Southern District of Florida

MIAMI – On February 4, 2020, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Division, and Roland D. Pandolfi, Chief of Police, Miccosukee Police Department, announced the convictions of all eight (8) defendants in United States v. Michel Aleu, et al. Case No. 19-20435-Cr-Gayles. 

Four of the defendants, Michel Aleu, Lester Lavin, Yohander Jorrin Melhen, and Leonardo Betancourt, all former employees and licensees of Miccosukee Gaming, pled guilty and were convicted of conspiracy to steal funds in excess of $1,000 from Miccosukee Gaming, conspiracy to commit computer fraud, and money laundering conspiracy.  Their respective spouses, defendants Maria Del Pilar Aleu, Anisleydi Vergel Hermida, and Milagros Marile Acosta Torres, pled guilty and stand convicted of conspiracy to commit money laundering offenses.  Yohander Jorrin Melhen and Milagros Acosta Torres were the last defendants to plead guilty, when they appeared in Court on Friday, January 31, 2020.

As stated in court documents, from January 2011 to May 2015, Michel Aleu, Lavin, Jorrin Melhen, Betancourt, and other co-conspirators, who were employed in the video game department at the Miccosukee Casino, tampered with the computers in electronic gaming machines, causing those machines to generate false and fraudulent credit vouchers or tickets.  They then enlisted other conspirators to exchange the vouchers for cash at ATMs located on the casino floor, at floor cashiers, or the casino treasury.  Casino records disclose that the defendants and their co-conspirators stole approximately $5.3 million in cash from Miccosukee Gaming.  The defendants used the stolen funds to purchase and maintain residences and investment properties, to purchase vehicles, vessels, and Florida Prepaid College Plans for certain of their children, and to pay for travel and household expenses.

The defendants are now awaiting sentencing before United States District Judge Darrin P. Gayles.  Each defendant faces a maximum term of 20 years’ imprisonment for money laundering conspiracy.  Michel Aleu, Lavin, Jorrin Melhen, and Betancourt face maximum terms of five years on their convictions for conspiracy to steal from Miccosukee Gaming and conspiracy to commit computer fraud.

U.S. Attorney Fajardo-Orshan commended the investigative efforts of FBI and Miccosukee Police Department.  This case was prosecuted by Assistant U.S. Attorney Dwayne Williams and Asset Forfeiture Assistant U.S. Attorney Nicole Grosnoff.

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

MIAMI – U.S. District Judge Cecilia M. Altonaga sentenced Senthil Kumar Ramamurthy, 38, of Texas, to 121 months in federal prison for his role in a scheme that defrauded Tricare and Medicare out of more than $9.6 million. Ramamurthy and his co-conspirators tricked beneficiaries into having the federal health care programs pay for medically unnecessary compounded prescription medicines and cancer genetic tests.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Cynthia Bruce, Special Agent In Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and SAC Omar Pérez Aybar, Special Agent in Charge for Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement. 

Tricare is the health care program for the U.S. military that pays the health care costs of active and retired military personnel and their families, including the costs of medically necessary prescription medications. Medicare is a federally-funded program that provides free or below-cost health care benefits to certain individuals, primarily the blind, elderly, and disabled.

On November 12, 2019, Ramamurthy pled guilty to conspiring to commit health care fraud and conspiring to defraud the United States and receive health care kickbacks. 

According to court records, Ramamurthy and his co-conspirators targeted Tricare for about 10 months, starting in 2014. After deceiving their way onto U.S. military bases, Ramamurthy and his co-conspirators convinced Tricare beneficiaries to sign-up for compounded prescription medications that the beneficiaries did not need. To encourage sign-up, Ramamurthy and his co-conspirators falsely told the beneficiaries that the pharmacies would custom-design their medications or that the medications were free. In fact, the medications were not custom-designed and the patients had co-payments. Compounding pharmacies paid Ramamurthy and his co-conspirators millions of dollars in kickbacks in exchange for sending the pharmacies expensive prescription orders. 

In mid-2015, Tricare scaled back its reimbursements for compounded medications. Ramamurthy and his co-conspirators turned to Medicare. They paid doctors to refer Medicare beneficiaries to a lab in Georgia for cancer genetic screening testing, even though the doctors had never examined the beneficiaries. As with the compounded medications, the cancer genetic screening tests were not medically necessary. The owner of the Georgia lab, Minal Patel, 40, was indicted in the Southern District of Florida in September 2019.  

“Ramamurthy used our military families, our elderly, and our disabled to bilk millions of dollars from our country’s vital health care programs.  He is set to spend the next 10 years in federal prison paying for that,” said U.S. Attorney Fajardo Orshan.  “I commit to you that along with its federal law enforcement partners, the U.S. Attorney’s Office will continue to fight health care fraud in South Florida.”

"Senthil Ramamurthy’s conduct was part of a multi-million dollar fraud scheme perpetrated on the military's healthcare program.  Today's sentencing is a testament of the Defense Criminal Investigative Service's fierce commitment to protect America's Warfighters and the integrity of their healthcare program.  DCIS will work tirelessly with our law enforcement partners and Federal prosecutors in order to bring to justice any unscrupulous individuals or organizations who decide to compromise and abuse the interests, health and well-being of our men and women in the military," said Cyndy Bruce, Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office. 

“Ramamurthy preyed upon unsuspecting beneficiaries to enrich himself; however, his unlawful actions led not to riches, but a 10-year prison sentence,” said  Omar Pérez Aybar, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services.  “We will continue working with our law enforcement partners to protect government-funded health care programs and the beneficiaries served by them.”  

