Southern District of Florida

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge of the U.S. Secret Service’s (USSS) Miami Field Office; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office announced that Yujing Zhang, 33, a Chinese national, was sentenced today to prison after having been previously convicted by a South Florida federal jury of unlawful entry of restricted buildings or grounds and making false statements to U.S. Secret Service agents.

Zhang was sentenced by U.S. District Judge Roy K. Altman, in Fort Lauderdale, Florida to a total of eight months in prison, to be followed by two years of supervised release (Case No. 19CR80056). 

According to the trial record, Zhang fraudulently gained entry onto the restricted grounds at the Mar-a-Lago Club where the U.S. President and other persons protected by the U.S. Secret Service were temporarily visiting.  U.S. Secret Service agents detained Zhang at the main reception area due to her suspicious actions. Zhang was then escorted off the property for further questioning. During questioning, Zhang repeatedly misrepresented to U.S. Secret Service agents that she was at the Mar-a-Lago Club to attend a “United Nations Friendship Event.”

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office and the FBI’s Miami Field Office in this matter.  The case was prosecuted by Assistant U.S. Attorneys Rolando Garcia and Michael Sherwin.

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

Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.

John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement. 

According to court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.  

Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.

Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra).  If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, Nov. 27, 2019 at 10 a.m. and his arraignment is scheduled for Dec. 9, 2019.

A criminal complaint is a charging document containing allegations.  The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.

This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.

MIAMI - Salman Rashid, 23, of North Miami Beach, Florida, was arrested in South Florida based on a criminal complaint charging him with soliciting another person to commit a crime of violence.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security;  and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.

According to court documents, the FBI initiated an investigation of Rashid in approximately April 2018 after reviewing his public Facebook posts, which advocated for the violent overthrow of democracy and the establishment of Islamic law. In May 2019, and without provocation, Rashid solicited a confidential human source to contact members of ISIS and instruct those ISIS members to conduct a terrorist attack on Rashid’s behalf. Throughout the summer and fall of 2019, Rashid continued to instruct the confidential source regarding Rashid’s requested attack, indicating an attack on a religious building or nightclub would be suitable. Based on Rashid’s request, the FBI introduced an additional confidential human source, who held him/herself out to be a member of ISIS willing to conduct an attack.

Ultimately, on or about November 8-9, 2019, Rashid chose two individuals to target - a dean at Miami-Dade College and a dean at Broward College, two colleges from which Rashid had been suspended or expelled – and asked that explosive devices placed by the confidential human source to carry out the attack against the two individuals be as big as possible. Rashid provided information about the locations to place the devices and his assessment of security that might be present at the colleges.

Rashid had his initial appearance today before U.S. Magistrate Judge Chris M. McAliley (Case No. 19-mj-3916-Becerra).  If convicted, Rashid faces a statutory maximum sentence of 20 years in prison. Rashid’s pretrial detention hearing is scheduled for Wednesday, November 27, 2019 at 10 a.m. and his arraignment is scheduled for December 9, 2019.

A criminal complaint is a charging document containing allegations.  The defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the FBI in this matter.

This case is being prosecuted by Assistant U.S. Attorney Michael Thakur and Senior Litigation Counsel Randy Hummel of the Southern District of Florida with assistance from Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section.

WASHINGTON – The United States filed a civil injunction suit seeking to bar Dimary Cordero, aka Dimary Cordero Torres, and her businesses—NMB Accounting and Tax Services LLC (NMB), and WFS Accounting and Tax Services LLC (WFS)—from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also seeks an order that Cordero, NMB and WFS disgorge ill-gotten fees that they obtained through their alleged misconduct.

According to the complaint, filed in the U.S. District Court for the Southern District of Florida, Cordero operates tax preparation stores in North Miami Beach and Miami, Florida through her businesses. The complaint alleges that the defendants falsely increase their customers’ refunds and profit through high, often undisclosed fees, at the expense of their customers and the Treasury.

The complaint alleges that the defendants engage in the following misconduct:

• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, such as personal expenses and phony job-related expenses;
• Claiming education credits based on fabricated education-related expenses and
• Charging deceptive and unconscionable fees.

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

On November 21, 2019, four Georgia residents had their initial appearances in South Florida on charges related to their alleged involvement in an international scheme to defraud retirees of their veterans and social security benefits.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge David Spilker of the Veteran Affairs Office of Inspector General (VA OIG), Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Charlotte Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations’ (HSI) Miami Field Office, and Special Agent in Charge Rodregas W. Owens of the Social Security Administration Office of the Inspector General (SSA OIG), Atlanta Field Division made the announcement.

Jamare Mason, 25, of Lithonia, Ronaldo Garfield Green, 27, of Snellville, Mario Andre Ricketts, 24, of Carrollton, and Omar Shaquille Bailey, 24, of Snellville, all of Georgia, and three other individuals were charged with conspiracy to commit bank fraud and wire fraud (Case No. 19-CR-60313). The four Georgia residents had their initial appearances before U.S. Magistrate Judge Patrick M. Hunt in Fort Lauderdale, Florida. 

According to allegations in the indictment, between May 2012 and July 2017, the defendants and three other individuals participated in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration by fraudulently redirecting retirees’ benefits to accounts controlled by them.  The scheme, which was international in scope, involved conspirators in Jamaica, Georgia, and Florida. The conspirators obtained the personal identifying information of veterans and social security beneficiaries and used that information unlawful access and gain control of beneficiaries’ accounts at the U.S. Department of Veterans Affairs and/or Social Security Administration.  After doing so, the conspirators redirected the benefits to bank accounts, as well as prepaid debit cards and accounts, which they controlled.  The subjects then withdraw the funds from ATM machines or transferred funds to other accounts, for their own personal use. 

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

A calendar call for defendants Mason, Green, Ricketts and Bailey has been scheduled for January 14, 2020 at 1:30 p.m. in Fort Lauderdale before U.S. District Judge Roy K. Altman. A jury trial has been scheduled for January 21, 2020.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the VA OIG, USPIS, HSI, and SSA OIG. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers. Assistant U.S. Attorney Alison Lehr is responsible for the asset forfeiture component of the case.

Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice.  The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

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

On November 14, 2019, sex offender Corey Laquan Witty, 49, of Miami, Florida was sentenced by U.S. District Court Judge Federico A. Moreno to 17 years in prison for possessing child pornography.

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

Witty had previously been convicted of offenses, including possession of child pornography and lewd and lascivious battery on a child.  As a result, he was ordered to register as a sex offender.  His first conviction for lewd and lascivious battery on a child occurred in 1999.  After Witty repeatedly failed to attend sex offender treatment, his probation was revoked and he was incarcerated for two years.  In 2005, Witty was convicted of failing to register as a sex offender and for lewd and lascivious battery on a child.  In 2008, he was convicted of possession of child pornography and sentenced to 121 months in federal prison and a lifetime of supervised release, by U.S. District Court Judge Marcia G. Cooke (Case No. 7-CR-20699).

In July 2019, during Witty’s semiannual sex offender registration meeting, he was found in possession of two cell phones, one of which was a smart phone, which Witty was prohibited from possessing. As a registered sex offender, Witty was barred from accessing the Internet.  The phone contained child pornography, in violation of Witty’s supervised release conditions.  On August 27, 2019, Witty pled guilty to possessing child pornography (Case No. 19-CR-20453). 

Judge Moreno considered Witty’s background and criminal history, when sentencing him above the guideline range to 204 months in prison. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of HSI and the MDPD in this matter.  Assistant U.S. Attorney Michele S. Vigilance prosecuted the case.  

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

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that Michael Jerome Atkins, 60, was arraigned today by U.S.  Magistrate Judge Patrick M. Hunt, in Fort Lauderdale, on mail fraud and aggravated identity theft charges.

            According to allegations in the indictment, between July 2015 and October 2015, Atkins devised a scheme to defraud the victim of her entire retirement savings, totaling over $400,000.  Atkins promised the victim that if she loaned him her retirement savings he would use it for his business, All Points Aviation and Associates, LLC and would repay her the money within two months.  The disbursement checks were made jointly payable to Atkins’ business All Points Aviation and Associates LLC and the victim, who was to cosign the checks.  The funds were disbursed in three installments.  With respect to the third installment check, which was the largest, and was drawn in the amount of $317,916.02, the indictment alleges that Atkins forged the victim’s signature and deposited the funds into his business account - which he controlled.  The indictment further alleges that Atkins used the funds for his personal benefit and did not repay the funds to the victim. 

An indictment is a charging instrument containing accusations.  A defendant is presumed innocent unless proven guilty, beyond a reasonable double, in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.

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

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

On Nov. 21, 2019, Angel Armando Adrianzen, 45, of California pleaded guilty to conspiracy to commit mail fraud and wire fraud for partnering with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats.  Adrianzen was arrested on Sept. 16 and has remained incarcerated since then. 

Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Miami Division Postal Inspector in Charge Antonio J. Gomez announced today’s guilty plea.

“The Department of Justice will vigorously pursue and prosecute fraudsters who prey on others through international telemarketing schemes,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division.  “The Department’s Consumer Protection Branch, working alongside the Postal Inspection Service and our Transnational Elder Fraud Strike Force partners, will bring to justice those who threaten and defraud consumers.” 

“Protecting vulnerable and elderly members of our community from international fraud schemes is a top priority of the Department of Justice.  Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

“This case highlights the U.S. Postal Inspection Service’ commitment to investigating and combating these kinds of schemes that are designed to defraud innocent victims no matter where they operate from,” said Antonio J. Gomez, Postal Inspector in Charge of the Miami Division.

According to the court record, Adrianzen partnered with a series of Peruvian call centers that contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls.  These callers claimed to be attorneys or government representatives, and falsely told victims that they had failed to pay for or receive delivery of products.  The callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.  Many victims made monetary payments based on these baseless threats.  Adrianzen received the victims’ payments and shipped products to the victims for these call centers, knowing that they used fraudulent and extortionate means to extract money from vulnerable victims.

Trial Attorneys Phil Toomajian and Joshua Rothman of the Department of Justice’s Consumer Protection Branch are prosecuting the case.  The U.S. Postal Inspection Service investigated the case and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.  

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI’s Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD) announced that on November 12, 2019, Fabian Perpall, 28, of Perrine, Florida was sentenced to twenty years in prison after having been convicted at trial of being a felon in possession of a firearm and ammunition.

Perpall was sentenced by U.S. District Court Judge Rodolfo A. Ruiz II to 240 months in prison, to be followed by 3 years supervised release following his trial conviction on two counts of Possession of a Firearm and Ammunition by a Convicted Felon (Case No. 18cr20664). 

            According to evidence presented at trial, on July 11, 2018, Perpall encountered a victim, threatened him with a black handgun, and demanded all he had.  The victim reported the incident to the police.  Two days later, Perpall again approached the victim in his car and fired nine shots at the victim, inflicting multiple gunshots and striking the victim with the vehicle. The victim required emergency medical attention and was placed in a medically-induced coma, as a result of his injuries.

            Four days after the shooting, as the police attempted to arrest Perpall for the attempted murder, he led the police on a high-speed chase through a residential neighborhood. The pursuit ended when Perpall’s car caught fire and crashed into a fence.  Found inside Perpall’s car, on the center console, was a loaded black handgun.  The shell casings found at the July 13th shooting scene were fired from the gun that was later recovered from Perpall’s car.

This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the MDPD. The case was prosecuted by Assistant U.S. Attorneys Shannon Shaw and Michael Homer.

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

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Chief John Bolduc of the Port St. Lucie Police Department announced that Jonathan Anthony Mahowald, 39, of Leesburg, Florida was sentenced to more than twelve and a half years in federal prison for attempting to entice a minor, online, to engage in illegal sexual activity.

Mahowald was sentenced by U.S. District Court Judge Kenneth A. Marra to a total of 152 months in prison, followed by 30 years supervised release for Attempted Use of a Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity (Case No. 18-CR-14072-KAM). Upon his release from prison, Mahowald will also have to register as a sex offender.

According to the court record, on July 6, 2018, a Port St. Lucie Police Department Detective was investigating undercover computer crimes against children. Between July 6, 2018 and July 17, 2018, the detective, posing as a 14-year-old girl, responded to an internet advertisement Mahowald had posted. During the course of text and online communications Mahowald, discussed sexually explicit activity he wished to engage in with the “14-year old.”  In addition, Mahowald sent sexually explicit images to the person he believed was a minor. On the morning of July 17, 2019, Mahowald set up a meeting with the “14 year old” to meet at a restaurant in Port. St Lucie. Upon his arrival, Mahowald was arrested by members of the Port St. Lucie Police Department. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the Port St. Lucie Police Department. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

 

Colin McLean, 29, of Hollywood, Florida was sentenced today by U.S. District Judge William P. Dimitrouleas to fifty-five years in federal prison for producing child pornography of an infant and 7 year old child, and possessing child pornography. 

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

McLean previously pled guilty to an indictment which charged him with two counts of production of child pornography and one count of possession of child pornography.

According to court records, in January of 2018 and continuing through January 2019, McLean sexually abused an infant and 7 year old child.  McLean recorded the abuse by taking photos and videos, which he saved on his cell phone.  In addition to those images and videos, law enforcement recovered images and videos of other child pornography on McLean’s cell phone.

