Southern District of Florida
Press releases recorded for this federal judicial district.
Nevada Resident Pled Guilty and was Sentenced in Miami for Trafficking an Endangered Galapagos TortoiseRead the Press Release
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.
Man Pleads Guilty to Sending Text Messages Threatening to Kill JewsRead the Press Release
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.
Miami Super Bowl Host Committee and Partners Launch Outdoor Stop Sex Trafficking CampaignRead the Press Release
“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.
Justice Department Announces Procurement Collusion Strike Force: A Coordinated National Response to Combat Antitrust Crimes and Related Schemes in Government Procurement, Grant and Program FundingRead the Press Release
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:
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Nicola T. Hanna, Central District of California
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McGregor Scott, Eastern District of California
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Jason R. Dunn, District of Colorado
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Jessie K. Liu, District of Columbia
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Ariana Fajardo Orshan, Southern District of Florida
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Byung J. “BJay” Pak, Northern District of Georgia
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John R. Lausch, Jr., Northern District of Illinois
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Matthew Schneider, Eastern District of Michigan
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Geoffrey S. Berman, Southern District of New York
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David M. DeVillers, Southern District of Ohio
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William M. McSwain, Eastern District of Pennsylvania
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Erin Nealy Cox, Northern District of Texas
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G. Zachary Terwilliger, Eastern District of Virginia
The PCSF’s investigative partners include:
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Department of Defense Office of Inspector General
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Federal Bureau of Investigation
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General Services Administration Office of Inspector General
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Department of Justice Office of Inspector General
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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].
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Broward County Resident Sentenced to Seventeen Years in Federal Prison for String of Armed RobberiesRead the Press Release
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.
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
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.
South Florida Resident Arrested for Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
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.
Former Wells Fargo Banker Pleads Guilty for Involvement in Movie Financing Fraud SchemeRead the Press Release
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.
Three Port Everglades Employees and Business Owner Sentenced to Prison for Fraud SchemeRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office announced that 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
Miami Business Owner Pleads Guilty to Employment Tax FraudRead the Press Release
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.
Martin County Man Pleads Guilty to Producing Videos of the Sexual Exploitation of a MinorRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Sheriff William D. Snyder of the Martin County Sheriff’s Office announced that 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.
Film Producer Pleads Guilty in Movie Financing Fraud SchemeRead the Press Release
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.
DEA to Accept Electronic Vaping Devices and Cartridges as Part of National Prescription Drug Take Back Day this Saturday, Oct. 26thRead the Press Release
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.
Attorney General William Barr Recognizes Department Employees and Others for Their Service at 67th Annual Attorney General AwardsRead the Press Release
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.
Department of Justice Awards More than $85.3 Million in Grants to Address School ViolenceRead the Press Release
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.
Two CEOs of Wholesale Pharmaceutical Companies and Two Owners of Bank Accounts Used for Money Laundering Indicted in Alleged Prescription Diversion SchemeRead the Press Release
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.
South Florida Resident Pleads Guilty to Selling Firearms to a Designated Foreign Terrorist Organization, the ELNRead the Press Release
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.
Broward County Business Owner Sentenced to Prison for Immigration Fraud SchemeRead the Press Release
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 Ariana Fajardo Orshan, Nova Southeastern University’s CREATE Program and Federal Task Force Host Human Trafficking SymposiumRead the Press Release
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.
Broward County Resident Charged with Six Armed RobberiesRead the Press Release
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.
Illegal Charter Operator Sentenced to Federal Prison for Violating Coast Guard OrderRead the Press Release
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.
Miami-based Financial Advisor Pleads Guilty for Conspiring to Launder Money Relating to FCPA and Ecuadorian Bribery Law ViolationsRead the Press Release
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.
Man Convicted by South Florida Jury of Laundering More than $3 Million in Proceeds from International Cyber ScamsRead the Press Release
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.
Law Enforcement in South Florida Lead Effort to Seize Independentgirls.com, an Internet Forum for Prostitution Ads Some Ads Involved MinorsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Sheriff 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.
Federal Correctional Officer Arrested and Charged with Bribery ConspiracyRead the Press Release
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.
Broward County Resident Charged with Wire Fraud, Mail Fraud, and Money Laundering Relating to Dragon-Click Investment Fraud Scheme that Targeted the ElderlyRead the Press Release
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.
West Palm Beach Man Pleads Guilty to Stealing Dozens of Letters from Residence in Lantana with over $170,000 in Checks InsideRead the Press Release
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.
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
On Oct. 8, 2019, Angel Armando Adrianzen, 45, of California was indicted by a Miami, Florida grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
Assistant Attorney General Jody Hunt, U.S. Attorney Ariana Fajardo Orshan, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that 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. According to the indictment, these callers claimed to be attorneys and 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. According to the indictment, 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.
Adrianzen was originally charged by criminal complaint and was arrested on Sept. 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt of the Department of Justice's Civil Division. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. 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.
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division of the U.S. Postal Inspection Service.
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.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
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. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
California Resident Charged with Leading Telemarketing Conspiracy to Defraud and Extort U.S. ConsumersRead the Press Release
MIAMI - On October 8, 2019, Angel Armando Adrianzen of California was indicted by a Miami grand jury on fraud and extortion charges for engaging with call centers in Peru that took money from U.S. Spanish-speaking victims through lies and threats. Adrianzen, 45, was charged with conspiracy to commit mail fraud and wire fraud, five counts of wire fraud, five counts of mail fraud, and four counts of extortion.
U.S. Attorney Ariana Fajardo Orshan, Assistant Attorney General Jody Hunt, and Acting Miami Division Postal Inspector in Charge Lesley C. Allison announced the return of the indictment.
The indictment alleges that 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. According to the indictment, these callers claimed to be attorneys and 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. According to the indictment, 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.
Adrianzen was originally charged by criminal complaint and was arrested on September 16 in California. He was ordered detained pending trial and is expected to arrive in Miami to face the charges against him next week.
“The charges in this case seek to protect vulnerable and elderly victims of an international fraudulent scheme. 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.
“The Department of Justice is committed to identifying and prosecuting foreign-based fraud schemes that target and extort U.S. consumers,” said Assistant Attorney General Jody Hunt. “The Department of Justice’s Consumer Protection Branch will continue to work hand-in-hand with our Transnational Elder Fraud Strike Force partners to bring to justice international fraudsters who prey on vulnerable U.S. consumers.”
“The defendant in this case used the U.S. Mail in furtherance of a criminal enterprise and Postal Inspectors were able to quickly identify the scheme and worked aggressively with the Department of Justice’s Consumer Protection Branch to ultimately bring him to justice,” said Lesley C. Allison, Acting Inspector in Charge of the Miami Division.
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.
The charges in the indictment are only allegations, and the defendant is presumed innocent unless and until proven guilty.
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. Today’s action was developed as part of the efforts of the Department’s Transnational Elder Fraud Strike Force, which the Attorney General established in June to combat the threat of foreign fraud schemes targeting American seniors.
South Florida Jury Convicts Man Who Cybserstalked and Threatened Families of Parkland VictimsRead the Press Release
MIAMI – Today, a federal jury in South Florida convicted Brandon Michael Fleury, 22, of Santa Ana, California, of cybserstalking and sending a kidnapping threat to families of victims of a mass shooting in Parkland, Florida, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.
According to evidence introduced at trial, Fleury used thirteen different Instagram accounts, using aliases including alleged Parkland shooter Nikolas Cruz, notorious serial killer Ted Bundy, and others, to target families and friends of Parkland shooting victims with messages over the course of three weeks between Dec. 22, 2018 and Jan. 11, 2019. Many of the messages, including ones written under usernames referring to Cruz and containing Cruz’s profile picture, taunted the message recipients about the deaths of loved ones in the Parkland shooting. On Dec. 25, 2018, Fleury, sent a message stating, “I’m your abductor I’m kidnapping you fool.” On January 9, 10, and 11, 2019, Fleury continued to harass, intimidate, and threaten the message recipients from multiple Instagram accounts. These included messages sent under the username “the.douglas.shooter,” and using a profile picture of Nikolas Cruz. These messages included statements like, “With the power of my AR-15, you all die,” and “With the power of my AR-15, I take your loved ones away from you PERMANENTLY.”
After examining Fleury’s tablets, law enforcement found thousands of saved images of Ted Bundy, images of the targeted victims, and saved screenshots of the messages that he had sent the victims.
Fleury was convicted of interstate transmission of a threat to kidnap, in violation of Title 18, United States Code, Section 875(c), and interstate cyberstalking, in violation of Title 18, United States Code, Section 2261A. Fleury is scheduled to be sentenced on Dec. 2, 2019 by United States District Judge Rudolfo A. Ruiz II (Case No. 19cr60056). Fleury faces a maximum statutory sentence of 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s South Florida Violent Crime Fugitive Task Force and Broward Sheriff’s Office in this matter. U.S. Attorney Fajardo Orshan also thanked the FBI’s Los Angeles Field Office and task force members. This case is being prosecuted by Assistant U.S. Attorneys Jared M. Strauss and Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Monroe County Resident Charged with Participating in a Romance and Investment Fraud Conspiracy Scheme that Targeted the ElderlyRead the Press Release
KEY WEST - A Monroe County resident was arrested on charges in connection with a romance and investment fraud scheme that targeted elderly victims throughout the United States, announced U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Miami Field Office.
Sean Kerwin Bindranauth, 42, of Key West, Florida, was charged in a ten-count indictment with conspiracy to commit money laundering, eight counts of money laundering, and conducting an unlicensed money transmitting business (Case No. 19-cr-10016-JEM). If convicted, Bindranauth faces a maximum statutory sentence of twenty years in prison for the money laundering conspiracy, twenty years in prison for each money laundering count, five years in prison for unlicensed money transmitting, and a fine up to $500,000 or double the proceeds as to the money laundering conspiracy and a fine of up to $1,000,000 as to each money laundering count of conviction. The total loss amount is more than $900,000. Bindranauth had his initial appearance and arraignment on Sept. 27, 2019, and trial is set for Dec. 9, 2019, before U.S. District Judge Jose E. Martinez in Key West.