Additional co-conspirators of Ramamurthy have pleaded guilty to federal criminal charges arising out of the fraud scheme: Asif Uddin, 32, of Missouri, Karl Voeller, 34 of Delray Beach, Florida, Jennifer John Carbon, 48, of Miami, Florida, John Scholtes, 56 of Boca Raton, Florida, Anthony Mauzy, 43, of California, Thomas Sahs, 41, of California, Rajesh Mahbubani, 46, of Texas, and Dr. Mangala Ramamurthy, 64, of Texas. They are scheduled for sentencing in the Southern District of Florida in February 2020.

To date, fraudulent compounding pharmacy schemes have caused estimated losses to Tricare in excess of $2 billion. Fraudulent genetic testing lab schemes have caused estimated losses to Medicare of approximately $2.1 billion.   

U.S. Attorney Fajardo-Orshan commended the investigative efforts of DCIS and HHS-OIG.  Assistant United States Attorneys Kevin J. Larsen, Ana Maria Martinez, and John C. Shipley prosecuted the case. Assistant United States Attorney Daren Grove is handling the asset forfeiture aspects of the case. 

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

MIAMI – Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, announced today that Yorgan Arnaldo Ramos Teran (Ramos Teran), 46, of Weston, Florida, is charged with violating the temporary flight restrictions set up to protect the public during Super Bowl LIV and the week leading up to the game. Super Bowl LIV takes place on February 2, 2020, at the Hard Rock Stadium in Miami Gardens, Florida.

According to the criminal complaint filed in the Southern District of Florida, on the night of January 29, 2020, Ramos Teran illegally flew a drone in the temporarily restricted air space of Ocean Drive and 8th Street in Miami Beach, without the required authorization from the Federal Aviation Administration (FAA). The complaint charges Ramos Teran with violating 49 U.S.C. § 46307, which prohibits knowingly and willfully violating national defense airspace; specifically, with knowingly and willfully flying a drone in an area with a temporary flight restriction imposed by the FAA. If convicted, Ramon Teran faces up to one year in federal prison. Ramos Teran is scheduled for an initial appearance before a federal magistrate judge at 2:00 p.m. today.  

A temporary flight restriction is a regulation that temporarily restricts certain aircraft (including drones) from operating within a defined area in order to protect people or property in the air or on the ground. As part of a comprehensive federal, state, and local law enforcement plan to protect the public and secure the events leading up to and including Super Bowl LIV, the FAA established temporary flight restrictions on drone and other aircraft flights in areas of Miami Beach and Downtown Miami, and around the Hard Rock Stadium. Restrictions on drone and other aircraft flights in South Florida remain in effect through February 2, 2020.

For more information on Super Bowl LIV-related “No Drone Zones” and other temporary flight restrictions, visit  superbowl.faa.gov.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, FAA, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Miami Beach Police Department.

A criminal complaint is an accusation and defendant is presumed innocent unless and until he is found guilty beyond a reasonable doubt.

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

MIAMI - On January 28, 2020, Tomas Vale Valdivia, 45, a Cuban national who was living in Isla Mujeres, Mexico, was sentenced to 57 months in prison by U.S. District Kathleen M. Williams in Miami, Florida for his participation in a for-profit alien smuggling conspiracy that transported Cuban nationals to Mexico and then into the United States. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.

According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, beginning at least as early as October 2013, and continuing through at least July 2018, a group of individuals, including Vale Valdivia and additional unnamed associates, were members of an alien smuggling conspiracy operating in Miami, Florida, Mexico, the Dominican Republic, and Haiti.  Vale Valdivia admitted to being the leader and organizer of the alien smuggling conspiracy, which included five or more participants.  Through this conspiracy in excess of 100 migrants were smuggled from Cuba to Mexico and then ultimately to the border of the United States.  Generally, the migrants were charged approximately $10,000.  Vale Valdivia admitted to knowing that the migrants coming to, entry, and residence in the United States was a violation of law.  Vale Valdivia further admitted that this alien smuggling conspiracy, at times, smuggled aliens in a manner that intentionally or recklessly created a substantial risk of death or serious bodily injury to another person.  For example, at times vessels used to smuggle migrants were overloaded or were used during foul weather so as to risk capsizing.   In addition to smuggling migrants, Vale Valdivia smuggled baseball players from Cuba to the United States.  Vale Valdivia also admitted to being involved in a conspiracy that stole engines in the United States and then shipped the engines through a freight forwarding company in Miami to Mexico to be used to further the alien smuggling conspiracy.

This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami.  In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones. 

If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, and additional languages.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI, FBI, U.S. Customs and Border Protection (CBP), and U.S. Coast Guard Investigative Service (CGIS), Southeast Region in this matter. This case is being prosecuted by Assistant U.S. Attorneys J. Mackenzie Duane and Ignacio J. Vázquez, Jr.  Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.

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

MIAMI - Francisco Joseph Arcila Ramirez (Arcila), a Colombian national and South Florida resident was sentenced to 240 months in federal prison today by U.S. District Judge Jose E. Martinez for illegally selling firearms to the National Liberation Army (ELN), a designated Foreign Terrorist Organization and a violent paramilitary group operating in South America.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.

Arcila pled guilty to providing material support to a foreign terrorist organization October 17, 2019.

According to court records, on August 16, 2018, Arcila instructed two co-conspirators to illegally purchase six firearms in Miami-Dade County on Arcila’s behalf.  These firearms included four Draco 7.62mm caliber AK-style pistols and two Zastava M92 7.62mm AK-style pistols. The firearms were then concealed in Husky air-compressors purchased by Arcila at a Miami-area Home Depot and shipped to Barranquilla, Colombia.  This shipment also contained approximately one hundred AK-47 ammunition magazines. 