The FBI Miami’s Child Exploitation Task Force investigated this case in partnership with the Hollywood Police Department.  This case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.

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

WASHINGTON – A citizen and resident of the Dominican Republic pleaded guilty today in Miami, Florida, to multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement. 

            Edgar Estarlin Peralta Lopez, 42, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.  Sentencing is scheduled for Jan. 24, 2020, before U.S. District Judge Beth Bloom of the Southern District of Florida. 

            According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States. 

In the plea agreement, Peralta admitted that he played at least two roles in the conspiracy.  First, he was a telecommunications trafficker.  Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States.  Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic, and other countries with high calling rates.  The calls were later billed to United States customers’ compromised accounts.  Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.

In addition, in the plea agreement, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators.  Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000.  Peralta admitted to a loss amount of at least $315,800.   

Peralta is a citizen of the Dominican Republic.  He was arrested in the Dominican Republic at the request of the United States, extradited to Miami in August where he is currently in custody.

Peralta is the sixth and last defendant to plead guilty in the case.  Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months. 

The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.

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

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

Ali Ahmed, 38, Hector Efrain Alvarez, 49, and Mauren Morel, 45, all of Broward and Palm Beach Counties, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida, to one count of conspiracy to commit health care fraud and wire fraud.  The defendants are scheduled to be sentenced on Jan. 21, 2020 at 10:30 a.m. (Case No. 19cr60200)

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

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

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

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

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

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

Hector Efrain Alvarez was Clinical Director of Medi MD.

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

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

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

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

            Co-defendant Sebastian Ahmed, the former CEO of Jacob’s Well, Medi MD, and Arnica, who was charged in the same indictment, has pleaded not guilty and is set for trial in this matter to begin on Nov. 25, 2019, before Judge Moreno.  He is presumed innocent of the charges.

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

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

On November 8, 2019, a federal jury found Anthony Michael D’Amico, 39, of Boca Raton, Florida, guilty of wire fraud and money laundering, in a scheme where he secretly accessed his employer’s computer network to steal $2.7 million in propriety information. 

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

According to evidence presented at trial, from approximately September 2017 through January 2018, D’Amico improperly accessed the computer network of his employer, an Austin-based company called All Web Leads.  All Web Leads was in the business of, among other things, connecting people searching for health insurance on the internet with insurance companies who wanted potential customers.  The evidence showed that D’Amico logged into the All Web Leads computer system late at night to reroute marketing calls generated by All Web Leads to companies paying him directly on the side.  According to witnesses from All Web Leads, the proprietary information that D’Amico stole would have generated over $2.7 million for the company.  Employees of All Web Leads further testified that D’Amico’s fraud significantly impacted the performance of the company that year and prevented All Web Leads employees from receiving bonuses. 

Banking evidence demonstrated that D’Amico personally received over $1 million, in less than six months, by selling the proprietary information he stole from All Web Leads.  According to the evidence presented at trial, D’Amico used the criminal proceeds he received from the scheme to buy a luxury automobile and pay a variety of personal expenses. 

Sentencing has been scheduled for January 23, 2020 at 9:30 a.m. before Senior Judge James I. Cohn in Fort Lauderdale (Case No. 18cr80179).

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office.  This case is being prosecuted by Special Assistant U.S. Attorneys Elizabeth Young and Leila Babaeva, and Assistant U.S. Attorney Lisa Miller.  Assistant U.S. Attorney Peter A. Laserna is handling the asset forfeiture issues related to this matter.

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

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Paul Blackman, Sheriff, Highlands County Sheriff’s Office announced that Samuel Martinez, 41, of Avon Park, Florida, was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to 18 years in prison for armed drug trafficking.

Martinez previously pled guilty to possession with intent to distribute 500 grams or more of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime (Case No. 19cr14022).  

According to the court record, on March 12, 2019, law enforcement officers from the Highlands County Sheriff’s Office executed a search warrant for a hotel room in Avon Park.  Martinez was found inside the hotel room, along with over three pounds of methamphetamine, some of which had been packaged for resale, and a loaded Springfield Armory .45 caliber semi-automatic pistol. 

Methamphetamine is a dangerous and highly addictive controlled substance.  This case involved one of the largest single seizures of methamphetamine in Highlands County, to date. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Highlands County Sheriff’s Office.  The case was prosecuted by Assistant U.S. Attorney Michael D. Porter.

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

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department announced that Jean Jameson, 36, of Fort Lauderdale, Florida was sentenced to 30 years in prison today for distributing the fentanyl that resulted in the death of another individual.

Jameson was sentenced by U.S. District Judge Jose E. Martinez to a total of 365 months in prison, to be followed by 3 years of supervised release, after previously pleading guilty to one count of distribution of fentanyl resulting in death and two counts of distribution of fentanyl (Case No. 19cr60083).  He was also ordered to pay $8,000 in restitution to the victim’s family to cover funeral expenses.

According to the court record, on September 25, 2018, Jameson distributed fentanyl, a Schedule II controlled substance, to an individual who died as a result of ingesting the drug.  Thereafter, on two separate occasions, Jameson distributed a controlled substance, to wit, fentanyl. 

“Men and women in our community are losing their lives to the drug trade,” stated U.S. Attorney Fajardo Orshan.  “Fentanyl, a highly potent controlled substance, is being illegally distributed with deadly results. We implore the public to educate themselves, friends and loved ones about the dangers of drug abuse and addiction. Federal law enforcement authorities will continue to prosecute those who endanger our residents by fueling the opioid epidemic.”

“The DEA takes the distribution of any illegal drug very seriously,” said DEA Special Agent in Charge Wright.  “The recent spike in opioid sales, which correlates to an increased death toll, only heightens our commitment to continue in this fight.  The DEA Miami Field Division will continue to work very closely with our law enforcement partners in the Tri-County area along with the U.S. Attorney’s Office to fully investigate and prosecute those responsible for illicit drug trafficking activities to ensure that they are held accountable for their actions, especially when the consequences from those actions result in the tragic death of another individual.”  

Fort Lauderdale Police Chief Maglione stated, “Individuals who knowingly distribute a substance that often results in death should absolutely be held accountable for the results of their actions.  Hopefully these individuals will begin to think twice before taking advantage of people who are suffering from an addiction now that they realize the severity of the charges and potential penalties that can be associated with their crimes.”

In December of 2014, the DEA, the Fort Lauderdale Police Department, and the Broward County Sheriff's Office formed a partnership with the Broward Medical Examiner's Office to track both synthetic drug and heroin related overdoses.  From that, and as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) National Heroin strategy to combat heroin/fentanyl trafficking and related overdose deaths, Operation Phantom Chase emerged.  The operation, begun in July 2017, is a multi-jurisdictional heroin/fentanyl initiative between the DEA, the U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, Fort Lauderdale Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Hollywood Police Department, Coral Springs Police Department and the U.S. Attorney’ Office in Broward County which operates as a data collection clearinghouse to analyze intelligence gathered from fatal and non-fatal heroin and fentanyl overdoses that occur in Broward County.  The charges being announced today result from the diligent investigative work of this successful federal-local partnership.      

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and the Fort Lauderdale Police Department.  She also thanked the Broward County Sheriff’s Office for their support during the course of this investigation.  This case was prosecuted by Assistant U.S. Attorney Robert Juman.

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

MIAMI - Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division announced that Bill K. Kapri, a/k/a “Kodak Black,” a/k/a “Dieuson Octave,” 22, of Pompano Beach, Florida, was sentenced today by U.S. District Judge Federico A. Moreno to 46 months in prison, to be followed by 3 years of supervised release (Case No. 19-cr-20273).   Kapri previously pled guilty to knowingly making false and fictitious written statements in connection with the acquisition and attempted acquisition of firearms from a federally licensed firearms dealer.

According to the court record, including the agreed upon factual proffer, Kapri, on January 25, 2019 and March 1, 2019, completed ATF Form 4473.  On both occasions, Kapri answered “No” when asked, “Are you under indictment or information in any court for a felony, or any other crime for which the judge could imprison you for more than one year?”  On both occasions, as Kapri then and there well knew, Kapri was, in truth and in fact, under indictment for a felony offense.  On January 25, 2019, Kapri transposed several digits of his social security number and thus was able to pick up three firearms on February 1, 2019.  On March 1, 2019, Kapri used his true social security number and, as a result, was not permitted to pick up a fourth firearm.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter.  This case was prosecuted by Assistant U.S. Attorney Bruce Brown. Assistant U.S. Attorney Richard Brown is responsible for the asset forfeiture component of the case.

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

Initiative emphasizes enforcing gun prohibitions based on domestic violence convictions and mental health denials

Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“Firearms in the hands of convicted felons and domestic abusers are a dangerous, and often deadly, combination,” stated U.S. Attorney Ariana Fajardo Orshan “Our top priority in South Florida is to protect our residents from harm.  By using all available law enforcement resources, we are targeting individuals who illegally buy and sell guns and those who use guns to terrorize our communities.  Through the Project Guardian initiative, the U.S. Attorney’s Office stands ready to enhance our enforcement of federal firearms law through the targeted prosecution of gun crimes.”  

“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
    
2. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
    
   Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
    
3. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
    
4. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. 
    
   Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
    
5. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.

Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.  

For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.

WASHINGTON – A federal jury in Fort Lauderdale, Florida, convicted Paul Senat today of aiding and assisting in the preparation of false tax returns and theft of government funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the evidence presented at trial, from at least 2012 to 2016, Paul Senat was the owner and operator of multiple tax return preparation businesses in Palm Beach and surrounding areas. Through the businesses, Senat falsified his clients’ returns by reporting fictitious business losses and false education credits in order to fraudulently inflate their refunds.

Following the jury verdict, Senat was taken into custody. United States District Judge Rodolfo A. Ruiz scheduled sentencing for Jan. 27, 2020. 

Senat faces a statutory maximum sentence of 10 years in prison for theft of government funds and three years for each count of aiding and assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who prosecuted the case.

WASHINGTON – Attorney General William Barr, Secretary of Defense Mark Esper, Acting Secretary of Homeland Security Kevin McAleenan, Acting Director of National Intelligence Joseph Maguire, FBI Director Christopher Wray, U.S. Cyber Command Commander and NSA Director Gen. Paul Nakasone, and CISA Director Christopher Krebs today released the following joint statement:

“Today, dozens of states and local jurisdictions are hosting their own elections across the country and, less than a year from now, Americans will go to the polls and cast their votes in the 2020 presidential election. Election security is a top priority for the United States Government. Building on our successful, whole-of-government approach to securing the 2018 elections, we have increased the level of support to state and local election officials in their efforts to protect elections. The federal government is prioritizing the sharing of threat intelligence and providing support and services that improve the security of election infrastructure across the nation.

In an unprecedented level of coordination, the U.S. government is working with all 50 states and U.S. territories, local officials, and private sector partners to identify threats, broadly share information, and protect the democratic process. We remain firm in our commitment to quickly share timely and actionable information, provide support and services, and to defend against any threats to our democracy.

Our adversaries want to undermine our democratic institutions, influence public sentiment and affect government policies. Russia, China, Iran, and other foreign malicious actors all will seek to interfere in the voting process or influence voter perceptions. Adversaries may try to accomplish their goals through a variety of means, including social media campaigns, directing disinformation operations or conducting disruptive or destructive cyber-attacks on state and local infrastructure.

While at this time we have no evidence of a compromise or disruption to election infrastructure that would enable adversaries to prevent voting, change vote counts or disrupt the ability to tally votes, we continue to vigilantly monitor any threats to U.S. elections.

The U.S. government will defend our democracy and maintain transparency with the American public about our efforts. An informed public is a resilient public. Americans should go to trusted sources for election information, such as their state and local election officials. We encourage every American to report any suspicious activity to their local officials, the FBI, or DHS. In past election cycles, reporting by Americans about suspicious activity provided valuable insight which has made our elections more secure. The greatest means to combat these threats is a whole-of-society effort.”

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Timothy M. Dunham of FBI's Washington Field Office Criminal Division, and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division, announced today the arrest of Alvaro Estuardo Cobar Bustamante, the director of a national Guatemalan bank, on a charge of money laundering, and the unsealing of a money laundering case against Manuel Antonio Baldizon Mendez, a former candidate for president of Guatemala.

The criminal complaint and indictment charging Cobar Bustamante with money laundering was unsealed today in the Southern District of Florida (Case Nos. 19mj03536, 18cr20706).  According to allegations in the complaint, after multiple cooperating witnesses, who were prosecuted for narcotics trafficking, informed the FBI that Cobar Bustamante was involved in helping the traffickers to launder their drug proceeds, the FBI initiated a sting operation to gather evidence of Cobar Bustamante’s money laundering activity.  In recorded conversations, Cobar Bustamante is alleged to have agreed to accept what was represented to be money earned from drug trafficking and to secretly move that money to the United States by using his position as the director of a national Guatemalan bank.  Tomorrow, Cobar Bustamante is scheduled to have his initial appearance before U.S. Magistrate Judge Edwin G. Torres in Miami.

