Southern District of Florida
Press releases recorded for this federal judicial district.
8 More Gadsden, Jackson, and Calhoun County Residents Charged in Drug Trafficking ConspiracyRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury returned a superseding indictment, charging eight additional defendants with federal drug trafficking offenses. The indictment arises from an investigation that previously resulted in charges against twelve other defendants for offenses stemming from a long-term investigation into drug trafficking. The superseding indictment was announced today by Lawrence Keefe, United States Attorney for the Northern District of Florida.
The newly charged defendants are:
• Otis Goulds, 58, of Chattahoochee, Florida;
• Savanna Price, 20, of Marianna, Florida;
• Travis Smith, 37, of Malone, Florida;
• Charles Randolph Corbin, 46, of Blountstown, Florida;
• Justin Cribley, 36, of Chattahoochee, Florida;
• Zanntayfey Yohoun Bennett, 35, of Quincy, Florida;
• Jeremy Williams, 29, of Greenwood, Florida; and
• Tanya Henry, 41, of Grand Ridge, Florida
The superseding indictment and arrests resulted from an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) Operation, which targeted a drug trafficking organization headed by Jermaine Hadley. The organization is alleged to be responsible for the distribution of methamphetamine, cocaine, and MDMA throughout the north-central Florida Panhandle between 2018 and 2019. The superseding indictment is a continuation of the prosecution that commenced with the original indictment returned in May.
If convicted, the eight new defendants face penalties ranging up to and including life imprisonment and fines up to $20 million.
The case was investigated by a number of federal, state, and local agencies, including the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the U.S. Department of Agriculture, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case is being prosecuted by Assistant United States Attorney Eric Mountin.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt and dismantle the targeted criminal organization and seize its assets.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
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.
Traveling Bandit Sentenced to over 15 Years in Prison for National Bank Robbery SpreeRead the Press Release
Jason Lee Robinson, 40, of Pikesville, Kentucky, was sentenced by U.S. District Judge Federico A. Moreno to 188 months in prison, after previously pleading guilty to committing a string of bank robberies across the country (Case Nos. 19CR20423, 19CR20477, 19CR20478, 19CR20484, 19CR20520, and 19cr20543).
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) made the announcement.
According to court documents, Robinson’s bank robbery spree began in South Florida on December 28, 2018, roughly one month after he was released from federal prison following a 2013 conviction for bank robbery. On December 28, 2018, Robinson robbed a Capital Bank in Aventura, Florida of approximately $1,900. On January 2, 2019, he robbed a SunTrust Bank in Arden, North Carolina of approximately $3,040. On January 4, 2019, he robbed a Mountain Commerce Bank in Johnson City, Tennessee of approximately $4,300. On January 8, 2019, he robbed a U.S. Bank in Mount Juliet, Tennessee of approximately $3,990. On January 10, 2019, he robbed a Trustmark Bank in Prattville, Alabama of approximately $6,560. On January 14, 2019, he robbed a Fifth Third Bank in Mount Vernon, Illinois of approximately $1,950. On January 17, 2019, he robbed a Wells Fargo Bank in Price Branch, Utah of approximately $2,269.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She thanked the FBI’s Field Offices in Charlotte, North Carolina; Knoxville, Tennessee; Memphis, Tennessee; Mobile, Alabama; Springfield, Illinois; Salt Lake City, Utah; Denver, Colorado and Louisville, Kentucky, for their assistance. This case was prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Michael B. Homer in the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Chinese National Convicted at Trial of Entering the Restricted Grounds at Mar-a-Lago and Lying to U.S. Secret Service AgentsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announced that Yujing Zhang, 33, a Chinese national, was convicted by a South Florida federal jury today of unlawful entry of restricted buildings or grounds, in violation of Title 18, United States Code, Section 1752(a)(1) (Count 1), and making false statements to the U.S. Secret Service, in violation of Title 18, United States Code, Section 1001 (Count 2) (Case No. 19CR80056).
Zhang is scheduled to be sentenced by U.S. District Judge Roy K. Altman, in Fort Lauderdale, on November 22, 2019, at 10 a.m. Zhang faces a maximum statutory sentence of 1 year in prison, up to 1 year of supervised release and up to a $1,000 fine as to Count 1, and a maximum statutory sentence of 5 years in prison, up to 3 years of supervised release and up to a $250,000 fine as to Count 2.
According to the trial record, Zhang fraudulently gained entry onto the restricted grounds at the Mar-a-Lago Club where the U.S. President and other persons protected by the U.S. Secret Service were temporarily visiting. U.S. Secret Service agents detained Zhang at the main reception area due to her suspicious actions. Zhang was then escorted off the property for further questioning. During questioning, Zhang repeatedly misrepresented to U.S. Secret Service agents that she was at the Mar-a-Lago Club to attend a “United Nations Friendship Event.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS’s Miami Field Office, and the FBI’s Miami Field Office in this matter. The case is being prosecuted by Assistant U.S. Attorneys Rolando Garcia and Michael Sherwin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
281 Arrested Worldwide in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
74 Alleged Fraudsters Arrested in the United States
WASHINGTON – Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation reWired, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury, U.S. Postal Inspection Service, and the U.S. Department of State, was conducted over a four-month period, resulting in 281 arrests in the United States and overseas, including 167 in Nigeria, 18 in Turkey and 15 in Ghana. Arrests were also made in France, Italy, Japan, Kenya, Malaysia, and the United Kingdom (UK). The operation also resulted in the seizure of nearly $3.7 million.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“The Department of Justice has increased efforts in taking aggressive enforcement action against fraudsters who are targeting American citizens and their businesses in business email compromise schemes and other cyber-enabled financial crimes,” said Deputy Attorney General Jeffrey Rosen. “In this latest four-month operation, we have arrested 74 people in the United States and 207 others have been arrested overseas for alleged financial fraud. The coordinated efforts with our domestic and international law enforcement partners around the world has made these most recent actions more successful. I want to thank the FBI, more than two dozen U.S. Attorney’s Offices, U.S. Secret Service, U.S. Postal Inspection Service, Homeland Security Investigations, IRS Criminal Investigation, U.S. Department of State’s Diplomatic Security Service, our partners in Nigeria, Ghana, Turkey, France, Italy, Japan, Kenya, Malaysia, and the UK, and our state and local law enforcement partners for all of their hard work to combat these fraud schemes and protect the hard-earned assets of our citizens. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable.”
“The FBI is working every day to disrupt and dismantle the criminal enterprises that target our businesses and our citizens,” said FBI Director Christopher A. Wray. “Cooperation is the backbone to effective law enforcement; without it, we aren’t as strong or as agile as we need to be. Through Operation reWired, we’re sending a clear message to the criminals who orchestrate these BEC schemes: We’ll keep coming after you, no matter where you are. And to the public, we’ll keep doing whatever we can to protect you. Reporting incidents of BEC and other internet-enabled crimes to the IC3 brings us one step closer to the perpetrators.”
“The Secret Service has taken a multi-layered approach to combating Business Email Compromise schemes through our Global Investigative Operations Center (GIOC),” said U.S. Secret Service Director James M. Murray. “Domestically, the GIOC assists Secret Service Field Offices and other law enforcement partners with analysis and investigative tactics to enhance the impact of local BEC investigations. Internationally, the GIOC targets and identifies transnational organized crime networks that perpetrate these cyber-enabled financial fraud schemes. Through this approach, the Secret Service continues to strive to protect the citizens of the United States and our financial infrastructure from these complex crimes.”
“Homeland Security Investigations (HSI), together with its law enforcement partners, has proven once again, that cyber-enabled financial fraud will not be tolerated in the United States,” said Acting Director Matthew T. Albence of U.S. Immigration and Customs Enforcement (ICE). “Operation reWired sends a clear message to criminals, that no matter how or where crimes are committed, we will do everything within our means to dismantle criminal enterprises that seek to manipulate U.S. institutions and taxpayers.”
“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Chief Postal Inspector Gary Barksdale. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”
“In unraveling this complex, nationwide identity theft and tax fraud scheme, we discovered that the conspirators stole more than 250,000 identities and filed more than 10,000 fraudulent tax returns, attempting to receive more than $91 million in refunds,” said Chief Don Fort of IRS Criminal Investigation. “We will continue to work with our international, federal and state partners to pursue all those responsible for perpetrating this fraud, preying on innocent victims and attempting to cheat the U.S. out of millions of dollars.”
“The investigation of these crimes crossed international borders,” said Director Todd J. Brown of the U.S. Department of State’s Diplomatic Security Service (DSS). “Today’s charges are another successful example of our commitment to working together with both foreign colleagues abroad as well as local, state and federal law enforcement partners here at home in the pursuit of those who commit cyber-related financial crimes.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies affect not only the individual business but also the global economy. According to the Internet Crime Complaint Center (IC3), nearly $1.3 billion in loss was reported in 2018 from BEC and its variant, Email Account Compromise (EAC), nearly twice as much as was reported the prior year. BEC and EAC are prevalent scams and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams, though some money mules are knowing co-conspirators who launder the ill-gotten gains for profit.
BEC scams are related to, and often conducted together with, other forms of fraud such as:
- “Romance scams,” where victims are lulled into believing they are in a legitimate relationship, and are tricked into sending or laundering money under the guise of assisting the paramour with an international business transaction, a U.S. visit, or some other cover story;
- “Employment opportunities scams,” where victims are convinced to provide their PII to apply for work-from-home jobs, and, once “hired” and “overpaid” by a bad check, to wire the overpayment to the “employer’s” bank before the check bounces;
- “Fraudulent online vehicle sales scams,” where victims are convinced they are purchasing a nonexistent vehicle and must pay for it by sending the codes of prepaid gift cards in the amount of the agreed upon sale price to the “seller;”
- “Rental scams,” where a scammer agrees to rent a property, sends a bad check in excess of the agreed upon deposit, and requests the overpayment be returned via wire before the check bounces; and
- “Lottery scams,” where victims are convinced they won an international lottery but must pay fees or taxes before receiving the payout.
Starting in May 2019, this coordinated enforcement action targeted hundreds of BEC scammers. Law enforcement agents executed over 214 domestic actions including arrests, money mule warning letters, and asset seizures and repatriations totaling nearly $3.7 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, also arrested alleged money mules for their role in defrauding victims.
Among those arrested on federal charges in BEC schemes include:
- Following an investigation led by the FBI’s Chicago Division, Brittney Stokes, 27, of Country Club Hills, Illinois, and Kenneth Ninalowo, 40, of Chicago, Illinois, were charged in the Northern District of Illinois with laundering over $1.5 million from proceeds of BEC scams. According to the indictment, a community college and an energy company were defrauded into sending approximately $5 million to fraudulent bank accounts controlled by the scammers. Banks were able to freeze approximately $3.6 million of the $5 million defrauded in the two schemes. Law enforcement officials seized a 2019 Range Rover Velar S from Stokes and approximately $175,909 from Stokes and Ninalowo.
- As a result of a joint investigation by the FBI, HSI, and DSS, Opeyemi Adeoso, 44, of Dallas, Texas, and Benjamin Ifebajo, 45, of Richardson, Texas, were arrested and charged in the Northern District of Texas with bank fraud, wire fraud, money laundering, and conspiracy. Adeoso and Ifebajo are alleged to have received and laundered at least $3.4 million. In furtherance of their scheme, they are alleged to have assumed 12 fictitious identities and defrauded 37 victims from across the United States.
- As part of a larger investigation by the FBI and the USSS in Miami, Yamel Guevara Tamayo, 36, of Miami, Florida, and Yumeydi Govantes, 39, of Miami, Florida, were charged in the Southern District of Florida with laundering more than $950,000 of proceeds of BEC scams. The two individuals were also responsible for recruiting approximately 18 other individuals to serve as money mules, who laundered proceeds of BEC scams for an international money laundering network. The victims of the BEC scams included title companies, corporations, and individuals. The individuals were indicted June 18, 2019 and arrested June 20, 2019. The change of plea for both individuals is scheduled for Sept. 16.
- In an investigation by FBI Atlanta, two individuals were charged in the Northern District of Georgia for their involvement in a Nigeria-based BEC scheme that began with a $3.5 million transfer of funds fraudulently misdirected from a Georgia-based health care provider to accounts across the United States. Two Nigerian nationals, Emmanuel Igomu, 35, of Atlanta, Georgia, and Jude Balogun, 29, of San Francisco, California, have been arrested on charges of aiding and abetting wire fraud for their part in receiving and transmitting monies derived from the BEC.
- Following an investigation by the FBI, Cyril Ashu, 34, of Austell, Georgia; Ifeanyi Eke, 32, of Sandy Springs, Georgia; Joshua Ikejimba, 24, of Houston, Texas; and Chinedu Ironuah, 32, of Houston, Texas, were charged in the Southern District of New York with one count of conspiracy to commit wire fraud and one count of wire fraud for their involvement in a Nigeria-based BEC scheme that impacted hundreds of victims in the United States, with losses in excess of $10 million.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, ICE’s Homeland Security Investigations (HSI), IRS Criminal Investigation and U.S. Department of State’s Diplomatic Security Service. U.S. Attorney’s Offices in the Districts of Arizona; Central, Eastern and Southern California; Colorado; Delaware; Southern Florida; Northern Georgia; Northern Illinois; Kansas; Eastern Louisiana; Massachusetts; Nebraska; Nevada; Southern New York; Middle North Carolina; Northern Ohio; Oregon; Northern, Western and Southern Texas; Western Tennessee; Eastern Virginia; Eastern Washington, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section, and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Harris County, Texas; Fort Bend County, Texas; and Washington County, Arkansas are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Ghana Police Service (GPS) and Economic and Organized Crime Office (EOCO), Turkish National Police (TNP) Cyber Department, Direction Centrale de la Police aux Frontieres (PAF) of France, Squadra Mobile Di Caserta and Italian National Police, National Police Agency of Japan, Tokyo Metropolitan Police Department (TPMD), Royal Malaysian Police, Directorate of Criminal Investigations (DCI) of Kenya and the National Crime Agency (NCA), North Wales Police, Metropolitan Police Service and Hertfordshire Constabulary of the UK provided significant assistance.
This operation serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Deputy Attorney General Rosen expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
The Justice Department’s efforts to confront the growing threat of cyber-enabled financial fraud led to the formation of the BEC Counteraction Group (BCG), which assists U.S. Attorney’s Offices and the Department with the coordination of BEC cases and the centralization of related expertise. The BCG facilitates communication and coordination between federal prosecutors, serves as a bridge between federal prosecutors and federal agents, centralizes and manages institutional knowledge and training, and participates in efforts to educate the public about protecting themselves and their organizations from BEC scams.
The BCG draws upon the expertise of the following sections within the Department’s Criminal Division: the Computer Crime and Intellectual Property Section, which regularly investigates and prosecutes cases involving computer crimes, including network intrusions; the Fraud Section, which manages complex litigation involving sophisticated fraud schemes; the Money Laundering and Asset Recovery Section, which brings experience in seizing assets obtained through criminal activity; the Office of International Affairs, which plays a central role in securing international evidence and extradition; and the Organized Crime and Gang Section, which contributes strategic guidance in prosecuting complex transnational criminal cases.
Operation reWired was funded and coordinated by the FBI and the Justice Department’s International Organized Crime Intelligence and Operations Center (IOC-2) and follows “Operation Wire Wire,” the first coordinated enforcement action targeting hundreds of BEC scammers. That effort, announced in June 2018, resulted in the arrest of 74 individuals, the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov. For more information on BEC scams, visit: https://www.ic3.gov/media/2019/190910.aspx.