According to the indictment, from at least as early as February 2018 and continuing through May 2019, Bindranauth was part of a conspiracy that used investment and romance scams to induce victims to money via wire, personal checks, or cash to Bindranauth for a purported investment or promissory payment. Bindranauth would allegedly send the funds out of the United States to Nigeria through Western Union and MoneyGram as well as bank-to-bank transfers. Several of the victims are over 60 years old. Bindranauth and his co-conspirators were given a total of nearly $1 million from over a dozen senior citizens and other victims.
An indictment is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI in this matter. This case is being prosecuted by Assistant U.S. Attorney Lindsey Lazopoulos Friedman.
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 Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
FBI Uniform Crime Report Shows 3.9 Drop in Violent Crime in 2018Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Throughout the past two years, we have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone. According to FBI’s Uniform Crime Report released this week, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.
“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”
U.S. Attorney Ariana Fajardo Orshan stated, “By reinforcing and amplifying our law enforcement and public partnerships we are able to combat the violent threats to our safety, security and well-being. The revitalized Project Safe Neighborhoods program exemplifies the impact of our collective strategies that target the most egregious offenders, reinvigorate our neighborhoods, and support our returning citizens. The U.S. Attorney’s Office for the Southern District of Florida applauds our collaborative and effective efforts to protect, educate and connect with our local residents.”
The U.S. Attorney’s Office for the Southern District of Florida amplifies the enforcement and community impact of PSN through the locally-based Violence Reduction Partnership (VRP). In South Florida, PSN uses a holistic, community-based approach to violence reduction that focuses on enforcement, prevention, and the successful reentry of returning citizens into our vibrant neighborhoods.
As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year:
Enforcement Actions
The U.S. Attorney’s Office in South Florida continues to partner with federal, state and local law enforcement to target the most violent offenders, felons in possession of firearms and ammunition, and those who threaten the safety and security of our local communities.
- Ariel Figueroa-Cacheres, of Palm Beach County, Florida was sentenced to 30 years in prison, after pleading guilty to possessing a machine gun in furtherance of a drug trafficking crime and possessing cocaine with the intent to distribute the controlled substance. https://www.justice.gov/usao-sdfl/pr/palm-beach-county-resident-sentenced-30-years-prison-distributing-cocaine-and-illegally
- Jonathan Demario Collins, of Pahokee, Florida was sentenced to more than 8 years in prison after having been convicted by a trial jury of being a felon in possession of a firearm. https://www.justice.gov/usao-sdfl/pr/pahokee-resident-sentenced-more-eight-years-prison-being-felon-possession-firearm
- Four Broward County, Florida residents were sentenced to terms between 34 years and life in prison, after having been convicted by a trial jury for their participation in a string of armed robberies using firearms. One defendant was also convicted of kidnapping four victims. https://www.justice.gov/usao-sdfl/pr/four-broward-county-residents-were-sentenced-life-prison-after-being-convicted-trial
- Pender Senatus, of Delray Beach, Florida was convicted by a trial jury of being a felon in possession of ammunition and was sentenced to 9 years in prison. https://www.justice.gov/usao-sdfl/pr/delray-beach-resident-sentenced-prison-being-felon-possession-ammunition
- Christopher Sergo Denis, of North Lauderdale, Florida was sentenced to more than 6 years in prison after pleading guilty to being a felon in possession of a firearm and possessing cocaine. https://www.justice.gov/usao-sdfl/pr/north-lauderdale-resident-sentenced-prison-being-felon-possession-firearm-and
- In Dec. 2018, the U.S. Attorney’s Office and our law enforcement partners announced the unsealing of federal charges today against 24 members and associates of a drug trafficking and money laundering organization ("DTO”) operating in the Little Havana neighborhood of Miami-Dade County, Florida and elsewhere. The defendants were charged in a 59-count indictment for their alleged conduct related to drug trafficking, violent crime, federal firearms offenses, and money laundering. https://www.justice.gov/usao-sdfl/pr/federal-indictment-charges-twenty-four-members-and-associates-drug-trafficking-and
- Trenard Caldwell, of Broward County, was sentenced to more than 13 years in prison, after previously pleading guilty to being a felon unlawfully in possession of a firearm and ammunition, possession of methamphetamine with intent to distribute, possession of unauthorized access devices, and aggravated identity theft. https://www.justice.gov/usao-sdfl/pr/broward-county-resident-sentenced-over-thirteen-years-prison-being-felon-possession
- Anthony Joseph Safiotti, a St. Lucie County, Florida felon, was convicted by a federal jury of aiding and abetting false statements to unlawfully purchase a firearm and was sentenced to 6 years in prison. https://www.justice.gov/usao-sdfl/pr/st-lucie-county-felon-convicted-trial-aiding-and-abetting-false-statements-unlawfully
- Adrian Tremayne Wilson, of Opa-Locka, Florida was sentenced to more than 5 years in federal prison, after having been convicted at trial of possession of an unregistered firearm. https://www.justice.gov/usao-sdfl/pr/opa-locka-resident-sentenced-63-months-prison-possession-unregistered-firearm-0
- In addition, the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies, provides additional crime-fighting support in South Florida. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Community Partnerships
In addition to our united law enforcement efforts, the U.S. Attorney’s Office for the Southern District of Florida remains committed to community outreach and crime prevention initiatives that can help to make our communities safer.
- Drug Education For Youth (DEFY)/VRP Leadership Summer Camp: This week-long, overnight camp provides at-risk youth, ages 9-12 years, with the self-esteem, leadership and teamwork tools needed to resist drugs, gangs, violent behavior, bullying, and cyberbullying. This summer, more than 50 youth attended the camp, from areas including: Homestead, Overtown, Goulds, Miami Gardens, Pompano and Lake Worth. More than 800 kids have attended the camp, since 2004. https://www.justice.gov/usao-sdfl/pr/us-attorney-s-office-and-community-partners-sponsor-drug-educationviolence-reduction
- Pre-K Reading Program: During monthly reading sessions, governmental, law enforcement and public sector volunteers connect with early learners (3 to 5 year olds) at child-care centers and elementary schools in high-crime areas. At the end of every reading session, each child is given a book to take home. Since its inception in 2013, the VRP Reading Program has expanded to 24 schools throughout the Southern District of Florida. On a monthly basis, the U.S. Attorney’s Office staff and volunteers read and distribute books to over 1,200 children districtwide. Since 2014, the VRP has given out more than 47,340 books to local children. https://www.justice.gov/usao-sdfl/violence-reduction-partnerships
- Project Sentry and Project Safe Childhood: During interactive programs, volunteers teach students to avoid violence by recognizing dangers in the community, reporting problems and peacefully resolving issues. The Project Sentry program focuses on guns, gangs, and violence deterrence, while Project Safe Childhood educates the youth regarding bullying, cyberbullying, and internet safety. The programs are approved in Miami-Dade, Broward and Palm Beach County schools.
- Making Smarter Choices Fieldtrips: Volunteers speak to middle school students, who visit the U.S. Attorney’s Office and Miami federal courthouses, about the importance of “Making Smarter Choices.” During the program, students participate in mock trial exercises.
- Peace Ambassadors Leadership Program: The Peace Ambassadors Leadership Program empowers high school juniors to be "change agents" in their family, school, and community. Academic excellence, courage, character, compassion, self-esteem, and personal responsibility are championed.
- United Way Reading Pals Program: During the academic year, volunteers read to and mentor Pre-K students at the Culmer Head Start Preschool in Overtown.
- Monthly Community Resource Fairs and Food Distribution Programs: The programs provide free food and essential services to local residents.
- Reentry Simulations:
- In Aug. 2019, the U.S. Attorney’s Office supported two Reentry Simulation Programs at the Federal Correctional Institution (FCI) in Miami that enabled federal inmates to experience some of the real-life barriers and obstacles that they might face as returning citizen
- In March 2019, the U.S. Attorney’s Office for the Southern District of Florida hosted the second annual Reentry Simulation at the Salvation Army’s Northwest Community Center in West Palm Beach. More than 120 community members, officials and stakeholders attended the event, which simulated the struggles and challenges faced by individuals who are transitioning from incarceration back into society. https://www.justice.gov/usao-sdfl/pr/us-attorney-s-office-hosts-second-annual-reentry-simulation
Improvements to Community Safety
- For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released today. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.
- The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.
- In 2018, the City of Miami had the lowest number of homicides since 1967.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
Man Convicted at Trial in Miami of Orchestrating Snapchat Sextortion Ring that Targeted ChildrenRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Chief W. Howard Harrison of the Planation Police Department, and Chief Dale Engle of the Davie Police Department, announced that on Sept. 27, 2019, a federal jury in Miami, Florida convicted Joseph Isaiah Woodson, Jr., 30, of Ashburn, Virginia, of using the internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses.
Woodson, Jr. was convicted at trial on three counts of Production of Child Pornography, in violation of Title 18, United States Code, Section 2251(a) and 2251(e), one count of Distribution of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(2), one count of Sending Extortionate Threats, in violation of Title 18, United States Code, Section 875(d), and one count of Conspiracy, in violation of Title 18, United States Code, Section 371 (Case No. 18cr60256). Sentencing is scheduled for Dec. 2, 2019, before U.S. District Judge Jose E. Martinez. The defendant faces a statutory minimum sentence of 15 years in prison and a maximum sentence of 117 years in prison.