On Sept. 5, 2018, Arcila attended a meeting in Colombia, where he met with an ELN weapons broker to discuss the sale of the six firearms Arcila had recently shipped into Colombia.  In addition to agreeing to the sale of these six firearms, Arcila and the weapons broker further discussed other future sales, to include firearm magazines and firearm components in the coming months.  At the conclusion of this meeting, the weapons broker provided approximately sixty million Colombian pesos as the purchase price for the firearms. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI.  This case was prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by DOJ National Security Division Trial Attorney David Smith.

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

Francisco Joseph Arcila Ramirez (Arcila), a Colombian national and South Florida resident was sentenced to 240 months in federal prison today by U.S. District Judge Jose E. Martinez for illegally selling firearms to the National Liberation Army (ELN), a designated Foreign Terrorist Organization and a violent paramilitary group operating in South America.

John C. Demers, Assistant Attorney General for National Security, Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, Robert Cekada, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.

On Oct. 17, 2019, Arcila pleaded guilty to providing material support to a foreign terrorist organization.

According to court records, on Aug. 16, 2018, Arcila instructed two co-conspirators to illegally purchase six firearms in Miami-Dade County on Arcila’s behalf.  These firearms included four Draco 7.62mm caliber AK-style pistols and two Zastava M92 7.62mm AK-style pistols. The firearms were then concealed in Husky air-compressors purchased by Arcila at a Miami-area Home Depot and shipped to Barranquilla, Colombia.  This shipment also contained approximately one hundred AK-47 ammunition magazines. 

On Sept. 5, 2018, Arcila attended a meeting in Colombia, where he met with an ELN weapons broker to discuss the sale of the six firearms Arcila had recently shipped into Colombia.  In addition to agreeing to the sale of these six firearms, Arcila and the weapons broker further discussed other future sales, to include firearm magazines and firearm components in the coming months.  At the conclusion of this meeting, the weapons broker provided approximately sixty million Colombian pesos as the purchase price for the firearms. 

Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI.  This case was prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by the Department of Justice’s National Security Division Trial Attorney David Smith.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announced that on January 23, 2020, a defendant involved in a tax refund fraud scheme was sentenced in the Southern District of Florida.  The scheme involved the filing of fraudulent income tax returns containing false W-2Gs, claiming false gambling winnings, withholdings, and losses, and seeking large-dollar tax refunds. 

Eldrick Wendell Wooding, Sr., 64, of Opa Locka, Florida, received a prison term of 46 months, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $107,421 to the IRS.  According to court documents, from October 2011 through April 2013, Wooding conspired with Freddie Howard to defraud the United States by preparing and submitting false and fraudulent federal tax returns and other tax-related documents to the lRS in order to induce the IRS to disburse tax refunds to which he was not entitled. In October 2019, a jury found Wooding guilty of conspiracy to defraud the United States. This case was prosecuted by Assistant U.S. Attorneys Daya Nathan and Eli Rubin.

Six other  defendants were previously sentenced in the Southern District of Florida in relation to filing fraudulent income tax returns containing false gambling information. In general, these fraudulent returns included a fake Form W-2G claiming gross gambling winnings and federal tax withholdings on the winnings.  The returns also claimed false gambling losses, which were used to offset the purported income from gambling winnings, thereby generating a claimed refund.  The IRS determined the federal income tax returns were false and the claimed gambling winnings, withholdings, and losses were fraudulent. The fraudulent misrepresentations on the tax returns resulted in a loss to the IRS.    

On August 28, 2018, Anthony Dwight Charles Box, 57, of Plantation, Florida, was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution of $988,175 to the IRS.

On May 1, 2019, Gerald Jerome Spate, 50, of Miramar, Florida, was sentenced to 24 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $421,684.50 to the IRS.  

On April 26, 2019, Jean Daniel Julien, 38, of Lauderhill, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $1,547,197 to the IRS.

On May 15, 2019, Ralph Dorsainvil, 63, of Boca Raton, Florida, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $335,466.72 to the IRS.           

On November 20, 2019, David Sage, a/k/a “Nima Nafei,” 40, of Las Vegas, Nevada, was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution of $278,149 to the IRS.

On July 24, 2019, Ron Pinke Leonard, 53, of West Palm Beach, Florida, was sentenced to four years of probation, and was ordered to pay joint and several restitution of $52,542.85 to the IRS.  

These other cases were prosecuted by Assistant U.S. Attorney Daya Nathan.           

U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI and the FBI in this matter.

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

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, was sentenced yesterday to a total of 600 months in federal prison and a lifetime of supervised release by U.S. District Judge Jose E. Martinez, after having been convicted at trial of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.

On September 27, 2019, Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, one count of Distribution of Child Pornography, one count of Sending Extortionate Threats, and one count of Conspiracy. 

According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media.  Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts.  Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.

“Child predators beware - anyone who uses social media and the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses risks spending the rest of their lives in prison,” stated U.S. Attorney Ariana Fajardo Orshan.  “We implore the community to help us protect our loved ones by monitoring our children’s social media accounts and reporting all suspected offenses to law enforcement. The U.S. Attorney’s Office stands united with our federal, state and local law enforcement partners to root out child exploitation.”

“Joseph Isaiah Woodson, Jr. is a menace who preyed on the most vulnerable among us, children,” said George L. Piro, Special Agent in Charge, FBI Miami.  “Using social media, Woodson would befriend, then coerce numerous minor female victims to send him sexually explicit videos and images.  His sentence of 50 years in prison should serve as a warning to others involved in sextortion.  Rooting out this type of crime is a cooperative effort.  I commend the hard work and professionalism of our partners including; Davie Police Department, Plantation Police Department, Coral Springs Police Department, Fairfax City Police Department, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, U.S. Army Criminal Investigation Command and FBI Miami’s Child Exploitation Task Force.”

“It is through partnerships such as this, that we are able to extend the arm of law enforcement to ensure predators such as Joseph Isaiah Woodson, Jr. are no longer a threat to our children,” stated Davie Police Chief Dale Engle. “We are grateful here at the Davie Police Department that the resources needed were made available to see this case through to a conclusion.”