South Florida Woman Sentenced to Prison and Ordered to Pay $1.6 Million in Restitution for “Fortune Telling” Fraud SchemeRead 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 a South Florida woman was sentenced to prison and ordered to pay $1.6 million in restitution for orchestrating a fraud scheme involving “fortune telling.”
Sherry Tina Uwanawich, a/k/a “Jacqueline Miller,” 28, was sentenced on September 6, 2019, to 40 months’ incarceration by U.S. District Judge Rodolfo A. Ruiz (Case No. 18CR80235). Uwanawich had previously pleaded guilty to one count of wire fraud.
According to the court docket, including the agreed upon factual proffer, the defendant was holding herself out as a psychic/fortune teller when she met a female victim in Houston, Texas in 2007. Uwanawich gained the trust of the victim and convinced her that a curse had been placed on her and her family. The defendant claimed she needed large sums of money to purchase items, such as crystals, candles and the like, which were needed for meditation work in order to lift the curse. Failure to do so, the victim was led to believe, would result in harm to her and family. The relationship between the victim and Uwanawich continued for years, even after the defendant had moved to South Florida, and during that time the victim was induced to give up approximately $1.6 million dollars. The scheme came to an end in early 2014, when Uwanawich admitted to the victim there had been no curse.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorney Roger H. Stefin.
Related court documents and information may be found on the website of the United States District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Osceola County Resident Sentenced to 30 Years in Prison for Attempting to Entice a Minor to Engage in Sexual ActivityRead the Press Release
Christopher Lee Cumberland, of Osceola County, Florida was sentenced on September 6, 2019, by U.S. District Judge Roy K. Altman to 365 months in prison, to be followed by a lifetime of supervised release after previously pleading guilty to attempting to entice a minor to engage in sexual activity (Case No. 19CR60094).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI) made the announcement.
According to the court docket, including the agreed upon factual proffer, on March 28, 2019, a law enforcement officer acting in an undercover capacity observed that Cumberland posted a message on an internet group messaging forum that used language commonly associated with individuals seeking children for sexual purposes. The undercover made contact with Cumberland online. Between March 28, 2019 and April 10, 2019, the undercover and Cumberland exchanged more than 500 messages.
During the communications, Cumberland expressed an interest in meeting in person so that he could engage in sexual activity with a minor. Later, Cumberland met with the undercover agent in the Southern District of Florida with the intent to commit a sex act with a minor.
Cumberland also admitted that he had sexual contact with numerous minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI’s Child Exploitation Task Force in this matter. This case was prosecuted by Special Assistant U.S. Attorney Catherine Koontz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former City of Miami Police Officers Sentenced to Prison After Having Been Convicted at TrialRead the Press Release
Today, U.S. District Judge Cecilia M. Altonaga sentenced former City of Miami Police officer Kelvin Harris to 27 and a half years in prison for his involvement in a drug trafficking conspiracy and possessing a firearm in furtherance of a drug trafficking crime. Codefendant James Archibald, also a former City of Miami Police officer, was sentenced to 10 years in prison for his involvement in the drug trafficking conspiracy.
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.
Former City of Miami Police officers Kelvin Harris, James Archibald and Schonton Harris were charged for their involvement in the drug trafficking conspiracy (Case No. 18cr20939). On June 28, 2019, Kelvin Harris, who had been on the police force for twenty-six years, and Archibald, who had been an officer for two years, were each convicted by a federal jury of conspiring to possess with the intent to distribute more than 5 kilos of cocaine in 2018. In addition, Kelvin Harris was convicted of three counts of attempting to possess with the intent to distribute cocaine and three counts of possessing a firearm during the commission of a drug trafficking crime. Archibald was also convicted of one count of attempting to possess with the intent to distribute cocaine. On January 24, 2019, Schonton Harris pled guilty to conspiring with other officers to possess with the intent to distribute cocaine from August through October 2018. On April 17, 2019, Schonton Harris was sentenced to 15 and a half years in prison.
According to the court record, including trial testimony, Officers Kelvin Harris and Schonton Harris, provided police protection on numerous occasions for what they believed were multiple-kilogram shipments of cocaine by escorting the transportation of such cocaine. Officer Archibald facilitated the drug trafficking conspiracy on at least one occasion by assisting his codefendants in transporting 30 kilograms of what the defendants believed to be cocaine from a local marina to two local hotels. Officers Kelvin Harris, Archibald and Schonton Harris received cash payments of $10,000, $6,500 and $17,000, respectively, for their involvement in the criminal enterprise.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, including the FBI Miami Area Corruption Task Force, in this matter. She thanked the City of Miami Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorneys Harry C. Wallace, Jr. and Jessica Obenauf.
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.
Four Peruvians Sentenced for Overseeing Spanish-Speaking Call Centers That Threatened and Extorted U.S. ConsumersRead the Press Release
Four residents of Lima, Peru, charged with overseeing a series of call centers that threatened and extorted Spanish-speaking victims in the United States, have been sentenced to prison, the Department of Justice and U.S. Postal Inspection Service announced.
Jesus Gutierrez Rojas, 37, Alexandra Podesta Bengoa, 38, Virgilio Polo Davila, 43, and Omar Portocarrero Caceres, 39, were extradited from Peru in April. Each pleaded guilty to extortion and has now been sentenced to prison by U.S. District Court Judge Roy K. Altman in Fort Lauderdale. As part of his guilty plea, Gutierrez admitted that he oversaw a series of affiliated call centers in Peru that falsely told Spanish-speaking victims across the United States that they had incurred debts and would suffer various consequences for failure to pay off the debts that they did not, in fact, owe. As part of their guilty pleas, Podesta, Polo, and Portocarrero admitted that they managed and supervised three of these affiliated call centers that used extortion to obtain money from vulnerable U.S. consumers.
Yesterday, Judge Altman sentenced Gutierrez to 51 months in federal prison for his role overseeing the affiliated call centers and sentenced Podesta and Polo to 46 months imprisonment. Judge Altman sentenced Portocarrero to 46 months in federal prison on July 24. Each defendant was also ordered to serve three years’ supervised release following their terms of incarceration and to make restitution payments to the victims of their scheme.
“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. “Today’s prison sentences reflect that those who unlawfully take advantage of U.S. consumers by phone cannot escape justice by placing their calls from abroad. 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.”
As part of their guilty pleas, Podesta, Polo, and Portocarrero each admitted that their Peruvian call centers contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based calls. Falsely claiming to be attorneys and government representatives, Podesta, Polo, Portocarrero, and their employees falsely told victims that they failed to pay for or receive a delivery of products and threatened them into paying fraudulent settlements for nonexistent debts. The callers falsely threatened victims with lawsuits, 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 extortionate threats.
Gutierrez was the general manager of a larger company where he worked in partnership with Podesta, Polo, Portocarrero, and others to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments from thousands of victims across the U.S.
“The reach of our U.S. justice system is long,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “The sentences imposed demonstrate that we are committed to prosecuting those individuals who threaten U.S. consumers no matter where they are located.”
“The U.S. Postal Inspection Service will continue to aggressively pursue and bring to justice international criminal enterprises that prey on our most vulnerable citizens by fraudulently using the U.S. Mail to further their schemes,” said Acting Miami Division Postal Inspector in Charge Lesley Allison.
At Portocarrero’s July 24 sentencing, Judge Altman said that the brazen, large-scale nature of the defendants’ scheme was “shocking.” Judge Altman noted that the defendants exploited “the most vulnerable people in our country” and said that their offense conduct was “terribly disgraceful.”
With yesterday’s three sentencings by Judge Altman, all five defendants who have been charged in connection with this large-scale extortion scheme have now been sentenced to terms of imprisonment.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The U.S. Postal Inspection investigated the case. The Criminal Division’s Office of International Affairs secured the extradition of the defendants, and the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 260 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
Five Individuals Convicted for Participating in Global Fraud SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, Miami Field Office, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), announced the convictions of five defendants for various offenses relating to a global fraud scheme that relied upon false claims about the United States military and the Government of Afghanistan.
Six individuals were charged for their involvement in the global fraud scheme (Case No. 18-20668-CR-DMM). Byramji Javat, a citizen of Pakistan and Chairman of the Dubai-based Uniworld Group, pleaded guilty on August 19, 2019, to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section1349. Javat faces a maximum sentence of 20 years in prison, plus potential restitution and a fine of up to $250,000. Sunil Chopra and William Armando, both residents of California, each pleaded guilty on August 19, 2019, to one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception, in violation of Title18, United States Code, Section 670(a)(6). They face a maximum statutory penalty of 15 years in prison. Emanuel Daskos, pleaded guilty on July 16, 2019, to also violating Title 18, United States Code, Section 670(a)(6). Luis Soto, a customs broker residing in Miami, Florida, was convicted by a trial jury on August 23, 2019, of one count of conspiracy to commit wire fraud, one count of conspiracy to obtain pre-retail medical products worth $5,000 or more by fraud or deception, two counts of wire fraud contrary to Title 18, United States Code, Section 1343, and two counts of obtaining pre-retail medical products by fraud or deception, contrary to Title 18, United States Code, Section 670(a)(1). The defendants have not yet been sentenced. One defendant, James Sipprell, a resident of Georgia, is awaiting trial and is presumed innocent.
According to the superseding indictment, between 2014 and 2017, Javat orchestrated a fraud scheme to purchase FDA-regulated products including medical devices from manufacturers in the United States at deeply discounted prices by lying to them about the destination and purpose of the goods. Javat represented that he was a large supplier of medical and food products to United States troops in Afghanistan, and sought deep discounts from the manufacturers by claiming that he could provide their goods to American troops in Afghanistan or to the Afghan people. In truth, Javat wanted to obtain these products at prices not generally offered in the United States in order to sell those products himself in this country – not abroad, and not to the military – at a significant profit.
To execute this scheme, the conspirators insisted that products be packaged for the United States market, falsely claiming to the manufacturers that this was required by the U.S. military, the Afghan government, or the “Buy American Act.” When the products nonetheless had stickers or other packaging on them stating that the items were for export only, the conspirators secretly removed those labels. After acquiring the products, Javat and the co-conspirators arranged for the diversion of the products to various locations in the United States. To conceal this activity, the conspirators typically shipped the products abroad and then had them immediately shipped back to the United States, or provided the victims with fraudulent shipping documentation showing that the products were exported when actually they had never left this country.
Javat admitted the allegations of the superseding indictment during his guilty plea. During Soto’s trial, the government proved these allegations to the jury and presented additional evidence about the defendants’ scheme. For example, the conspirators often represented that they were purchasing items on behalf of the Afghanistan Reconstruction and Development Services (“ARDS”), which at one time was an agency of the Afghan Government funded in part by the United States. That agency ceased to exist after 2014, yet the conspirators provided victims with fake documents supposedly from ARDS imposing extravagant demands that in reality only suited the conspirators’ needs. In 2016, Uniworld prepared an internal Powerpoint presentation expressly informing its staff that they had to be “good at lying.” Finally, because these goods were moving outside normal channels, they often were mishandled; for example, according to the conspirators’ own emails at the time, the defendants disregarded temperature requirements when transshipping over-the-counter pain medicines, one of the defendants kept a shipment of diabetic test strips that required refrigeration in his car trunk overnight and another shipment of medical products became covered in bird droppings. The products involved in Javat’s scheme included surgical instruments, professional dental care devices, bandages, and aspirin.
The evidence at trial demonstrated that Soto knew about Javat’s fraud scheme yet knowingly helped him by supplying paperwork to federal agencies including the FDA to facilitate the re-entry of the diverted products into the United States through the Port of Miami or Miami International Airport. Chopra, Armando and Daskos also knowingly furthered the scheme by helping to transport the products and remove export labels.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FDA-OCI. The case is being prosecuted by Assistant U.S. Attorneys David Turken and John Shipley.
Palm Beach County Resident Sentenced to 30 Years in Prison for Distributing Cocaine and Illegally Possessing a Machine GunRead the Press Release
On August 27, 2019, Fort Lauderdale U.S. District Judge William P. Dimitrouleas sentenced Ariel Figueroa-Cacheres, 22, of Palm Beach County, to 30 years in prison, after he previously pled guilty to possessing a machine gun in furtherance of a drug trafficking crime and possessing cocaine with the intent to distribute the controlled substance (Case No. 19cr90035).
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 Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
In 2019, an undercover agent purchased cocaine from Figueroa-Cacheres on multiple occasions in Palm Beach County, Florida, after learning from an informant that Figueroa-Cacheres was in possession of Glock auto-sears. During the investigation, the undercover expressed an interest in purchasing Glock auto sears, in addition to the cocaine. A Glock auto sear, commonly referred to as “Glock switch,” or “Glock chip,” is an after-market device, which is designed to illegally convert a semiautomatic Glock-type pistol into a machine gun. Shortly after the narcotics purchases, agents executed a search warrant at Figueroa-Cacheres’ residence and seized a Glock, semi-automatic pistol, 3 Glock fully-automatic machine gun conversion switches, a distribution quantity of cocaine, digital scales, cutting agents, and packing materials used for narcotics sales.
Within the carport of Figueroa-Cacheres’ residence agents located multiple packages, ready to be shipped to Honduras, containing hundreds of rounds of ammunition, multiple high-capacity drum magazines, holsters, Glock stocks, and 17 additional Glock fully-automatic conversion switches.
Further examination by the ATF Firearms Technology Criminal Branch determined that the Glock switches were parts used for converting firearms into machine guns, and therefore classified as illegal, unregistered machine guns.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF, PBSO’s Tactical Unit, and HSI in this matter. The case was prosecuted by Assistant U.S. Attorney John C. McMillan.
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 http://pacer.flsd.uscourts.gov.
Pahokee Resident Sentenced to More than Eight Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Jonathan Demario Collins, 33, of Pahokee, Florida was sentenced yesterday by U.S. District Judge Robin L. Rosenberg to 100 months in prison, to be followed by 3 years of supervised release, after having been convicted by a trial jury of being a felon in possession of a firearm (Case No. 17cr80084).
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 Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO) made the announcement.
According to the court record, including the indictment, case filings and evidence presented at trial, on February 7, 2016, Collins was arrested during a traffic stop on an arrest warrant for attempted first-degree murder, aggravated assault with a firearm and simple battery, in a Palm Beach County case.
The arrest was made by agents of the PBSO Tactical Unit, each of whom had been sworn in as ATF Task Force Officers. While PBSO tactical agents were conducting surveillance in Pahokee, they observed Collins exiting an apartment and entering the rear seat of a red Nissan Altima. Agents initiated a traffic stop and then removed Collins from the vehicle and placed him under arrest. A loaded, .40 caliber semi-automatic pistol was observed in the vehicle, near where Collins' was sitting. Law enforcement obtained a search warrant for the vehicle and recovered the pistol. DNA was collected from the firearm. An analysis confirmed that Collins’ DNA was located on the pistol. At the time of his arrest, Collins was a convicted felon and was prohibited from possessing a firearm.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and PBSO’s Tactical Unit in this matter. The case was prosecuted by Assistant U.S. Attorney John C. McMillan.
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 http://pacer.flsd.uscourts.gov.
Illinois Resident Convicted at Trial in South Florida for Carrying Out a $2 Million Fraud Scheme Targeting Nigerian Oil CompanyRead the Press Release
On August 23, 2019, Oyeyemi Olatunji Owagboriaye, 63, of Chicago, Illinois, was convicted of wire fraud, in violation of Title 18, United States Code, Section 1343 (Case No. 18cr20361). A jury returned a guilty verdict following a five-day trial before United States District Judge Kathleen M. Williams, in Miami, Florida.