According to the evidence presented at trial, beginning in October 2017 through September 2018, Woodson. Jr. persuaded, induced, enticed and coerced numerous minor female children across the country to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct using the camera on their cellular telephones. Woodson, Jr. infiltrated the Snapchat accounts of these children by pretending to be one of their friends on social media. Once given the passwords, Woodson, Jr. took over the victims’ Snapchat accounts and demanded the children send him sexually explicit videos and images of themselves using the web based texting application “KIK” in order to get back and regain control of their accounts. Woodson, Jr. conspired with others to systematically extort and exploit children using the internet.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI Miami’s Child Exploitation Task Force, in partnership with the Davie Police Department and Plantation Police Department. Coral Springs Police Department, Fairfax City Police Department, FBI Dallas, FBI Indianapolis, FBI Operation Rescue Me, FBI Technical Analysis Unit, Fort Bend County Sheriff’s Office, Homeland Security Investigations, Loudoun County Sheriff’s Office, and the U.S. Army Criminal Investigation Command all assisted with the investigation. The case is being prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach Gardens Man Sentenced to 20 Years in Federal Prison on Federal Child Pornography ChargesRead the Press Release
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro the of the FBI’s Miami Field Office announced that Matthew Tassin, 37, of Palm Beach Gardens, Florida, was sentenced to prison last week on federal child pornography charges.
Tassin previously pled guilty to distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B) (Case No. 19cr80064). On September 26, 2019, U.S. District Rodolfo A. Ruiz, II, sentenced Tassin to 20 years in prison, to be followed by 15 years of supervised release. Tassin was also ordered to pay $10,000 in restitution to the victims.
According to court records, Tassin engaged in conversations in the social media application “Kik” with other individuals to obtain and share images and videos of child pornography. Those images and videos included pre-pubescent children engaged in forced sexual acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visitwww.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. This case was prosecuted by Assistant U.S. Attorney Gregory Schiller.
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.
Irish National Extradited to the United States from the United Kingdom for Pleading Guilty to Trafficking of Rhinoceros Horns Sentenced to PrisonRead the Press Release
An Irish national who was extradited to the United States in August pleaded guilty and was sentenced today for his role in trafficking a libation cup made from the horn of a protected rhinoceros.
After entering his guilty plea today in Miami, U.S. District Judge Jose E. Martinez sentenced Sheridan to a term of 14 months in prison and two years of supervised release.
On Aug. 29, 2019, Richard Sheridan, 50, an Irish national from Cottenham, Cambridge, United Kingdom, was arraigned in federal court in Miami, Florida, on a May 15, 2014, indictment that charged Sheridan and Michael Hegarty, also an Irish national, with conspiracy to traffic in a libation cup made from the horn of protected rhinoceros. In addition to the conspiracy, the indictment charged Sheridan with smuggling a libation cup made from the horn of protected rhinoceros out of the United States. According to the indictment and a Joint Factual Statement signed by the parties, in 2012, Sheridan and Hegarty purchased a rhinoceros horn libation cup from an auction house in Rockingham, North Carolina, and then smuggled the cup out of the United States.
“Sheridan conspired to profit from the demise of one of the world’s most endangered species,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “We will continue to work with our international partners to fight the trade in protected and endangered species, and organized criminal enterprises associated with it.”
“For our critically endangered wildlife, every case that serves to deter their illegal poaching and trafficking in their artifacts is important to the global effort to preserve these iconic specimens for our children and the generations to come,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Only through the continued, collective efforts of the international community will the goal of preserving species under threat of extinction be realized. The U.S. Attorney’s Office for the Southern District of Florida commends the agencies and investigators on both sides of the Atlantic who worked together to make this result a reality.”
“Combating transnational organized crime that involves the trafficking of some of the worlds’ most endangered species continues to be of the highest priority,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “This investigation is one more example of the accomplishments that can be achieved when investigators around the globe share information and collectively pursue those who attempt to profit from the illegal trade of wildlife. It was that type of cooperation between Service special agents and London Metropolitan Police that resulted in today’s sentencing. ”
Following his extradition to the United States from Belgium, Hegarty pleaded guilty to conspiring with Sheridan to traffic in the libation cup. In November 2017, Hegarty was sentenced in federal court in Miami to 18 months in prison to be followed by three years of supervised release.
The U.S. Fish and Wildlife Service Office of Law Enforcement investigated the case. Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section and Southern District of Florida Assistant U.S. Attorney Tom Watts-FitzGerald are prosecuting the case with assistance from the Justice Department's Office of International Affairs.
Irish National Extradited to the United States from the United Kingdom Pleads Guilty to Trafficking of Rhinoceros Horns and is Sentenced to PrisonRead the Press Release
MIAMI – An Irish national who was extradited to the United States in August pleaded guilty and was sentenced today for his role in trafficking a libation cup made from the horn of a protected rhinoceros.
After entering his guilty plea today in Miami, U.S. District Judge Jose E. Martinez sentenced Sheridan to a term of 14 months in prison and two years of supervised release.
On Aug. 29, 2019, Richard Sheridan, 50, an Irish national from Cottenham, Cambridge, United Kingdom, was arraigned in federal court in Miami, Florida, on a May 15, 2014, indictment that charged Sheridan and Michael Hegarty, also an Irish national, with conspiracy to traffic in a libation cup made from the horn of protected rhinoceros. In addition to the conspiracy, the indictment charged Sheridan with smuggling a libation cup made from the horn of protected rhinoceros out of the United States. According to the indictment and a Joint Factual Statement signed by the parties, in 2012, Sheridan and Hegarty purchased a rhinoceros horn libation cup from an auction house in Rockingham, North Carolina, and then smuggled the cup out of the United States.
“For our critically endangered wildlife, every case that serves to deter their illegal poaching and trafficking in their artifacts is important to the global effort to preserve these iconic specimens for our children and the generations to come,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Only through the continued, collective efforts of the international community will the goal of preserving species under threat of extinction be realized. The U.S. Attorney’s Office for the Southern District of Florida commends the agencies and investigators on both sides of the Atlantic who worked together to make this result a reality.”
“Sheridan conspired to profit from the demise of one of the world’s most endangered species,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “We will continue to work with our international partners to fight the trade in protected and endangered species, and organized criminal enterprises associated with it.”
“Combating transnational organized crime that involves the trafficking of some of the worlds’ most endangered species continues to be of the highest priority,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service, Office of Law Enforcement. “This investigation is one more example of the accomplishments that can be achieved when investigators around the globe share information and collectively pursue those who attempt to profit from the illegal trade of wildlife. It was that type of cooperation between Service special agents and London Metropolitan Police that resulted in today’s sentencing. ”
Following his extradition to the United States from Belgium, Hegarty pleaded guilty to conspiring with Sheridan to traffic in the libation cup. In November 2017, Hegarty was sentenced in federal court in Miami to 18 months in prison to be followed by three years of supervised release.
The U.S. Fish and Wildlife Service Office of Law Enforcement investigated the case. Southern District of Florida Assistant U.S. Attorney Tom Watts-FitzGerald and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are prosecuting the case with assistance from the Justice Department's Office of International Affairs.
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.
Cuban Citizen Sentenced for Making False Statements on an Application for Lawful Permanent Residence and for Theft of Government FundsRead the Press Release
MIAMI – A Cuban citizen and high-ranking official in the Cuban government living in Miami, Florida, was sentenced on September 27, 2019, to six months in prison for making false statements in his application for lawful permanent residence and for theft of government funds. The Court also ordered the defendant to be deported to Cuba immediately upon completion of his sentence.
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 George L. Piro the of the FBI’s Miami Field Office, Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, and Special Agent in Charge Rodregas Owens from the Social Security Administration, Office of the Inspector General (SSA-OIG) made the announcement.
Saul Santos Ferro, 74, previously pleaded guilty to one count of making false statements in an immigration document and theft of government funds (Case No. 18cr20982). Santos was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida who also ordered Santos to be removed to Cuba immediately upon completion of his sentence and pay restitution in the amount $12,522.28.
According to admissions in court documents, Santos made a number of lies and misrepresentations in his application to register as a permanent resident, which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a Major in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades and was involved in arresting and detaining political dissidents in Cuba.
Additionally, Santos admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits. In fact, Santos told a series of lies about his past employment with the DSE to U.S. immigration authorities in the course of obtaining authority to enter the United States on a visitor visa in 2010 and 2012.
Santos further admitted to receiving Supplemental Security Income (SSI) benefits to which he was not entitled. SSI is a program funded by tax dollars and administered by the Social Security Administration to provide the elderly and people with disabilities with cash for basic needs including food, clothing and shelter. Santos and his wife qualified for and began receiving SSI benefits in September 2014, but by April 2015, Santos and his wife misrepresented their living situation and began receiving more money than they were entitled to receive. Because of his misrepresentation, the Court held Santos responsible for overpayments to him and his wife, which amounted to $28,491.83.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and SSA-OIG, with support from the FBI’s International Human Rights Unit, investigated the case.
Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida and Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section prosecuted the case, with the support of historian Joanna Crandall.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Law Enforcement Action Involving Fraudulent Genetic Testing Results in Charges Against 35 Individuals Responsible for over $2.1 Billion in Losses in One of the Largest Health Care Fraud Schemes Ever ChargedRead the Press Release
A federal law enforcement action involving fraudulent genetic cancer testing has resulted in charges in five federal districts against 35 defendants associated with dozens of telemedicine companies and cancer genetic testing laboratories (CGx) for their alleged participation in one of the largest health care fraud schemes ever charged. According to the charges, these defendants fraudulently billed Medicare more than $2.1 billion for these CGx tests. Among those charged today are 10 medical professionals, including nine doctors.
The Department of Justice, Criminal Division, together with the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and FBI spearheaded today’s landmark investigation and prosecution that resulted in charges against CEOs, CFOs and others.
In addition, the Centers for Medicare & Medicaid Services, Center for Program Integrity (CMS/CPI), announced today that it took adverse administrative action against cancer genetic testing companies and medical professionals who submitted more than $1.7 billion in claims to the Medicare program.
Today’s announcement is a culmination of coordinated law enforcement activities over the past month that were led by the Criminal Division’s Health Care Fraud Unit, resulting in charges against over 380 individuals who allegedly billed federal health care programs for more than $3 billion and allegedly prescribed/dispensed approximately 50 million controlled substance pills in Houston, across Texas, the West Coast, the Gulf Coast, the Northeast, Florida and Georgia, and the Midwest. These include charges against 105 defendants for opioid-related offenses, and charges against 178 medical professionals.
