistics prove it.
The FBI recently released its annual crime statistics for 2018, and, for the second consecutive year, the number of violent crimes decreased nationwide. In 2018, the violent crime rate decreased 3.9 percent from 2017, and the rate for nearly every type of violent crime decreased as well.
The lesson from this recent history is clear: law enforcement works best when federal, state, and local partners work together to vigorously enforce the law and target violent offenders.
Unfortunately, a dangerous trend is emerging that threatens to blunt the progress we’ve made in reducing crime. Despite the obvious successes, a small but increasing number of state and local district attorneys have vowed not to enforce entire categories of core criminal offenses as part of a misguided experiment in social justice reform. From Philadelphia in the East to Dallas in the middle and Seattle in the West, a curtain of non-enforcement policies has descended on some unfortunate cities and counties.
It’s a problem Attorney General Barr highlighted in a speech to the Fraternal Order of Police in August. There, he spoke of “the emergence in some of our large cities of District Attorneys that style themselves as ‘social justice’ reformers, who spend their time undercutting the police, letting criminals off the hook, and refusing to enforce the law.”
The radical decriminalization policies these social-reform DAs have publicly announced and implemented are truly shocking when they are made transparent. Despite a decade of record-level drug overdose fatalities, whole categories of drug crimes, including several distribution offenses, are being ignored and not enforced. Likewise, criminals who commit theft below certain thresholds, such as below $500, are given a free pass. In several jurisdictions, reform DAs have effectively decriminalized prostitution, making it more difficult to fight human trafficking. If those weren’t surprising enough, social-reform DAs have announced that the categories of malicious destruction of property, and shoplifting, will go unprosecuted. The same with regard to criminal threats. Even offenders who resist arrest and assault law enforcement officials are skating prosecution under these DAs’ non-enforcement policies.
At the Justice Department, we emphasize working closely with our state and local law enforcement colleagues. But I am concerned that these social reform DAs are falling down on the job. A prosecutor’s duty is straightforward — enforce the law fairly and impartially and keep the public safe. By refusing to prosecute basic offenses, social reform DAs are failing to fulfill that vital obligation. No society can have justice when stealing has been effectively licensed, open-air drug markets are allowed to flourish, and neither victim nor police officer trust that those who break the law will be held accountable.
Tragically, at a time when the rest of the country is once again experiencing historic reductions in crime, social reform DAs risk endangering public safety, and crime rates in their communities will inevitably rise. In nearby Durham, for example, there has been a four percent increase in the violent crime rate and a 18 percent increase in the murder rate, as compared to this time last year since appointment of their social reform district attorney.
Not only will these non-prosecution strategies inevitably make communities less safe, they also undermine our constitutional system of separation of powers. It doesn’t take a law degree from a fine institution like Wake Forest to understand the principle that the legislative branch writes the law; the judicial branch interprets the law; and the executive branch enforces the law. District attorneys, of course, are part of the executive branch, responsible for enforcing the law. By refusing to prosecute broad swaths of core criminal offenses, social-reform DAs are ignoring duly-enacted laws in favor of their own personal notions of what they think the law should be.
Several of these DAs aren’t even trying to hide this power grab. Earlier this year, in an op-ed in the Washington Post, a trio of reform prosecutors openly defied the separation-of-powers principle. These prosecutors, who swore an oath to uphold the Constitution, proclaimed that they “don’t see the role of prosecutors elected by their communities through this narrow lens” and “proud[ly]” rejected “legislative decisions” they found “troubling” in light of their own personal views.
Now, with regard to these DA’s personal policy preferences, let me turn briefly to the issue of prosecutorial discretion. There is no question that prosecutors have discretion to decide what cases to prosecute and how to spend their limited resources. But these DAs are not making individualized decisions based on the facts and circumstances of particular cases. They are predetermining whole categories of offenses for non-enforcement. They are effectively legislating through inaction. And the offenses they are unilaterally striking from the books are not antiquated or rare; they are basic criminal laws directed at maintaining public safety. These DAs’ decriminalization strategies go far beyond prosecutorial discretion and fly in the face of the fundamental concept that no one part of the government exercises total control of our legal system. If you believe in the rule of law, that is a problem.
As concerning as that is, it is not the only problem. Another real tragedy of the social reform DAs’ non-prosecution strategy is its lack of respect for victims. The refusal to enforce entire categories of criminal laws ignores the often tragic harm exacted upon innocent victims.
Take the recent case of a woman, who happened to be a lawyer, who was brutally assaulted while walking her dog. The would-be attacker mistakenly thought the woman was recording him while he and his brother smoked marijuana. His response was to attack the woman, knocking her to the ground and sending her dog flying. The woman suffered a skull fracture among other injuries and was left unconscious. Bystanders bravely held the attacker down until police arrived to arrest him. The effects of the attack have been long lasting. The victim is reportedly still coping with speech and vision impairments as well as hearing loss as a result of the brain trauma she suffered.
When it came time for the violent defendant to face justice, the self-proclaimed social reform DA apparently focused on something other than the evidence and the legal elements of the crime. This DA has publicly stated that she considers it her responsibility to “represent not just the victim, but the defendant and the community.” Think about that: she says the prosecutor is to represent the defendant. In this case, rather than pursue a felony conviction, she allowed the defendant to plead guilty to a misdemeanor and recommended a suspended sentence and one year of probation. According to public reports, the victim “begged” prosecutors not to cut the deal, which she called ‘flagrant, appalling, and disgusting,’ in an e-mail to the prosecutor.
Victims deserve better. They deserve public officials who will consider the individual circumstances of their case and seek real justice in accord with the laws that are on the books.