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, and the Florida Office of Financial Regulation (OFR), made the announcement.
The evidence presented at trial established that Owagboriaye participated in a $2 million dollar advance fee scheme targeting a Nigerian oil company called Zone 4. In particular, Owagboriaye’s partner, Vincent Zubero, persuaded Zone 4 to hire him to raise a $45 million dollar loan to refinance an oil tank farm in Nigeria. Zone 4 would provide a $2 million “equity contribution” toward the loan, which would be held in escrow until the first tranche of the loan was funded. Instead, however, Zubero and the defendant split the proceeds of the $2 million equity contribution and never funded the loan. Owagboriaye’s portion of the equity contribution was more than $835,000. Owagboriaye and Zubero quickly covered their tracks by signing a bogus “memorandum of understanding” in which they purported to agree that the $835,000 being transferred to Owagboriaye was for the purpose of supporting a phony “trade platform” by which Owagboriaye would raise the financing for the oil tank farm project. Then, Owagboriaye created a phony invoice for dump trucks to cover up the fact that Zubero was wiring him $835,000 of Zone 4’s money. Owagboriaye also created phony bank instruments purporting to establish his control over hundreds of millions of dollars to be used for Zone 4’s loan. In reality, Owagboriaye was spending Zone 4’s money, including a more than $300,000 transfer to himself in Nigeria, $190,000 in cash withdrawals, and thousands more on personal expenses.
Owagboriaye is scheduled for sentencing on October 31, 2019 at 2:00 p.m. and faces a maximum possible sentence of 20 years in prison.
Zubero previously pled guilty for his participation in the wire fraud scheme. He is scheduled to be sentenced on September 12th, 2019 at 2 p.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. This case is being prosecuted by Assistant U.S. Attorneys Amanda Perwin, Marty Elfenbein, and 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 http://pacer.flsd.uscourts.gov.
Former CPA Indicted for Failing to Report Foreign Bank Accounts and Filing False Documents with the IRSRead the Press Release
A federal grand jury returned a superseding indictment charging Brian Booker, a former resident of Fort Lauderdale, Florida, whose business specialized in international trade, with failing to file Reports of Foreign Bank and Financial Accounts (FBARs) and filing false documents with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to the superseding indictment, Booker, a former Certified Public Accountant, owned a cocoa trading company that was organized under the laws of the Republic of Panama. Booker allegedly operated that company from Venezuela, Panama, and his former residence in Fort Lauderdale, Florida. The superseding indictment further alleges that, for calendar years 2011 through 2013, Booker failed to disclose his interest in financial accounts located in Switzerland, Singapore, and Panama on annual Reports of Foreign Bank and Financial Accounts (FBARs) as required by law. Booker also allegedly filed false individual income tax returns for tax years 2010 through 2012 that failed to report to the IRS all of Booker’s foreign bank accounts.
Booker is also charged with filing a false “Streamlined Submission” in conjunction with the Streamlined Domestic Offshore Procedures. The IRS Streamlined procedures allowed eligible taxpayers residing within the United States, who failed to report gross income from foreign financial accounts on prior tax returns, failed to pay taxes on that gross income, or who failed to submit an FBAR disclosing foreign financial accounts, to voluntarily disclose their conduct to the IRS. The superseding indictment alleges that Booker’s Streamlined submission falsely claimed that his failure to report all income, pay all tax, and submit all required information returns, such as FBARs, was due to non-willful conduct.
If convicted, Booker faces a maximum sentence of five years in prison for each count relating to his failure to file an FBAR. He also faces a maximum sentence of three years in prison for each of the counts related to filing false tax documents.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
The case was investigated by special agents of IRS-Criminal Investigation. Trial Attorneys Sean Beaty and Alexander Effendi of the Tax Division are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
South Florida Doctor Pleads Guilty to Conspiring to Illegally Distribute OxycodoneRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Omar Perez, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division announced that Dr. Rodolfo Gonzalez Garcia, 65, of Weston, Florida pled guilty on August 23, 2019, to conspiring to dispense a controlled substance, Oxycodone, before U.S. District Judge Roy K. Altman (Case No. 19-cr-20055).
According to the court record, including the agreed upon factual proffers, from November 2016, through and including September 2018, Dr. Rodolfo Gonzalez Garcia, his wife Arlene Gonzalez, 59, also of Weston, Annie Suarez Gonzales, 35, of Chicago, Illinois, and Fidel Marrero-Castellanos, 57, of Hialeah, Florida and others, used West Medical Office, Inc. located in Hialeah (later named West Pines Medical Office) for illicit purposes. During this time period, the defendants agreed to prescribe purported patients that had been brought to the office by patient recruiters, prescriptions for Oxycodone. They also agreed that patient recruiters could merely bring lists containing the names of purported patients directly to West Medical Office, instead of requiring the patients’ presence. In either scenario, the defendants agreed that the patient or patient recruiters would pay West Medical Office a certain cash amount per patient present in the office or per patient name on a list, in exchange for an Oxycodone prescription. Sometimes, these agreements—money for prescriptions—were directly with the purported patient. The defendants knew that these patients were Medicare and Medicaid beneficiaries, and that filling those prescriptions at pharmacies would result in the submission of claims to Medicare and Medicaid for payment of those prescriptions.
The charged co-conspirators had various roles in the conspiracy. Marrero-Castellanos acted as a patient recruiter, bringing lists and paying cash in exchange for a prescription for the names on his list. Marrero-Castellanos took the patients with their prescriptions to pharmacies, including Medicare Part D participating pharmacies, to fill the aforementioned prescriptions. When he got the prescriptions based on just a patient list, he provided the aforementioned prescriptions to pharmacies, including Medicare Part D participating pharmacies. Sometimes, the patients went to the pharmacies on their own. All of the recruited patients gave Marrero-Castellanos their Oxycodone pills. Marrero-Castellanos sold those pills to others. Suarez and Arlene Gonzalez facilitated the exchange of cash for prescriptions, filled out prescriptions, and in certain instances, Arlene Gonzalez signed prescriptions with Dr. Rodolfo Gonzalez Garcia’s name. These activities occurred even when Dr. Rodolfo Gonzalez Garcia was not in the office. To facilitate the conspiracy, Dr. Rodolfo Gonzalez Garcia provided prescriptions for Oxycodone, even though he did not provide patients with a meaningful consultation or examination commensurate with prescribing oxycodone according to national standards and norms, nor those of the State of Florida, for such prescriptions. As a result of the conspiracy, Dr. Gonzalez Garcia unlawfully distributed Oxycodone.
Dr. Gonzalez Garcia is scheduled to be sentenced on November 8, 2019, by Judge Altman. He faces a maximum statutory sentence of 20 years in prison.
Co-defendants Arlene Gonzalez and Suarez pled guilty to conspiracy to pay and receive health care kickbacks and are scheduled to be sentenced on November 8, 2019, and October 25, 2019, respectively. They each face a maximum statutory sentence of 5 years in prison. Co-defendant Marrero-Casetellanos previously pled guilty to conspiracy to pay and receive health care kickbacks and conspiracy to distribute controlled substances and is scheduled to be sentenced on October 25, 2019. He faces a maximum statutory sentence of 20 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and DEA. This case was prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Lindsey Lazopoulos Friedman.
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.
Davie Resident Sentenced to 40 years in Prison for Enticing Minors to Engage in Sexual Acts and Producing Child PornographyRead the Press Release
Henry Alvarez Flores, 38, of Davie, was sentenced by U.S. District Judge Roy K. Altman to 40 years in prison today for enticing three minors to engage in illicit sexual activity and producing child pornography of the sexual acts (Case No. 18cr60240).
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, and Dale Engle, Chief, Davie Police Department, made the announcement.
Flores previously pled guilty to the indictment which charged three counts of production of child pornography and three counts of enticing a minor to engage in sexual activity in violation of, Title 18, United States Code, Sections 2251(a) and 2422(b).
According to court records, including the agreed upon factual proffer, in 2018, Flores began communicating with three children who were eleven and twelve year old boys via Facebook messenger. Flores contacted the minors on social media, pretending to be a young woman. Once the children accepted his “friend request,” Flores would demand that each of the boys engage in sexually explicit conduct and record videos of themselves doing so. Flores directed which sex acts to perform in the videos and offered to send the children Google Play gift cards in exchange for the sexually explicit videos. When one of the children refused to comply, Flores threatened to expose the minor child and his family who were in the country without status.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, including the FBI Miami’s Child Exploitation Task Force, and the Davie Police Department. This case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Pleads Guilty to Knowingly Making False Statements in Order to Unlawfully Acquire FirearmsRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division announced that Bill K. Kapri, a/k/a “Kodak Black,” a/k/a “Dieuson Octave,” 22, of Pompano Beach, FL, pled guilty today to two counts of knowingly making a false and fictitious written statement in connection with the acquisition and attempted acquisition of a firearm from a federally licensed firearms dealer before U.S. District Judge Federico A. Moreno (Case No. 19-cr-20273).
According to the court record, including the agreed upon factual proffer, Kapri, on January 25, 2019 and March 1, 2019, completed ATF Form 4473. On both occasions, Kapri answered “No” when asked, “Are you under indictment or information in any court for a felony, or any other crime for which the judge could imprison you for more than one year.” On both occasions, as Kapri then and there well knew, Kapri was, in truth and in fact, under indictment for a felony offense. On January 25, 2019, Kapri transposed several digits of his social security number and thus was able to pick up three firearms on February 1, 2019. On March 1, 2019, Kapri used his true social security number and, as a result, was not permitted to pick up a fourth firearm.
At sentencing, Kapri faces a maximum statutory sentence of 10 years in prison, to be followed by 3 years of supervised release.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF in this matter. This case is being prosecuted by Assistant U.S. Attorney Bruce Brown.
Court documents and information related to this case may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney Ariana Fajardo Orshan and Federal Task Force Host Event Raising Public Awareness About National Human Trafficking HotlineRead the Press Release
U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan and the Federal South Florida Human Trafficking Task Force hosted an event today to raise public awareness about the National Human Trafficking Hotline (1-888-373-7888). The training reached full capacity with more than 150 attendees.
The National Human Trafficking Hotline connects victims and survivors of sex and labor trafficking with services and support. The National Hotline also receives tips about potential situations of sex and labor trafficking and facilitates reporting that information to the Federal South Florida Human Trafficking Task Force in certain cases. Through information received by the National Hotline, law enforcement authorities can connect investigations that span jurisdictions across the country.
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 Federal Bureau of Investigation (specifically, its Child Exploitation and Human Trafficking Task Force), State Department’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.
“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.”
Since being appointed as U.S. Attorney for the Southern District of Florida in 2018, Ariana Fajardo Orshan has continued to make human trafficking cases 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.
For example, the U.S. Attorney’s Office for the Southern District of Florida and the Task Force will be hosting a Human Trafficking Symposium at Nova Southeastern University on Tuesday, October 15, 2019. The program is free and will provide advanced human trafficking training and resources for victim service providers, law enforcement, prosecutors, medical professionals, and the local community. To register for the symposium visit https://nsuinfo.nova.edu/chcs/human-trafficking-symposium/.
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. Since January of 2019, the International Rescue Committee has provided services to survivors in more than 30 cases of human trafficking. “We will continue to pursue and hold traffickers accountable for exploiting victims for labor or sexual services; modern-day slavery cannot be tolerated in our community,” stated Anthony Salisbury, Special Agent in Charge for Immigrations and Customs Enforcement, Homeland Security Investigations. From 2013 through April 2019, the U.S. Attorney’s Office for the Southern District of Florida has prosecuted 69 offenders in 48 human trafficking cases, including labor and sex trafficking. These cases collectively involved the victimization of more than 75 survivors of human trafficking. This Fiscal Year, the U.S. Attorney’s Office for the Southern District of Florida has charged 9 human trafficking cases against 12 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. “So please, spread the word about how 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 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.
Maryland Man Arrested for Making Multiple Threats to Injure and Kill HispanicsRead the Press Release
Eric Lin, 35, of Clarksburg, Maryland, was arrested on Friday, August 16, 2019, in Seattle, Washington, after being charged with Making Threatening Communications, in violation of Title 18, United States Code, Section 875(c) via a criminal complaint filed in Miami. Lin made his initial appearance before a United States Magistrate Judge in Seattle.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to allegations in the complaint, between May 30, 2019, and August 13, 2019, Eric Lin made multiple threatening communications via Facebook to injure and kill a South Florida resident and to kill all Hispanics in Miami and other places.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Maria K. Medetis.
A complaint is merely an accusation and 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.
Film Producers, Former Banker Charged in Movie Financing Fraud SchemeRead the Press Release
Two film producers and a former Wells Fargo Bank employee arrested on fraud and money laundering charges in connection with a scheme to steal money from investors and producers seeking financing for motion pictures and theater performances.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
According to the indictment, Benjamin McConley, 37, of South Florida, and Jason Van Eman, 41, of Oklahoma, 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. 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. The indictment charges McConley and Van Eman with: conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; 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 1957.
South Florida resident and former Wells Fargo Bank employee Benjamin Rafael, 30 years old, was arrested on the same charges on August 17, 2019.
The indictment also alleges that McConley and Van Eman entered into false and fraudulent short-term loan agreements with third-party lenders who were willing to provide low-interest bridge loans to McConley and Van Eman on behalf of investors and producers.
According to the indictment, in order to lure investors, producers, and lenders, McConley and Van Eman executed false and fraudulent “funding agreements,” which guaranteed that the victims’ cash contributions or loans would be “matched” dollar-for-dollar by McConley. McConley and Van Eman further assured the victims that their monies would be held in a secure bank account and would not be transferred without the victims’ consent.
The funding agreements required McConley to deposit funds into the secure bank account shortly after the victims provided their contribution or loan. To that end, Van Eman instructed victims to transfer money to bank accounts that were actually controlled by McConley and his co-conspirators. According to the funding agreements, McConley and Van Eman were to apply for a line of credit from the bank using the monies held in the secure bank account as collateral.
In some instances, the funding agreements required the prompt return of the victims’ funds, plus interest, once the bank associated with the purportedly secure account authorized a line of credit. In other instances, the line of credit was to be used to finance the victims’ projects, pay production costs, and cover other expenses associated with the projects. During the course of the alleged scheme, McConley and Van Eman falsely and fraudulently assured victims that lines of credit had been applied for and approved by the financial institutions associated with the purportedly secure bank accounts.
At times, McConley and Van Eman promised that victims’ contributions or loans would be secured by a financial guarantee called a “performance bond.” McConley and Van Eman claimed they would pay for the performance bonds to be issued by a third-party insurance company.
According to the indictment, victims relied on McConley and Van Eman’s false and fraudulent representations and promises concerning the return of their funds and the protections afforded by the funding agreements and performance bonds.
As alleged, based on these false representations and promises, and at Van Eman’s direction, victims sent tens of millions of dollars to accounts controlled by McConley and his co-conspirators. In truth, McConley never “matched” the victims’ contributions or loans as promised in the funding agreements. Neither McConley nor Van Eman applied for lines of credit on behalf of victims. Neither McConley nor Van Eman paid for or otherwise secured performance bonds on behalf of victims.
Instead of fulfilling their promises to victims, it is alleged that McConley and Van Eman stole the victims’ money by transferring funds from the purportedly secure bank accounts to McConley and Van Eman’s personal and corporate bank accounts, often within days of the victims’ contributions or loans.
It is alleged that McConley and Van Eman directed Benjamin Rafael, 30, of Miami, a one-time Wells Fargo Bank employee to falsely assure victims about the security of their funds. During the course of the scheme, Rafael falsely told victims that their contributions or loans had been “matched” and that McConley and Van Eman had applied for lines of credit at Wells Fargo Bank as promised in the funding agreements.