Today’s enforcement actions were led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF), as well as the U.S. Attorney’s Offices for the Southern District of Florida, Middle District of Florida, Southern District of Georgia, Eastern District of Louisiana, and Middle District of Louisiana. The MFSF is a partnership among the Criminal Division, U.S. Attorney’s Offices, the FBI, DEA and HHS-OIG. In addition, the operation included the participation of various other federal, state and local law enforcement agencies, including the Louisiana Medicaid Fraud Control Unit.
The coordinated federal investigation targeted an alleged scheme involving the payment of illegal kickbacks and bribes by CGx laboratories in exchange for the referral of Medicare beneficiaries by medical professionals working with fraudulent telemedicine companies for expensive cancer genetic tests that were medically unnecessary.
Often, the test results were not provided to the beneficiaries or were worthless to their actual doctors. Some of the defendants allegedly controlled a telemarketing network that lured hundreds of thousands of elderly and/or disabled patients into a criminal scheme that affected victims nationwide. The defendants allegedly paid doctors to prescribe CGx testing, either without any patient interaction or with only a brief telephonic conversation with patients they had never met or seen.
“The defendants are alleged to have capitalized on the fears of elderly Americans in order to induce them to sign up for unnecessary or non-existent cancer screening tests,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “The genetic testing fraud schemes put personal greed above the preservation of the American health care system. The U.S. Attorney’s Office in South Florida, alongside our law enforcement and USAO partners, remains committed to protecting taxpayer dollars and the Medicare program from abuse.”
“These defendants allegedly duped Medicare beneficiaries into signing up for unnecessary genetic tests, costing Medicare billions of dollars,” Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Together with our law enforcement partners, the Department will continue to protect the public fisc and prosecute those who steal our taxpayer dollars.”
“The scope and sophistication of the health care fraud detected in Operation Double Helix and the related Operation Brace Yourself is nearly unprecedented. But the citizens of the Southern District of Georgia should know that we put together an unprecedented response,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Our office charged more defendants, responsible for more health care fraud losses, than ever before in this office’s history. While these charges might be some of the first, they won’t be the last.”
“The defendants allegedly targeted elderly, disabled and other vulnerable consumers, luring them into this fraudulent scheme that affected victims nationwide and generated losses in excess of one billion dollars which spanned multiple jurisdictions,” said U.S. Attorney Peter G. Strasser for the Eastern District of Louisiana. “Schemes such as these have a profound effect on our nation, not only by the monies lost in the scheme, but also by stoking public distrust in some medical institutions. It is imperative to preserve taxpayer confidence whenever and wherever possible. Our office, along with our investigative partners, reminds seniors and their caregivers to be vigilant for fraudulent schemes. If you are aware of or believe you are the victim of a health care fraud scheme, please contact law enforcement.”
“We are honored to work every day alongside our law enforcement partners to stop the exploitation of vulnerable patients and misuse of taxpayer dollars,” said CMS Administrator Seema Verma. “In order to prevent additional financial losses, CMS has taken swift action to protect the Medicare Trust Funds from the providers who allegedly have fraudulently billed over $1.7 billion. CMS continues to use a comprehensive and aggressive program integrity approach that includes fraud prevention, claims review, beneficiary education, and targeting high-risk areas of the federal healthcare programs with new tools and innovative demonstrations.”
“Healthcare fraud and related illegal kickbacks and bribes impact the entire nation,” said Assistant Director Terry Wade of the FBI’s Criminal Investigative Division. “Fraudulently using genetic testing laboratories for unnecessary tests erodes the confidence of patients and costs taxpayers millions of dollars. These investigations revealed some medical professionals placing their greed before the needs of the patients and communities they serve. Today’s law enforcement actions reinforce that the FBI, along with its partners, will continue to pursue and stop this type of illegal activity.”
“Unfortunately, audacious schemes such as those alleged in the indictments are pervasive and exploit the promise of new medical technologies such as genetic testing and telemedicine for financial gain, not patient care,” said Deputy Inspector General for Investigations Gary L. Cantrell of HHS-OIG. “Instead of receiving quality care, Medicare beneficiaries may be victimized in the form of scare tactics, identity theft, and in some cases, left to pay out of pocket. We will continue working with our law enforcement partners to investigate those who steal from federal healthcare programs and protect the millions of Americans who rely on them.”
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In the Southern District of Florida, the following defendants were charged:
Richard Garipoli, 42, of Loxahatchee, Florida, the owner of a telemedicine company Lotus Health LLC (Lotus Health), located in Loxahatchee, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment charges that from January 2017 through September 2019, Garipoli, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $326 million, for which Medicare paid over $84 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with Lotus Health allegedly authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to Lotus Health in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories including Clio Laboratories in Lawrenceville, Georgia and LabSolutions in Atlanta, Georgia and Easton, Pennsylvania then allegedly submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Garipoli and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper of the Criminal Division’s Fraud Section
Jamie Simmons, 62, a resident of South Carolina, and the owner of telemedicine companies MedSymphony LLC (MedSymphony) and Meetmydocc LLC (Meetmydoc) in Ft. Lauderdale Florida, is charged with conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, and substantive counts of health care fraud and receiving kickbacks. The indictment alleges that from January 2018 through September 2019, Simmons, and unnamed co-conspirators, billed Medicare and Medicare Advantage plans over $56 million, for which Medicare paid over $17 million, for false and fraudulent Cancer Genomic tests (CGx Tests) that were not medically necessary, and not eligible for Medicare reimbursement. Doctors contracted with MedSymphony authorized bogus doctors’ orders that the CGx Tests were medically necessary when the doctors did not engage in treatment of the beneficiaries, had no physician-patient relationship with them, and often did not even speak with the beneficiaries for whom they ordered tests. The Indictment alleges that various companies paid kickbacks to MedSymphony through Meetmydoc in exchange for ordering and arranging for the ordering of CGx tests for Medicare beneficiaries, without regard to whether the CGx tests were medically necessary or eligible for Medicare reimbursement, and without regard for the fact that the tests were prescribed without any physician-patient relationship. Various laboratories then submitted false and fraudulent claims to Medicare and Medicare Advantage plans for the false and fraudulent CGx tests that were not medically necessary and not eligible for Medicare reimbursement. Simmons and others allegedly concealed the submission of these false and fraudulent claims to Medicare and Medicare Advantage plans; and diverted fraud proceeds for their personal use and benefit, the use and benefit of others and to further the fraud. The case is being prosecuted by Trial Attorneys James Hayes and Tim Loper.
Minal Patel, 40, of Atlanta, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary CGx tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who allegedly did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Patel, the owner of LabSolutions in Georgia and Pennsylvania, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. LabSolutions billed Medicare for more than $494 million. In addition, the government seized approximately $30 million in bank accounts from Patel, as well as luxury vehicles, including a Ferrari and a Range Rover. The case is being prosecuted by Trial Attorneys Tim Loper and James Hayes.
In the Eastern District of Louisiana, the following defendant was charged:
Khalid Satary, 47, of Suwanee, Georgia was charged based on his role in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries through telemarketing and “health fairs.” The tests were then approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and often did not even speak with the beneficiaries for whom they ordered tests. Satary, the owner of several labs in Georgia, Oklahoma and Louisiana, and his co-conspirators, through companies they controlled, then paid the telemarketers illegal kickbacks and bribes in exchange for the doctor’s orders and medically unnecessary tests. The labs included Performance Laboratories in Oklahoma, Lazarus Services in Louisiana, and Clio Labs in Georgia, where Elmore was CEO. Performance Labs, Clio Labs and Lazarus Services collectively billed Medicare for more than $547 million. In addition, the government seized 16 bank accounts and restrained real estate from Satary. The case is being prosecuted by Trial Attorneys Timothy Loper and Jared Hasten.
In the Southern District of Georgia, 19 defendants were charged:
Anthony T. Securo, 56, of Columbus, Georgia, was indicted by a federal grand jury in Savannah, Georgia, for his role in a scheme to bill Medicare and other health benefit programs for medically unnecessary durable medical equipment. According to the indictment, Securo, a medical doctor, signed thousands of orders for durable medical equipment for Medicare beneficiaries he claimed to be “treating,” but in fact never even met. These thousands of items were billed to Medicare for more than $23 million. According to the indictment, Securo ordered these medically unnecessary items after having short telephone conversations with the patients, but then signed medical records stating that Securo had performed examinations or physical tests of the patients that were never actually performed.
In addition, 18 other defendants were charged in the Southern District of Georgia by way of criminal information. The 18 other defendants include two “telemedicine” physician recruiters, seven physicians, two nurse practitioners, two individuals who brokered the sale of physician orders, one company that brokered the sale of physician orders, and four durable medical equipment companies. In total, the 19 defendants charged in the Southern District of Georgia were responsible for over $400 million in genetic testing, durable medical equipment, and pain cream billing to Medicare, according to court documents. The cases are being prosecuted by Assistant U.S. Attorneys J. Thomas Clarkson Jonathan A. Porter of the Southern District of Georgia
In the Northern District of Texas, the following defendant was charged:
Daniel R. Canchola, MD, 49, Flower Mound Texas, a physician, was charged for his alleged referral of Medicare beneficiaries for medically unnecessary “cancer screening,” or “CGx,” genetic tests. Canchola received illegal kickbacks and bribes for the CGx orders he signed, and he did so without examining or speaking to patients and in the absence of any physician-patient relationship. Oftentimes the beneficiaries for whom Canchola ordered CGx tests never received their test results. From in or about January 2018 through in or about March 2019, Canchola caused the submission of over $69 million in false and fraudulent claims to Medicare. The case is being prosecuted by Trial Attorney Brynn Schiess of the Fraud Section.