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.

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

On January 22, 2020, George Ferrer Sanchez, 46, of Miramar, Florida, was sentenced to 108 months in prison by U.S. District Judge Marcia G. Cooke in Miami, Florida for orchestrating a conspiracy to launder proceeds of alien smuggling operation that transported Cuban nationals to Mexico, into the United States.  As part of the Court’s sentence, Ferrer Sanchez was ordered to pay a $5.4 million forfeiture money judgment and to forfeit two real properties to the United States.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.

Ferrer Sanchez previously pled guilty to participating in a conspiracy to commit money laundering (Case No. 19cr20085). 

According to the court record, including the agreed upon factual proffer and evidence presented during the sentencing hearing, from or around January 2009 or earlier, and continuing to at least June 2015 or later, Ferrer Sanchez was the leader of an alien smuggling conspiracy operating in Miami, Florida and elsewhere.  Ferrer Sanchez directed an operation that stole vessels used to smuggle Cuban nationals to the United States through Mexico. Conspirators brought the migrants out of Cuba, in exchange for payment for their smuggling services.  Once migrants were in Mexico, the conspiracy utilized phone calls to family members and friends in South Florida to secure payment for their release. Ferrer Sanchez also conspired with others to acquire funds from the migrants’ family members in South Florida, which were laundered through the business and real property, in order to promote and further their alien smuggling conspiracy.

This prosecution is the result of the ongoing efforts of the Operation Sisyphus Task Force, a multi-agency partnership to combat Caribbean based organized crime that includes the U.S. Attorney’s Office for the Southern District of Florida, FBI Miami and HSI Miami.  In recent years, the Operation Sisyphus Task Force has targeted organizations utilizing coercion and extortion to compel migrants and their families to make payments for the release of loved ones. 

If you believe you are a victim of migrant coercion or extortion or know someone who is, you are encouraged to call 1-866-347-2423 or visit https://www.ice.gov/tipline. The toll-free phone number is available 24 hours a day, 7 days a week, 365 days a year.  Help is available in English, Spanish, and additional languages. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the ICE-HSI and FBI in this matter.  This case is being prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr., and J. Mackenzie Duane. Assistant U.S. Attorneys Adrienne Rosen and Annika Miranda are assigned to the asset forfeiture aspects of the case.

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

Igor Grushko, 33, and Denis Grushko, 29, Russian nationals who were residing in Fort Lauderdale, Florida were sentenced yesterday to 145 months in prison, after having been previously convicted by a South Florida federal jury of aggravated identity theft, conspiracy to possess and use stolen credit cards, production of fraudulent credit cards, and production of counterfeit identification documents. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office, made the announcement.

According to the trial record, brothers Igor and Denis Grushko were running a sophisticated credit card fraud factory out of their Fort Lauderdale residence.  When USSS agents executed a search warrant at their home, law enforcement discovered rubber molds and plastic resin which the Grushkos used to manufacture their own credit card skimming devices; dozens of skimming devices, ATM overlays, pinhole cameras, and similar devices used to steal credit and debit card information; a credit card embosser, encoder, and magnetic stripe reader used to create counterfeit cards; sheets of Maryland state identification holograms and an identification card printer which was used to create fake identification cards (ID’s); hundreds of fraudulent credit cards and fake ID’s; and thousands of unauthorized credit and debit card numbers on the Grushkos’ computers. 

Law enforcement also discovered several tutorials appearing to instruct the Grushko brothers how to commit identity theft and credit card fraud.  For example, one document in their possession read, “What is carding?  Well, carding is the art of credit card fraud.  The motive is usually tied to money.  Handling a $9,000 plasma TV knowing that you didn’t pay one cent for it is definitely a rush.  But real carders seem to card for something more.  The rush that the federalles could bust down your door at any minute?  The defiance of knowing that every day that you are walking among the public is another day that you have gotten away with a federal crime?”

Evidence at trial further established that the Grushko brothers conspired with Vadym Vozniuk to use the personal identifying information of hundreds of unsuspecting victims across South Florida, including victims’ credit card numbers, names, addresses, and phone numbers, to fraudulently obtain over $100,000 in high-end electronics from local Target retail stores.

Vozniuk, 24, a Ukrainian national who was also residing in Fort Lauderdale, was sentenced to 27 months in prison, after having been convicted at trial of conspiracy to possess and use stolen credit cards.  The three defendants were sentenced by U.S. District Judge Rodney Smith in Fort Lauderdale (Case No. 18cr20859).

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office in this matter.  She also thanked Target’s Special Investigations team for their assistance.  This case was prosecuted by Assistant U.S. Attorneys Michael B. Homer, Kiran Bhat, and Jonathan Stratton.

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

On January 16, 2020, Palm Beach County resident Rodrick Domonique Jones was sentenced to 12½ years in prison, following his jury trial conviction for bank robbery and armed bank robbery. 

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

Jones, 38, of Lake Park, Florida was sentenced to 150 months in prison by Senior U.S. District Judge James I. Cohn following his conviction for four counts of bank robbery, in violation of Title 18, United States Code, Section 2113(a), and five counts of armed bank robbery, in violation of Title 18, United States Code, Section 2113(a) and (d) (Case No. 19cr80013). 

According to evidence presented at trial, Jones committed nine bank robberies at Chase banks throughout Southern Florida between December 11, 2015 and February 17, 2018.  In each robbery, Jones approached a bank teller and presented a demand note stating that he had a gun and demanding that the teller give him money.  Each time Jones wore a baseball cap, acted like a normal customer to avoid attention, and tried to keep from touching anything at the bank.  In two of the robberies, Jones pointed his gun into the side of the customer next to him when the teller did not give him money fast enough.  In two of the robberies, Jones left behind his fingerprints on demand notes. 