According to the indictment, up to and after his termination from Wells Fargo Bank in June 2015, Rafael routinely sent false and fraudulent emails to victims from his Wells Fargo Bank and personal email accounts. Following Rafael’s termination from Wells Fargo Bank, McConley and Van Eman falsely assured victims that Rafael was still a bank employee.
McConley, Van Eman, and Rafael also created and transmitted false and fraudulent bank documents, including purported bank letters, account signature cards, and deposit account balance summaries.
When victims demanded the return of their money, McConley and Van Eman usually refused to return the victims’ funds as promised in the funding agreements, often blaming bank “compliance” issues. As a result, several victims filed civil lawsuits and other legal actions against McConley and Van Eman in Florida, California, and Texas.
During the pendency of the lawsuits and legal actions, McConley and Van Eman continued to lure victims with false and fraudulent promises and documents. In order to resolve the various lawsuits and legal actions filed by earlier victims, and to pay attorneys’ fees, McConley and Van Eman directed later victims’ funds to the earlier victims and attorneys; all without the later victims’ knowledge or authorization. In order to conceal from the public news of the lawsuits and legal actions, McConley and Van Eman engaged an “online reputation management” firm to “suppress” or hide negative information about them.
Throughout the course of the charged scheme, McConley, Van Eman, and Rafael used stolen money to purchase luxury automobiles, personal watercraft, real estate, jewelry, home furnishings, designer clothes, hotel accommodations, and private and commercial air travel.
On August 19, 2019, McConley and Rafael made their initial appearances on the charges before United States Magistrate Lisette M. Reid in Miami, Florida. Van Eman previously made his initial appearance on August 16, 2019, in Tulsa, Oklahoma.
If convicted, the defendants can be sentenced to up to 20 years in prison on the wire fraud conspiracy and wire fraud charges, and up to 10 years in prison on each of the money laundering conspiracy and money laundering charges.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Field Division and thanked FBI Tulsa Resident Agency, Oklahoma Field Office, for its assistance. 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.
An indictment contains mere allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chief Financial Officer of 1 Global Capital LLC Charged with Conspiracy to Commit Securities Fraud in Relation to $330 Million SchemeRead the Press Release
A former Chief Financial Officer of 1 Global Capital, LLC has been charged in connection with a $330 million securities fraud scheme, related to a commercial payday loan business that operated from early 2014 through July 2018, 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.
Alan G. Heide, 61, of Lake Worth, Florida, was charged today by information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 19-60231. The case is assigned to U.S. District Judge Roy Altman in Fort Lauderdale. If convicted, Heide faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans (“MCAs”), 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.
Heide was the Chief Financial Officer of 1 Global from 2014 through 2016, when he became the Executive Vice President and Director of Syndicate Partner Relations. In order to attract investments, Heide and his co-conspirators allegedly made false and misleading representations to investors and potential investors as to the profitability of 1 Global’s business in marketing materials and periodic account statements. 1 Global promised investors that all or nearly all of that money would be applied to various MCA loan agreements with the investor supposedly receiving a portion of the proceeds paid back by the merchants. The information alleges that the 1 Global business lost money, and used new investor funds to pay back earlier investors who sought to cash out in a manner consistent with a Ponzi scheme. Furthermore, the conspirators are alleged to have misappropriated large amounts of cash for their personal benefit. In addition, the information alleges that 1 Global paid substantial commissions and other expenses with investor funds without disclosing the extent of these payments.
According to the allegations in the information, Heide and others at 1 Global also made false statements to investors that gave the impression that 1 Global had an independent auditor. These misrepresentations were allegedly made in monthly-mailed statements that falsely showed profitable investments. As 1 Global continued to lose money over time, the cash shortfall continued to increase and 1 Global was only able to continue operations by raising ever-increasing amounts of new investor funds, before its eventual collapse in July 2018.
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. The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Heide. In a related case, the SEC previously filed a civil fraud action, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.).
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, the Federal Housing Finance Authority, Office of Inspector General, and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy 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.
Former Executive Director of Non-Profit Charged with EmbezzlementRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Teri Donaldson, Inspector General, U.S. Department of Energy, Office of Inspector General (DOE-OIG), Nadine Gurley, Special Agent in Charge of the Southeast Caribbean Region, U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG), and Scott McInerney, Director, Florida Department of Law Enforcement (FDLE), Office of Executive Investigations announced that Donna Carman, 59, of Martin County, Florida has been charged by an Information with theft from an organization receiving federal funds (Case No. 19-14039-CR-Martinez/Maynard).
According to the Information, Indiantown Nonprofit Housing, Inc. (“Indiantown”), is a Florida not-for-profit corporation that provides affordable housing and community, social, and economic development opportunities for low and moderate income residents in Martin County. Indiantown applied for and received funds through various Federal programs. As the Executive Director of Indiantown, Carman was responsible for planning, organizing and monitoring the activities of the organization, coordinating with consultants, architects, contractors, funding agencies, property management companies, and other related professionals in furtherance of Indiantown’s mission, maintaining the fiscal records of the organization, ensuring appropriate and timely processing of all fiscal reporting requirements, and providing administrative support to Indiantown’s Board of Directors. She was authorized to use an American Express credit card bearing her name and issued to Indiantown for business-related purchases. Beginning as early as August 21, 2014, Carman began siphoning funds from for her own personal use, including repairs and upgrades made to real property she owned. Carman used the Indiantown American Express credit card on several occasions to purchases goods and services for herself and others unrelated to Indiantown’s mission.
If convicted, Carman faces up to 10 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.
An information merely contains 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 DOE-OIG, HUD-OIG, and FDLE in this matter. This case is being prosecuted by Assistant U.S. Attorney Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Resident Sentenced to 70 months for Investment Fraud Scheme after Attempting to Flee the CountryRead the Press Release
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, and the Florida Office of Financial Regulation (OFR) announced that Jorge Garrido, 45, of Miami, Florida, was sentenced by U.S. District Judge Cecilia Altonaga on August 7, 2019, to 70 months in prison. Garrido was also ordered to pay approximately $5.7 million in restitution after previously pleading guilty to orchestrating the investment fraud scheme (Case No. 18-20784-CR-ALTONAGA).
According to the court record, from 2010 to 2017, Garrido served as the president, director and registered agent of G & C Investment Corp (G&C). In those capacities with G&C, Garrido solicited investors for advance contributions of as much as $1 million, which Garrido stated he would use to monetize bank instruments, engage in platform trading, or fund humanitarian platforms, among other things. Garrido promised staggering returns to his investors of as much as 15- or 20-times their initial contribution. Garrido also claimed he could guarantee the safety of the investors’ principal by asserting he owned U.S. Treasury Notes which would serve as collateral for the investments. In reality, the Treasury Notes did not exist.
Garrido failed to provide promised returns to investors, and instead used nearly $5 million for his personal benefit. He then attempted to flee the country in March 2017 after learning of the Government’s case against him, and was apprehended at Palm Beach International Airport by the FBI as he was preparing to board a private charter jet headed for Europe.
Judge Altonaga ordered Garrido’s sentence to be run consecutively after he completes a 46-month sentence he is currently serving for a separate mortgage fraud case (Case No. 15-20973-CR-WILLIAMS).
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and OFR in this matter. This 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 at http://pacer.flsd.uscourts.gov.
Mastermind of $1.3 Billion Investment Fraud (Ponzi) Scheme - One of the Largest Ever - Sentenced to Twenty-Five Years in Prison on Conspiracy and Tax Evasion ChargesRead the Press Release
Today, a Sherman Oaks, California native, Robert Shapiro, 61, was sentenced to a total of a total of twenty-five years in in prison by U.S. District Judge Cecilia M. Altonaga in Miami, Florida after previously pleading guilty to orchestrating and leading a massive investment fraud scheme, in which more than 7,000 victims suffered financial losses, as well as tax evasion. Shapiro is the former owner, president, and CEO of Woodbridge Group of Companies LLC (“Woodbridge”).
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 the Florida Office of Financial Regulation (OFR), made the announcement.
According to the indictment and court documents, Shapiro spearheaded and concealed an enormous Ponzi scheme through his business, Woodbridge. Woodbridge employed approximately 130 people and had offices located throughout the United States, including in Boca Raton, Florida; Sherman Oaks, California; Colorado; Tennessee; and Connecticut. The scheme ran from at least July 2012 to December 2017, when Woodbridge filed for Chapter 11 bankruptcy and defaulted on its obligations to investors.
Throughout the conspiracy, Woodbridge’s main business model was to solicit money from investors and, in exchange, issue investors promissory notes reflecting purported loans to Woodbridge that paid high monthly interest rates. Woodbridge falsely claimed that these investments were tied to real property owned by third parties and that the third parties would be making the interest payments to Woodbridge and its investors; it was portrayed as an investment in a hard-money lending business. Using high pressure sales tactics, Shapiro and his co-conspirators marketed and promoted these investments as low-risk, safe, simple, and conservative. And at minimum, investors were made to believe that Woodbridge’s real estate dealings would generate the funds used to pay the return on their investments.
Despite Woodbridge’s claims that these investments would be backed by properties owned by third-parties, in fact, to the extent that the properties existed, they were secretly owned by Shapiro. Unbeknownst to investors, Shapiro created and controlled a network of more than 270 limited liability companies, which he used to acquire and sell the properties pitched to investors.
Shapiro and his co-conspirators falsely claimed that Woodbridge was profitable and advertised high rates of return to investors. However, Shapiro’s real estate portfolio failed to generate sufficient cash flow to satisfy the loan obligations and interest payments owed to investors. To make up for the cash deficiency, Shapiro and his co-conspirators resorted to making Ponzi payments, i.e., hundreds of millions of dollars invested by new investors were used to pay “returns” to older, existing Woodbridge investors. In some instances, Shapiro made these fraudulent “interest” payments even when the advertised investment properties were never acquired.
The Woodbridge sales operation functioned as a “boiler room” and featured high-pressure sales tactics, deception, and manipulation. Woodbridge promoted investments through telephone and in-person conversations, emails and website displays. The scheme also involved misrepresentations to financial planners who helped Woodbridge to sell investments to potential investors.
At least five states issued cease and desist orders against one or more of the Woodbridge entities based on their unregistered sale of securities. Shapiro and his co-conspirators nonetheless continued to sell Woodbridge investments to residents of those states, and engaged in deceptive conduct with respect to pending state regulatory actions against Woodbridge, in violation of the cease and desist orders.
At some point in 2017, Shapiro made the decision that Woodbridge would file for bankruptcy. Without disclosing to investors that Woodbridge was insolvent and on the verge of bankruptcy, Shapiro caused Woodbridge to collect additional money from investors through the filing of Woodbridge’s bankruptcy in December 2017. Shapiro also admitted that, immediately prior to Woodbridge’s bankruptcy filing, he diverted millions of dollars in investor funds to several bank accounts opened in the name of his wife, J.S., which he used for new ventures.
In total, Shapiro and his co-conspirators convinced more than approximately 9,000 investors to invest more than $1.29 billion to Woodbridge. According to the Indictment, at least 2,600 of these investor victims invested their retirement savings, totaling approximately $400 million. Of that, Shapiro misappropriated approximately $25 million to $95 million in investor money for himself and for the benefit of his immediate family members. Shapiro spent millions on personal expenditures, such as $3.1 million for chartering private planes and travel, $6.7 million on a personal home, $2.6 million on home improvements, $1.8 million on personal income taxes, and over $672,000 on luxury automobiles. Shapiro further admitted that he used bank accounts and credit cards opened in the name of his wife, J.S., to divert millions of dollars to his family.
Shapiro also pled guilty to tax evasion based upon his failure to pay more than $6 million in taxes due and owing to the IRS for calendar years 2000 through 2005.
As part of his plea, Shapiro and his wife agreed to forfeit certain assets, many of which were seized during a search executed by federal agents at his home in Sherman Oaks, California. They include, but are not limited to: artworks by Pablo Picasso, Alberto Giacometti, Marc Chagall, and Pierre-August Renoir; a collection of 603 bottles of wine; a 1969 Mercury convertible; luxury jewelry, including a pair of 14-karat, white gold earrings with two black diamonds (61.81 carats), two grey diamonds (23.92 carats), two rose-cut diamonds, and 266 round diamonds; a platinum ring with an oval-cut ruby (10.91 carats), two trapezoid diamonds and 70 round-cut diamonds; a platinum ring with certified Colombia emerald-cut emerald (9.54 carats), trapezoid-cut diamonds, and 166 round-cut diamonds; and other items detailed in court documents. The Court entered a Preliminary Order of Forfeiture today (Case No. 19cr20178). A restitution hearing has been scheduled for Jan. 17, 2020 at 9:30 a.m.
Shapiro was sentenced to concurrent terms of 300 months in prison on Count 1 and Count 10 of the indictment. Upon his release from prison, Shapiro will be placed on supervised release for three years.
The indictment also charged two co-defendants, Dane Roseman, a/k/a “Dayne Roseman,” and Ivan Acevedo, who are scheduled for trial in June 2020 (Case No. 19cr20178). The U.S. Securities and Exchange Commission (SEC) filed parallel civil enforcement actions against Woodbridge, Shapiro, his wife, and co-defendants Acevedo and Roseman related to the Ponzi scheme.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI and OFR in this matter. She thanked the SEC Miami Regional Office and the U.S. Attorney’s Office for the Central District of California for their assistance. This case was prosecuted by Assistant U.S. Attorneys Roger Cruz and Lisa H. Miller. Assistant U.S. Attorneys Nalina Sombuntham and Alison Lehr are 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 on http://pacer.flsd.uscourts.gov.
Eight Federally Indicted for the Embezzlement and Laundering of Funds from the Miccosukee CasinoRead the Press Release
On August 7, 2019, Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Division, and Roland D. Pandolfi, Chief of Police, Miccosukee Police Department, announced the unsealing of a 63-count indictment, charging eight (8) Miami-Dade County residents with computer fraud, embezzlement, money laundering, and making false statements to law enforcement, relating to a fraud scheme involving electronic gaming machines at the Miccosukee Resort & Gaming in Miami, Florida. Charged in the indictment were Michel Aleu, 41, Lester Lavin, 43, Yohander Jorrin Melhen, 42, Leonardo Betancourt, 46, Maria Del Pilar Aleu, 39, Anisleydi Vergel Hermida, 30, Milagros Marile Acosta Torres, 33, and Yusmary Shirley Duran, 40.
The indictment alleges that beginning on or about January 29, 2011, and continuing through on or about May 27, 2015, Miccosukee Resort & Gaming employees Aleu, Lavin, Melhen, and Betancourt embezzled more than $5 million in cash from the Miccosukee casino. According to the indictment, Aleu, Lavin, Melhen, Betancourt, and their unindicted co-conspirators, tampered with the electronic gaming machines and caused the machines to generate false and fraudulent credit vouchers or tickets, which the defendants then exchanged for cash at ATMs located on the casino floor, or from floor cashiers or the casino treasury.
Further alleged is that all of the defendants committed money laundering offenses, involving the computer fraud proceeds that Aleu, Lavin, Melhen, and Betancourt embezzled from the casino. According to the indictment, the defendants used the stolen funds to purchase and/or maintain various asset including the defendants’ residences, various investment properties, Florida Prepaid College Plan accounts for certain of the defendants’ children, and certain vehicles. The indictment also seeks the forfeiture of these assets.
United States Attorney Fajardo Orshan commends the investigative efforts of the Federal Bureau of Investigation and the Miccosukee Police Department. The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.