In the Middle District of Florida, the following defendant was charged:
Ivan Andre Scott, 34, Kissimmee, Florida, a marketer, was charged for his role in an alleged $2.8 million scheme to provide Medicare beneficiary information to doctors and telemedicine companies, that could then be billed for medically unnecessary genetic testing. The case is being prosecuted by Trial Attorney Alejandro J. Salicrup of the Fraud Section.
In the Middle District of Louisiana, the following defendants were charged:
Mark Allen, 51, of Greer, South Carolina, and Kevin Hanley, 42, of Prairieville, Louisiana, were charged for their roles in an alleged scheme to solicit medically unnecessary cancer genetic (CGx) tests from Medicare beneficiaries, have the tests approved by telemedicine doctors who did not engage in treatment of the beneficiaries, and submit claims through clinical testing laboratories that paid kickbacks in exchange for the referrals. Allen and his co-conspirators, through companies they controlled, solicited the tests and arranged for approvals by telemedicine providers. They then transmitted the test samples and orders to labs in Louisiana, including Acadian Diagnostic Laboratories LLC, where Hanley was the CFO, and elsewhere. Acadian, through Hanley and others, paid kickbacks to companies controlled by Allen and others to obtain the referrals, and submitted claims to Medicare for the tests. Acadian and other labs billed Medicare for more than $240 million. The case is being prosecuted by Trial Attorneys Tim Loper, Justin Woodard and Gary Winters of the Fraud Section and Assistant U.S. Attorney Kristen Craig of the Middle District of Louisiana.
A complaint, information or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $16 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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
Cuban Citizen Sentenced for Making False Statements on an Application for Lawful Permanent Residence and for Theft of Government FundsRead the Press Release
A Cuban citizen and high-ranking official in the Cuban government living in Miami, Florida, was sentenced to six months in prison for making false statements in his application for lawful permanent residence and for theft of government funds.
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, Special Agent in Charge George L. Piro the of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Saul Santos Ferro, 74, previously pleaded guilty to one count of making false statements in an immigration document and theft of government funds. Santos was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida who also ordered Santos to be removed to Cuba immediately upon completion of his sentence and pay restitution in the amount $12,522.28.
According to admissions in court documents, Santos made a number of lies and misrepresentations in his application to register as a permanent resident, which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status. Specifically, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a Major in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades and was involved in arresting and detaining political dissidents in Cuba.
Additionally, Santos admitted that he falsely stated that he never gave false or misleading information to any U.S. government official while applying for any immigration benefit and falsely stated that he never lied to U.S. immigration authorities to gain entry or admission into the United States and to obtain immigration benefits. In fact, Santos told a series of lies about his past employment with the DSE to U.S. immigration authorities in the course of obtaining authority to enter the United States on a visitor visa in 2011 and 2012.
Santos further admitted to receiving Supplemental Security Income (SSI) benefits to which he was not entitled. SSI is a program funded by tax dollars and administered by the Social Security Administration to provide the elderly and people with disabilities with cash for basic needs including food, clothing and shelter. Santos and his wife qualified for and began receiving SSI benefits in September 2014, but by April 2015, Santos and his wife misrepresented their living situation and began receiving more money than they were entitled to receive. Because of his misrepresentation, the Court held Santos responsible for overpayments, which amounted to $28,491.83.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Social Security Administration Office of Inspector General with support from the FBI’s International Human Rights Unit investigated the case.
Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section, with the support of historian Joanna Crandall and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida, prosecuted the case.
Southern District of Florida Charges 30 Individuals Responsible for $86 Million in Fraudulent Billing as Part of Healthcare Fraud TakedownRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Brian A. Benczkowski, Assistant Attorney General for the Justice Department’s Criminal Division; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Atlanta Regional Office, announced that a total of 30 defendants were charged with offenses relating to their alleged participation in various schemes to defraud Medicare, Medicaid and private insurance. The conduct allegedly resulted in more than $86 million in fraudulent billings. Those charged included physicians as well as other medical and business professionals.
The charges announced involve schemes alleged to have billed Medicare, Medicaid and private insurance companies for medically unnecessary services, such as home health, prescriptions drugs, durable medical equipment and addiction treatment services.
“Health care programs provide vital services to Americans,” said U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida. “Those who perpetuate these pervasive health care fraud schemes steal taxpayer dollars from intended beneficiaries and threaten the viability of government programs. We commend the coordinated and continued efforts of our federal law enforcement partners to root out fraud and abuse in our healthcare system.”
“The defendants charged today allegedly bilked the American people to the tune of millions in fraudulent billings,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “All Americans should stand with the Department as we fight the fight against these unscrupulous schemes in Florida, Georgia, and across the country.”
“Being a healthcare professional in the Medicare program is a privilege, not a right. When physicians and other healthcare providers put their own financial gain above patient well-being and honest billing of government health programs, they violate the basic trust that taxpayers extend to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG Atlanta Regional Office. “Today’s arrests puts corrupt medical professionals on alert that law enforcement will do everything possible to root out all forms of waste, fraud and abuse in our federal health care programs.”
“The FBI and its federal, state and local partners are working tirelessly every day to detect and combat schemes like those announced today,” said Special Agent in Charge George L. Piro of the FBI’s Miami Field Office. “Despite our efforts, we still need the public's help in reporting suspicious activity. If anyone suspects they are a victim of health care fraud please call your local FBI office or the HHS Office of Inspector General.”
The following are some of the health care fraud cases have been charged recently in the Southern District of Florida:
Substance Abuse Treatment:
U.S. v. Peter Port, Brian Dublynn, & Jennifer Sanford, Case No. 19-20583-CR-Williams
Peter Port, 64, of Boca Raton, Brian Dublynn, 62, of Fort Lauderdale, and Jennifer Sanford, 57, of Hollywood, were charged for their alleged participation in a scheme to defraud private health insurance companies. Port, Dublynn and Sanford were each charged with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. In addition, Port and Dublynn were each charged with one count of conspiracy to commit money laundering and five counts of money laundering. The defendants caused Safe Haven Recovery Inc. (Safe Haven), a substance abuse treatment facility in Miami, and several clinical laboratories to submit false and fraudulent claims to health insurance plans for addiction treatment services that were not provided as billed and laboratory tests that were not medically necessary. DOJ Trial Attorney David A. Snider is prosecuting this case.
Home Health:
U.S. v. Dr. Richard S. Mallia, Case No. 19-20623-CR-Altonaga
Richard S. Mallia, D.P.M., 55, a podiatrist, was charged by indictment with one count of conspiracy to defraud the United States and to receive kickbacks, one count of conspiracy to commit health care fraud and wire fraud, and three counts of health care fraud, for his role in a health care fraud conspiracy that caused a loss of approximately $7.7 million to the Medicare program. The indictment alleges that Mallia accepted cash kickbacks in exchange for writing medically unnecessary home health prescriptions and also participated in a scheme to submit claims to Medicare for relatively expensive foot procedures that he never performed. DOJ Trial Attorney Alexander Thor Pogozelski is prosecuting this case.
U.S. v. Maribel Sera, Case No. 19-20625-CR-Williams
Maribel Sera, 51, of Hialeah, was charged by information with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the information, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Juan Jose Mesa, et al., Case No. 19-20574-CR-Gayles
Juan Jose Mesa, 58, and Madelaine Varona, 47, both of Miami, owners and/or operators of All Excellent OT-PT Service LLC of Miami and Cruz Healthcare Corp. of Miami, respectively; Sandra Cardona, 47, of Hialeah, an allegedly unlicensed therapist; and Silvia Salvatori, 67, of Pembroke Pines, Florida, a licensed massage therapist, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud. Mesa and Varona were also charged with five and six counts of health care fraud, respectively. The charges stem from Mesa’s and Varona’s alleged roles in a scheme to defraud Part A of the Medicare program of more than $4 million by billing for home health services that were not rendered and paying kickbacks to patient recruiters in exchange for patient referrals. Cardona and Salvatori, who were allegedly not licensed to provide physical therapy, accepted payment from a licensed physical therapist, paid by their co-conspirators, in exchange for allegedly obtaining signed patient visitation forms from Medicare beneficiaries used to submit false and fraudulent claims. Assistant U.S. Attorney Kevin Larsen is prosecuting this case.
U.S. v. Sara Tania Ruiz and Maria Laura Prieto, Case No. 19-20588-CR-Moore
Sara Tania Ruiz, 55, of Hialeah, and Maria Laura Prieto, 60, of Miami, were charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Marisol Padilla, Case No. 19-20589-CR-Martinez
Marisol Padilla, 48, of Hialeah, was charged by indictment with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendant participated in a conspiracy to solicit and receive kickback payments for the referral of Medicare beneficiaries to TC Home Health Care of Hialeah. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Ana Maria Fernandez and Berta Leon, Case No. 19-20573-CR-Ungaro
Ana Maria Fernandez, 62, and Berta Leon, 69, of Miami, Florida, were charged with conspiracy to defraud the U.S. and the solicitation and receipt of kickbacks in connection with a federal health care program. According to the indictment, the defendants participated in a conspiracy to use their company ABC Medical Solutions Corp. of Miami, to solicit and receive kickback payments for the referral of Medicare beneficiaries to home health agencies, including ACM Home Health Corp. of Miami and TC Home Health Care Inc. of Hialeah, Florida. Assistant U.S. Attorney Timothy J. Abraham is prosecuting this case.