During a search of Jones’ residence, investigators recovered guns and evidence on Jones’ cell phones showing that he researched the banks before robbing them, often conducting web searches for the target banks and saving Google Maps images of the banks and surrounding areas.  Evidence also linked Jones to the vehicles seen leaving the scenes of the robberies.  The trial evidence included witness testimony, surveillance video from the banks and nearby businesses, fingerprint analysis, and images and messages from Jones’ phones and Facebook account. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  The case was prosecuted by Assistant U.S. Attorney Lothrop Morris and Trial Attorney Christina Brown from the Antitrust Division. 

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

Sober Homes Co-Owner Sentenced to Ten Years in Prison

MIAMI, FL – Three former co-owners and clinical directors of a group of purported substance abuse treatment centers and sober homes were sentenced to prison today for their roles in a conspiracy to commit health care fraud and wire fraud that resulted in an actual loss of more than $3.8 million, and through which the conspirators sought to obtain more than $21 million.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement. 

Ali Ahmed, 38, Hector Efrain Alvarez, 49, and Mauren Morel, 45, all of Broward and Palm Beach Counties, previously pled guilty to one count of conspiracy to commit health care fraud and wire fraud (Case No. 19cr60200).  U.S. District Judge Federico A. Moreno of the Southern District of Florida sentenced Ahmed to 120 months in prison, Alvarez to 32 months in prison and Morel to 32 months in prison.  In addition, the defendants were ordered to forfeit certain property and pay forfeiture money judgments, as well as to pay restitution.  Specifically, Ahmed owes $4,204,336 in restitution; Alvarez owes $3,884,035; and Maurel owes $320,301 in restitution.

In recent years, South Florida has become the locus for drug and alcohol addicts seeking assistance in an effort to become and remain sober.  Substance abuse treatment centers that assist such persons undergoing detoxification from an intoxicating or addictive substance are regulated under state and federal law.  These substance abuse treatment centers, or detox centers, offer a continuum of care including, from most intensive to least intensive, as follows: inpatient detox, Partial Hospitalization Programs (PHP’s), Intensive Outpatient Programs (IOP’s), and Outpatient Programs (OP’s).  Persons undergoing treatment on an out-patient basis, whether in PHP, IOP, or OP, typically elect to live in a “recovery residence,” also known as a “sober home” or “halfway house,” with other persons who are also in treatment and committed to a drug and alcohol-free lifestyle.

Jacob’s Well, Inc. (Jacob’s Well) was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida.  Jacob’s Well was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.

Medi MD, LLC. (Medi MD) was a Florida corporation, located at 7950 SW 30th Street, Suite 200, Davie, Florida.  Medi MD was a substance abuse treatment center licensed with the Florida Department of Children and Families that purportedly provided private insurance beneficiaries with substance abuse treatments and services.

Arnica Health was a Florida corporation, located at 7950 SW 30th Street, Suite 202, Davie, Florida.  Arnica Health was a purported medical treatment center co-located with the purported substance abuse treatment centers.  Together with Medi MD and Jacob’s Well, Arnica Health operated as a part of Serenity Living and was affiliated with sober homes known as Serenity Ranch.

Ali Ahmed was Treasurer of Jacob’s Well, Director of Operations for Medi MD, and co-owner of Jacob’s Well, Medi MD, and Arnica Health. 

Sebastian Ahmed was the CEO and co-owner of Jacob’s Well, Medi MD, and Arnica Health.

Hector Efrain Alvarez was Clinical Director of Medi MD.

Mauren Morel was Clinical Director and co-owner of Jacob’s Well. 

Medi MD, Jacob’s Well, and Arnica Health together operated as Serenity Ranch/Serenity Living.  

According to court documents, from June 2016 through April 2019, Ali Ahmed, Sebastian Ahmed, and Mauren Morel, submitted and caused others to submit, via interstate wire communications, approximately $1,693,276 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Jacob’s Well to insurance beneficiaries of Aetna, BCBS, Cigna and UHC.  As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, and UHC made payments to the corporate bank accounts of Jacob’s Well in the approximate amount of $320,301.

Furthermore, during the same approximate time period, Ali Ahmed, Sebastian Ahmed, and Hector Efrain Alvarez submitted and caused others to submit, via interstate wire communications, approximately $21,899,439 in claims which falsely and fraudulently represented that various health care benefits, primarily substance abuse PHP, IOP, and OP services, were medically necessary, prescribed by a doctor, and provided by Medi MD to insurance beneficiaries of Aetna, BCBS, Cigna, Humana and UHC.  As a result of such false and fraudulent claims, Aetna, BCBS, Cigna, Humana and UHC made payments to the corporate bank accounts of Medi MD in the approximate amount of $3,884,035.

Ali Ahmed, Sebastian Ahmed, Hector Efrain Alvarez, and Mauren Morel used the proceeds of the health care fraud for their personal use and benefit, the use and benefit of others and to further the fraud scheme.

As set forth in Court documents, the scheme involved not only financial exploitation but also sexual exploitation of vulnerable, drug-addicted patients, whom were attracted and induced to attend Serenity Ranch facilities with free flights, free housing, vapes, clothing, spa days, benzodiazepine medications, and even drugs.  Indeed, the evidence showed that patients were permitted to keep using drugs, and even provided drugs – including heroin and cocaine – by conspirators such as Ali Ahmed.  Ali Ahmed also engaged in sexual relationships with patients and, as a result of the destabilizing environment at the facilities, many patients did not get the treatment that they so desperately needed.

Co-defendant Sebastian Ahmed, the former CEO of Jacob’s Well, Medi MD, and Arnica, who was charged in the same indictment, has pleaded not guilty and is set for trial on February 18, 2020, before Senior U.S. District Judge James I. Cohn.  He is presumed innocent of the charges.