So now let me turn to another angle that is sometimes raised to justify refusals to enforce existing laws. Some suggest that extreme non-prosecution policies are necessary to fix what they describe as a “broken” criminal justice system. But why are we to assume that the system is not working? Violent crime rates in 2018 returned to near historic lows. And, according to a recent Bureau of Justice Statistics report, national incarceration rates have likewise fallen 13 percent over the last decade to a 20-year low. And it should never be forgotten that the individuals who are in prison are there only after they were individually convicted of crimes, either by plea or after trial. While there can be individual cases that deserve further attention or redress, it is a fallacy to focus solely on the number of people in prison, as though they were rounded up en masse, which is not the case.
Some have argued that recent criminal justice reform legislation like the First Step Act represents a repudiation of historical law enforcement practices. Not so. There was wide bi-partisan support for the First Step Act. Among other things, that legislation focuses on reducing recidivism, to help prevent future crimes. The Department of Justice and our Bureau of Prisons have made implementing that legislation a priority, as Attorney General Barr and I have both emphasized
Let me give you a few illustrations: In addition to sentence reductions that have resulted in the release of more than 4,700 inmates, we have updated policies for inmates to obtain “compassionate release,” and since the Act was signed into law, 107 inmates have received compassionate release, compared to 34 in 2018. We launched a pilot program that has allowed over 260 elderly or terminally-ill inmates to transition to home confinement. We have further individualized drug-treatment plans, so about 16,000 inmates are now enrolled in recovery programs. And to reduce recidivism, we are advancing re-entry programming to help past offenders find work and relaunch their lives.
But here is the key point about these improvements from the First Step Act: It is only because of the success of the law enforcement approaches of the last several decades that we had the opportunity to consider and implement these improvements to the criminal justice system. And a key part of fighting crime and protecting victims is helping to make sure that when these prisoners are released – as many of them will be, after serving their sentences – we give them the best possible chance at not re-offending. It’s about public safety, plain and simple.
It is only because we are strong on fighting crime and protecting victims that we can take the step of trying to help the offenders as well. Keep in mind that federal prosecutions for violent crime are way up since the start of 2017. So what this shows is that we can have a system that both vigorously pursues meaningful penalties against those who commit crimes, but also ensures that offenders who demonstrate rehabilitation are given a second chance.
This kind of balance does not figure into the narrative pushed by social-reform advocates, which is often accompanied by harmful rhetoric that denigrates law enforcement and undermines the rule of law. And that is another part of the problem with regard to prosecutors who don’t want to enforce basic laws, and who denigrate what law enforcement has accomplished. When social reform DAs do that, they are sowing the seeds of mistrust by demeaning the very institutions they are supposed to lead. They are flipping the script by casting criminals as victims and police as villains. These false claims are demoralizing and foment hostility toward law enforcement.
At one leading social-reform DA’s election victory party, supporters went so far as to chant profane anti-police slogans in celebration. This divisive behavior is damaging to public safety and the public trust.
The good men and women of law enforcement put their lives on the line for modest pay to keep our communities safe. Decriminalization policies prevent them from doing their jobs, and fail to respect the risks they take to pursue violent criminals. Such policies embolden offenders who believe they can harass or even attack police with impunity.
Unfortunately, we’ve already begun to see examples of this. In one major city, officers are being pelted by plastic buckets and doused with water in a string of incidents that display a total lack of respect. Even more concerning, according to recent FBI analysis, “[d]ata has shown an increase in ambushes on our nation’s law enforcement officers.”
I am deeply concerned when I hear that some police departments have suffered harms to morale and officers are leaving the force as a consequence of these DAs’ peculiar policies. Moreover, several social reform DAs have ousted large numbers of career prosecutors as part of their first acts upon taking office. Those cast aside include experienced former leaders with years of service to their communities. To ensure that qualified men and women continue to answer the call to serve, we must ensure that such actions are not based on false premises about what works and what doesn’t.
Finally, let me address one other aspect of the non-enforcement policy problem. Some defenders of reform DAs claim that the non-prosecution strategies merely reflect the will of the communities that elected them. If that were so, one wonders why those communities’ legislators would not simply change the laws to reflect their constituents’ views. Indeed, one reason greater transparency about these non-enforcement policies is warranted is that it is far from clear that the public knows and wants prosecutors to tolerate crimes like burglary and theft without enforcement.
Do you think Americans really want prosecutors who won’t enforce whole categories of laws? It can be hard to overlook that some of these social reform DAs were elected in low-turnout primaries backed by unusual funding from out-of-state ideological advocates. But elections are up to voters, so I do not mean to address any individual jurisdiction or any particular DA; my question is what kind of system will we have if our laws are simply to be ignored? And I am especially focused on the problem that non-enforcement policies present to the goal of continuing to reduce violent crime and make our communities safer.
That is why it is important to bring attention to the impact radical decriminalization policies have on victims and public safety. We have achieved important crime reductions nationwide since the beginning of 2017, but that can vary in individual cities or counties. So now is not the time to retreat from what works.
The Department of Justice will continue to do what works. But more than three quarters of all law enforcement resources nationwide are state and local, so the federal government lacks the ability to step in and fully fill the hole created by social reform DAs’ non-prosecution strategies. To sustain our momentum at reducing crime, state, local, and federal partners must work hand in hand to fight violent crime. I am pleased to say that cooperation is occurring in most of America. I hope we will have strong partnerships everywhere.
Those of us who work in the Department of Justice know that it is a privilege to be entrusted with the awesome and humbling responsibility of enforcing the law. We understand that along with that responsibility comes an obligation to faithfully and vigorously defend the rule of law. I hope that some of you who are here today will feel the call to public service. As lawyers, public or private, all of us have a duty to promote the rule of law. That is the reason for my visit. Thanks again to Dean Aiken and the Wake Forest Law community for the opportunity to speak here today.