U.S. v. Jocelyn De La Caridad Perez and Joaquin Guevara, Case No. 19-20582-CR-Altonaga
Jocelyn De La Caridad Perez, 41, and Joaquin Guevara, 46, both of Miami, were charged by indictment with one count of conspiracy to receive health care kickbacks. Perez was also charged with one count of conspiracy to commit health care fraud and wire fraud, and Guevara was also charged with three counts of receipt of kickbacks in connection with a federal health care program. According to the indictment, Perez was an administrator of Joe Rehabilitation and Diagnostic, Inc. (Joe Rehab), an outpatient rehabilitation facility in Doral, Florida, that purportedly provided therapy services to Medicare beneficiaries. As part of the fraudulent scheme, Perez allegedly conspired with others to pay kickbacks and bribes for the referral of Medicare beneficiaries to Joe Rehab so their information could be used to submit fraudulent claims to Medicare for services purportedly provided, regardless of whether the Medicare beneficiaries needed or received the services. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Private Insurance:
U.S. v. Ivan Bejerano, Case No. 19-20591-CR-King
Ivan Bejerano, 49, of Miami, was charged by indictment with seven counts of health care fraud and one count of conspiracy to commit health care and wire fraud. According to the indictment, Dynamic Physical Rehab Inc. (Dynamic) was a Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. From June 2017 through July 2019, Bejerano allegedly submitted and caused the submission of claims, via interstate wires, totaling approximately $2.5 million that falsely and fraudulently represented that various health care benefits, primarily physical therapy, were medically necessary, prescribed by a doctor, and had been provided by Dynamic to insurance beneficiaries of Blue Cross Blue Shield (BCBS). Assistant U.S. Attorney Shannon Shaw is prosecuting this case.
U.S. v. Deivys Ernesto Alvarez, Case No. 19-20604-CR-Bloom
Deivys Ernesto Alvarez, 48, of Hialeah, was charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and four counts of health care fraud. According to the indictment, Alvarez was the owner of Diagnostic Center of Medley Inc., a Miami medical clinic. AP & JL Medical Center Inc. (AP & JL) was another Miami medical clinic that purportedly provided private insurance beneficiaries with various medical treatments and services. Alvarez and co-conspirators allegedly recruited and paid Comcast Corp. and Telemundo Corp. employees, through Diagnostic Center of Medley Inc., and referred those employees and/or the employees’ personal information to AP & JL to fraudulently bill BCBS. Alvarez and his co-conspirators allegedly submitted and caused the submission of false and fraudulent claims, via interstate wires, totaling approximately $800,500. Assistant U.S. Attorney Timothy J. Abraham is prosecuted this case.
U.S. v. Francisco Abreu Tartabull, Case No. 19-20605-CR-Altonaga
Francisco Abreu Tartabull, 53, of Miami, was charged by indictment with conspiracy to commit health care fraud and wire fraud in connection with his role in a $2.1 million private insurance fraud scheme. According to the indictment, Tartabull was the owner and operator of South Dade Medical Center Inc. (South Dade), a Miami medical clinic that purportedly provided Blue Cross Blue Shield insurance beneficiaries with various medical treatments and services. As part of the fraudulent scheme, Tartabull and his co-conspirators submitted more than $2.1 million in fraudulent claims to Blue Cross Blue Shield. These claims falsely represented that the benefits Tartabull’s clinic had billed insurance for were medically necessary, prescribed by a doctor, and had been provided by South Dade to these beneficiaries. As a result of these false claims, Blue Cross Blue Shield paid Tartabull’s clinic more than $920,000. Tartabull then used this ill-gotten money for his own personal use and benefit, and to further the fraud. The FBI investigated this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case. Assistant U.S. Attorney Anne P. McNamara is prosecuting this case.
Pharmacy:
U.S. v. Elba Cobos Baile and Yolanda Castano, Case No. 19-20581-CR-Cooke
Elba Cobos Baile, 60, and Yolanda Castano, 55, both of Miami, were charged by indictment with four counts of health care fraud and one count of conspiracy to commit health care fraud and wire fraud. Cobos and Castano were the owners and operators of Pharmacy Solution, a retail pharmacy in Miami-Dade County. The indictment alleges that from on or about March 1, 2012 to September 17, 2014, Cobos and Castano submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by Pharmacy Solution to Medicare beneficiaries. As a result of these false and fraudulent claims, Medicare prescription drug plan sponsors allegedly made payments funded by the Medicare Part D Program to the corporate bank accounts of Pharmacy Solution in the approximate amount of at least $2.1 million. Assistant U.S. Attorney Christopher J. Clark is prosecuting this case.
U.S. v. Tania Rodriguez and Rafael Vidal, Case No. 19-20584-CR-King
Tania Rodriguez, 48, and Rafael Vidal, 61, both of Miami, were charged by indictment with one count of conspiracy to commit healthcare and wire fraud and seven counts of health care fraud. According to the indictment, the defendants participated in a conspiracy to use their company, American United Pharmacy Corp. of Miami, to offer and pay kickbacks for the referral of Medicare beneficiaries to their pharmacy, and to submit false and fraudulent claims to Medicare for prescription drugs that were not provided to Medicare beneficiaries. Assistant U.S. Attorney David Turken is prosecuting this case.
U.S. v. Ricardo Ignacio Perez and Ricardo Perez-Leon, Case No. 19-20594-CR-Williams
Ricardo Ignacio Perez, 54, and Ricardo Perez-Leon, 31, both of Miami, the owners and operators of three Miami pharmacies, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud; one count of conspiracy to defraud the United States and pay and receive health care kickbacks; and three counts of health care fraud. The indictment alleges that the defendants participated in a scheme to pay kickbacks and bribes to patient recruiters and to fraudulently bill Medicare drug plan sponsors for prescription medications. The indictment alleges that, during the course of the fraudulent scheme, the defendants received approximately $5.3 million from Medicare drug plan sponsors for prescription medications that were medically unnecessary, never provided and/or never purchased by the defendants’ pharmacies. DOJ Trial Attorneys Sara Clingan and Tim Loper are prosecuting the case.
Durable Medical Equipment:
U.S. v. Steven Kahn and Pamela Edwin, Case No. 19-80169-CR-Rosenberg
Steven Kahn, 61, of Boca Raton, and Pamela Edwin, 33, of Delray Beach, the owner and office manager, respectively, of a Broward county telemedicine company, were charged by indictment with one count of conspiracy to commit health care fraud and wire fraud and three counts of wire fraud. Kahn was also charged with five counts of money laundering. The indictment alleges that the defendants paid kickbacks and bribes to physicians in exchange for signing doctors’ orders, and that the defendants then sold the doctors’ orders to Medicare providers who used the orders to submit approximately $39 million in fraudulent claims to Medicare. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. v. Jordan Karlick, Michael Moranz and Jordan Chibnick, Case No. 19-80168-CR-Rosenberg
Jordan Karlick, 33, of Boca Raton, Michael Moranz, 32, of Lake Worth, and Jordan Chibnick, 36, of Plantation, the owners of Palm Beach durable medical equipment (DME) companies, were charged by indictment with one count of conspiracy to commit healthcare fraud and wire fraud, one count of conspiracy to defraud the United States and pay kickbacks, four counts of health care fraud, and three counts of payment of kickbacks. The indictment alleges that the defendants paid kickbacks and bribes in exchange for signed doctors’ orders for DME, which the defendants used to fraudulently bill Medicare for over $23 million. The indictment alleges that defendants sought to impede Medicare beneficiary’s ability to return DME that they did not want or need to defendants’ companies, so that defendants could continue to bill Medicare for that DME. DOJ Trial Attorneys Sara Clingan and Catherine Wagner are prosecuting the case.
U.S. Attorney Fajardo Orshan commends the investigative efforts of HHS-OIG and FBI.
A criminal complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Man Pleads Guilty in Connection with Torture and Kidnapping PlotRead the Press Release
Today, a South Florida man pled guilty to charges arising from his participation in kidnapping a victim at gunpoint and, along with his co-conspirators, facilitating his torture.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Justin Boccio, 33, of Deerfield Beach, pled guilty to conspiracy to commit kidnapping, in violation of Title 18, United States Code, 1201(c); and kidnapping, in violation of Title 18, United States Code, Section 1201(a) (Case No. 19-CR-20261). Boccio is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on December 5, 2019 at 9:00 a.m. He faces a maximum statutory sentence of life in prison.
According to court records, Boccio and co-defendant Serge Nkorina (“Nkorina”), along with others, plotted to kidnap and torture a victim in an attempt to obtain tens of thousands of dollars from him. To facilitate the kidnapping, on or about December 30, 2018, Nkorina and Boccio purchased supplies at a Home Depot in Broward County, Florida. On or about January 5, 2019, the two rented a van from Budget with Florida tag number GHPT19. Then, on January 14, 2019, Boccio entered the victim’s office and made false representations on paperwork inside of the victim’s office. Later that same day, January 14, 2019, Nkorina and Boccio intercepted the victim in a Walmart parking lot in Broward County, Florida. Nkorina and Boccio blindfolded the victim and forced the victim into the rental van. The kidnappers then transported their victim to a storage facility in Margate, Florida, in which they burned the victim’s hands with a blowtorch while threatening to kill him with a firearm and other weapons. The kidnappers demanded information about the victim’s home address, including access codes to the victim’s residence. On or about January 15, 2019, Nkorina visited the premises of the victim’s home while carrying a firearm. Ultimately, also on January 15, 2019, Nkorina and Boccio left the victim, with his hands and feet bound, in his vehicle, which they relocated to the parking lot of Cheetah Gentlemen’s Club in Broward County, Florida.
Boccio is detained in South Florida and Nkorina was arrested and detained in Spain. Nkorina has not yet made his appearance in the South Florida case and is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office in this matter. She thanked the Hallandale Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller in the Southern District of Florida.
The case is 19-20261-CR-CMA, pending before United States District Judge Cecilia M. Altonaga. 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.
32-Year-Old North Carolina Resident Pleads Guilty to Sex Trafficking of a MinorRead the Press Release
On September 24, 2019, Willie Dishon Matthew Obadiah, 32, of Charlotte, North Carolina, pled guilty to sex trafficking of a minor, before U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
In February 2019, Obadiah met the minor victim through Facebook, and communicated with her via Facebook Messenger and text messages. At the time, both Obadiah and the minor victim lived in North Carolina, where he was already prostituting women. Through his communications with the victim, Obadiah learned that she was a minor. In fact, he asked her to send a photograph of her identification card to him. When he saw her age on the photograph, he sent her a message stating that he wished she had a “fake id” instead. Obadiah continued to communicate with the minor victim online, and learned that she was a runaway. While she was on the run, Obadiah agreed to pick up the minor victim. Shortly thereafter, he began prostituting the minor victim at various hotels, initially in North Carolina and then in Miami. Obadiah told the minor victim how much to charge for sex acts, how to deal with customers or “johns,” and what rules to abide by. Obadiah posted advertisements online for the minor victim, to which customers responded. Obadiah drove the minor victim to South Florida after a few days, where he prostituted her at hotels in Miami. The minor victim ran away from Obadiah, who returned to North Carolina, where he continued to prostitute women. He was arrested on April 19, 2019 by the Charlotte-Mecklenberg Police Department.