The FBI and HHS-OIG investigated the case, with assistance from the Davie Police Department, Broward County Sheriff's Office and U.S. Drug Enforcement Administration (DEA).  Assistant U.S. Attorneys Christopher J. Clark and Lisa H. Miller are prosecuting the case, and Assistant U.S. Attorneys Nicole Grosnoff and Peter A. Laserna are handling the asset forfeiture issues related to this matter.

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

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced that Torrie Chermaine Austin, 35, of Stuart, Florida, was sentenced today to 360 months in prison and a lifetime of supervised release by U.S. District Judge Robin L. Rosenberg in Ft Pierce, Florida after previously pleading guilty to producing visual depictions of the sexual exploitation of a minor.

According the court documents, between April and Nov. 2018, Austin produced video recordings of his sexual exploitation and abuse of an 11 year old child.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims.  For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Martin County Sheriff’s Office in this matter.  The case was prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.

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

Donna Carman, 60, of Indiantown, Florida, was sentenced today for embezzling federal funds for her own personal profit.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of the Inspector General (DOE-OIG), Tyrone Hardy, Acting Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE) made the announcement.

According to the court record, beginning as early as August 21, 2014, Carman began siphoning funds from Indiantown Nonprofit Housing, Inc. (“Indiantown”), a Florida not-for-profit corporation, for her own personal use, including repairs and upgrades made to a rental property she owned in Martin County, and unauthorized purchases on Indiantown’s American Express credit card.  Indiantown provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County.  Indiantown applied for and received funds through various federal programs.  Carman was the Executive Director for Indiantown in 2013, 2014, and 2015.  As the Executive Director, Carman was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases.  Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission.  In total, Carman embezzled and converted to her own use at least $50,000.00 from Indiantown between January 2013 and September 2015.

After having previously pled guilty to committing a theft from an organization receiving federal funds, Carman was sentenced by U.S. District Judge Jose E. Martinez to 5 years of probation (to include 360 days of home confinement) (Case No. 19-CR-14039).  She was also ordered to pay $50,000 in restitution and a $10,000 fine.

U.S. Attorney Fajardo Orshan commended the investigative efforts of DOE-OIG, HUD-OIG, and FDLE in this matter.  This case was prosecuted by Assistant U.S. Attorney Michael D. Porter.

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

MIAMI, FL - Victor Manuel DeJesus, 47, of Miami-Dade County, a correctional officer at the Federal Correctional Institution (FCI) in Miami, pled guilty today to a 14-count indictment which included charges of conspiracy to defraud the United States and commit bribery, bribery, and other offenses in connection with a scheme to provide contraband items to inmates at the federal prison. 

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

According to the court record, including the federal indictment, DeJesus and others were charged with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami.  From at least as early as December 2018 through September 2019, inmates and those acting on their behalf supplied DeJesus with bribe payments.  DeJesus then deposited these monies in his personal bank account. In exchange for these bribe payments, DeJesus used his official position to bring in prohibited items into the prison. DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.

DeJesus is scheduled to be sentenced by U.S. District Judge Robert N. Scola, Jr. on April 1, 2020 (Case No. 19cr20660).

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, U.S. Postal Inspection Service, and FCI-Miami in this matter.  She thanked the U.S. Department of Justice, Office of the Inspector General for their invaluable assistance. This case is being prosecuted by Assistant U.S. Attorney Alejandra L. López. 

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

Today, a federal grand jury indicted a Miami-Dade resident with importing cocaine into Key Largo, Florida.

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement

Elio Diaz Hernandez, 55, of Miami, was arrested on January 3, 2020 and initially charged by criminal complaint with possession with intent to distribute five or more kilograms of cocaine (Case No. 20-mj-05001).  U.S. Magistrate Judge Lurana Snow is scheduled to arraign Diaz Hernandez on the federal indictment in Key West tomorrow, January 17, 2020, at 2:00 p.m. (Case No. 20-CR-10003-MOORE).

According to allegations in the court record, Diaz Hernandez was operating his boat at night without navigation lights, on the waters east of Key Largo.  The crew of the U.S. Coast Guard cutter Charles Sexton was also in the area and launched a pursuit boat with law enforcement officers to investigate.  As the U.S. Coast Guard boat approached, Diaz Hernandez threw a bag into the water and attempted to flee.  After a brief chase, the officers were able to stop Diaz Hernandez.

The officers recovered the bag Diaz Hernandez threw into the water.  Inside the bag were fifteen packages that contained a substance which field tested positive for cocaine.  The approximate combined weight of the packages is thirty-six pounds.

If convicted of the charged offense, he faces a statutory maximum sentence of life in prison.

A criminal complaint and indictment are charging documents that contain allegations.  The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

This case is being prosecuted by Special Assistant United States Attorney Brian Sattler.

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

A Miami-Dade County resident was arrested on federal charges in connection with a $1.5 million mail and wire fraud scheme that targeted the United States Postal Service.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS OIG), Southern Area Field Office, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division made the announcement. 

Edwin Jim Garcia-Albarracin, 45, of Miami, Florida, was charged in a thirty-two count indictment, that was unsealed today, with ten counts of mail fraud, ten counts of wire fraud, and twelve counts of money laundering (Case No. 20-cr-20012-WILLIAMS). He is scheduled for a detention hearing on January 21, 2020.

According to the indictment, Garcia-Albarracin through his company, Rambos Market, sold a variety of products online and used the United States Postal Service to mail the purchased products to consumers throughout South Florida and the United States.   The indictment charges that from at least as early as July 2016 and continuing through November 2019, Garcia-Albarracin submitted false and fraudulent claims through the United States Postal Service Customer Inquiry and Claims Response System certifying that contents of certain packages that he had mailed were damaged, when in truth they were not. As a result of Garcia-Albarracin’s false and fraudulent claims, the United States Postal Service made payments to Garcia-Albarracin of over $1.5 million.