An indictment contains mere 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.
California Resident Charged in Scheme to Sell Forged Artworks in South FloridaRead the Press Release
On July 19, 2019, Los Angeles resident Philip Righter, 42 years old, was arrested on fraud and identity theft charges in connection with a scheme to sell forged artworks by prominent contemporary artists. He was indicted on charges of wire fraud, in violation of Title 18, United States Code, Section 1343; mail fraud, in violation of Title 18, United States Code, Section 1341; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The indictment was unsealed on August 6, 2019.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
According to the indictment, Righter engaged in a scheme to defraud a South Florida art gallery owner and others by making materially false and fraudulent representations, and by the concealment of material facts, concerning, among other things, the source and authenticity of certain artworks purportedly created by deceased artists K.H. and J.M.B.
Righter is alleged to have acquired forged and fraudulent artworks through, among other sources, the eBay online marketplace. In order to make the forged and fraudulent artworks appear authentic, Righter created fraudulent letters certifying their authenticity. These fraudulent letters bore the names of legitimate representatives of the artists’ estates.
In furtherance of the scheme, Righter also designed and purchased custom-made embossers bearing the names of K.H. and J.M.B., which Righter used to stamp the authentication letters to make them appear legitimate.
Righter, personally and through third-party brokers, offered to sell the forged and fraudulent artworks to several potential buyers, including auction houses, the owner of a South Florida art gallery, and others. According to the indictment, Righter directed the art gallery owner to make a payment of $1,056,000 in exchange for the forged artworks.
Righter was granted a $100,000 bond, following his initial appearance in California. He was arraigned on the indictment on August 6, 2019, before United States Magistrate Judge Alicia M. Otazo-Reyes in Miami, Florida. If convicted, Righter can be sentenced to up to 20 years’ imprisonment on the wire fraud and mail fraud charges, and a consecutive, two-year term of imprisonment on each of the aggravated identity theft charges. Additionally, the court may impose a fine of up to $250,000 on each count alleged in the indictment.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Field Division, which was assisted by the FBI Los Angeles Field Division and the Los Angeles Police Department. U.S. Attorney Fajardo Orshan also thanked the U.S. Attorney’s Office for the Central District of California for their assistance in this matter. The case is being prosecuted by Assistant United States Attorney Christopher Browne.
An indictment contains mere 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.
North Miami Beach Resident Sentenced to over 7 Years in Prison for $3.5 Million Fraud Scheme Targeting Orthodox Jewish CommunityRead the Press Release
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, and Rick Swearingen, Commissioner, Florida Department of Law Enforcement (FDLE), announced that on August 6, 2019, Shayeh Dov, 49 years old, of North Miami Beach, Florida, was sentenced to eighty-seven (87) months in prison, three years of supervised release and ordered to pay $3,087,972 in restitution to victims by Senior U.S. District William J. Zloch.
According to court documents, Dov pled guilty on February 7, 2019, before U.S. Magistrate Judge Patrick M. Hunt, to the sole count of an Information that charged him with Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-60006-CR-ZLOCH). Dov’s guilty plea was accepted on February 20, 2019, by U.S. District Judge William J. Zloch.
According to the court record, beginning in May 2012, and continuing through May 2019, Dov was the mastermind behind an affinity fraud scheme that targeted members of the Orthodox Jewish community in South Florida and New York. Dov exploited the community’s close bonds of trust to obtain money for fraudulent investments. Dov presented investment opportunities in distressed or foreclosed mortgage notes through companies he owned and/or operated, including P&S Inc., Notez LLC, and Notes LLC. The mortgage note properties were located in Broward, Miami-Dade and other counties throughout the State of Florida, as well as other states. Dov would oftentimes engage investors in a legitimate transaction(s) and then conduct a fraudulent transaction.
Dov bought, sold and offered investors mortgage notes at a discount because these notes were attached to delinquent and/or foreclosed real estate. Dov used high pressure sales tactics to sell these discounted notes. Dov falsely claimed he maintained inside connections to financial institutions and told investors that they had a very limited window to purchase the notes, in order to induce individuals to invest.
Information in court records further revealed that the fraudulent transactions further involved selling notes to investors that Dov and/or the aforementioned companies did not own and were not actually for sale. Dov also would purport to sell notes that he previously sold to other purchasers years ago that were not available for sale. In at least one instance, Dov sold the same note to two different investors approximately five days apart.
In addition, Dov directed investors to wire the monies to bank accounts he controlled. The investors’ funds were used to pay Dov’s personal and travel expenses, including gambling, mortgage payments, luxury automobile loans, and, in limited circumstances, to pay back previous note investors who were defrauded. The monies were not, however, used to purchase the mortgage notes that were promised to investors.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and FDLE in this matter. The case was prosecuted by Assistant United States 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 on http://pacer.flsd.uscourts.gov.
HSI Employee Pleads Guilty to Making False Statements to InvestigatorsRead the Press Release
On August 5, 2019, Ivette Dominguez, 33 years old, an Investigative Assistant with the United States Department of Homeland Security (“DHS”), Homeland Security Investigations (“HSI”), pled guilty to an Information charging her with making material false statements to Special Agents from DHS, Office of Inspector General (“DHS-OIG”), and Immigration and Customs Enforcement (“ICE”), Office of Professional Responsibility (“ICE-OPR”), in violation of Title 18, United States Code, Section 1001(a)(2). Dominguez is scheduled for sentencing on October 11, 2019, at 9:30 a.m. before United States District Judge Beth Bloom, where she faces a possible maximum sentence of five (5) years in prison. In addition, Ms. Dominguez will resign from her position with HSI as part of her Plea Agreement.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Jay H. Donly, Special Agent in Charge, DHS-OIG, Miami Field Office, and Michael Moreland, Special Agent in Charge, ICE-OPR, SAC Southeast, made the announcement.
According to the facts admitted at the change of plea, Dominguez, in her position as an Investigative Assistant, provided support to the HSI Special Agents investigating various criminal offenses, including drug trafficking and immigration crimes. Dominguez was assigned to HSI’s Homestead Investigative Group (“HIG”), where her duties included conducting database and criminal history checks to further the criminal investigations being done by that group. In her position, Dominguez was aware that the HIG was conducting a proactive criminal investigation into illegal steroids distribution at the Homestead Air Reserve Base, and played an administrative supporting role in that investigation. Using the information she learned in her official position, in December 2017, she alerted a target about this investigation.
In May 2018, Dominguez contacted that target in advance of the target being interviewed by HIG agents and advised the target that the investigation was weak and that the target was under no obligation to cooperate with the HIG agents. In March 2019, Dominguez exchange a series of text messages with an individual who portrayed herself as a friend of the target. In reality, that individual was a DHS-OIG undercover agent (“UCA”). After the UCA told Dominguez that the target was going to be interviewed by DHS-OIG and ICE-OPR agents, Dominguez asked the UCA to tell the target to lie to the interviewing agents to protect her by denying that Dominguez had given her any warning about the investigation.
On April 26, 2019, Dominguez was interviewed by DHS-OIG and ICE-OPR agents, who informed her that they had received allegations that she had alerted that target about the steroids investigation. During this interview, Dominguez initially denied any wrongdoing, but after she was confronted with the text messages she exchanged with the UCA, she admitted that she had alerted the target about the investigation, had provided her with advice and information about the investigation, had warned her not to sell steroids to a person who would approach that target, and had asked that target to lie to interviewing DHS-OIG and ICE-OPR agents to protect her.
Ms. Fajardo Orshan commended the investigative efforts of DHS-OIG and ICE-OPR. This case is being prosecuted by Assistant United States Attorney Edward N. Stamm.
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.
St. Lucie County Resident Sentenced to Prison and Ordered to Pay over $1 Million for Orchestrating Wire Fraud Scheme and Embezzling EmployersRead the Press Release
On July 31, 2019, Sabrinea Lallonie Brooks, 28, of St. Lucie County, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to 48 months in prison and ordered to pay $ 1,071,249 in restitution for orchestrating a wire fraud scheme and embezzling funds from employers (Case No. 19cr14020).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Javaro Sims, Chief, Delray Beach Police Department, made the announcement.
According to the court docket, including the criminal Information and a Stipulated Factual Basis that was filed in support of Brooks’ guilty plea, between February 2014 through December 2015, Brooks was employed as a billing and collections specialist by companies Apex Billing, LLC, Dream Center for Recovery, Supportive Healthcare Services, and Wellness Center of Palm Beach, LLC. Brooks without authorization, contacted third party issuer agents of insurance companies and using fraudulent pretenses and making materially false representations, caused the third party issuer agents of insurance companies to give her treatment provider registration codes, pin numbers, and links. Brooks used this information to access the third party issuer agents’ website, to create new user accounts, to re-register treatment providers, and change the method of payment and/or the routing of insurance provider payments, intended for treatment providers. As a result of her wire fraud, Brooks received at least $463,402.30 in illegal proceeds.
While working for these companies, Brooks also intercepted “Vpayments”/ virtual credit cards issued as insurance payments to several treatment providers. Thereafter, Brooks processed some of the “Vpayments”/ virtual credit cards using the Square merchant processing mobile payment program. Brooks created several Square accounts, which she linked to bank accounts under her control. Because of her access device fraud, Brooks received at least $57,632.76, in illegal proceeds.
While working for Wellness Center of Palm Beach, LLC, as a billing manager, Brooks also created a fraudulent company, and opened SunTrust Bank account, in the name of “Wellness Ctr of Palm Beach Billing LLC.” Thereafter, Brooks deposited checks payable to Wellness Center of Palm Beach, LLC, into the SunTrust Bank account that were endorsed with her signature and a stamp listing her fraudulent billing company. Because of her theft of Wellness Center of Palm Beach, LLC checks, Brooks received at least $352,521.72, in illegal proceeds.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the USSS and Delray Beach Police Department in this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
Opa-Locka Resident Sentenced to 108 Months in Prison for Drug Trafficking Near an Elementary SchoolRead the Press Release
The defendant used his home for distribution of cocaine and cocaine base a/k/a “crack cocaine”
U.S. District Judge Roy K. Altman sentenced an Opa-Locka resident to serve nine years in prison for drug trafficking within 1,000 feet of a school.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, MDPD executed a search warrant at Tavares McCray, 42, residence on June 13, 2018, after two controlled purchases of cocaine from the home. At that time, McCray was found inside of the home with his 15 and 12 year-old daughters, and his two year-old son. Inside of the residence, law enforcement found 169.1 grams of powder cocaine and 33.6 grams of crack cocaine packaged for distribution. The drugs were concealed in a PVC pipe and a false-bottom paint can. Additionally, drug paraphernalia used in the manufacture and distribution of narcotics was found on the kitchen counter and in a kitchen drawer. During the search, a Glock 26 firearm loaded with fifteen rounds of ammunition was found in a women’s purse. McCray had over $2,400, in bundles consistent with the sale of narcotics in his shorts pocket. McCray’s residence was located within 1,000 feet of Nathan B. Young Elementary School.
U.S. Attorney Fajardo Orshan commends the investigative efforts of ATF and the MDPD. Ms. Fajardo Orshan also thanked the Miami-Dade State Attorney’s Office and Drug Enforcement Administration for their assistance. This case was prosecuted by Special Assistant U.S. Attorney Benjamin A. Gellis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Ajay Alexander.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Delaware Sex Offender Sentenced to Prison for Violating Federal Registration and Notification Law in St. Lucie and Palm Beach CountiesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida, announced that on July 31, 2019, Larry Cunningham, 63, was sentenced by U.S. District Judge Robin L. Rosenberg, sitting in West Palm, to 21 months in prison, to be followed by 5 years of supervised release, for failing to register as a sex offender, in violation of Title 18, United States Code Section 2250(a) (Case No. 19CR14009).
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to the court record, including the agreed upon Factual Proffer in support of the defendant’s guilty plea, on July 15, 1988, Cunningham was convicted in the State of Delaware of First Degree Burglary, Third Degree Unlawful Sexual Intercourse and Second Degree Conspiracy. Because Cunningham was convicted of Third Degree Unlawful Sexual Intercourse, a qualifying sex offense, he was subject to SORNA's lifetime registration requirements, including that he notify authorities of any change of address. Beginning in August of 2009, Cunningham was informed of his registration obligations under SORNA and began to register as a “sex offender” in the State of Delaware. On April 19 and 20, 2016, Cunningham traveled from Delaware to Florida and failed to update his registration information. On April 16, 2016 and August 24, 2016, the Delaware State Police issued an arrest warrant for Cunningham on a Sex Offender Registration Violation. From April, 20, 2016, until on or around July 2018, Cunningham lived in St Lucie County and Palm Beach County, Florida. He failed to notify Delaware or Florida authorities and failed to register as a sex offender after his move to Florida, as required. On September 13, 2018, members of the U.S. Marshals Service Fugitive Task Force apprehended Cunningham, who had moved to Hendry County, Florida.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the U.S. Marshals Service in this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Owner of Two South Florida Tax Preparation Businesses Sentenced to 15 Years for Running Tax Fraud ConspiracyRead the Press Release
West Palm Beach resident and owner of Investment Equity Development, Inc. and Jacob G. Jeune, P.A., located in Miami-Dade County, was sentenced to 15 years in prison to be followed by three years of supervised release, for her role in a scheme to defraud the Internal Revenue Service over a period of five years.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
According to the evidence presented at trial, Tamara Jeune, a/k/a “Tamara Voltaire”, 46, was the owner and operator of at least two tax preparation businesses. As part of her scheme, Jeune, who was previously convicted of tax preparation fraud, fraudulently obtained Electronic Filing Identification Numbers (EFINs) and Preparer Tax Identification Numbers (PTINs) in the names of other individuals who acted as “straw” EFIN and PTIN holders. Jeune the used those EFINs and PTINs to file fraudulent federal income tax returns with the IRS using stolen personal identifying information (PII) of her clients and other individuals without their authorization and knowledge. These tax returns contained false wages, employment information, expenses, and deductions. The defendant also stole the PII of minors, who were at times dependents of her clients, and then submitted false tax returns in the minors’ names. As part of her scheme, Jeune directed the IRS to send the tax refund money associated with the false and fraudulent federal income tax returns to bank accounts she controlled. She then used the money to pay for her personal expenses. As a result of Jeune’s actions, the IRS suffered a loss in excess of $700,000.
The Court sentenced Jeune to 15 years in prison after considering that she: (1) was the leader and organizer of this multi-year tax fraud scheme; (2) defrauded at least more than 10 victims; (3) used sophisticated means by taking a diverse number of steps, including using nominees, to conceal her fraud; (4) produced or trafficked in authorized access devices; (5) abused the trust of the taxpayers who went to her to prepare their taxes; and (6) obstructed or impeded the administration of justice by providing fabricated documents and instructing others to lie during an IRS civil audit.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI in this matter. This case was prosecuted by Assistant U.S. Attorneys Roger Cruz and Yisel Valdes.
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 Jury Finds Pensacola, Florida Man Guilty of Interstate Armed Robbery and Carjacking SpreeRead the Press Release
Following a five-day jury trial, an Escambia County, Florida man was convicted of participating in a two-week interstate crime spree during which the defendant and his then-girlfriend committed five armed robberies and two armed carjackings across the southeastern United States.
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.
Lessie Earl Proctor, 33, of Pensacola, FL, was convicted on July 18, 2019, of all counts submitted to the jury - one count of conspiracy to commit Hobbs Act Robbery, two counts of Hobbs Act Robbery, and two counts of brandishing a firearm in furtherance of a crime of violence (Case No. 18-20748-CR-RUIZ). The case was tried before U.S. District Judge Rodolfo A. Ruiz, II in Fort Lauderdale.