Baldizon Mendez was prosecuted in a separate case that was unsealed today in the Southern District of Florida (Case No. 19cr20706).  According to court documents, including a Stipulated Factual Proffer, as a campaign supporter and later as a presidential candidate, Baldizon Mendez solicited money to fund his political campaigns.  Baldizon Mendez accepted campaign contributions knowing they were being made by narcotics traffickers and were the proceeds of narcotics trafficking.  Thereafter, Baldizon Mendez engaged in financial transactions, including the purchase of property in Miami, to hide the fact that he had knowingly accepted campaign contributions (money) from narcotics traffickers.

Baldizon Mendez previously pled guilty to money laundering and was sentenced to 50 months in prison.

U.S. Attorney Ariana Fajardo Orshan stated, “Narcotics trafficking is a very serious crime that not only poisons our communities and the people who use drugs, but can also contaminate some of the highest levels of business and politics.  Purportedly upstanding members of society who help narcotics traffickers wash their money are no better in the eyes of the law than the traffickers themselves.  Money launderers and their conspirators will be treated with the same justice meted out to the traffickers.”

“These prosecutions are another example of the Department of Justice and our foreign partners working together to identify, disrupt and dismantle criminal enterprises engaged in narcotics trafficking and related corruption," said FBI Special Agent in Charge Timothy M. Dunham.  "We will aggressively pursue and bring justice to the corrupt business and community leaders who help drug traffickers poison the communities with their criminal activity."

“The laundering of illicit funds derived from drug trafficking is a serious crime,” said DEA Special Agent in Charge Adolphus P. Wright.  “Those responsible, whether domestic or foreign, will be subject to investigation by law enforcement authorities if they attempt to foster this criminal activity against the United States.  The DEA will continue to work with our local, state, federal, and foreign partners to target and investigate illegal drug related activities which put our communities in harm’s way.”

The prosecution was part of Operation Black Mass, which is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

U.S. Attorney Fajardo Orshan thanked the following entities and agencies for their collaboration, investigative work and assistance with these cases: the government of Guatemala, the Narcotics and Dangerous Drugs Section of the U.S.  Department of Justice’s Criminal Division, the U.S. Attorney’s Office for the Southern District of California, the Office of International Affairs of the U.S. Department of Justice’s Criminal Division, FBI’s Miami Field Office, FBI’s Office in Guatemala, DEA’s Office in Guatemala, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Miami and San Diego, and Customs and Border Protection in Miami.

The prosecution of these cases is being handled by Assistant U.S. Attorney Walter M. Norkin.

The charges contained in the complaint against Cobar Bustamante are merely accusations, and the defendant is presumed innocent unless proven guilty in a court of law.

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

WASHINGTON – The Department of Justice announced today it has awarded more than $100 million in funding, through the Office of Justice Programs (OJP), to combat human trafficking and provide vital services to trafficking victims throughout the United States.

“Human traffickers remain a dire threat to human rights across the globe and their actions pose a serious danger to public safety right here in our own country,” said Attorney General William P. Barr. “I’m proud that these resources will help our law enforcement officers and victim service providers hold perpetrators accountable and give victims of these abominable crimes a place to turn for refuge and support.”

“The fight against human trafficking is never ending, and it is our front-line law enforcement officers and an army of compassionate service providers who are leading the charge,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Attorney General has made it clear that the Department of Justice will use every means at its disposal to bring traffickers to justice and serve trafficking victims. We are proud to support his vision of a nation, and a world, free of the scourge of human trafficking.”

Approximately $80 million of the funds were awarded under five Office for Victims of Crime (OVC) grant programs. The remaining $20 million were awarded by OJP's Bureau of Justice Assistance (BJA), National Institute of Justice (NIJ) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) to jurisdictions, service providers and task forces all over the country.

Grants awarded under FY 2019 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs being funded include:

• The Direct Services to Support Victims of Human Trafficking program gives nearly $53 million to 77 organizations to enhance the quality and quantity of services available to victims of all forms of trafficking.
• The Integrated Services for Minor Victims of Human Trafficking program awards over $15 million total to 32 programs to provide minor victims of trafficking with high-quality services that are developmentally appropriate and tailored for their individual needs.
• The Improving Outcomes for Child and Youth Victims of Human Trafficking program gives over $6 million total to four organizations to integrate human trafficking policy and programming at the state level and to enhance coordinated, multidisciplinary and statewide approaches to serving trafficked youth.
• The Field-Generated Innovations in Assistance to Victims of Human Trafficking program awards $4 million total to five programs to fill gaps and improve the victim services field’s response to human trafficking.
• The Specialized Human Trafficking Training and Technical Assistance and Resource Development program awarded $1 million to provide efficient and streamlined technical assistance and training to improve services offered to labor trafficking victims nationwide.       

Grants awarded under FY 2019 OJJDP programs will support organizations in developing their capacity to respond to the needs of children and youth who are victims of domestic sex trafficking and labor trafficking. The Specialized Services and Mentoring for Child and Youth Victims of Sex Trafficking and Sexual Exploitation and the Preventing Sex Trafficking of Girls and Involvement in the Juvenile Justice System grant programs provide more than $4 million to nine organizations to support child and youth victims of sexual exploitation and domestic sex trafficking and girls involved in the juvenile justice system.

BJA awarded 13 grants totaling nearly $11 million under the Enhanced Collaborative Model to Combat Human Trafficking: Supporting Law Enforcement’s Role. This initiative helps law enforcement organizations build capacity and operational effectiveness as core members of collaborative, multidisciplinary human trafficking task forces.

NIJ awarded over $2 million to five research organizations under the Research and Evaluation on Trafficking in Persons Program, which funds research and evaluation projects that help federal, state, local and tribal criminal justice agencies and victim service providers respond to the challenges posed by human trafficking in their jurisdictions.

For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://ojp.gov/newsroom/pressreleases/2019/ojp-news-10082019_a.pdf

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

Remarks as prepared for delivery

Good morning.  Thank you Matt Martin for your kind introduction and for your leadership in the Middle District of North Carolina.  We have a really incredible group of US Attorney’s across the nation, including Matt. 

I also want to thank Dean Aiken and the Wake Forest School of Law for hosting this important discussion about public safety, the progress we’ve made, and impediments we face to continuing the positive trend of reducing violent crime.

At the Department of Justice, reducing violent crime is one of our top priorities.  To pursue that goal, I have the good fortune every day of working closely with our law enforcement components and our prosecutors in Washington, DC and all across the country, again including Matt Martin and his team here in North Carolina. 

So let me start this discussion about violent crime with this simple observation:  To understand what works in combating crime, one need look no further than the highly successful efforts of state and federal law enforcement over recent decades.  In the early 1990s, crime reached an all-time high.  Violent crime and murder rates in particular had steadily increased over the preceding decades.  Many major American cities and communities were not safe places to live or work.

In response to this troubling trend, legislatures increased penalties for gun offenders, prosecutors pursued stiff penalties for violent criminals, and the Department of Justice did its part by launching a series of nationwide initiatives to stem the tide of rising crime.  For instance, in 1991, the Department created Project Triggerlock, a highly successful program that vigorously pursued firearms cases by targeting the most-violent offenders.  A decade later, the Department launched Project Safe Neighborhoods or “PSN.”  As a crime reduction strategy, PSN focuses federal and state resources on the most pressing violent crime problems in our communities, and each district develops comprehensive solutions to address them.

A common element of both programs – and really the hallmark of any successful crime-fighting initiative – is cooperation among all levels of law enforcement.  Through such programs, federal, state, local, and tribal law enforcement partnered to identify and prosecute the offenders that were driving violent crime rates.  The results were impressive. 

After reaching a peak around 1993, crime steadily declined for the next 20-plus years.  Violent crime was cut in half.  A study published in 2009 concluded that PSN successfully reduced violent crime with case studies showing reductions as high as 42 percent in certain locations.  

Unfortunately, after decades of improvement, a reversal took place, with stunning increases in violent crime in 2015 and 2016.  Homicides alone increased by more than 20 percent.  Concerned that we were at risk of losing ground, the incoming Trump Administration and the Justice Department snapped into action and returned to tried-and-true strategies for reducing crime.

In his first month in office, President Trump issued a series of executive orders “designed to restore safety in America.”  In response, the Attorney General announced the reinvigoration of Project Safe Neighborhood as a centerpiece of the Administration’s strategy to reduce violent crime.  In October 2017, Attorney General Sessions directed all 93 U.S. Attorneys to implement enhanced violent-crime reduction programs and to reinvigorate partnerships with state, local, and tribal law enforcement.

As recent data shows, the U.S. Attorney community put Attorney General Sessions’ words into action.  They joined with local partners to identify and combat the most significant violent crime problems facing their districts.  Since redoubling our efforts in this way, we have increased federal firearm prosecutions by over 40 percent compared to the last two years of the previous administration.  The joint state-and-federal efforts have worked, and the objective statistics prove it. 

The FBI recently released its annual crime statistics for 2018, and, for the second consecutive year, the number of violent crimes decreased nationwide.  In 2018, the violent crime rate decreased 3.9 percent from 2017, and the rate for nearly every type of violent crime decreased as well.

The lesson from this recent history is clear:  law enforcement works best when federal, state, and local partners work together to vigorously enforce the law and target violent offenders.

Unfortunately, a dangerous trend is emerging that threatens to blunt the progress we’ve made in reducing crime.  Despite the obvious successes, a small but increasing number of state and local district attorneys have vowed not to enforce entire categories of core criminal offenses as part of a misguided experiment in social justice reform.  From Philadelphia in the East to Dallas in the middle and Seattle in the West, a curtain of non-enforcement policies has descended on some unfortunate cities and counties.

It’s a problem Attorney General Barr highlighted in a speech to the Fraternal Order of Police in August.  There, he spoke of “the emergence in some of our large cities of District Attorneys that style themselves as ‘social justice’ reformers, who spend their time undercutting the police, letting criminals off the hook, and refusing to enforce the law.”

The radical decriminalization policies these social-reform DAs have publicly announced and implemented are truly shocking when they are made transparent.  Despite a decade of record-level drug overdose fatalities, whole categories of drug crimes, including several distribution offenses, are being ignored and not enforced.   Likewise, criminals who commit theft below certain thresholds, such as below $500, are given a free pass.  In several jurisdictions, reform DAs have effectively decriminalized prostitution, making it more difficult to fight human trafficking.  If those weren’t surprising enough, social-reform DAs have announced that the categories of malicious destruction of property, and shoplifting, will go unprosecuted.  The same with regard to criminal threats.  Even offenders who resist arrest and assault law enforcement officials are skating prosecution under these DAs’ non-enforcement policies.  

At the Justice Department, we emphasize working closely with our state and local law enforcement colleagues.  But I am concerned that these social reform DAs are falling down on the job.  A prosecutor’s duty is straightforward — enforce the law fairly and impartially and keep the public safe.  By refusing to prosecute basic offenses, social reform DAs are failing to fulfill that vital obligation.  No society can have justice when stealing has been effectively licensed, open-air drug markets are allowed to flourish, and neither victim nor police officer trust that those who break the law will be held accountable. 

Tragically, at a time when the rest of the country is once again experiencing historic reductions in crime, social reform DAs risk endangering public safety, and crime rates in their communities will inevitably rise.  In nearby Durham, for example, there has been a four percent increase in the violent crime rate and a 18 percent increase in the murder rate, as compared to this time last year since appointment of their social reform district attorney. 

Not only will these non-prosecution strategies inevitably make communities less safe, they also undermine our constitutional system of separation of powers.  It doesn’t take a law degree from a fine institution like Wake Forest to understand the principle that the legislative branch writes the law; the judicial branch interprets the law; and the executive branch enforces the law.  District attorneys, of course, are part of the executive branch, responsible for enforcing the law.  By refusing to prosecute broad swaths of core criminal offenses, social-reform DAs are ignoring duly-enacted laws in favor of their own personal notions of what they think the law should be.

Several of these DAs aren’t even trying to hide this power grab.  Earlier this year, in an op-ed in the Washington Post, a trio of reform prosecutors openly defied the separation-of-powers principle.  These prosecutors, who swore an oath to uphold the Constitution, proclaimed that they “don’t see the role of prosecutors elected by their communities through this narrow lens” and “proud[ly]” rejected “legislative decisions” they found “troubling” in light of their own personal views.

Now, with regard to these DA’s personal policy preferences, let me turn briefly to the issue of prosecutorial discretion.  There is no question that prosecutors have discretion to decide what cases to prosecute and how to spend their limited resources.  But these DAs are not making individualized decisions based on the facts and circumstances of particular cases.  They are predetermining whole categories of offenses for non-enforcement.  They are effectively legislating through inaction.  And the offenses they are unilaterally striking from the books are not antiquated or rare; they are basic criminal laws directed at maintaining public safety.  These DAs’ decriminalization strategies go far beyond prosecutorial discretion and fly in the face of the fundamental concept that no one part of the government exercises total control of our legal system.  If you believe in the rule of law, that is a problem.

As concerning as that is, it is not the only problem.  Another real tragedy of the social reform DAs’ non-prosecution strategy is its lack of respect for victims.  The refusal to enforce entire categories of criminal laws ignores the often tragic harm exacted upon innocent victims. 