Obadiah is scheduled to be sentenced on December 5, 2019, at 9:00 a.m. in Miami, before Judge Bloom (Case No. 19-cr-20321). He faces a mandatory minimum term of imprisonment of ten years and a statutory sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The FBI’s Child Exploitation and Human Trafficking Task Force investigated this case in partnership with the Federal South Florida Human Trafficking Task Force, which includes the Miami-Dade Police Department’s Human Trafficking Squad, International Rescue Committee, and Florida Department of Children and Families (DCF). FBI Charlotte, Charlotte-Mecklenberg Police Department, Polk County Sheriff’s Office, and the U.S. Attorney’s Office for the Western District of North Carolina assisted with the case.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, International Rescue Committee, DCF, and all those who assisted in this matter. Assistant U.S. Attorney Vanessa Johannes prosecuted this case.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Delray Beach Doctor Sentenced to Prison and Ordered to Pay Restitution on Federal Child Pornography ChargesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, announced that Dr. David Edward Nowak, 42, of Delray Beach, Florida, was sentenced to prison on federal child pornography charges.
Dr. Nowak previously pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B) (Case No. 19cr80049). On September 17, 2019, U.S. District Judge Roy K. Altman sentenced Dr. Nowak to 9 years in prison, to be followed by 20 years of supervised release. Dr. Nowak was also ordered to pay $100,000 in restitution to the victims.
According to court records, from 2015 through 2019, Nowak accessed peer-to-peer networks to obtain images and videos of child pornography. Those images and videos included pre-pubescent children engaged in forced sexual acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Ariana Fajardo Orshan commended the investigative efforts of the FBI in this matter. This case was prosecuted by Assistant U.S. Attorney Gregory Schiller.
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.
Compounding Pharmacy, Two of Its Executives, and Private Equity Firm Agree to Pay $21.36 Million to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that compounding pharmacy Diabetic Care Rx LLC, or Patient Care America (PCA), PCA’s Chief Executive Officer Patrick Smith, PCA’s former Vice President of Operations Matthew Smith, and private equity firm Riordan, Lewis & Haden Inc. (RLH) have agreed to resolve a lawsuit alleging that they violated the False Claims Act through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need, which were reimbursed by TRICARE, the federal health care program for military members and their families. PCA and RLH have agreed to pay $21,050,000, Patrick Smith has agreed to pay at least $300,000, and Matthew Smith has agreed to pay at least $12,788. These settlement amounts were based on defendants’ ability to pay.
“Kickback schemes taint decision-making and cause taxpayer-funded health care programs to pay for items or services that patients may not need,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will hold accountable health care providers involved in such schemes designed to induce referrals of prescriptions that are reimbursed by federal health care programs.”
“The prosecution and resolution of this case demonstrates the U.S. Attorney’s Office continuing commitment to hold all responsible parties to account for the submission of claims to federal health care programs that are tainted by unlawful kickback arrangements,” said United States Attorney Ariana Fajardo Orshan. “Kickback schemes lead to unnecessary medical services and drive up the cost of health care for all.”
“This settlement sends a clear message about the Defense Criminal Investigation Service (DCIS) and its law enforcement partners’ unwavering commitment to protect the integrity of TRICARE, the Department of Defense’s health care program which serves to protect our U.S. military, their family members, and military retirees,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Health care providers who manipulate and abuse the TRICARE program in order to seek financial gain by submitting false claims and demonstrating a lack of regard for TRICARE patients and the health care plan which is charged to provide their medical care, will be diligently investigated and held accountable for their actions.”
This settlement resolves a lawsuit pursued by the United States against PCA for allegedly paying kickbacks to outside “marketers” to target military members and their families for prescriptions for compounded creams and vitamins, which were formulated to ensure the highest possible reimbursement from TRICARE. The United States alleged that the marketers paid telemedicine doctors who prescribed the creams and vitamins without seeing the patients, or in some cases, even speaking to them. The settlement also resolves the United States’ allegations that PCA and a marketer routinely jointly paid the copayments owed by patients referred by the marketer, without any verification of the patients’ financial needs, and then disguised the payments as coming from a sham charitable organization, which was affiliated with the marketer. Finally, the settlement resolves the United States’ allegations that PCA continued to claim reimbursement for prescriptions referred by the marketers despite regularly receiving complaints from patients that revealed the prescriptions were being generated without patient consent or a valid patient-prescriber relationship. RLH, the private equity firm that managed PCA on behalf of its investors, allegedly knew of and agreed to the plan to pay outside marketers to generate the prescriptions and financed the kickback payments to the marketers. Patrick Smith and Matthew Smith were executives of PCA who allegedly executed the scheme.
The lawsuit resolved by the settlement was originally filed under the whistleblower (or “qui tam”) provisions of the False Claims Act by Marisela Medrano and Ada Lopez, two former employees of PCA. The qui tam provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act authorizes the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined yet.
This civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section), the United States Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, and the U.S. Food & Drug Administration’s Office of Criminal Investigations.
The lawsuit is captioned United States ex rel. Medrano and Lopez v. Diabetic Care Rx LLC, d/b/a Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Broward County Resident Sentenced to 66 Months in Prison and Ordered to Pay over $200K for Defrauding Investors in Public Impact Projects Throughout AfricaRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and the Office of Inspector General (OIG) for the Export Import Bank of the United States (EXIM Bank) announced that Bernd Zalke Rind, 63, of Broward County, Florida was sentenced to prison and ordered to pay restitution for orchestrating a fraud scheme that preyed on individuals looking to make public impact investments in Africa.
Rind had previously pled guilty to wire fraud and aggravated identity theft (Case No. 18-cr-60323). He was sentenced to 66 months in prison by U.S. District Senior Judge William J. Zloch on June 25, 2019. Last week, on September 13, 2019, Rind was ordered to pay $217,315 in restitution by U.S. District Judge Robert N. Scola, Jr.
According to the court docket, including the criminal Indictment and a Stipulated Factual Basis that was filed in support of Rind’s guilty plea, between October 2017 and through May 2018, Rind utilized fraudulent EXIM Bank documents as part of an “advance fee” scheme. As part of this scheme, Rind would obtain legitimate EXIM Bank documents through his company, B&T Trust, LLC. Rind would then alter these documents to make it appear that he had obtained EXIM Bank financing for various public interest construction projects in Africa. This included fake loans totaling hundreds of millions of dollars that, according to Rind, provided financing for a school in Botswana, a low-income housing project in Zimbabwe, a Solar Power plant, and a medical clinic in Zambia. Using the lure of lucrative and socially impactful investments, along with the assurance of guaranteed EXIM Bank financing, Rind tricked investors into paying him hundreds of thousands of dollars in up front “retainer fees” in order to avoid losing the fake EXIM loans that he had supposedly obtained. Rind received at least $217,315 in illegal proceeds as a result of his fraudulent scheme. The victim investors are located throughout Africa and the United States. This was Rind’s second Federal felony conviction related to fraudulent business practices.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of EXIM Bank’s Office of Inspector General – Office of Investigations in this matter. This case was prosecuted by Assistant U.S. Attorney Frederic Shadley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Securities Lawyer Charged with Securities Fraud Relating to 1 Global Capital Investment SchemeRead the Press Release
A South Florida securities lawyer and former outside counsel for 1 Global Capital, LLC has been charged with securities fraud in connection with an investment fraud scheme that impacted more than 3,600 investors in 42 different states.
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.
Jan Douglas Atlas, 74, of Ft. Lauderdale, Florida, was charged today by information with one count of securities fraud, in violation of Title 15, United States Code, Sections 77q(a) and 77x, in Case No. 19CR60258. The case is assigned to U.S. District Judge Beth F. Bloom in Fort Lauderdale. If convicted, Atlas faces a maximum statutory sentence of up to five years in prison and a fine up to $10,000.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises of significant commissions. In many cases, the commissions were not fully disclosed to investors. According to court records, 1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit.
Substantial questions arose during 1 Global’s operations as to whether 1 Global was offering or selling a security and subject to federal and state securities laws, and whether the offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Atlas acted as outside counsel for 1 Global and allegedly knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that 1 Global and its principals would be able to obtain from 1 Global’s operations.
Atlas was a long-time South Florida securities attorney who, in addition to his role as outside counsel for 1 Global, was a partner at Law Firm #1. The information alleges that at the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described how the 1 Global investment actually worked, describing the 1 Global investment inaccurately in order to achieve the opinion that Individual #1 and others at 1 Global desired. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Atlas intentionally made false and misleading statements in these opinion letters, according to the information, to give 1 Global, and its employees and agents, false legal cover to continue to conduct business unlawfully.
Atlas’s opinion letters were used and relied upon by 1 Global employees and agents to continue to raise money illegally. At or around the time that Atlas executed these letters he received payments from Attorney #1, an attorney who worked at Law Firm #1 and also had a fundraising role at 1 Global. Atlas allegedly understood that the payments he received from Attorney #1 constituted a percentage of commissions received by Attorney #1 of money raised by 1 Global from new investors. The funds totaled approximately $627,000 and were paid to Atlas’s personal checking account. These funds were not disclosed to Law Firm #1, and Atlas and Attorney #1 allegedly knew that they were required to disclose and share all fees paid by clients of Law Firm #1, with Law Firm #1.