Evidence established at trial showed that the Proctor’s crime spree began on June 1, 2018, when the defendant and his then-girlfriend Anna Kay Coenen used a pistol to carjack a 74-year old woman who had just exited a public library in Pensacola, Florida. Proctor and his girlfriend drove the stolen car to south Florida, and the next day, on June 2, 2018, they used a pistol to rob a Cricket Wireless store in Doral, Florida. Proctor’s girlfriend handed a store employee a threatening note and the defendant brandished his pistol. The next day, on June 3, 2018, Proctor and his girlfriend robbed a Subway restaurant in Hialeah, Florida. Proctor pointed his pistol at two restaurant employees as his girlfriend emptied the cash register. Over the following two weeks, Proctor and his girlfriend drove across the southeastern United States committing a string of armed robberies and carjackings, including armed robberies of a Circle K store in Senatobia, Mississippi, a Dollar General store in Prescott, Arkansas, and a Circle K store in Normal, Illinois. Victim witnesses from across the country testified during the trial.
On July 3, 2019, Coenen pled guilty to conspiracy to commit Hobbs Act robbery and two substantive counts of Hobbs Act robbery. She is scheduled to be sentenced on October 25, 2019 at 2 p.m.
Proctor is scheduled to be sentenced on October 28, 2019, at 9:30 a.m., before Judge Ruiz in Fort Lauderdale. The defendant faces up to life imprisonment, and a mandatory minimum sentence of 14 years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She thanked the members of the Hialeah Police Department, Doral Police Department, Pensacola Police Department, Prescott City Police Department in Arkansas and Kosciusko Police Department in Mississippi for their invaluable assistance.
The case is being prosecuted by Assistant U.S. Attorney Michael B. Homer, Special Assistant U.S. Attorney Elizabeth Young, and Assistant U.S. Attorney Lisa Miller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Two Colombian Businessmen Charged with Money Laundering in connection with Venezuela Bribery SchemeRead the Press Release
Two Colombian businessmen were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to take advantage of Venezuela’s government-controlled exchange rate.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Alex Nain Saab Moran (Saab), 47, and Alvaro Pulido Vargas (Pulido) 55, both citizens of Colombia, were each charged in an eight-count indictment returned in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. The indictment also alleges and seeks forfeiture in excess of $350 million representing the amount of funds involved in the violation.
The indictment alleges that beginning in or around November 2011 and continuing until at least September 2015, Saab and Pulido conspired with others to launder the proceeds of an illegal bribery scheme from bank accounts located in Venezuela to and through bank accounts located in the United States. According to the indictment, Saab and Pulido obtained a contract with the Venezuelan government in November 2011 to build low-income housing units. The defendants and their co-conspirators then allegedly took advantage of Venezuela’s government-controlled exchange rate, under which U.S. dollars could be obtained at a favorable rate, by submitting false and fraudulent import documents for goods and materials that were never imported into Venezuela and bribing Venezuelan government officials to approve those documents. The indictment alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. It also alleges that meetings in furtherance of the bribe payments occurred in Miami and that Saab and Pulido wired money related to the scheme to bank accounts in the Southern District of Florida. As a result of the scheme, Saab and Pulido transferred approximately $350 million out of Venezuela, through the United States, to overseas accounts they owned or controlled, the indictment alleges.
According to the indictment, the following property is subject to forfeiture: (i) a sum of approximately $350,041,500.00 in U.S. currency; (ii) approximately $3,225,593.90 in U.S. currency seized on or about August 20, 2018; (iii) approximately $30,000.00 in U.S. currency seized on or about August 21, 2018; (iv) approximately $3,313,757.69 in U.S. currency seized on or about September 24, 2018; (v) approximately $3,138,844.70 in U.S. currency seized on or about November 5, 2018; and (vi) approximately $2,942,501.37 in U.S. currency seized on or about February 13, 2019.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by DEA with assistance from the FBI’s Miami Field Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Field Office. Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida and Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section are prosecuting the case.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Colombian Businessmen Charged with Money Laundering in Connection with Venezuela Bribery SchemeRead the Press Release
Two Colombian businessmen were charged in an indictment returned today for their alleged roles in laundering the proceeds of violations of the Foreign Corrupt Practices Act (FCPA) in connection with a scheme to pay bribes to take advantage of Venezuela’s government-controlled exchange rate.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.
Alex Nain Saab Moran (Saab), 47, and Alvaro Pulido Vargas (Pulido) 55, both citizens of Colombia, were each charged in an eight-count indictment returned in the Southern District of Florida with one count of conspiracy to commit money laundering and seven counts of money laundering. The indictment also alleges and seeks forfeiture in excess of $350 million representing the amount of funds involved in the violation.
The indictment alleges that beginning in or around November 2011 and continuing until at least September 2015, Saab and Pulido conspired with others to launder the proceeds of an illegal bribery scheme from bank accounts located in Venezuela to and through bank accounts located in the United States. According to the indictment, Saab and Pulido obtained a contract with the Venezuelan government in November 2011 to build low-income housing units. The defendants and their co-conspirators then allegedly took advantage of Venezuela’s government-controlled exchange rate, under which U.S. dollars could be obtained at a favorable rate, by submitting false and fraudulent import documents for goods and materials that were never imported into Venezuela and bribing Venezuelan government officials to approve those documents. The indictment alleges that the unlawful activity was a bribery scheme that violated the FCPA and involved bribery offenses against Venezuela. It also alleges that meetings in furtherance of the bribe payments occurred in Miami and that Saab and Pulido wired money related to the scheme to bank accounts in the Southern District of Florida. As a result of the scheme, Saab and Pulido transferred approximately $350 million out of Venezuela, through the United States, to overseas accounts they owned or controlled, the indictment alleges.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by DEA Miami Field Division with assistance from the FBI’s Miami Field Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami Field Office. Trial Attorney John-Alex Romano of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida are prosecuting the case.
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.
Polk County Man Sentenced to Prison for Burglarizing and Stealing from Federally Licensed Firearms DealerRead the Press Release
Talique McKenzie, 20, of Winter Haven, was sentenced by U.S. District Judge Donald M. Middlebrooks to five years in prison yesterday, after having previously pled guilty to stealing firearms from a federally licensed firearms dealer (Case No. 19-CR-14013).
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 and Paul Blackman, Sheriff, Highlands County Sheriff’s Office, made the announcement.
According to the court record, on January 25, 2019, McKenzie and an accomplice burglarized Bean Armory, Inc., a federally licensed firearms dealer in Lake Placid, Florida. McKenzie and his accomplice stole 27 firearms from Bean Armory, after which they led law enforcement on a high-speed chase through Highlands County in a stolen vehicle. McKenzie left the stolen vehicle behind a residence and fled on foot to a nearby dock, where he was apprehended by detectives from the Highlands County Sheriff’s Office. McKenzie intended to sell the firearms he stole from Bean Armory to drug dealers in Polk County.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and Highlands County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Man Charged with Mail Theft for Stealing Dozens of Letters Containing $200,000 in Checks from Residence in LantanaRead the Press Release
A grand jury in West Palm Beach today returned an indictment charging a man with mail theft in Lantana, Florida.
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.
Marchello Wilbon, 34, of West Palm Beach, was charged in a one-count indictment 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 imprisonment, and up to $250,000 in fines on the charge if convicted.
According to court documents, including the indictment and criminal complaint, on July 15, 2019, at approximately 8:30 a.m., a Lantana resident who lives on S.E. Atlantic Drive placed multiple letters containing approximately thirty-nine checks with face value of approximately $200,000 in the mailbox located outside the resident’s home for pick up by the U.S. Postal Service. Wilson is 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 the USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
An indictment and criminal complaint contain accusations. 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.
Broward County Resident Sentenced to Prison for Distributing Information Pertaining to Explosives OnlineRead the Press Release
A Broward County resident was sentenced today to 20 years in prison for distributing information pertaining to explosives, destructive devices and weapons of mass destruction.
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.
Tayyab Tahir Ismail, 33, of Pembroke Pines, Florida, previously pled guilty to Count 2 of an Indictment that charged him with distributing information pertaining to explosives, destructive devices, and weapons of mass destruction, in violation of Title 18, United States Code, Section 842(p)(2) (Case No. 18-60352-CR-Moore). U.S. District Judge K. Michael Moore sentenced Ismail to 240 months in prison, followed by three years of supervised release.
According to the court record, including the agreed upon factual proffer, on or about July 16, 2018, through on or about September 17, 2018, Ismail posted and distributed online documents including, but not limited to, documents containing step-by-step instructions on how to construct a bomb and other explosives, with the intent that the information be used for and in furtherance of an activity that constitutes a federal crime of violence, that is, the use or attempted use of a weapon of mass destruction.
On at least four occasions in or around July, August, and September 2018, Ismail posted bomb making instructions on the internet, on a social media platform. During that time, Ismail was a member of various rooms within the platform and each of these rooms contained members who support violent jihad. Ismail posted to these various rooms and his postings could be seen by all members of the room in which the information was posted. In and around the same time of Ismail’s postings, other members made postings in support of violent jihad.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and South Florida’s Joint Terrorism Task Force (JTTF) in this matter. The case was jointly prosecuted by Assistant U.S. Attorney Karen E. Gilbert of the Southern District of Florida and Trial Attorney Troy Edwards of the National Security Division’s Counterterrorism 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 on http://pacer.flsd.uscourts.gov.
Three Florida Residents Sentenced to Years in Prison for Armed Robbery of Sawgrass Mills RestaurantRead the Press Release
Three Florida residents were sentenced today to between eight and ten years in federal prison for their participation in a conspiracy to commit an armed robbery of a Sawgrass Mills restaurant.
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, and Anthony W. Rosa, Chief, Sunrise Police Department, made the announcement.
Zyheem Ian Smith, of Orlando, Gedeon Joseph, of Clermont, and Watverly Mortimer, of West Park, previously pled guilty for their involvement in the December 24, 2018 armed robbery of the Yard House restaurant at the Sawgrass Mills Mall in Sunrise, Florida (Case No. 19-CR-60055-UNGARO). Smith, Joseph and Mortimer pleaded guilty to Counts 1 and 3 of the indictment, which charged the Defendants with Conspiracy to commit Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951(a) and Brandishing a Firearm in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
Today, U.S. District Judge Ursula M. Ungaro sentenced Smith to 121 months in prison, and Joseph and Mortimer each to 96 months in prison.
According to court records, including the agreed upon factual proffers, Smith and Joseph entered the Yard House on the morning of December 24, 2018, before the restaurant had opened, through a back door that was opened by Mortimer, a Yard House employee. Smith and Joseph went upstairs to the manager’s office, pointed a Glock 19X handgun at the manager, and grabbed the manager’s cellphone. They threatened to shoot the manager if he did not empty the safe. The manager, who was in fear for his life, placed cash into a bag. Smith and Joseph left the restaurant with approximately $22,000.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and the 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.govor on http://pacer.flsd.uscourts.gov.
Leesburg Resident Pleads Guilty to Attempted Online Enticement of a Minor to Engage in Illegal Sexual ActivityRead the Press Release
A Leesburg, Florida resident pled guilty today to attempted online enticement of a minor to engage in illegal sexual activity.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and John Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Jonathan Mahowald, 38, of Leesburg pleaded guilty to Attempted Use of a Means of Interstate Commerce to Persuade, Induce, Entice, or Coerce a Minor to Engage in Illegal Sexual Activity, in violation of Title 18, United States Code, Section 2422(b) (Case No. 18-CR-14072-KAM. Mahowald faces a mandatory minimum sentence of 10 years to life in prison. Mahowald also faces up to a lifetime of supervised release and the requirement that he register as a sex offender. He was ordered to be held in custody, pending sentencing on October 18, 2019, before U.S. District Court Judge Kenneth A. Marra.
According to documents filed in the case, on July 6, 2018, a Port St. Lucie Police Department Detective was working in an undercover capacity online, utilizing the internet, to investigate computer crimes against children. Between July 6, 2018 and July 17, 2018, a Port St. Lucie Police Detective, posing as a 14 year old girl, responded to an internet advertisement Mahowald had posted. During the course of text and online communications Mahowald discussed sexually explicit activity he wished to engage in with the “14-year old.” In addition, Mahowald sent sexually explicit images, to the person he believed was a minor. On the morning of July 17, 2019, Mahowald set up a meeting with the “14 year old” to meet at a restaurant in Port. St Lucie. While en route, Mahowald discussed engaging in sexual acts, in his van, with the individual he believed was a 14 year old girl. Upon his arrival Mahowald was arrested by members of the Port St. Lucie Police Department.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Port St. Lucie Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Joaquin “El Chapo” Guzman, Sinaloa Cartel Leader, Sentenced to Life in Prison Plus 30 YearsRead the Press Release
Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was sentenced today by U.S. District Judge Brian M. Cogan to a life term of imprisonment plus 30 years to run consecutive to the life sentence for being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. The Court also ordered Guzman Loera to pay $12.6 billion in forfeiture.
Guzman Loera was convicted by a federal jury on Feb. 12, 2019, following a three-month trial, of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy.
The sentence was announced by Attorney General William P. Barr, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York (EDNY), U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida (SDFL), Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), Director Christopher A. Wray of the FBI, Acting Secretary Kevin McAleenan of the U.S. Department of Homeland Security, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, New York City Police Department (NYPD) Commissioner James P. O’Neill and New York State Police Superintendent Keith M. Corlett.
The evidence at trial established that Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing more than a million kilograms of cocaine, marijuana, methamphetamine and heroin in the United States. The evidence included testimony from 14 cooperating witnesses, including Sinaloa Cartel members Rey and Vicente Zambada, Miguel Martinez, Tirso Martinez, Damaso Lopez and Alex Cifuentes; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings that detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.
From the mid-1980s until his arrest in Mexico in 1993, Guzman Loera was a mid-level operative of the Sinaloa Cartel, earning a name for himself and the nickname “El Rapido” for how quickly he transported drugs from Mexico to the United States for the Colombian cartels. After he escaped from a Mexican prison in 2001 by hiding in a laundry cart, Guzman Loera formed an alliance with fugitive co-defendant Ismael Zambada Garcia and, together, they became the preeminent leaders of the Sinaloa Cartel. Guzman Loera enforced his will and maintained control of his drug empire through an army of lethal bodyguards and a sophisticated communications network.
The trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.
Guzman Loera and his organization relied upon violence to maintain its power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and slaughter members of rival drug organizations, at times carrying out acts of violence himself. As part of its arsenal, the Sinaloa Cartel had access to weapons, including grenades and a rocket-propelled grenade launcher. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Guzman Loera and his organization also relied on a vast network of corrupt government officials and employees to protect and further the interests of the Sinaloa Cartel. They included local law enforcement officers, prison guards, high-ranking members of the armed forces and elected office holders. In exchange, the Cartel paid these individuals millions of dollars in bribes.
“The long road that brought ‘El Chapo’ Guzman Loera to a United States courtroom is lined with drugs, death, and destruction, but ends today with justice,” said Assistant Attorney General Benczkowski. “Thanks to the unflagging efforts of the Department of Justice and the law enforcement community over the past 25 years, this notorious leader of one of the largest drug trafficking organizations in the Western hemisphere, the Sinaloa Cartel, will spend the rest of his life behind bars.”
“Guzman Loera’s day of reckoning has finally come,” said EDNY U.S. Attorney Donoghue. “Never again will he pour poison into our country, or make millions as innocent lives are lost. We cannot undo the violence, misery and devastation inflicted on countless individuals and communities as result of his organization’s sale of tons of illegal drugs for more than two decades, but we can ensure that he spends every minute of every day in prison. The same fate awaits those who would take his place. I thank the brave members of law enforcement, here and abroad, for their tireless efforts that have finally secured justice in this case.”