Take the recent case of a woman, who happened to be a lawyer, who was brutally assaulted while walking her dog.  The would-be attacker mistakenly thought the woman was recording him while he and his brother smoked marijuana.  His response was to attack the woman, knocking her to the ground and sending her dog flying.  The woman suffered a skull fracture among other injuries and was left unconscious.  Bystanders bravely held the attacker down until police arrived to arrest him.  The effects of the attack have been long lasting.  The victim is reportedly still coping with speech and vision impairments as well as hearing loss as a result of the brain trauma she suffered.

When it came time for the violent defendant to face justice, the self-proclaimed social reform DA apparently focused on something other than the evidence and the legal elements of the crime.  This DA has publicly stated that she considers it her responsibility to “represent not just the victim, but the defendant and the community.”  Think about that: she says the prosecutor is to represent the defendant.  In this case, rather than pursue a felony conviction, she allowed the defendant to plead guilty to a misdemeanor and recommended a suspended sentence and one year of probation.  According to public reports, the victim “begged” prosecutors not to cut the deal, which she called ‘flagrant, appalling, and disgusting,’ in an e-mail to the prosecutor.

Victims deserve better.  They deserve public officials who will consider the individual circumstances of their case and seek real justice in accord with the laws that are on the books.     

So now let me turn to another angle that is sometimes raised to justify refusals to enforce existing laws.  Some suggest that extreme non-prosecution policies are necessary to fix what they describe as a “broken” criminal justice system.  But why are we to assume that the system is not working?  Violent crime rates in 2018 returned to near historic lows.  And, according to a recent Bureau of Justice Statistics report, national incarceration rates have likewise fallen 13 percent over the last decade to a 20-year low.  And it should never be forgotten that the individuals who are in prison are there only after they were individually convicted of crimes, either by plea or after trial.  While there can be individual cases that deserve further attention or redress, it is a fallacy to focus solely on the number of people in prison, as though they were rounded up en masse, which is not the case.

Some have argued that recent criminal justice reform legislation like the First Step Act represents a repudiation of historical law enforcement practices.  Not so.  There was wide bi-partisan support for the First Step Act.  Among other things, that legislation focuses on reducing recidivism, to help prevent future crimes.  The Department of Justice and our Bureau of Prisons have made implementing that legislation a priority, as Attorney General Barr and I have both emphasized

Let me give you a few illustrations:  In addition to sentence reductions that have resulted in the release of more than 4,700 inmates, we have updated policies for inmates to obtain “compassionate release,” and since the Act was signed into law, 107 inmates have received compassionate release, compared to 34 in 2018.  We launched a pilot program that has allowed over 260 elderly or terminally-ill inmates to transition to home confinement.  We have further individualized drug-treatment plans, so about 16,000 inmates are now enrolled in recovery programs.  And to reduce recidivism, we are advancing re-entry programming to help past offenders find work and relaunch their lives. 

But here is the key point about these improvements from the First Step Act:  It is only because of the success of the law enforcement approaches of the last several decades that we had the opportunity to consider and implement these improvements to the criminal justice system.  And a key part of fighting crime and protecting victims is helping to make sure that when these prisoners are released – as many of them will be, after serving their sentences – we give them the best possible chance at not re-offending.  It’s about public safety, plain and simple. 

It is only because we are strong on fighting crime and protecting victims that we can take the step of trying to help the offenders as well.  Keep in mind that federal prosecutions for violent crime are way up since the start of 2017.  So what this shows is that we can have a system that both vigorously pursues meaningful penalties against those who commit crimes, but also ensures that offenders who demonstrate rehabilitation are given a second chance.  

This kind of balance does not figure into the narrative pushed by social-reform advocates, which is often accompanied by harmful rhetoric that denigrates law enforcement and undermines the rule of law.  And that is another part of the problem with regard to prosecutors who don’t want to enforce basic laws, and who denigrate what law enforcement has accomplished.  When social reform DAs do that, they are sowing the seeds of mistrust by demeaning the very institutions they are supposed to lead.  They are flipping the script by casting criminals as victims and police as villains.  These false claims are demoralizing and foment hostility toward law enforcement.   

At one leading social-reform DA’s election victory party, supporters went so far as to chant profane anti-police slogans in celebration.  This divisive behavior is damaging to public safety and the public trust. 

The good men and women of law enforcement put their lives on the line for modest pay to keep our communities safe.  Decriminalization policies prevent them from doing their jobs, and fail to respect the risks they take to pursue violent criminals.  Such policies embolden offenders who believe they can harass or even attack police with impunity. 

Unfortunately, we’ve already begun to see examples of this.  In one major city, officers are being pelted by plastic buckets and doused with water in a string of incidents that display a total lack of respect.  Even more concerning, according to recent FBI analysis, “[d]ata has shown an increase in ambushes on our nation’s law enforcement officers.”

I am deeply concerned when I hear that some police departments have suffered harms to morale and officers are leaving the force as a consequence of these DAs’ peculiar policies.  Moreover, several social reform DAs have ousted large numbers of career prosecutors as part of their first acts upon taking office.  Those cast aside include experienced former leaders with years of service to their communities.  To ensure that qualified men and women continue to answer the call to serve, we must ensure that such actions are not based on false premises about what works and what doesn’t. 

Finally, let me address one other aspect of the non-enforcement policy problem. Some defenders of reform DAs claim that the non-prosecution strategies merely reflect the will of the communities that elected them.  If that were so, one wonders why those communities’ legislators would not simply change the laws to reflect their constituents’ views.  Indeed, one reason greater transparency about these non-enforcement policies is warranted is that it is far from clear that the public knows and wants prosecutors to tolerate crimes like burglary and theft without enforcement. 

Do you think Americans really want prosecutors who won’t enforce whole categories of laws?  It can be hard to overlook that some of these social reform DAs were elected in low-turnout primaries backed by unusual funding from out-of-state ideological advocates.  But elections are up to voters, so I do not mean to address any individual jurisdiction or any particular DA; my question is what kind of system will we have if our laws are simply to be ignored?  And I am especially focused on the problem that non-enforcement policies present to the goal of continuing to reduce violent crime and make our communities safer.  

That is why it is important to bring attention to the impact radical decriminalization policies have on victims and public safety.  We have achieved important crime reductions nationwide since the beginning of 2017, but that can vary in individual cities or counties.  So now is not the time to retreat from what works. 

The Department of Justice will continue to do what works.  But more than three quarters of all law enforcement resources nationwide are state and local, so the federal government lacks the ability to step in and fully fill the hole created by social reform DAs’ non-prosecution strategies.  To sustain our momentum at reducing crime, state, local, and federal partners must work hand in hand to fight violent crime.  I am pleased to say that cooperation is occurring in most of America.  I hope we will have strong partnerships everywhere.

Those of us who work in the Department of Justice know that it is a privilege to be entrusted with the awesome and humbling responsibility of enforcing the law.  We understand that along with that responsibility comes an obligation to faithfully and vigorously defend the rule of law.  I hope that some of you who are here today will feel the call to public service.  As lawyers, public or private, all of us have a duty to promote the rule of law.  That is the reason for my visit.  Thanks again to Dean Aiken and the Wake Forest Law community for the opportunity to speak here today.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida,  Resident Agent in Charge David Pharo, U.S. Fish & Wildlife Service, and Major Alfredo Escanio, Southern Region B Commander, Florida Fish & Wildlife Conservation Commission, announced that defendant, Alan Francisco Wheelock, 33, of Las Vegas, Nevada, pled guilty today in Miami, Florida for conduct that involved the purchase and sale of a Galapagos tortoise (Chelonoidis niger), which was possessed, transported, and sold in violation of the Endangered Species Act (ESA), Title 16, United States Code, Section 1538(a)(1)(E) and (G), and the federal Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B).

Wheelock, after entering his guilty plea today before U.S. District Court Judge Ursula M. Ungaro, was immediately sentenced to a two-year term of probation, with a special condition that he serve 120 days of home confinement. In addition, the Court imposed a $7,000 criminal fine, to be directed to the Lacey Act Reward Account and ordered that Wheelock perform 100 hours of community service. The charges against co-defendant Maurico M. Perez, a resident of Miami, were dismissed due to his death after the return of the Indictment.

According to the charges, statements in Court, and a Joint Factual Statement executed by the parties, on August 27, 2018, an Investigator and a Canine Officer with the Florida Fish & Wildlife Conservation Commission Division of Law Enforcement were alerted by K-9 “Mag” to a suspicious parcel at a Miami-area FedEx store. Inspection of the package revealed an ESA-listed, juvenile Galapagos tortoise, being shipped to Wheelock in Las Vegas.

The investigation revealed that in August 2018, Wheelock visited a public internet site for reptile enthusiasts. Wheelock saw an advertisement on the site by a licensed breeder, offering “Galapagos Hatchlings” for sale. The site also stated that, “A CBW [Captive-Bred Wildlife Registration Permit] is required if you are outside Florida – Valid proof will be required . . . make sure your CBW is up to date – I will check with proper authorities . . . .” 

Wheelock contacted his cousin, co-defendant Perez, via a series of Facebook chat messages and requested that he contact the breeder, pose as an in-state buyer, and acquire a baby Galapagos tortoise to be shipped via FedEx to Wheelock in Las Vegas. Wheelock offered Perez $400 to drive to the breeder’s facility in central Florida. Wheelock, using banking information provided by Perez, wired $4,500 into Perez’s bank account.

On August 25, 2018, Perez travelled by car from Miami, and met with the breeder, withdrawing $4,300 from a branch of his bank on the way. While at the breeder’s facility, Perez posted video clips photos to his Facebook account, which included depictions of juvenile Galapagos tortoises. Perez paid the breeder $3,900, in exchange for one juvenile Galapagos tortoise, which he transported back to Miami. On August 27, 2018, Perez was captured on videotape presenting the box containing the Galapagos tortoise to the FedEx facility in Miami and paying to have the package sent to a FedEx Shipping Center in Las Vegas, addressed to Wheelock.

On August 28, 2018, Wheelock took delivery of the parcel containing the Galapagos tortoise at the FedEx Store in Las Vegas. The entire transaction involving the parcel was captured on videotape, as well as being physically surveilled by a Special Agent of the FWS.

The tortoise at issue, referred to as “Miami,” has been transferred to the U.S. Fish & Wildlife Service and returned to Florida.

U.S. Attorney Fajardo Orshan commended the Special Agents of the Fish & Wildlife Service in Florida and Nevada, and Investigators with the Florida Fish & Wildlife Conservation Commission and Border Protection Officers, who investigated this matter.  She thanked the Fish & Wildlife Service’s National Forensic Laboratory for their technical support. The case was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.

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 and Special Agent George L. Piro of the FBI’s Miami Field Office announced that Hanson Richard Larkin, 26, of DeLand, Florida, pled guilty yesterday to a felony Information charging him with knowingly and intentionally transmitting a threatening communication in interstate commerce, in violation of Title 18, United States Code, Section 875(c).  Larkin, who has been in custody since his arrest, is scheduled for sentencing on January 8, 2020, at 2:00 p.m. before U.S. District Judge Jose E. Martinez, where he faces a possible maximum sentence of five years in prison.

According to the facts admitted at the change of plea, Larkin met an individual who resided in Miami-Dade County online around 2017, and over time, they became friends, communicating via text, phone, and various social media outlets. This friendship did not include any in-person interactions. On a number of occasions during the two years leading up to August 25, 2019, Larkin told this individual about his hatred of Jews. 

In 2019, Larkin repeatedly expressed his intent to travel to Miami, Florida to meet with this individual, even though the individual repeatedly urged him not to come because he did not want to meet with the defendant.   On August 24, 2019, Larkin traveled from DeLand, Florida, to Miami, Florida via train, and on August 25, 2019, while Larkin was in Miami-Dade County, he texted the individual that he was at his house, despite being told not to visit. 

Larkin then sent the following series of threatening text messages designed to coerce this individual to meet with him: (a) “…I bought a gun with my first paycheck If I don’t meet you I will be forced to use it.” (b) “I told you how much I hate Jews right?” (c) “If meeting me for five seconds is not worth the lives of multiple Jews than I have no other option.” (d) “There’s a chabad near me. And Amtrak has no security for weapon. Don’t make me make a choice theyll regret.” (e) “Ok so then we meet and no dead Jews?” 

The recipient took these threats seriously because of Larkin’s frequent expressions of hatred for Jews, and contacted local law enforcement.  No meeting ever took place between this individual and Larkin, and Larkin returned to DeLand on August 26, 2019, where he was eventually arrested. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  She thanked the West Miami Police Department, Hialeah Police Department, Volusia County Sheriff’s Office, DeLand Police Department, FBI Jacksonville, and Amtrak Police Department for their invaluable assistance.  This case is being prosecuted by Assistant U.S. Attorneys Edward N. Stamm 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.

“Station Domination” takes place at Knight Center Metromover Station

The Miami Super Bowl Host Committee, in conjunction with the Miami-Dade State Attorney’s Office, The Women’s Fund Miami-Dade, and other partners has launched a comprehensive outdoor campaign to stop sex trafficking in Miami-Dade County leading up to and beyond the February 2020 Super Bowl in Miami.

The campaign includes a rapid response local text or call trafficking hotline, 305-FIX-STOP, introduced to complement national and other hotlines. This means victims or community members who report trafficking crimes to the local hotline will be connected directly with local “305” Miami rapid response resources.