If convicted, Garcia-Albarracin faces a maximum statutory sentence of twenty years in prison for each mail fraud count; twenty years in prison for each wire fraud count; twenty years in prison for each money laundering count, in violation of Title 18, United States Code, Section 1956; ten years in prison for each money laundering count, in violation of Title 18, United States Code, Section  1957; a fine of up to $250,000 for the mail and wire fraud counts; and a fine not more than $500,000 or not more than twice the value of the loss as to each money laundering count of conviction. 

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

U.S. Attorney Fajardo Orshan commended the investigative efforts of USPS OIG and USPIS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Christine Hernandez. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of the case.

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

MIAMI - Eric Lin, 35, of Clarksburg, Maryland, pled guilty today in South Florida to a felony charging him with knowingly and intentionally transmitting a threatening communication in interstate commerce, in violation of Title 18, United States Code, Section 875(c).  Lin made repeated on-line threatening communications that targeted Hispanics.

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

According to the facts admitted at the change of plea hearing, between May 30, 2019, and August 14, 2019, Eric Lin made multiple threatening communications via Facebook to injure and kill a South Florida resident and to kill all Hispanics in Miami and other places.   Among the threatening communications that Lin admitted to making included:  “I’m coming to Rape and kill you” and “I will stop at Nothing until you, your family, your friends,, your entire WORTHLESS LATIN RACE IS RACIALLY EXTERMINATED!”  Lin also admitted that in his messages he discussed mass shootings of Hispanics and the idolization of Adolf Hitler. 

Lin pled guilty before U.S. District Judge Federico A. Moreno (Case No. 19cr20551). Lin faces a maximum statutory term of five years in prison and three years of supervised release, when he is sentenced by Judge Moreno on March 30, 2020 at 9:45 a.m. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the City of Miami Police Department.  The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis.

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

On January 10, 2020, a Guatemalan national was sentenced in the Southern District of Florida to eight years in prison for labor trafficking a minor.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Anthony Salisbury, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s, Homeland Security Investigations (ICE-HSI) Miami Field Office made the announcement.

Walfre Eliseo Camposeco-Montejo, 35, of Guatemala, previously pled guilty to providing and obtaining forced labor, alien smuggling, and unlawfully transporting aliens.  On Friday, U.S. District Judge Roy K. Altman sentenced Camposeco-Montejo to a total of 96 months in prison, to be followed by 3 years of supervised release.  Judge Altman also ordered Camposeco-Montejo to pay $34,000 in restitution to the minor-victim.   

According to court records, Camposeco-Montejo obtained false Guatemalan documents to claim a 12-year-old Guatemalan boy as his son.  Camposeco-Montejo promised the boy’s mother he would provide the minor with an education upon their arrival into the United States.  Camposeco-Montego and the minor illegally entered the United States, crossing the Rio Grande in November 2016.  Upon their arrest by U.S. Customs and Border Protection, when crossing the border, Camposeco-Montejo lied about being the boy’s father.  Based upon Camposeco-Montejo’s false representations, he and the boy were released as a family unit and subsequently made their way to Florida.  Beginning in December 2016, Camposeco-Montejo obtained false identification for the 12 year-old boy and forced him to work at agricultural farms throughout Palm Beach County for more than 6 months to repay a debt from the human smuggling venture.  The boy was eventually able to escape and reported his victimization during the course of the labor trafficking scheme.

U.S. Attorney Ariana Fajardo Orshan commended the investigation efforts of ICE-HSI and the partnership with the Palm Beach County Human Trafficking Task Force.  This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.

If you believe you are a victim of labor trafficking or know someone who is, you are encouraged to call the National Human Trafficking Hotline at 1-888-373-7888, or visit https://humantraffickinghotline.org/ for help and victim resources.  The service is available 24 hours a day, seven days a week.

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

Today, a former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC pled guilty for his role in connection with a $287 million securities fraud scheme  involving a commercial payday loan business that operated from early 2014 through July 2018 and impacted more than 3,400 investors in 42 different states. 

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

Steven Allen Schwartz, 75, of Delray Beach, Florida, pled guilty before U.S. Magistrate Judge Patrick M. Hunt to the single count information, charging him with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 20-CR-60003).  Schwartz is scheduled to be sentenced on March 13, 2020 at 3:00 p.m. before U.S. District Judge Roy K. Altman.  He faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.  

According to the court record, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates, termed merchant cash advance loans (“MCAs”).  To fund these loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts that promised to “place” the investors’ money in MCAs.  The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid.  1 Global raised money using investment advisors and other intermediaries, with promises to these advisors of significant commissions.  In many cases, the commissions were not fully disclosed to investors. 

Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials.  Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor.  On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.

In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements.  1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants.  In reality, 1 Global business lost money and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme.  Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1.  1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments. 

According to the court record, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor.  These misrepresentations were made in monthly statements mailed to investors that falsely showed profitable investments.  The statements gave the false impression that the finances had been  independently verified by an outside audit firm.  As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018. 

According to the court record, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law.  Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described.  Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.

1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy.  As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit.  The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.

In connection with a parallel civil enforcement action, the SEC announced the filing of civil fraud charges against Schwartz on January 6, 2020.  In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).

Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office.  She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance.  This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller, as well as Assistant Chief Rush Atkinson from the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.

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

Former Consultant/Chief Operating Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Wire and Securities Fraud In Relation to $287 Million Scheme

A former consultant who also served as the Chief Operating Officer of 1 Global Capital, LLC has been charged in connection with a $287 million securities fraud scheme that impacted more than 3,400 investors in 42 different states, in relation to a commercial payday loan business that operated from early 2014 through July 2018. 