“The life sentence imposed today is the only just result for someone who spent a lifetime spreading his poison throughout our country,” said SDFL U.S. Attorney Fajardo Orshan. “The impact of keeping former Sinaloa Cartel leader Joaquin Guzman Loera behind bars, for the rest of his life, cannot be overstated: the world will now be shielded from his brutality. Thanks to the unyielding efforts of this team, the public was finally able to see how Guzman Loera used any means necessary to control his ruthless empire, including kidnapping, corruption, torture, and murder. Our U.S. Attorney’s Offices continue to stand shoulder to shoulder with our domestic and foreign law enforcement partners to protect our citizens from the scourge of illicit drugs.”
“This sentencing shows the world that no matter how protected or powerful you are, DEA will ensure that you face justice,” said DEA Acting Administrator Dhillon. “This result would not have been possible without the dedication and determination of so many brave men and women of the DEA, who worked tirelessly to see the world’s most dangerous, prolific drug trafficker behind bars in the United States. This is a huge victory for the rule of law, for thousands of current and retired DEA agents and analysts worldwide, and for all of our law enforcement partners here, in Mexico, and across the globe.”
“Today’s sentencing is the culmination of years of effort from numerous local, state, federal, and international partners,” said FBI Director Wray. “It highlights the dedication and determination of men and women in law enforcement to bring one of the world’s most notorious drug traffickers to justice. The FBI has no tolerance for those who endanger our communities and destroy lives through drugs and violence. We’ll continue to work day and night to find and stop those who distribute illegal substances and commit unimaginable violence.”
“On behalf of the Department of Homeland Security, I want to express my gratitude to our HSI agents and diligent law enforcement partners for their work in this monumental conviction,” said Acting Secretary of Homeland Security McAleenan. “This sentence will send a resounding message that transnational criminal organizations all over the world are being continuously investigated and their leaders will be brought to justice.”
“After a decade long investigation, Joaquin Archivaldo Guzman Loera’s reign over the Sinaloa Cartel is over,” said HSI Executive Associate Director Benner. “Because of the initiative and expertise of HSI special agents in New York and Phoenix working together with our law enforcement partners, ‘El Chapo’ will no longer be able to inflict violence or traffic vast amounts of illegal drugs into our communities.”
“The U.S. Marshals Service was tasked with ensuring the integrity of the judicial process in this case,” said Acting U.S. Marshal Mullee. “It was paramount that all participants in the case could operate without undue influence or fear in a secure environment, and we accomplished that. On behalf of the U.S. Marshals Service in the Eastern District of New York, I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission, most notably, the incredibly talented men and women of the NYPD, The Federal Protective Service (FPS), The 24th Civil Support Team of the New York National Guard and the Federal Bureau of Prisons (BOP).”
“Let today’s sentencing show the world that Joaquin ‘El Chapo’ Guzman has not escaped the American justice system and, now, will finally be held accountable for his many years of criminal behavior,” said NYPD Commissioner O’Neill. “I want to thank the members of the DEA, the FBI, the U.S. Marshals Service, HSI, the New York State Police and the NYPD detectives on the Drug Enforcement Task Force for their hard work on this investigation and trial.”
“With this sentencing, justice has been served,” said NYSP Superintendent Corlett. “For two decades, this individual used extreme violence, bribes, and any means necessary to bring dangerous and deadly drugs into our country and state. This sentence should serve as a reminder that no one is above the law. I applaud our partners in law enforcement for their tireless work on this case, bringing an end to the destruction this man, and this enterprise caused for decades.”
The government’s case is being prosecuted by Assistant U.S. Attorneys Gina Parlovecchio, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg and Lynn Kirkpatrick from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Brett Reynolds and Michael Lang of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, Western District of Texas, Southern District of New York, Southern District of California, District of New Hampshire, District of Arizona and Eastern District of Virginia. The Department of Justice’s Office of International Affairs of the Criminal Division played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his prosecution would not have been possible. The Department of Justice’s Office of Enforcement Operations assisted with the use of critical investigative and prosecution tools, including wiretaps, Special Administrative Measures, and other sensitive investigative techniques that proved essential to facilitating Guzman’s capture and successful prosecution. The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York; DEA Miami; FBI Washington Field Office; FBI New York Field Office; FBI Miami Field Office; HSI New York; HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons; NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Joaquin “El Chapo” Guzman, Sinaloa Cartel Leader, Sentenced to Life in Prison Plus 30 YearsRead the Press Release
Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was sentenced today by U.S. District Judge Brian M. Cogan to a life term of imprisonment plus 30 years to run consecutive to the life sentence for being a principal leader of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy. The Court also ordered Guzman Loera to pay $12.6 billion in forfeiture.
Guzman Loera was convicted by a federal jury on Feb. 12, 2019, following a three-month trial, of all 10 counts of the superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy.
The sentence was announced by Attorney General William P. Barr, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida (SDFL), U.S. Attorney Richard P. Donoghue for the Eastern District of New York (EDNY), Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), Director Christopher A. Wray of the FBI, Acting Secretary Kevin McAleenan of the U.S. Department of Homeland Security, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement (ICE)’s Homeland Security Investigations (HSI), Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, New York City Police Department (NYPD) Commissioner James P. O’Neill and New York State Police Superintendent Keith M. Corlett.
The evidence at trial established that Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing more than a million kilograms of cocaine, marijuana, methamphetamine and heroin in the United States. The evidence included testimony from 14 cooperating witnesses, including Sinaloa Cartel members Rey and Vicente Zambada, Miguel Martinez, Tirso Martinez, Damaso Lopez and Alex Cifuentes; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings that detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.
From the mid-1980s until his arrest in Mexico in 1993, Guzman Loera was a mid-level operative of the Sinaloa Cartel, earning a name for himself and the nickname “El Rapido” for how quickly he transported drugs from Mexico to the United States for the Colombian cartels. After he escaped from a Mexican prison in 2001 by hiding in a laundry cart, Guzman Loera formed an alliance with fugitive co-defendant Ismael Zambada Garcia and, together, they became the preeminent leaders of the Sinaloa Cartel. Guzman Loera enforced his will and maintained control of his drug empire through an army of lethal bodyguards and a sophisticated communications network.
The trial highlighted the methods Guzman Loera and his organization used to transport the cartel’s multi-ton shipments of narcotics into the United States, including fishing boats, submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels. Once the narcotics were in the United States, they were sold to wholesale distributors in New York, Miami, Atlanta, Chicago, Arizona, Los Angeles and elsewhere. Guzman Loera then used various methods to launder billions of dollars of drug proceeds, including bulk cash smuggling from the United States to Mexico, U.S.-based insurance companies, reloadable debit cards and numerous shell companies, including a juice company and a fish flour company.
Guzman Loera and his organization relied upon violence to maintain its power throughout the region and beyond. Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and slaughter members of rival drug organizations, at times carrying out acts of violence himself. As part of its arsenal, the Sinaloa Cartel had access to weapons, including grenades and a rocket-propelled grenade launcher. Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.”
Guzman Loera and his organization also relied on a vast network of corrupt government officials and employees to protect and further the interests of the Sinaloa Cartel. They included local law enforcement officers, prison guards, high-ranking members of the armed forces and elected office holders. In exchange, the Cartel paid these individuals millions of dollars in bribes.
“The long road that brought ‘El Chapo’ Guzman Loera to a United States courtroom is lined with drugs, death, and destruction, but ends today with justice,” said Assistant Attorney General Benczkowski. “Thanks to the unflagging efforts of the Department of Justice and the law enforcement community over the past 25 years, this notorious leader of one of the largest drug trafficking organizations in the Western hemisphere, the Sinaloa Cartel, will spend the rest of his life behind bars.”
“The life sentence imposed today is the only just result for someone who spent a lifetime spreading his poison throughout our country,” said SDFL U.S. Attorney Fajardo Orshan. “The impact of keeping former Sinaloa Cartel leader Joaquin Guzman Loera behind bars, for the rest of his life, cannot be overstated: the world will now be shielded from his brutality. Thanks to the unyielding efforts of this team, the public was finally able to see how Guzman Loera used any means necessary to control his ruthless empire, including kidnapping, corruption, torture, and murder. Our U.S. Attorney’s Offices continue to stand shoulder to shoulder with our domestic and foreign law enforcement partners to protect our citizens from the scourge of illicit drugs.”
“Guzman Loera’s day of reckoning has finally come,” said EDNY U.S. Attorney Donoghue. “Never again will he pour poison into our country, or make millions as innocent lives are lost. We cannot undo the violence, misery and devastation inflicted on countless individuals and communities as result of his organization’s sale of tons of illegal drugs for more than two decades, but we can ensure that he spends every minute of every day in prison. The same fate awaits those who would take his place. I thank the brave members of law enforcement, here and abroad, for their tireless efforts that have finally secured justice in this case.”
“This sentencing shows the world that no matter how protected or powerful you are, DEA will ensure that you face justice,” said DEA Acting Administrator Dhillon. “This result would not have been possible without the dedication and determination of so many brave men and women of the DEA, who worked tirelessly to see the world’s most dangerous, prolific drug trafficker behind bars in the United States. This is a huge victory for the rule of law, for thousands of current and retired DEA agents and analysts worldwide, and for all of our law enforcement partners here, in Mexico, and across the globe.”
“Today’s sentencing is the culmination of years of effort from numerous local, state, federal, and international partners,” said FBI Director Wray. “It highlights the dedication and determination of men and women in law enforcement to bring one of the world’s most notorious drug traffickers to justice. The FBI has no tolerance for those who endanger our communities and destroy lives through drugs and violence. We’ll continue to work day and night to find and stop those who distribute illegal substances and commit unimaginable violence.”
“On behalf of the Department of Homeland Security, I want to express my gratitude to our HSI agents and diligent law enforcement partners for their work in this monumental conviction,” said Acting Secretary of Homeland Security McAleenan. “This sentence will send a resounding message that transnational criminal organizations all over the world are being continuously investigated and their leaders will be brought to justice.”
“After a decade long investigation, Joaquin Archivaldo Guzman Loera’s reign over the Sinaloa Cartel is over,” said HSI Executive Associate Director Benner. “Because of the initiative and expertise of HSI special agents in New York and Phoenix working together with our law enforcement partners, ‘El Chapo’ will no longer be able to inflict violence or traffic vast amounts of illegal drugs into our communities.”
“The U.S. Marshals Service was tasked with ensuring the integrity of the judicial process in this case,” said Acting U.S. Marshal Mullee. “It was paramount that all participants in the case could operate without undue influence or fear in a secure environment, and we accomplished that. On behalf of the U.S. Marshals Service in the Eastern District of New York, I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission, most notably, the incredibly talented men and women of the NYPD, The Federal Protective Service (FPS), The 24th Civil Support Team of the New York National Guard and the Federal Bureau of Prisons (BOP).”
“Let today’s sentencing show the world that Joaquin ‘El Chapo’ Guzman has not escaped the American justice system and, now, will finally be held accountable for his many years of criminal behavior,” said NYPD Commissioner O’Neill. “I want to thank the members of the DEA, the FBI, the U.S. Marshals Service, HSI, the New York State Police and the NYPD detectives on the Drug Enforcement Task Force for their hard work on this investigation and trial.”
“With this sentencing, justice has been served,” said NYSP Superintendent Corlett. “For two decades, this individual used extreme violence, bribes, and any means necessary to bring dangerous and deadly drugs into our country and state. This sentence should serve as a reminder that no one is above the law. I applaud our partners in law enforcement for their tireless work on this case, bringing an end to the destruction this man, and this enterprise caused for decades.”
The government’s case is being prosecuted by Assistant U.S. Attorneys Adam Fels, Andrea Goldbarg and Lynn Kirkpatrick from the Southern District of Florida; Assistant U.S. Attorneys Gina Parlovecchio, Michael Robotti, Patricia Notopoulos and Hiral Mehta from the Eastern District of New York; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Brett Reynolds and Michael Lang of the U.S. Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, Western District of Texas, Southern District of New York, Southern District of California, District of New Hampshire, District of Arizona and Eastern District of Virginia. The Department of Justice’s Office of International Affairs of the Criminal Division played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his prosecution would not have been possible. The investigative efforts in this case were coordinated with the Department of Justice Special Operations Division, comprising agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York; DEA Miami; FBI Washington Field Office; FBI New York Field Office; FBI Miami Field Office; HSI New York; HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons; NYPD and New York State Police.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Four Port Everglades Employees and Business Owner Charged in Fraud SchemeRead the Press Release
Four Port Everglades employees, William Woessner, 68, of Margate, Florida, David Moore, 43, of Pompano Beach, Florida, John McGahee, 43, of Davie, Florida, and Rajindra Lallharry, 60, of Coral Springs, Florida, and business owner Bryan Zascavage, 57, of Pompano, Florida, were each charged in an one-count Information with Conspiracy to Commit Fraud Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 371.
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.
As set forth in the charging documents, Woessner, Moore, McGahee, and Lallharry were employees of Port Everglades (U.S. v. Moore, Case No. 19-60206-Ungaro; U.S. v. Woeesner, Case No. 19-60202-Altman; U.S. v. McGahee, Case No. 19-60204-Smith; and U.S. v. Lallharry, Case No. 19-60205-Dimitrouleas). They were issued purchase cards or P-cards, which were to be used to buy 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 (U.S. v. Zascavage, Case No. 19-60203-Ungaro). 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.
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. Zascavage and Moore would split the illegally obtained funds.
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.
Woessner, Moore, McGahee, Lallharry, and Zascavage each face a statutory maximum term of 5 years’ imprisonment and a fine of the greater of $250,000 or twice the amount of the gross gain or the gross loss.
An Information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
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 is being 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.
Hillsborough County Resident Pleads Guilty to Shooting at Police Following Armed Robbery of South Beach HotelRead the Press Release
A Hillsborough County resident pled guilty to all counts of a Superseding Indictment charging him with armed robbery of the Ocean Five Hotel on South Beach, discharging a firearm at a Miami Beach Police Department officer while fleeing after the robbery, and unlawfully possessing a firearm and ammunition as a previously convicted felon.
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, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Richard M. Clements, Chief, City of Miami Beach Police Department, made the announcement.
According to the court record, including the stipulated factual proffer, on March 8, 2019, Terence Wendell Daniely II, 34, robbed the valet attendant at the Ocean Five Hotel on South Beach using a 9mm caliber pistol. Daniely’s possession of this pistol was illegal, as he had previously been convicted of numerous felony offenses, narcotics distribution, carrying a firearm in connection with narcotics distribution, and unlawful possession of a firearm by a convicted felon. Following the armed robbery of the Ocean Five Hotel, a Miami Beach Police Department officer spotted Daniely fleeing in a white Dodge Challenger. As this officer approached, Daniely discharged his pistol from within his moving vehicle in the direction of the officer, shattering the windshield of Daniely’s vehicle. Daniely then instigated a high-sped car chase, recklessly driving and leading officers across the MacArthur Causeway and into the City of Miami. Daniely crashed his car near Overtown and fled foot. A perimeter was established and, several hours later, the Defendant was ultimately located hiding in a shed in the backyard of a private residence.