The launch event featured a complete “Station Domination” take over at the Knight Center Metromover Station. The campaign encompasses billboards, Metromover car wrap, transit stations, bus shelters, Metrorail interior posters, Metrorail station posters and Miami Beach local buses, as well as significant social media efforts. The campaign will be expanded to include additional messaging, languages, media, and locations.

“Earlier this year we launched our Stop Sex Trafficking Campaign – an unprecedented effort involving local, state and federal agencies, as well as a significant number of other partners who have come together to combat sex trafficking with new tools and zero tolerance,” said Miami Super Bowl Host Committee Chairman Rodney Barreto. “Since, we’ve worked together and tirelessly to ensure we do our very best to address this critical issue and create a model that will make a difference in our community, future Super Bowl host cities and beyond.

According to Miami-Dade State Attorney Katherine Fernandez Rundle, “This is a highly coordinated rapid response capability to recover victims and arrest offenders, including buyers and traffickers, and engage the local community to help victims escape and report trafficking.”

The U.S. Attorney’s Office for the Southern District of Florida is also a committed partner of the anti-trafficking campaign.  The Chief Federal Prosecutor for the Southern District of Florida, U.S. Attorney Ariana Fajardo Orshan stated, “Sex traffickers prey on the most vulnerable members of our society. They do so without regard to the devastation caused by their criminal acts, as they force and compel victims into prostitution, deprive them of their dignity and profit from their victimization. The U.S. Attorney’s Office stands ready to seek justice for the victims and just punishment for the traffickers. We implore the public to help us protect and serve our community by reporting suspected sex trafficking and/or human trafficking.”

Other key partners include:

• Ashley Moody, Attorney General for the State of Florida
• George L. Piro, Special Agent in Charge, FBI, Miami, FL
• Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations, Miami, FL
• The Miami-Dade State Attorney’s Human Trafficking Task Force
• The South Florida Human Trafficking Task Force
• Over 300 local participating local community organizations
• Stakeholders from throughout local, state, and federal agencies, and throughout the national anti-trafficking community.

“In our convening activity, our collective theme has been “One Team” to represent the determined work of all of the law enforcement agencies and community partners working together,” said The Women’s Fund Miami-Dade Executive Director Kathy Andersen. “We are united to build the strongest force in the country to combat trafficking. Our community is the eyes and voices of those enslaved against their will in trafficking. It is most significant that the campaign is informed directly by trafficking survivor-leaders and community partner working groups. Beware buyers and traffickers. You will be exposed and prosecuted.”

The campaign focuses on three messages:

• “See It. Snap It. Send It,” which alerts the community to use the Miami local hotline 305-FIX-STOP to activate the local Miami rapid response capabilities by texting or calling.
• “Not What You Think,” which features a middle-aged woman with a preteen girl, informing the community that sex trafficking may be facilitated by women as well as men, and breaking the myths of trafficking “stereotypes.”
• “Buy Sex. Be Exposed,” representing a man having been arrested for buying sex, reminding people that buying sex is illegal in Florida. The sex buyer online database in Florida took effect on July 1, 2019, ensuring buyers will be publicly exposed.

The campaign also includes the 24/7 National Human Trafficking Hotline: Call 1-888-3737-888, text “BeFree” (233733), or live chat at HumanTraffickingHotline.org.  Help is available in English, Spanish, Creole, or in more than 200 additional languages.

The highly collaborative campaign represents a united fight to combat human trafficking because:

• Tragically, Miami-Dade ranks #1 in the State of Florida, which ranks third in the nation, for human trafficking;
• Sex traffickers target our most vulnerable children, particularly those who have been sexually exploited, runaways and children in our child welfare system;
• In Miami-Dade approximately 40% of victims are minors, and 60% are adults with an average age of 18-23 years old;
• In Miami-Dade, there are documented cases of children as young as 12 being sold for sex;
• Children have reported being sold up to 20 times in a day;
• Sex traffickers consider trafficking in children to be a high-profit, low-risk enterprise. Some estimates project that a trafficker can make $150,000-$200,000 per child per year;
• Sex traffickers can be lone individuals, family members or extensive crime networks; and
• Sex trafficking exists within many venues, including homes, fake massage businesses, online escort services, residential brothels, in public on streets, truck stops, strip clubs, hotels and motels and elsewhere.

U.S. Attorney’s Office for the Southern District of Florida Joins the Strike Force

The Justice Department announced today 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.

At a press conference today at the Department of Justice in Washington, D.C., Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division explained that the PCSF will be an interagency partnership consisting of prosecutors from the Antitrust Division, prosecutors from 13 U.S. Attorneys’ Offices, including the U.S. Attorney’s Office for the Southern District of Florida, and investigators from the FBI, the Department of Defense Office of Inspector General, the U.S. Postal Service Office of Inspector General and other partner federal Offices of Inspector General.

“The Southern District of Florida is proud to be part of this targeted, national effort to combat antitrust crimes,” stated U.S. Attorney Ariana Fajardo Orshan. “Our South Florida taxpayers deserve to have their money safeguarded from criminal schemes and government contracts awarded on a level playing field.  We implore the public to report suspected price fixing, bid rigging, or other forms of collusion or fraud affecting government procurement of goods or services.”

Deputy Attorney General Jeffrey A. Rosen expressed the Department’s support for the initiative.  “To protect taxpayer dollars, the Justice Department is doing its part to eliminate anticompetitive collusion, waste and abuse from government procurement,” said Deputy Attorney General Rosen.  “To ensure taxpayers the full benefits of competitive bidding, experienced investigators and prosecutors with the necessary expertise will partner in this Strike Force to deter, detect and prosecute antitrust crimes and related schemes in government procurements.”

“The investigation and prosecution of individuals and organizations that cheat, collude and seek to undermine the integrity of government procurement are priorities for this administration,” said Assistant Attorney General Delrahim.  “The PCSF will train and educate procurement officials nationwide to recognize and report suspicious conduct in procurement, grant and program funding processes. We will aggressively investigate and prosecute those who violate our antitrust laws to cheat the American taxpayer.”

The PCSF will lead a national effort to protect taxpayer-funded projects at the federal, state and local level from antitrust violations and related crimes, starting with a focus on 13 districts throughout the country.  Prosecutors from the Antitrust Division and the participating U.S. Attorneys’ Offices, along with agents from the FBI and partner Offices of Inspector General, will work together to conduct outreach and training for procurement officials and government contractors on antitrust risks in the procurement process.  In addition, the partnered prosecutors and investigators will jointly investigate and prosecute cases that result from their targeted outreach efforts.

“Inspectors General throughout the federal government have a long history of rooting out waste, fraud and abuse in government contracting,” said Michael E. Horowitz, Inspector General of the Department of Justice and Chair of the Council of Inspectors General on Integrity and Efficiency.  “We welcome the opportunity to contribute our expertise to the important work of the Procurement Collusion Strike Force.  We look forward to partnering with the other participating members of the law enforcement community to hold accountable actors who seek to defraud the government and cheat taxpayers.”

“The FBI has a long history of working with our interagency and law enforcement partners to investigate public procurement crimes and ensure justice,” said FBI Criminal Intelligence Division Assistant Director Terry Wade.  “We are committed to working closely with our DOJ colleagues and our federal, state and local partners as we continue to successfully combat these crimes.”

“Individuals and companies that participate in procurement collusion cause significant harm and losses to the Department of Defense and to American taxpayers,” said Glenn A. Fine, Principal Deputy Inspector General, Performing the Duties of the Inspector General, of the Department of Defense Office of Inspector General.  “The DoD Office of Inspector General, and our criminal investigative component, the Defense Criminal Investigative Service, are committed to aggressively investigating those individuals and companies who would attempt to compromise government procurement processes.”

The Antitrust Division and its law enforcement partners have a history of prosecuting criminal antitrust conspiracies that take advantage of government contracts.  In late 2018 and early 2019, for instance, five South Korean oil companies agreed to plead guilty for their involvement in a decade-long bid-rigging conspiracy that targeted contracts to supply fuel to U.S. military bases in South Korea.  The Antitrust Division also indicted seven individuals for conspiring to rig bids and to defraud the government, and one executive was also charged with obstruction of justice.  In total, the companies have agreed to pay $156 million in criminal fines and over $205 million in separate civil settlements.  This year, the Justice Department, in partnership with the GSA Office of Inspector General, also indicted individuals for involvement in rigging bids submitted to the GSA.

The PCSF’s 13 U.S. Attorney partners include:

• Nicola T. Hanna, Central District of California

• McGregor Scott, Eastern District of California

• Jason R. Dunn, District of Colorado

• Jessie K. Liu, District of Columbia

• Ariana Fajardo Orshan, Southern District of Florida

• Byung J. “BJay” Pak, Northern District of Georgia

• John R. Lausch, Jr., Northern District of Illinois

• Matthew Schneider, Eastern District of Michigan

• Geoffrey S. Berman, Southern District of New York

• David M. DeVillers, Southern District of Ohio

• William M. McSwain, Eastern District of Pennsylvania

• Erin Nealy Cox, Northern District of Texas

• G. Zachary Terwilliger, Eastern District of Virginia

The PCSF’s investigative partners include:

• Department of Defense Office of Inspector General

• Federal Bureau of Investigation

• General Services Administration Office of Inspector General

• Department of Justice Office of Inspector General

• U.S. Postal Service Office of Inspector General

The PCSF has launched a publicly available website at https://www.justice.gov/procurement-collusion-strike-force, where government procurement officials and members of the public can review information about the federal antitrust laws and training programs, and report suspected criminal activity affecting public procurement.

Individuals and companies are encouraged to contact the PCSF if they have information concerning anticompetitive conduct involving federal taxpayer dollars by emailing [email protected].

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), and Anthony W. Rosa, Chief, Sunrise Police Department, announced that Dwight Courtney Grinion, 25, of Ft. Lauderdale, Florida, was sentenced today by U.S. District Judge William P. Dimitrouleas to a total of 17 years in prison and 5 years of supervised release for armed robberies in South Florida.

On Aug. 13, 2019, Grinion pled guilty to three counts of Hobbs Act robbery, one count of discharging a firearm in furtherance of a crime of violence, and one count of brandishing a firearm in furtherance of a crime of violence (Case No. 19-CR-60115-WPD).   

According to the court record, including an agreed upon factual proffer, Grinion robbed commercial establishments at gunpoint between March 22, 2019 and April 24, 2019.   On March 22, 2019, he robbed a Subway restaurant in Ft. Lauderdale and discharged a revolver during the commission of the crime.  On April 20, 2019, Grinion robbed a Dunkin Donuts store in Sunrise, Florida at gunpoint.  The last robbery, on April 24, 2019, occurred at Designers Jewelry Collection, a jewelry store at the Sawgrass Mills Mall in Sunrise.  During that robbery, Grinion pointed a revolver at an employee of the jewelry store while stealing a gold bracelet worth approximately $2,500.

All of the victim companies purchase products in interstate commerce and sell products to customers throughout the United States and abroad.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF, BSO and Sunrise Police Department in this matter.  This case was prosecuted by Assistant U.S. Attorney Robert Juman.

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

Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.  

John C. Demers, Assistant Attorney General for National Security; Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement. 

The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.

In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending.  A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.

Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan. He is scheduled to be arraigned on the charges on Nov. 13, 2019, at 10 a.m. in Miami.

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

Assistant Attorney General Demers and U.S. Attorney Fajardo Orshan commended the investigative efforts of the DOC and HSI.  They also thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.

This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.

MIAMI - Peter Sotis, 55, of Delray Beach, Florida, was arrested yesterday based on an indictment charging him with conspiracy to violate and attempted violation of the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR), as well as smuggling of goods.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; John C. Demers, Assistant Attorney General for National Security; Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office; and Anthony Salisbury, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office, made the announcement. 

The indictment alleges Sotis was the owner and principal of Add Helium, a Fort Lauderdale diving company. Sotis was charged with smuggling, conspiracy to violate and attempted violation of the IEEPA and the EAR by transferring dual-use goods, that is, articles that have both civilian and military application, for export to Libya without the required Department of Commerce license.

In particular, court documents indicated that Sotis and a co-defendant at Add Helium transferred four rebreathers, which were controlled under the EAR for national security reasons, to a shipping company for export to Libya after being informed by a Commerce agent that the items could not be exported while a license determination was pending.  A rebreather is an apparatus that absorbs the carbon dioxide of a scuba diver's exhaled breath to permit the rebreathing (recycling) of each breath. This technology produces no bubbles, thereby concealing the diver’s activities from those on the surface, and allowing a diver to stay underwater longer compared with normal diving equipment.

Sotis had his initial appearance on the charges today before U.S. Magistrate Judge John J. O'Sullivan (Case No. 19cr20693).  He is scheduled to be arraigned on the charges on Nov. 13, 2019 at 10 a.m. in Miami.

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

U.S. Attorney Fajardo Orshan and Assistant Attorney General Demers commended the investigative efforts of the DOC and HSI.  They thanked the FBI’s Miami Field Office and U.S. Customs and Border Protection for their assistance.

This case is being prosecuted by Assistant U.S. Attorney Michael Thakur of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.

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

A former South Florida banker pled guilty today in connection with a scheme to steal over $60 million from investors and producers seeking financing for motion pictures and theater performances. 