Previously, on August 23, 2019, former 1 Global Chief Financial Officer Alan G. Heide entered a guilty plea to one count of conspiracy to commit securities fraud in connection with the 1 Global fraud scheme, in Case No. 19-60231-CR-RKA. Sentencing for Heide is set for December 12, 2019, before U.S. District Judge Roy K. Altman in Ft. Lauderdale.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Atlas. In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.), and SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.). The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office, IRS Criminal Investigation’s Miami Field Office, and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller, and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture 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.
42-Year-Old Convicted of Sex Trafficking of a Minor, Production of Child Pornography, and Witness TamperingRead the Press Release
Jason Gatlin, 42, of Miami, was convicted on all three counts of the superseding indictment, including Sex Trafficking of Minor, Production of Child Pornography, and Witness Tampering, by a federal jury on September 16, 2019, following a two-week trial before U.S. District Judge Rodney Smith in Ft. Lauderdale.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, in October of 2018, the defendant met the 17-year-old victim through another 17-year-old girl. Gatlin knew the victim had a history of running away and being trafficked by others for prostitution. Over the course of the next two months, the defendant tricked the victim into believing that he loved her and wanted to marry her. He enticed her with his attention and drugs, gave her money for sex, took photos of them having sex, and lied to her. Gatlin made the victim believe that he wanted to marry her, that he did not want her to prostitute, and that he wanted her to get a real job. Instead, after gaining her trust, Gatlin bought the victim a cell phone that was used to set up prostitution dates, transported her to motels, and rented motel rooms for her so that she could commit prostitution, and harbored her for days in the Keys while she was advertised on an escort website. Then, at the end of November, when Gatlin felt that victim was not living up to his rules, he beat her up and left her at a gas station down in the Keys with a swollen face, and bloody, ripped clothes. The victim called the police and the defendant was arrested a few days later.
While incarcerated, Gatlin began bribing the victim into committing perjury. Gatlin had a relative give the victim money and Gatlin promised more money if the victim told the authorities that she was never trafficked by the defendant and never had sex with him. At trial, the jury heard how Gatlin’s relative housed the victim for a short period and then drove her to a defense attorney’s office for her to recant her statement in a sworn statement. The government presented recorded evidence at trial to prove the witness tampering.
Gatlin is scheduled to be sentenced on December 2, 2019, at 11:00 a.m. in Fort Lauderdale, before Judge Rodney Smith (Case No. 19cr20163). He faces a statutory sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and assistance from Monroe County Sherriff’s Office, Plantation Police Department, FBI Chicago, and the Miami-Dade State Attorney’s Office.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI Miami Child Exploitation Task Force, MDPD, and all those who assisted in this matter. This case was prosecuted by Assistant U.S. Attorneys Jessica Kahn Obenauf and J. Mackenzie Duane.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
In the Aftermath of Hurricane Dorian Department of Justice Reminds the Public to Be Aware of Fraud and Report It to the National Center for Disaster FraudRead the Press Release
WASHINGTON – The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times. The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud. More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.
“In the aftermath of Hurricane Dorian, I urge the public to be wary of fraudsters looking to exploit victims of the hurricane through identity theft schemes, solicitations for fake charities, or other types of fraud. Report suspected disaster fraud to the National Center for Disaster Fraud,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.
Since Hurricane Dorian’s landfall, many people are left without food, water, or shelter, and are experiencing devastating damage to life and property. Unfortunately, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.
While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:
- Impersonation of federal law enforcement officials;
- Identity theft;
- Fraudulent submission of claims to insurance companies and the federal government;
- Fraudulent activity related to solicitations for donations and charitable giving;
- Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
- Price gouging;
- Contractor Fraud;
- Debris removal fraud;
- Theft, looting, and other violent crime
Numerous U.S. Attorneys’ offices have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud.
Members of the public are reminded to apply a critical eye and exercise due diligence before trusting anyone purporting to be working on behalf of disaster victims. They should also exercise the same care before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Former Salesman of Porsche Dealership Pleads Guilty to over $3 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
On September 13, 2019, a former salesman for Copans Motorsports d/b/a Champion Porsche, Shiraaz Sookralli, 45, of Plantation, pled guilty for leading a fraud scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sookralli pled guilty to conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19cr60188). He is scheduled for sentencing on November 14, 2019, at 10:00 am before U.S. District Judge Rodney Smith. He faces a maximum sentence of twenty years in prison.
According to his signed factual proffer and other court documents, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
To further his scheme, Sookralli typically provided the customers with signed false and fraudulent purchase orders, sham vehicle build sheets showing the specifications of the customers' vehicle, as well as other false and fraudulent documents. Sookralli often communicated with customers using email and other wire communications. Some customers sent Sookralli payments using the United States mails and interstate bank wire transfers. During this same fraud scheme, Sookralli defrauded another victim with whom he had agreed to sell, “on consignment,” a certain Porsche vehicle for the victim. Once the defendant sold the car, he kept the money for himself.
Throughout the conspiracy, customers wired or otherwise transferred approximately $3,000,000 to Sookralli which he used for his personal benefit. As set forth in the court documents, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
Prior to executing the fraud scheme involving the bogus sales orders for the Porsche vehicles, in or around 2014 through 2016, Sookralli opened a separate “shell” company named Color Pro Motorsport. Through that company, Sookralli embezzled additional money from Champion Porsche.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation. All of Sookralli's victims with valid claims were made whole by Champion.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Health Care Facility Owner Sentenced to 20 Years in Prison for Role in Largest Health Care Fraud Scheme Ever Charged by the Department of JusticeRead the Press Release
A federal district judge sentenced a south Florida health care facility owner to 20 years in prison today after being found guilty in the largest health care fraud scheme charged by the U.S. Justice Department. The case involves a decades-long scheme of kickbacks and money laundering in connection with fraudulent claims to Medicare and Medicaid for services deemed medically unnecessary.
Philip Esformes, 50, of Miami Beach, Florida, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida, who also sentenced Esformes to three years supervised release. A hearing to determine restitution and forfeiture has been scheduled for Nov. 21.
After an eight-week jury trial, Esformes was found guilty in April 2019 of one count of conspiracy to defraud the United States, two counts of receipt of kickbacks in connection with a federal health care program, four counts of payment of kickbacks in connection with a federal health care program, one count of conspiracy to commit money laundering, nine counts of money laundering, two counts of conspiracy to commit federal program bribery and one count of obstruction of justice
“For nearly two decades, Philip Esformes bankrolled his lavish lifestyle with taxpayer dollars, paying bribes with impunity and robbing Medicare and Medicaid by billing for services that people did not need or get,” said Assistant Attorney General Brian A. Benczkowski. “It is a credit to the tenacity of our prosecutors and law enforcement partners that the man behind one of the biggest health care frauds in history will be spending 20 years in prison.”
“Philip Esformes will now spend years in prison for orchestrating a kick-back and money laundering scheme that defrauded America’s health care system out of millions of dollars,” said U.S. Attorney Fajardo Orshan of the Southern District of Florida. “The U.S. Attorney’s Office for the Southern District of Florida remains committed to working with our partners at the Department’s Criminal Division, the FBI and HHS-OIG to root out health care fraud and protect taxpayer dollars for patient care.”
“Philip Esformes is a man driven by almost unbounded greed,” said Deputy Special Agent in Charge Denise M. Stemen of the FBI’s Miami Field Office. “The illicit road Esformes took to satisfy his greediness led to millions in fraudulent health care claims, the largest amount ever charged by the Department of Justice. Along that road, Esformes cycled patients through his facilities in poor condition where they received inadequate or unnecessary treatment, then improperly billed Medicare and Medicaid. Taking his despicable conduct further, he bribed doctors and regulators to advance his criminal conduct and even bribed a college official in exchange for gaining admission for his son to that university. The FBI and its partners are constantly investigating health care fraudsters, big and small, who steal money from taxpayers at the expense of patients in need of quality medical care.”
“Healthcare fraud is a hidden tax costing billions of dollars every year and, as in this case, too often threatens the very health of vulnerable patients,” said Special Agent in Charge Omar Pérez Aybar for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “Esformes – who provided shoddy medical care – stands convicted of fraud and is now paying the price. We continue working tirelessly with our law enforcement partners to protect people in government health programs.”
According to the evidence presented at trial, between January 1998 and July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities he owned. Esformes bribed physicians to admit patients into his facilities. Then, he cycled the patients through his facilities where they often failed to receive appropriate medical services or received medically unnecessary services billed to Medicare and Medicaid. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients receive.
Esformes concealed the poor conditions and scheme from authorities by bribing an employee of a Florida state regulator for advance notice of surprise inspections scheduled to take place at his facilities. The evidence further showed Esformes used his criminal proceeds to make a series of extravagant purchases, including luxury automobiles and a $360,000 watch. Esformes also used criminal proceeds to bribe the basketball coach at the University of Pennsylvania in exchange for his assistance in gaining admission for his son into the university.
Altogether, the evidence established that Esformes personally benefited from the fraud and received in excess of $37 million.
Esformes’s coconspirator, physician’s assistant Arnaldo Carmouze, previously pleaded guilty to conspiracy to commit health care fraud and was sentenced on April 10, 2019, to 80 months in prison and was ordered to pay $12,590,761 in restitution. Co-conspirator Odette Barcha also pleaded guilty to one count of conspiracy to violate the anti-kickback statute. Barcha was sentenced on April 3 to 15 months in prison and three years of supervised release and was ordered to pay $704,516.00 in restitution.
This case was investigated by the FBI and HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida, with assistance from Florida Attorney General’s Office Medicaid Fraud Control Unit. The case was prosecuted by Fraud Section Acting Health Care Fraud Chief Allan Medina and Assistant Chief Drew Bradylyons, and Trial Attorneys Elizabeth Young, James Hayes and Jeremy Sanders, as well as Assistant U.S. Attorneys John Shipley and Dan Bernstein of the Southern District of Florida. Assistant U.S. Attorneys Alison Lehr, Nalina Sombuntham and Daren Grove of the Southern District of Florida handled the forfeiture aspects of the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.