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

Steven Allen Schwartz, 76, of Delray Beach, Florida, was charged today by information with one count of conspiracy to commit wire fraud and securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 20-CR-60003.  The defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.  

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

Schwartz was a director and consultant at 1 Global, and also held out as a Chief Operating Officer in the company’s marketing materials.  Schwartz also served as the designated trustee for a purported family trust and an art trust for which Individual #1, the de facto owner of 1 Global, served as the grantor.  On or about June 5, 2014, 100% of the issued and outstanding shares of 1 Global were transferred under the umbrella of Individual #1’s purported family trust, and designated as the trust property.

In order to attract investments, Individual #1, Schwartz, Attorney #1, co-conspirator Alan G. Heide, and others made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements.  1 Global promised investors that all or nearly all of that money would be applied to various MCA agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants.  In reality, according to allegations the information, the 1 Global business lost money, and ultimately used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme.  Furthermore, the conspirators misappropriated large amounts of cash for themselves, including, primarily, to support the lavish lifestyle of Individual #1.  1 Global also paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments. 

According to allegations in the information, co-conspirators at 1 Global made false statements to investors that gave the impression that 1 Global had an independent auditor.  These misrepresentations were allegedly made in monthly statements mailed to investors that falsely showed profitable investments.  The statements gave the false impression that the finances had been  independently verified by an outside audit firm.  As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising new investor funds before its eventual collapse in July 2018. 

According to allegations in the information, Schwartz was also aware that 1 Global had received written legal advice authored by an outside law firm retained by 1 Global, and that in memoranda received from this outside law firm, the firm opined that 1 Global was improperly offering unregistered securities, in violation of federal law.  Despite having received this advice in or around June and July 2016, Schwartz, Individual #1, and their co-conspirators continued to operate the business and hid the advice contained in the legal memoranda from investors, failing to disclose the risks it described.  Moreover, instead of following this advice, Individual #1 and co-conspirators not only concealed it from the investors, but also sought false legal cover from co-conspirator Jan Douglas Atlas, who authored opinion letters based on false and fraudulent information, stating that 1 Global’s offerings were not securities.

1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy.  As of that time, according to documents from related cases, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit.  The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.

A criminal information is a charging instrument containing allegations. All defendants are presumed innocent unless proven guilty in a court of law.

In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Schwartz.  In related cases, the SEC previously filed civil fraud actions, captioned, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.); SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.); and SEC v. Jan Douglas Atlas, 19-62303-CV-WPD (S.D. Fla.).

Two co-conspirators have pled guilty to charges arising from their roles in the 1 Global fraud, in related criminal cases pending in the Southern District of Florida: United States v. Alan G. Heide, 19-60231-CR-RKA, and United States v. Jan Douglas Atlas, 19-60258-CR-RKA.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and the IRS-CI’s Miami Field Office.  She also thanked the SEC’s Miami Regional Office and Florida’s Office of Financial Regulation for their assistance.  This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to the matter.

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

Yamel Guevara Tamayo, 36, of Miami, was sentenced Friday, December 20, 2019 to 63 months in prison for his role in serving as a money mule, and recruiter of more than 15 additional money mules, in an international money laundering operation for business email compromise (BEC) and other cyber-schemes.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.

Tamayo previously pled guilty before U.S. District Judge Ursula Ungaro to conspiracy to commit money laundering.  In addition to the prison sentence, U.S. District Judge Ursula Ungaro ordered Tamayo to serve three years of supervised release and pay $700,474.97 in restitution.

According to the court record, from November 2016 through June 2019, Tamayo, together with co-conspirators Roda Taher a/k/a “Rezi,” and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Tamayo, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name.  As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company.  Several mules, including Tamayo, later recruited and managed new money mules.  To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.

A related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Tamayo and the co-conspirators.  After the victims complied with the fraudulent wiring instructions, Tamayo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. Tamayo and co-conspirators also rapidly transferred victims’ funds to foreign bank accounts that co-conspirators controlled as soon as the funds came in.  Tamayo and other co-conspirators kept a fraction of the proceeds as payment after doing so.

Tamayo’s role expanded over time.  He ultimately recruited more than fifteen individuals to participate as mules in the money laundering scheme, serving as their manager and directing them to open new accounts.  His involvement in the scheme lasted until in or around June 2019.  In total, Tamayo and his mules intended to launder more than $1.4 million dollars, and succeeded in laundering more than $700,000 before banks were able to freeze and claw back some of the funds due to suspected fraud.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and USSS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted.  See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU; and United States v. Alfredo Veloso, et al., 18-20759-CR-KMW.  Assistant U.S. Attorneys Dwayne E. Williams and Lisa H. Miller prosecuted those cases.

The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise.  The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.

The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.

This case was part of the Department of Justice’s Operation reWired, which followed “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers.  That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.

Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.

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

FORT LAUDERDALE - Marchello Wilbon, 34, of West Palm Beach, Florida was sentenced today to one year and a day in prison, to by followed by two years of supervised release by U.S. District Judge Rodolfo A. Ruiz II, after previously pleading guilty to mail theft (Case No. 19-CR-80119). 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Lesley Allison, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.

According to court documents, including the indictment, criminal complaint and factual proffer in the plea agreement, on July 15, 2019, at approximately 8:30 am, a Lantana resident who lives on S.E. Atlantic Drive placed letters containing 39 checks with face value of approximately $171,599 in the mailbox located outside the resident’s home  for pick up by the U.S. Postal Service.  Wilbon was charged with stealing the mail, containing the checks, from the resident’s mailbox.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the Lantana Police Department, and USPIS.  This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

“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.

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.

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

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.