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

Benjamin Rafael, 30, of South Florida, admitted his role in the sophisticated fraud scheme during a change-of-plea hearing before U.S. District Judge Ursula M. Ungaro. Rafael pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-CR-20447). Rafael faces a maximum possible sentence of twenty years in prison.

According to the indictment, Rafael’s co-defendants Benjamin McConley and Jason Van Eman held themselves out as film producers and financiers.  In those roles, McConley and Van Eman offered to provide financing to investors and producers seeking funds to produce motion pictures, theater performances, and other projects. The indictment charges that McConley and Van Eman promised the victims that, in exchange for the victims’ cash contribution, McConley would match the contribution and use the combined funds to secure financing from financial institutions in South Florida and elsewhere. 

According to the indictment, victims sent tens of millions of dollars to accounts controlled by McConley and Van Eman based on these false representation and promises. In truth, McConley never “matched” the victims’ contributions as promised in the funding agreements. 

Instead of fulfilling their promises to victims, McConley and Van Eman allegedly stole the victims’ money by transferring the funds to their personal and corporate bank accounts, often within days of the victims’ contributions or loans.

In furtherance of the scheme, McConley and Van Eman convinced Rafael, a then-Wells Fargo Bank employee, to deceive victims about the security of their funds.   During the course of the scheme, McConley and Van Eman repeatedly directed Rafael to falsely assure victims that their contributions or loans had been “matched” as promised in the funding agreements.

Following Rafael’s termination from Wells Fargo Bank in June 2015, Rafael, McConley, and Van Eman repeatedly lied to victims by assuring them that Rafael was still a bank employee. 

During the course of the scheme, Rafael and his co-defendants also created and transmitted via e-mail, and through other means, false and fraudulent bank documents, including purported bank letters, including forged “proof-of-funds” letters, account signature cards, and deposit account balance summaries. 

McConley previously pled guilty for his involvement in the fraud scheme and is scheduled to be sentenced on Jan. 17, 2020, at 1:30 p.m.

Van Eman is scheduled for trial on Feb. 18, 2020, before Judge Ungaro.  He is presumed innocent of the charged conduct.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Maurice Johnson.  Assistant U.S. Attorney Adrienne Rosen is responsible for the asset forfeiture component of the case.

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

     U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that Port Everglades employees, William Woessner, 68, of Margate, Florida, David Moore, 43, of Pompano Beach, Florida, and Rajindra Lallharry, 60, of Coral Springs, Florida, and business owner Bryan Zascavage, 57, of Pompano, Florida, were sentenced to prison today for their involvement in a fraud scheme. The defendants had each previously pled guilty to participating in a conspiracy to commit fraud concerning programs receiving federal funds.

     According to the court record, including the factual statements in support of the defendants’ guilty pleas, Woessner, Moore, and Lallharry were issued purchase cards or P-cards, which were to be used to buy business related goods and services for Port Everglades. Instead, they utilized the P-cards to engage in schemes to illegally profit from the use of the cards. Zascavage operated a business, Z & Z, Inc., that provided goods and services to the Port. Woessner and Zascavage engaged in a scheme wherein Woessner would direct Zascavage to purchase certain goods. Woessner would pay for the goods using his Port Everglades P-card, but the goods were not sent to Port Everglades. Instead, Woessner utilized the goods at his plumbing company. In addition, Moore and Zascavage engaged in a scheme wherein Zascavage would receive payments for goods ordered by Moore utilizing his Port Everglades P-card. None of the goods would be sent to the Port.  Instead, Zascavage and Moore would split the illegally obtained funds. Further, John McGahee and Zascavage engaged in a scheme wherein Zascavage would receive payments for services ordered by McGahee utilizing his Port Everglades P-card. The services ordered by McGahee would not be performed by Zascavage or his company. Zascavage and McGahee would split the illegally obtained funds.

     Lallharry’s family owned five separate companies. Lallharry would utilize his P-card to make direct payments to each of the family-owned companies for goods to allegedly be utilized by the Port. The goods were not delivered to the Port. The illegally obtained funds were utilized by Lallharry and his family to pay personal expenses, including approximately $101,790.85 to pay monthly expenses due the Chapter 13 trustee overseeing Lallharry’s bankruptcy.

     Lallharry was sentenced by U.S. District Judge William P. Dimitrouleas to 21 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $206,297.74 in restitution (Case No. 19cr60205). After his sentencing, Lallharry was remanded to the custody of the U.S. Marshals Service to begin serving his sentence of imprisonment. Woessner was sentenced by U.S. District Judge Roy K. Altman to 21 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $153,685.88 in restitution (Case No. 19cr60202). Zascavage was sentenced by U.S. District Judge Ursula M. Ungaro to 12 months and 1 day in prison, to be followed by 3 years of supervised release, and was ordered to pay $205,706.90 in restitution (Case No. 19cr60203). Moore was sentenced by Judge Ungaro to 3 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $34,768.86 in restitution (Case No. 19cr60206).

McGahee  is scheduled to be sentenced on Nov. 18, 2019 (Case No. 19cr60204).

     U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in connection with this matter. She also thanked the Broward County Sheriff's Office - Public Corruption Unit, Office of the Broward County Auditors, and Port Everglades Department - Port Director's Office for their assistance with the investigation. The case was prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

     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

A Miami, Florida, business owner pleaded guilty today to failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

According to court documents, between 2002 and 2017, Ricardo Betancourt owned and operated multiple parcel delivery businesses in the South Florida area. Betancourt’s businesses earned gross revenues of more than $100 million. 

Through his businesses, Betancourt employed hundreds of employees and was responsible for collecting and paying over to the Internal Revenue Service (IRS) the taxes withheld from employees’ paychecks. Betancourt withheld payroll taxes from his employees, but he deliberately failed to pay over those withholdings and other associated taxes to the IRS, despite his obligation to do so. In 2013 and 2014, Betancourt did not pay over approximately 97 percent of the federal employment taxes he withheld from his employees. In 2015 and 2016, Betancourt did not pay over any of the federal employment taxes he withheld from his employees. For the quarter ending December 2016, Betancourt admitted that he failed to truthfully account for and pay over payroll taxes of approximately $727,478.  

Sentencing is scheduled for Feb. 12, 2020. Betancourt faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution, and monetary penalties. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Michael Boteler and Assistant Chief Charles Edgar of the Tax Division, who are prosecuting the case.

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

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 on Oct. 21, 2019, Torrie Chermaine Austin, 35, of Stuart, Florida, pled guilty before U.S. District Judge Robin L. Rosenberg in West Palm Beach, Florida to one count of production of 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.

At his sentencing, scheduled for Jan. 3, 2020 in Ft. Pierce, Florida, Austin faces a mandatory minimum sentence of 15 years in prison, a maximum statutory sentence of 30 years in prison, a lifetime of supervised release and a requirement that he register as a sex offender (Case No. 19cr14016).

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 is being 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.

A South Florida movie financier pled guilty in connection with a scheme to steal over $60 million from investors and producers seeking financing for motion pictures and theater performances. 

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

Benjamin McConley, 37, of South Florida, admitted his role in orchestrating the sophisticated fraud scheme during a change-of-plea hearing before U.S. District Judge Ursula M. Ungaro. McConley pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-CR-20447). McConley faces a maximum possible sentence of twenty years’ in prison.

According to court records, McConley held himself out as a film producer and financier.  In those roles, McConley offered to provide financing to investors and producers seeking funds to produce motion pictures, theater performances, and other projects. McConley promised the victims that, in exchange for the victims’ cash contribution, McConley would match the contribution and use the combined funds to secure financing from financial institutions in South Florida and elsewhere. 

Based on these false representations and promises, victims sent tens of millions of dollars to accounts controlled by McConley and his co-conspirators. In truth, McConley never “matched” the victims’ contributions as promised in the funding agreements. 

Instead of fulfilling their promises to victims, McConley and his co-conspirators stole the victims’ money by transferring the funds to their personal and corporate bank accounts, often within days of the victims’ contributions or loans.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Field Office.  The case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Maurice Johnson.  Assistant U.S. Attorney Adrienne Rosen is responsible for the asset forfeiture component of the case.

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

MIAMI - U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida joins the Drug Enforcement Administration (DEA) in announcing that this Saturday, October 26, 2019, from 10 a.m. to 2 p.m., DEA will host events throughout the country, including in South Florida, in support of National Prescription Drug Take Back Day.   The initiative is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs, as well as vaping devices and cartridges. The service is free and anonymous.

With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they are vulnerable to misuse, theft or abuse by family members and visitors, including children and teens.

For the first time, DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium ion batteries.

Concerns have been raised across the United States over illnesses and death caused by vaping and the high youth vaping initiation rates. In an effort to support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.

U.S. Attorney Ariana Fajardo Orshan said, "I encourage everyone in our South Florida community to bring their unused, unwanted and expired medications, as well as vaping devices and cartridges, to a local collection site this Saturday.  Help us to stop the wake of destruction and devastation caused by the opioid crisis and protect our loved ones from harm.”

"DEA’s National Prescription Drug Take Back Initiative helps get unused and unwanted prescription medications out of circulation and ensures their safe disposal," said Acting Administrator Uttam Dhillon. "This year, we are taking a step further by accepting vaping devices and cartridges as we work with our federal partners to combat this emerging public health threat to the nation’s youth."

Now in its tenth year, DEA has collected a total of more than 11 million pounds (almost 6,000 tons) of expired, unused and unwanted prescription medications through its Take Back Day events. DEA is continuing to register law enforcement partners and collection sites for the upcoming Take Back Day.  As of Oct. 15th, more than 4,500 registered law enforcement partners will assist with more than 5,250 registered sites and 135 tribal locations across the country, with more being added each day. 

Florida will have over 200 collections located throughout the state. The public can find a nearby collection site at www.DEATakeBack.com or by calling or 800-882-9539 or the DEA Miami Office at 571-362-3098.

National Take Back Day has received enthusiastic public support since its inception in 2010. Last April, the public turned in 469 tons (937,443pounds) of prescription drugs at more than 6,258 sites operated by the DEA and its 4,969 local and tribal partners. 

For more information about the harms of youth vaping, please visit: https://www.justthinktwice.gov/facts/vaping-what-you-should-know.

Four Assistant U.S. Attorneys for the Southern District of Florida Among Honorees

WASHINGTON – Attorney General William P. Barr recognized 295 department employees for their distinguished public service today at the 67th Annual Attorney General’s Awards Ceremony.  Sixty-two other individuals outside of the department were also honored for their work.  This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people. 

“Our greatest strength in our fight for justice is our people – the thousands of men and women who have dedicated their careers, often at great personal sacrifice, to working for justice in America,” said Attorney General William P. Barr. “As we reflect on the contributions of each of the 357 individuals we honor today, we should hold them up as examples of excellence that continue to inspire our own commitment, and also as reminders of the professionalism and the qualities exhibited throughout the Department.”

            “The extraordinary efforts undertaken by Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg, Lynn Kirkpatrick and John Shipley, to ensure that justice is served and that the rules of professional conduct are upheld, are undeniably deserving of these prestigious honors,” stated U.S. Attorney Ariana Fajardo Orshan.  “Their contributions have helped to protect the public from the scourge of illicit drugs and violence, and to promote professional responsibility within the legal profession.  The Southern District of Florida is incredibly proud of their unwavering commitment to the highest caliber of public service.”

This year’s program honors individuals across the department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings.  The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution.  They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.

Assistant U.S. Attorney John C. Shipley, Jr., was part of a team that was recognized for its outstanding litigation assistance with respect to critical ethical and professional responsibility issues that arose in the case of U.S. v. Philip Esformes, et al., the single largest healthcare fraud case ever brought against individuals by the  Department of Justice involving over $1 billion in false and fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary, or were procured through the payment of kickbacks. The recipients were called upon to independently review and defend Department of Justice attorneys and special agents against charges of prosecutorial misconduct and invasion of the defense camp. The team exhibited a high degree of professionalism and responsibility by making a thorough, yet independent, evaluation of the facts and then skillfully represented the interests of the U.S. by presenting the facts and legal argument in a manner best suited to achieve the best result for the case, defend the reputational interests of their colleagues, and maintain the Department’s commitment to professional integrity.

Assistant U.S. Attorneys Adam S. Fels, Andrea Goldbarg, and Lynn M. Kirkpatrick, along with the rest of the prosecution team received the sole award of the Department’s highest recognition, the Exceptional Service Award. This team successfully investigated and convicted Joaquín Guzmán Loera, also known as “El Chapo,” one of the most notorious international drug cartel leaders. Guzmán was a principal leader of the Sinaloa Cartel, a Mexico- based international drug trafficking organization responsible for importing and  distributing  staggering  quantities  –  tens  of  thousands  of  tons  –   of  narcotics from Central and South America into the U.S. over a 25-year period. The cartel controlled significant portions of Mexico and relied on the use of violence and corruption to maintain its power. Guzmán directed his hitmen to kidnap, interrogate, torture, and kill members of rival drug organizations, at times carrying out acts of violence personally. Guzmán also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation. To maintain his grip on certain parts of Mexico and further the interests of the cartel, Guzmán took advantage of a vast network of corrupt Government officials from local law enforcement officers, prison guards, and State officials to high-ranking members of the armed forces and politicians. Although indicted in multiple districts across the country, the U.S. Attorney’s Office for the Southern District of Florida, the Department’s Narcotic and Dangerous Drug Section, and the U.S. Attorney’s Office for the Eastern District of New York combined their efforts and resources to seek justice in a U.S. federal court in Brooklyn, New York for Guzman’s 25-year continuing criminal enterprise, plus multiple substantive international narcotics trafficking and weapons charges. The resulting 12- week trial included testimony from 56 witnesses; 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; and the seizure of weapons, ledgers, text messages, letters, videos, and voice recordings detailing the drug trafficking activity of Guzmán and his co- conspirators. On Feb. 12, 2019, Guzmán was convicted by a Federal jury in Brooklyn of all counts of the superseding indictment. On July 17, 2019, Guzmán was sentenced to life in prison plus 30 years.  The Court also ordered Guzmán to pay $12.6 billion pursuant to a forfeiture judgment.

Southern District of Florida Awarded More Than $3.4 Million in Funding for Safer Schools 

WASHINGTON – Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security—including funding to educate and train students and faculty—and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

“We must protect our children and stop the scourge of violence in schools,” stated U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida  “The millions of dollars in grant money that is being awarded to South Florida schools will help us to identify the threats, encourage reporting of potential dangers, provide critical health services and enhance school safety.  We are grateful to the Department for providing the Palm Beach County School District, Broward Sheriff’s Office, the School Boards of Miami-Dade and Broward Counties, the Miami-Dade County Public Schools Police Department, and countless other deserving communities with the resources needed to help support and protect our youth.”

The grants award more than $3.4 million in funding to prevent violence in schools in the Southern District of Florida. President Trump signed the STOP School Violence Act into law in March 2018, authorizing grants that are designed to improve threat assessments, train students and faculty to provide tips and leads, and prepare law enforcement officers and emergency professionals to respond to school shootings and other violent incidents. The grant programs are managed by OJP’s Bureau of Justice Assistance and the Justice Department’s Office of Community Oriented Policing Services.

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.
   

For more details about these individual award programs, as well as listings of individual 2019 awardees, visit https://go.usa.gov/xVJuV

About the Office of Justice Programs:

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

Joshua Ryan Joles, the CEO of LLC Wholesale Supply, LLC, Mohammad Mehdi Salemi, the CEO of Wholesalers Group, Inc. and Wholesalers Group, LLC, and bank account holders Angel Caminero Alvarez and Leonides Herrera were indicted on charges of money laundering, committing violations of the Federal Food, Drug, and Cosmetic Act, and mail fraud, related to their alleged participation in a scheme to sell diverted pharmaceuticals to unwitting pharmacies and consumers.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida stated, “The allegations set forth in this scheme strike at the peace of mind we should all feel when we buy prescription drugs from a pharmacy.  We all expect and should rest assured knowing that the drugs we are buying are safe, effective, and properly stored and handled.  Today and whenever necessary, we will continue to strike back at those who seek to profit by robbing the public of that peace of mind through brazen, criminal schemes.”

According to the indictment, Joles and Salemi are alleged to have purchased and distributed millions of dollars in diverted pharmaceuticals, which are prescription drugs illegally trafficked in a secondary or underground market (Case No. 19-20674-CR-Gayles).  The indictment explains that the diverted pharmaceuticals are not controlled substances, but rather, high priced medical drugs used to treat such conditions as mental illness, human immunodeficiency virus (HIV), and cancer.  They are branded drugs, produced by the original pharmaceutical developers as opposed to lower-priced generic drugs, but are acquired unlawfully -- through fraud, pharmacy burglaries, and cargo thefts.

Joles and Salemi are alleged to have acquired such drugs in large quantities, at a cost well-below normal wholesale prices, and then introduced the diverted drugs back into the legitimate marketplace.  The indictment further alleges that, because the pharmaceutical distribution system is regulated, to get diverted drugs back into the market, the diverters must, among other things, establish seemingly legitimate wholesale companies and bank accounts, produce fraudulent paperwork, and professionally package and ship the medicines to their pharmacy customers.  Joles and Salemi are alleged to have produced or caused the production of fraudulent paperwork, including falsified pedigrees, which are documents that identify the products and batch numbers of pharmaceuticals, describe their dates of manufacture and origin, indicate who purchased them, show when and where they were shipped, how they were purchased, and other information needed to trace them through the marketing chain.  Utilizing these false pedigrees, Joles and Salemi allegedly sold or caused the sale of these diverted pharmaceuticals to unsuspecting pharmacies and their patients. 

Additionally, Joles and Salemi, with the assistance of Alvarez and Herrera, are alleged to have laundered money as part of this scheme, including conducting financial transactions to promote the carrying on of the scheme and to conceal the nature, source and ownership of the money.

“This investigation into a South Florida based drug diversion group spanned the entire country, from California to Puerto Rico,” said George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office.  “It is truly an example of multiple federal and state agencies working together with private industry to take out of circulation thousands of bottles of potentially dangerous drugs, and also disrupt a money laundering scheme that moved millions of dollars a month through South Florida.”

“U.S. consumers are put at risk when prescription drugs are diverted from the FDA-regulated supply chain and then returned clandestinely for distribution to the public, as there is no longer any assurance that the products are safe and effective for their intended uses,” said Justin D. Green, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations’ (FDA-OCI) Miami Field Office. “We will continue to pursue and bring to justice those who put the public health at risk.”

Herrera was arrested this morning and will have his initial appearance Monday afternoon, Oct. 21, 2019, before U.S. Magistrate Judge Alicia M. Otazo-Reyes.  Joles and Salemi will have their initial appearances on later dates.  Alvarez remains a fugitive.

The prosecution was part of Operation Southern Hospitality, one of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking and money laundering enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

U.S. Attorney Fajardo Orshan praised the outstanding investigative work of the FBI and FDA-OCI.  She also thanked the U.S. Attorney’s Offices for the Northern District of California, the District of Arizona, and the Western District of Washington, the FBI’s Los Angeles, Phoenix and Seattle Field Offices, the U.S. Marshal’s Service in Miami, Florida Department of Law Enforcement, Attorney General's Office of Statewide Prosecution in Fort Lauderdale, and Medicaid Fraud Control Unit for their invaluable assistance. 

The prosecution of this case is being handled by Assistant U.S. Attorneys Frank Tamen and Walter M. Norkin.  Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture aspects of this matter.

The charges contained in the indictment are merely accusations and the defendants are presumed innocent unless proven guilty in a court of law.

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

MIAMI - A South Florida resident pled guilty today to 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, Ari C. Shapira, 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 announced that Francisco Joseph Arcila Ramirez (Arcila), a Colombian national, pled guilty to providing material support to a foreign terrorist organization, in violation of Title 18, United States Code, Section 2339B(a)(1).

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. 

Arcila is scheduled to be sentenced in Miami by U.S. District Judge Jose E. Martinez on Dec. 19, 2019 at 1:45 p.m. (Case No. 19CR20036).  Arcila faces a maximum statutory sentence of 20 years in prison, a lifetime term of supervised release, and a maximum fine of $250,000. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, CBP, ATF and ICE-HSI.  This case is being prosecuted by Southern District of Florida Assistant U.S. Attorneys Randy A. Hummel and Michael R. Sherwin, and by DOJ Counterterrorism Section 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.

A Coral Springs business owner was sentenced to prison yesterday for a visa fraud immigration scheme.  She attempted to obtain visas with false information for individuals from overseas.

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

Jenny Hernandez, 51, of Parkland, was sentenced to eighteen months in prison after previously pleading guilty to visa fraud, in violation of Title 18, United States Code, Section 1546(a) before U.S. District Judge Marcia G. Cooke (Case No. 19-cr-60134).  A restitution hearing is scheduled for Dec. 18, 2019.  

According to the court record, including stipulated facts and statements made during hearings, Hernandez knowingly made false material statements in immigration documents, specifically Form I-140’s, Immigrant Petitions for Alien Workers.  Hernandez owned and operated the Immigration Form Center, Inc. (IFC) in Coral Springs.  The defendant stated in applications she filed with U.S. Citizenship & Immigration Services (USCIS) that individuals from overseas were to be employed at certain businesses as multinational executives or managers.  However, these businesses never knew about these individuals and, furthermore, never made employment offers to them.  Hernandez profited from these misrepresentations, by receiving between $14,200 to $50,900 from individual applicants.  Hernandez also filed an application for an overseas individual to work at her bakery in Coral Springs, as a multinational executive or manager, when the individual was only selling jewelry inside the bakery.  This individual paid $64,000 to the defendant.

All of these petitions were completed at IFC in Coral Springs and subsequently filed with USCIS.  In addition to these documents, Hernandez filed additional documents accompanying the I-140 Petitions, including I-485 applications to adjust for permanent residency in the United States.  All of these payments were deposited into business checking accounts primarily controlled by the defendant.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter.  She thanked the members of USCIS for their assistance.  The case was prosecuted by Assistant U.S. Attorney Randy Katz. 

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 for the Southern District of Florida Ariana Fajardo Orshan, Nova Southeastern University’s Coalition for Research and Education Against Trafficking and Exploitation (CREATE) and the Federal South Florida Human Trafficking Task Force hosted a symposium yesterday to raise public awareness about human trafficking.  The free program provided advanced human trafficking training and resources to more than 380 individuals, including victim service providers, law enforcement personnel, prosecutors, medical professionals, and members of the local community.

“Partnerships and collaboration are vital to our fight against human trafficking,” stated U.S. Attorney Fajardo Orshan.  “We cannot rescue victims, provide services to survivors, or successfully prosecute traffickers without our expanded partnerships and ongoing collaboration.” 

The Federal South Florida Human Trafficking Task Force, led by the U.S. Attorney’s Office, Homeland Security Investigations, Miami-Dade Police Department, and International Rescue Committee, works to increase public awareness, identify victims, ensure that survivors receive assistance, and prosecute traffickers. The Task Force is composed of federal agencies including, the FBI (specifically, its Child Exploitation and Human Trafficking Task Force), U.S. Department of State’s Diplomatic Security Service, and U.S. Department of Labor.  Several other state and local law enforcement entities in South Florida are supportive task force members.  Additionally, the Task Force collaborates with non-law enforcement entities, including the Florida Department of Children and Families, service providers, victim advocates, faith-based organizations, academic representatives and community members. Presently, the Task Force includes more than 300 non-law enforcement members.  In addition, many of our northern partners support the West Palm Beach Human Trafficking Task Force, while the South Florida Human Trafficking Task Force, which covers Miami-Dad and Broward counties, has more than 400 members.  

CREATE’s mission is to equip all members of the community – including private citizens, educators, current and future health care professionals and members of organizations – with the skills to identify victims of human trafficking, in order to increase reporting and referrals to appropriate health and social services.

Since being appointed as U.S. Attorney for the Southern District of Florida in 2018, Ariana Fajardo Orshan has remained committed to expanding our partnerships to combat human trafficking, educating the public, and ensuring that the prosecution of human trafficking cases is a priority for the Office. She currently serves on the Attorney General’s Advisory Subcommittee on Human Trafficking.  Recently, she expanded the Special Prosecution’s Section of the U.S. Attorney’s Office. The Section has helped to oversee the district’s Human Trafficking and Project Safe Childhood Programs (PSC), and the Office’s Violence Reduction Partnership (VRP) Program, while prosecuting cases involving victims of violent crimes (resulting in death or serious bodily injury), human trafficking, child exploitation, and other criminal offenses.  As a native of Miami and concerned citizen, U.S. Attorney Fajardo Orshan is committed to raising public awareness and promoting community outreach – in order to help us all to combat human trafficking. 

Since the beginning of 2019, the Task Force has participated in more than 100 human trafficking community outreach events.  Audiences include grade school, university, and college students, teachers, professors, medical professionals, faith-based organizations, immigration and labor attorneys, federal, state, and local government employees, as well as hotel and motel employees.  These efforts come in advance of Miami Super Bowl 54 in February.  In preparation for the event, the Task Force will continue its efforts to expand partnerships, collaboration, training of state, local, and federal law enforcement officers and prosecutors, and community outreach.

The U.S. Attorney’s Office for the Southern District of Florida and the entire Task Force is fully committed to utilizing a victim-centered approach to rescuing victims and aggressively prosecuting traffickers.  From Fiscal Year 2013 through Fiscal Year 2019, the U.S. Attorney’s Office for the Southern District of Florida prosecuted 72 offenders in 51 human trafficking cases, including labor and sex trafficking. These cases collectively involved the victimization of more than 80 survivors of human trafficking.  For Fiscal Year 2019, the U.S. Attorney’s Office for the Southern District of Florida charged 12 human trafficking cases against 15 defendants in federal court, an increase from Fiscal Year 2018.  Presently, 5 human trafficking cases are charged federally in Miami.    

“We cannot do this work alone; we also rely on the members of our diverse community to continue to raise public awareness and report suspected trafficking,” stated U.S. Attorney Fajardo Orshan. “Sadly, despite the hard work of so many people in our community we continue to see human traffickers exploit children, adults, males, females, LGBTQ persons, drug addicts, foreign nationals and U.S. citizens.  We encourage everyone to report human trafficking and help victims to come out of the shadows, where they can be seen and set free.” 

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 CREATE visit www.nova.edu/create.  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.

To learn more about the nationwide Project Safe Neighborhoods (PSN) initiative and local Violence Reduction Partnership (VRP) visit https://www.justice.gov/psn,  https://www.justice.gov/usao-sdfl/violence-reduction-partnerships.

A Broward County resident has been charged with six armed robberies.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), and Anthony W. Rosa, Chief, Sunrise Police Department, made the announcement.

Dwight Courtney Grinion, 25, of Ft. Lauderdale, Florida, has been charged by indictment with six counts of Hobbs Act robbery, in violation of Title 18, United States Code, Section 1951(a); one count of discharging a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii); and five counts of brandishing a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii) (Case No. 19-CR-60115-WPD).   If convicted of the charged offenses, the defendant faces: 20 years in prison for each Hobbs Act robbery; life in prison for discharging a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 10 years in prison; and life in prison for brandishing a firearm in furtherance of a crime of violence, with a mandatory consecutive term of 7 years in prison.

According to the court record, including allegations contained in the criminal complaint and indictment, Grinion robbed six commercial establishments at gunpoint between March 22, 2019 and April 24, 2019.   During the first robbery, on March 22, 2019, at a Subway in Ft. Lauderdale, Grinion discharged a revolver.  The last robbery, on April 24, 2019, occurred at Designers Jewelry Collection, a jewelry store at the Sawgrass Mills Mall in Sunrise, Florida, and involved the brandishing of a revolver, the same kind of gun used in the other five robberies.  During the last robbery, Grinion is alleged to have pointed a firearm at an employee of the jewelry store and stolen a gold bracelet worth approximately $2,500.

All of the victim companies purchase products in interstate commerce and sell products to customers throughout the United States and abroad.

An indictment and criminal complaint merely contain charging accusations.  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 ATF, the Broward Sheriff’s Office and Sunrise Police Department in this matter.  This case is being prosecuted by Assistant U.S. Attorney Robert Juman.

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

An illegal charter operator was sentenced to federal prison on Oct. 11, 2019, for violating a U.S. Coast Guard Captain of the Port Order.

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

Dallas Allan Ladd, 38, of Miami Beach, previously pled guilty to violating a Captain of the Port Order, in violation of Title 46, United States Code, Section 70036 (Case No. 19cr20315).  U.S. District Judge Federico A. Moreno sentenced Ladd to 30 days in prison.  Following his incarceration, Ladd will be prohibited from owning or going aboard any boats while on probation for a period of three years.

According to the court record, Ladd is the registered owner of the 45-foot motor yacht SEA YOU TWERK.  On or about Feb. 10, 2019, the Coast Guard suspected that the SEA YOU TWERK yacht was operating illegally as a charter vessel.  Illegal charters can cause accidents resulting in property damage, injuries and death.  Given these concerns, the Coast Guard issued Ladd a Captain of the Port Order on Feb. 19, 2019, requiring him to immediately cease operation of the SEA YOU TWERK yacht as a passenger vessel until the defendant was in compliance with all federal laws and regulations.  Ladd was advised that his failure to comply with the Captain of the Port Order could subject him to civil penalties, imprisonment and a fine.

Thereafter, on or about March 31, 2019, Ladd continued to operate the SEA YOU TWERK as an illegal charter, in violation of the Captain of the Port Order. 

“The operation of illegal charters poses a safety risk to passengers and the public at large,” stated U.S. Attorney Fajardo Orshan.  “The U.S. Attorney’s Office will continue to partner with the U.S. Coast Guard to protect our South Florida residents and visitors.  We will continue to forge ahead with federal charges against those who knowingly violate laws and regulations that endanger lives and compromise legitimate business practices.”

“Those who seek to dodge federal regulations and take shortcuts by operating illegally willfully put their passengers at risk and will be held accountable,” said Capt. Janet Espino-Young, Chief of Coast Guard 7th District Prevention Department. “This sentence demonstrates the aggressive posture the Coast Guard and our partners from the U.S. Attorney’s Office have taken in the detection of illegal passenger vessels and in seeking maximum enforcement actions for violations.”  

U.S. Attorney Fajardo Orshan commended the investigative efforts of the CGIS in this matter.  This case was prosecuted by Coast Guard Special Assistant U.S. 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 financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments.  Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence.  Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.

According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador.  As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland.  To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.

Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate.  Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States. Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.

To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes.

This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami.  Southern District of Florida Assistant U.S. Attorneys Karen Rochlin,  Nalina Sombuntham and Alison W. Lehr have provided substantial assistance with the prosecution of this case, along with Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS). 

The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

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

To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.

FORT LAUDERDALE - Elvin I. Lewis, Jr., of Hollywood, Florida, was convicted today of conspiracy to commit money laundering and money laundering charges, following a five-day jury trial.  The charges stemmed from his decision to launder more than $3 million dollars in fraud proceeds from business email compromise (“BEC”) cyber scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS) Miami Field Office, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.

According to evidence at trial, from approximately November 2017 through August 2018, in Broward County, Florida, and elsewhere, Lewis knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h) (Case No. 19cr60034).  The purpose of the scheme was for Lewis and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between banks, and individuals.  As trial testimony established, Lewis also recruited others into the money laundering network, including a co-conspirator based in Detroit, whom he originally solicited on Craigslist.

Lewis’s co-conspirators – believed to be located abroad – contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scams.  The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors. 

Lewis’s role in the laundering conspiracy was to wire fraud proceeds from the BEC scams into other corporate accounts under his and his co-conspirators’ control, in return for a five to ten percent cut of the funds.  In particular, as trial evidence established, Lewis created more than eight accounts at different banks for his purported real estate investment business, “A NuFinancial Consortium LLC.”  Through these accounts, Lewis laundered more than $3 million in BEC proceeds in less than a year, approximately $2.3 million of which was laundered in less than two weeks.  Lewis variously converted the funds to cashier’s checks and cash, and wired money between accounts.

The business victims of the cyber scams included: a major Canadian city; a trucking company in Tennessee; a power company in Ohio; an axle company in Indiana and Detroit; an importing business in Chicago; and others.

In total, Lewis made more than $160,000 in cash during the course of the fraud and money laundering schemes.  He used the funds to acquire a Porsche, which law enforcement seized as part of this criminal case.

Lewis is scheduled to be sentenced on Jan. 10, 2020 at 3:30 p.m. before U.S. District Judge Roy K. Altman.  He faces a statutory maximum sentence of twenty years in prison as to each of the eleven counts of conviction.  He also faces up to three years of supervised release, restitution and monetary penalties. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and FBI in this matter.  She also thanked IRS-CI’s Orlando Field Office for the trial assistance provided by a money laundering expert.  This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michele S. Vigilance.  The asset forfeiture component of the case is being handled by Assistant U.S. Attorneys Alison W. Lehr and Daren Grove.

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.

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 Gregory Tony of the Broward County Sheriff’s Office (BSO) announced the Oct. 4, 2019 seizure of independentgirls.com, an Internet forum for escort services and prostitution.

The main purpose of independentgirls.com was to allow escort agencies and independent escorts to post advertisements for prostitution services and provide a forum in which potential customers of prostitution could review the prostitute and post it on the website for others to read.  Independentgirls.com allowed customers paying for sex to buy upgraded user accounts where they would be able to read customer reviews of advertising prostitutes, write reviews of prostitutes that were seen by other members, private message prostitutes, and view which prostitutes were currently available. Website members with upgraded user accounts were entitled to discounted hourly rates, invitations to parties hosted by independentgirls.com, as well as message forums discussing recent law enforcement action.  Some of the females advertised for escort services and prostitution were minor victims.

“Our goal, as a law enforcement community, is to ensure that websites that facilitate human trafficking and child exploitation cease to exist and that the traffickers are held accountable in a court of law for their criminal exploits,” stated U.S. Attorney Fajardo Orshan. “There is no lawful market for companies or individuals that profit off of illicit commercial sex and the victimization of others.”

“The FBI will not tolerate sex trafficking regardless if it is arranged in person or over the Internet,” said George L. Piro, Special Agent in Charge of the FBI Miami’s Field Office. “The FBI and our law enforcement partners will continue to work tirelessly to combat those who engage in the sexual exploitation of others for profit.”

“At the center of this investigation was a website operated out of Broward County that catered to prostitution and served as a platform for human traffickers to advertise their victims for commercial sex acts,” said Sheriff Gregory Tony. “I commend BSO detectives and our federals partners who, through this significant arrest and seizure of this website, have made a large impact on the human trafficking activities in South Florida.”

In April of 2019, Neil Steven Greenberg, of Sunrise, Florida, the owner of the website independentgirls.com was arrested on a federal indictment charging him with two counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) and (e) (Case No. 19cr60132).  During the execution of a search warrant at Greenberg’s residence, law enforcement is alleged to have discovered videos of Greenberg engaging in illicit sex acts with two minors.   The case is pending before U.S. District Court Judge Rodolfo A. Ruiz II in Fort Lauderdale.

The charges and allegations contained in an indictment are merely accusations.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

The effort to seize independentgirls.com was led by the U.S. Attorney’s Office for the Southern District of Florida.  The law enforcement agencies conducting the investigation and seizure include the FBI’s Miami Field Office, BSO, and the South Florida Internet Crimes Against Children/Human Trafficking Task Force.  The criminal case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton.  Assistant U.S. Attorney Richard O. Brown 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 on http://pacer.flsd.uscourts.gov.

MIAMI - Victor Manuel DeJesus, 47, of Miami-Dade County, who is a correctional officer at the Federal Correctional Institution (FCI) in Miami, has been arrested on 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, FBI’s Miami Field Office, made the announcement.

A 14-count indictment, filed in the Southern District of Florida, charges DeJesus and others with conspiring to bribe and bribing DeJesus with money in exchange for providing contraband to inmates within FCI-Miami.  According to the indictment, 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, the indictment alleges DeJesus used his official position to bring in prohibited items into the prison. The indictment further alleges that DeJesus had inmate co-conspirators distribute the contraband in FCI-Miami.

DeJesus will appear before U.S. Magistrate Judge Lauren F. Louis at 1:30 p.m. today. (Case No. 19CR20660)

An indictment contains only allegations. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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.

Isaac Grossman, 45, of Parkland, Florida, was arrested today on wire fraud, mail fraud, and money laundering charges, for allegedly directing an elder fraud scheme involving the sale of stock in Dragon-Click Corp, a South Florida-based technology company announced 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.  

Grossman was charged by an indictment, that was unsealed today, with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and money laundering, in violation of Title 18, United States Code, Section 19567 (Case No. 19CR60300).  If convicted, the defendant faces a maximum statutory sentence of up to 20 years in prison for each fraud count, and up to 10 years in prison for each money laundering count.

According to allegations in the indictment, from Sept. 2014 through April 2018, Grossman raised approximately $2.4 million in investor funds for a company he was president of, Dragon-Click Corp.  Grossman solicited investments from dozens of individuals across the country, most of whom were elderly retirees.  Grossman told potential investors that Dragon-Click was developing an internet application that would revolutionize internet shopping, by allowing a user to upload a photograph of any item the user wanted to purchase, identify all retailers offering that item for sale, provide price comparisons for that item across retailers, and provide a link to retailers’ websites where the user could purchase the item.  Grossman is alleged to have solicited funds by falsely telling potential investors they would double, triple, or quadruple their investments, and that Dragon-Click was on the verge of being sold to a large technology company, such as Google, Apple, or Amazon, for over $1 billion.  Grossman is also alleged to have falsely told investors that their investment money would be used to complete the technological development of the Dragon-Click internet application, to pay legal fees related to the patent application process, and to close the sale of the application to a large technology company.  Rather than using investors’ money for any legitimate business purpose for Dragon-Click, it is alleged that Grossman was misappropriating investors’ funds for his own personal use. 

Specifically, Grossman is alleged to have spent at least $1.3 million of investors’ money on gambling, diamond jewelry, luxury cars, tuition payments for his children’s private education, and other personal expenditures.  Among other unlawful transactions, the indictment alleges that Grossman spent $35,000 of investors’ funds on a 4.81 carat diamond ring, $21,200 for a lease payment on a McLaren MP4-12C, $36,500 to purchase a Chevrolet Corvette, and $34,500 to partially pay off his home mortgage.

The indictment further alleges Grossman fraudulently concealed from investors that, prior to raising funds for Dragon-Click, he had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker-dealer or associating with any broker-dealer firm, and that the U.S. Commodity Futures Trading Commission (“CFTC”) had imposed permanent registration and trading bans on Grossman, and had ordered him to pay restitution in the amount of $121,665.75.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office.  She also thanked the SEC’s Miami Regional Office for their assistance, as they had filed a parallel civil enforcement action against Grossman.  See SEC v. Isaac Grossman, et al., Case No. 18-61234-CV-BB (S.D. Fla.).  This case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.

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

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

Marchello Wilbon, 34, of West Palm Beach, entered a guilty plea yesterday before U.S. District Judge Rodolfo A. Ruiz II to the one-count indictment charging him with mail theft, in violation of Title 18, United States Code, Section 1708. (Case No. 19-80119-CR-Ruiz).  The defendant faces up to 5 years in prison, and up to $250,000 in fines on the charge when he is sentenced on December 13, 2019.

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 is being 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.