Sentencing is scheduled for October 22, 2019, at 10:30 a.m., before U.S. District Judge Donald M. Middlebrooks. Daniely faces up to life imprisonment and a mandatory minimum sentence of 10 years imprisonment at sentencing.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, ATF, and Miami Beach Police Department in this matter. The case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Extradites Former Colombian Minister of Agriculture Convicted of Embezzlement and Illegal Government ContractingRead the Press Release
The United States today extradited Andres Felipe Arias Leiva, who served as Colombia’s Minister of Agriculture and Rural Development from 2005 to 2009, to face a prison sentence in that country based on a 2014 conviction by the Supreme Court of Colombia for two offenses committed while Arias served in public office.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division made the announcement.
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to ensure that former Colombian government official Andres Arias would be extradited back to his home country to serve a sentence imposed by that nation’s highest court,” said U.S. Attorney Fajardo Orshan. “We are grateful to the dedication of Assistant U.S. Attorney Robert J. Emery and Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs of the U.S. Department of Justice for their work in making this possible. Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties.”
“Andres Arias’s extradition is a testament to the United States’ commitment to our extradition treaty obligations and the strength of our law enforcement partnership with Colombia,” said Assistant Attorney General Benczkowski. “I thank the team from the Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Florida for their tireless, years-long efforts to ensure that Arias serves his prison sentence in Colombia.”
Arias, a citizen of Colombia who entered the United States in 2014 and was residing in Weston, Florida, was convicted on July 16, 2014, by the Criminal Cassation Division of the Supreme Court of Colombia on two offenses, Embezzlement for Third Parties, in violation of Article 397 of the Colombian Criminal Code, and Conclusion of Contract Without Fulfilling Legal Requirements, in violation of Article 410 of the same code. Arias was present and represented by counsel at his trial in Colombia, and following his conviction, the Colombian court sentenced him to serve 209 months in prison. As detailed in the 193-page decision issued by the Supreme Court of Colombia, Arias’s criminal conduct related to the diversion of funds within the Colombian government’s Argo Ingreso Seguro program, which he was responsible for implementing during his term as Minister of Agriculture and Rural Development, a cabinet-level position in Colombia’s executive branch, from 2005 to 2009.
The United States acted on a request for Arias’s extradition submitted by the Republic of Colombia, which Arias vigorously contested in both the Southern District of Florida and the U.S. Court of Appeals for the Eleventh Circuit. On Sept. 28, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Arias could be extradited to Colombia to serve the sentence based on his conviction. Arias then filed a petition for a writ of habeas corpus, which the district court for the Southern District of Florida denied on Oct. 5, 2018. Arias appealed that decision to the Eleventh Circuit. Following extensive briefing and argument, the litigation culminated on July 8, 2019, when the court of appeals rejected Arias’s arguments against extradition. Consistent with the views of the U.S. Department of State and 40 years of extradition practice between the United States and Colombia, the court of appeals affirmed that the extradition treaty between the two countries remains in full force and effect.
Following a thorough review of Arias’s case, the Department of State issued a warrant ordering Arias’s surrender to Colombian authorities. Today, the U.S. Marshals Service executed that warrant, transported Arias to Colombia, and delivered him to the custody of Colombian authorities. Arias’s extradition is now complete.
The extradition proceedings and subsequent appellate litigation were handled by Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Robert J. Emery and Emily M. Smachetti of the Southern District of Florida with the support of myriad attorneys and international affairs specialists in the Office of International Affairs of the Department’s Criminal Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
U.S. Extradites Former Colombian Minister of Agriculture Convicted of Embezzlement and Illegal Government ContractingRead the Press Release
The United States today extradited Andres Felipe Arias Leiva, who served as Colombia’s Minister of Agriculture and Rural Development from 2005 to 2009, to face a prison sentence in that country based on a 2014 conviction by the Supreme Court of Colombia for two offenses committed while Arias served in public office.
Assistant Attorney General Brian A. Benczkowski of the U.S. Department of Justice’s Criminal Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida made the announcement.
“Andres Arias’s extradition is a testament to the United States’ commitment to our extradition treaty obligations and the strength of our law enforcement partnership with Colombia,” said Assistant Attorney General Benczkowski. “I thank the team from the Office of International Affairs and the U.S. Attorney’s Office for the Southern District of Florida for their tireless, years-long efforts to ensure that Arias serves his prison sentence in Colombia.”
“Assistant U.S. Attorneys for the Southern District of Florida, alongside attorneys for the Department’s Office of International Affairs, have worked hard to ensure that former Colombian government official Andres Arias would be extradited back to his home country to serve a sentence imposed by that nation’s highest court,” said U.S. Attorney Fajardo Orshan. “We are grateful to the dedication of Assistant U.S. Attorney Robert J. Emery and Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs of the U.S. Department of Justice for their work in making this possible. Our Office is committed to upholding the rule of law and ensuring that justice is appropriately carried out for all parties.”
Arias, a citizen of Colombia who entered the United States in 2014 and was residing in Weston, Florida, was convicted on July 16, 2014, by the Criminal Cassation Division of the Supreme Court of Colombia on two offenses, Embezzlement for Third Parties, in violation of Article 397 of the Colombian Criminal Code, and Conclusion of Contract Without Fulfilling Legal Requirements, in violation of Article 410 of the same code. Arias was present and represented by counsel at his trial in Colombia, and following his conviction, the Colombian court sentenced him to serve 209 months in prison. As detailed in the 193-page decision issued by the Supreme Court of Colombia, Arias’s criminal conduct related to the diversion of funds within the Colombian government’s Argo Ingreso Seguro program, which he was responsible for implementing during his term as Minister of Agriculture and Rural Development, a cabinet-level position in Colombia’s executive branch, from 2005 to 2009.
The United States acted on a request for Arias’s extradition submitted by the Republic of Colombia, which Arias vigorously contested in both the Southern District of Florida and the U.S. Court of Appeals for the Eleventh Circuit. On Sept. 28, 2017, a U.S. magistrate judge in the Southern District of Florida ruled that Arias could be extradited to Colombia to serve the sentence based on his conviction. Arias then filed a petition for a writ of habeas corpus, which the district court for the Southern District of Florida denied on Oct. 5, 2018. Arias appealed that decision to the Eleventh Circuit. Following extensive briefing and argument, the litigation culminated on July 8, 2019, when the court of appeals rejected Arias’s arguments against extradition. Consistent with the views of the U.S. Department of State and 40 years of extradition practice between the United States and Colombia, the court of appeals affirmed that the extradition treaty between the two countries remains in full force and effect.
Following a thorough review of Arias’s case, the Department of State issued a warrant ordering Arias’s surrender to Colombian authorities. Today, the U.S. Marshals Service executed that warrant, transported Arias to Colombia, and delivered him to the custody of Colombian authorities. Arias’s extradition is now complete.
The extradition proceedings and subsequent appellate litigation were handled by Associate Director Christopher J. Smith and Trial Attorney Rebecca A. Haciski of the Criminal Division’s Office of International Affairs, and Assistant U.S. Attorneys Robert J. Emery and Emily M. Smachetti of the Southern District of Florida with the support of myriad attorneys and international affairs specialists in the Office of International Affairs of the Department’s Criminal Division.
Twenty-two Individuals Facing Federal Charges following Violence Reduction Partnership Investigation into Gang Violence in Miami GardensRead the Press Release
After a lengthy investigation into the criminal conduct of various street gangs operating in and around Miami Gardens, Florida, a federal grand jury indicted 22 people in Miami on charges that include drug trafficking, armed drug trafficking, dealing in firearms, and firearm possession by convicted felons. Some of the defendants are members and known associates of the Zone 3 gang, a Miami Gardens based gang.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office, Delma Noel-Pratt, Chief of the City of Miami Gardens Police Department, and Gadyaces S. Serralta, U.S. Marshal for the U.S. Marshals Service (USMS) Miami Field Office, made the announcement.
Today’s operation involved approximately 200 federal and local law enforcement officers. During the course of the operation, law enforcement officers arrested 17 of the 22 indicted defendants and seized over 40 firearms, approximately 220 rounds of assorted ammunition, cash, cocaine, crack, heroin, fentanyl, Alprazolam, marijuana, other drugs, and drug paraphernalia.
“As demonstrated by these charges and the arrests this morning, our commitment to combatting violent crime and drug trafficking in the City of Miami Gardens is unrelenting,” said U.S. Attorney Ariana Fajardo Orshan. “Thanks to the collaboration of federal and local law enforcement, the armed sale of drugs and firearms by these Zone 3 gang members and associates in the City of Miami Gardens has come to an end. We will continue to use all the tools at our disposal to combat violence, drug distribution, and the illegal sale and possession of firearms to ensure safety in our communities.”
“Today is truly a good day for our community, parts of which that have been terrorized by this group of violent individuals who have long-created chaos within the City of Miami Gardens. I am proud of our partnerships to include the Miami Gardens Police Department. This collaboration has led to the seizure of considerable evidence against this group to include more than 40 firearms,” said Special Agent in Charge Ari Shapira, ATF, Miami Field Division. As we all know, even one firearm in the wrong hands can destroy countless lives. This investigation proves that collaboration works, and demonstrates our commitment to combat gun violence and improve the communities of South Florida. We all want our communities in South Florida to be filled with the sounds of happy children playing outside, not the noise of stray gunfire that strikes fear in the hearts of parents. The people in Miami Gardens deserve no less.”
“Drug dealing and violent crime associated with gang activity have an insidious impact on our communities. They take a toll on our citizens through street violence, increased law breaking, and addiction. The vicious armed gangs pushing this poison into the streets tear apart the fabric of our communities,” said Scott A. Rottman, Assistant Special Agent in Charge, FBI Miami. “It is a complex problem that requires effective partnerships between law enforcement agencies at the local, state and federal level. Our combined efforts aim to disrupt and dismantle the criminal organizations involved in the illegal drug trade. Removing drug traffickers and violent gang members from the streets means they can no longer threaten the health and safety of our communities. We will continue to target these criminal organizations and their violent activities to ensure they are held responsible for the harm they cause.”
“I’m extremely proud of the hard work and dedication of my lead detectives, as well as other departmental personnel. As a result of the strong partnerships that have been established with our federal, state and local partners, we are able to bring this case to a successful conclusion, said Miami Gardens Police Department Chief Delma Noel-Pratt. “This case reaffirms the Miami Gardens Police Department’s commitment to building a safer community.”
“Today, in Miami Gardens, the strong partnership between police officers and federal agents resulted in a successful operation that makes the City of Miami Gardens safer,” said Chief Deputy Darin D. Cooper for the U.S. Marshals Service. “We remain committed to combatting violent crime.”
“Today is a win for residents of Miami Gardens, South Florida, as well as the many law enforcement agencies that worked together to say collectively, we will not tolerate crimes of any nature,” says Mayor Oliver Gilbert. “We are thankful to everyone involved in this operation and for the collaboration with agencies like the ATF, FBI and DOJ who provided access to expanded resources during the course of this investigation. Our combined efforts and activities have resulted in dangerous individuals, drugs, and illegal guns being taken off our streets.”
THE INDICTMENTS:
(1) United States of America v. Ernest Renard Smith, et al., Case No. 19-20415-CR-Gayles/Otazo-Reyes.
The first indictment, containing 21 counts, names: Ernest Renard Smith (“E. Smith”), 35; Ernest Smith, Jr. (“E. Smith Jr.”), 62; Thaddeus Auguast Smith, Jr. (“T. Smith”), 28; Denico Lynden Dudley McSweeney (“McSweeney”), 30; and Ivan Lewis Harris (“Harris”), 38, all of Miami Gardens. According to the indictment, from at least as early as May 2018, and continuing through January 29, 2019, the defendants engaged in a conspiracy to possess with intent to distribute heroin, crack cocaine, marijuana, and ecstasy. E. Smith, E. Smith Jr., T. Smith, and Harris each face up to 20 years in prison if convicted on the conspiracy count. McSweeney faces up to 40 years in prison if convicted on the conspiracy count.
The first indictment also charges E. Smith with seven counts of possession with intent to distribute a controlled substance, such as heroin, crack cocaine, and/or fentanyl, three counts of dealing in firearms and ammunition, one count of possession of a firearm in furtherance of a drug trafficking crime, and three counts of being a felon in possession. If convicted on all counts, E. Smith faces up to 20 years in prison on each count of possession with intent to distribute charge, five years in prison on each count of the dealing in firearms and ammunition charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge, and 10 years in prison on each felon in possession charge.
The first indictment also charges T. Smith with possession with intent to distribute a heroin. If convicted on this count, T. Smith faces up to 10 years in prison.
The first indictment also charges McSweeney with three counts of dealing in firearms and ammunition and four counts of possession with intent to distribute heroin. If convicted on all counts, McSweeney faces up to five years in prison on each dealing in firearms charge, and 20 years in prison on each possession with intent to distribute charge.
(2) United States of America v. Sonya Anita Spivey, et al., Case No. 19-20417-Altonaga/Goodman.
The second indictment, containing 10 counts, names: Sonya Anita Spivey (“S. Spivey”), 49, of Miami Gardens; Jacqueline Renee Spivey (“J. Spivey”), 53, of Miami Gardens; Janie Spivey Bryant (“J. Bryant”), 68, of Miami Gardens; Charlie Billy Herman Taylor (“Taylor”), 25, of Miami Gardens; Keno Reuben Teveris Burton (“Burton”), 31, of Miami Gardens; Tekieya Nicole Aldridge (“Aldridge”), 41, of Opa Locka; and Alton Claude Hammonds (“Hammonds”), 38, of Miami. According to the indictment, from at least as early as August 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute N-Ethypentylone, Alprazolam, cocaine, crack cocaine, eutylone, and ecstasy. The defendants face up to 20 years in prison if convicted on the conspiracy count.
The second indictment also charges S. Spivey with seven counts of possession with intent to distribute a controlled substance, such as, N-Ethypentylone, cocaine, Alprazolam, eutylone, and marijuana. If convicted on all counts, S. Spivey faces up to 5 years in prison for the possession with intent to distribute Alprazolam count and 20 years on each remaining possession with intent to distribute charge.
The second indictment also charges J. Spivey with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana. If convicted on this count, J. Spivey faces up to 20 years in prison.
The second indictment also charges J. Bryant with possession with intent to distribute a controlled substance, such as fentanyl, eutylone, and marijuana. If convicted on this count, J. Bryant faces up to 20 years in prison.
The second indictment also charges Taylor with possession with intent to distribute Alprazolam and possession of a firearm in furtherance of a drug trafficking crime. If convicted on both counts, Taylor faces up to five years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five year mandatory minimum term in prison on this charge.
The second indictment also charges Burton with possession with intent to distribute a controlled substance, such as cocaine, eutylone, Alprazolam, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime. If convicted on all counts, Burton faces up to 20 years in prison on the possession with intent to distribute count and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.
(3) United States of America v. Michael Anthony Hardaway, et al., Case No. 29-20416-CR-Williams/Torres.
The third indictment, containing eight counts, names: Michael Anthony Hardaway, Jr. (“Hardaway”), 42; Clementa Leaford Johnson, Jr. (“Johnson”), 42; Eric Ransom (“Ransom”), 49; Erin Meil Williams (“Williams”), 39; and James Earl Cammon (“Cammon”), 40, all of Miami Gardens. According to the indictment, from at least as early as October 2018, and continuing through April 11, 2019, the defendants engaged in a conspiracy to possess with intent to distribute eutylone, heroin, fentanyl, cocaine, crack cocaine, ecstasy, Percocet, and marijuana. The defendants face up to 20 years in prison if convicted on the conspiracy count.
The third indictment also charges Hardaway with four counts of possession with intent to distribute a controlled substance, such as heroin, fentanyl, and crack cocaine. If convicted on all counts, Hardaway faces up to 20 years in prison on each count.
The third indictment also charges Williams with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, and possession of a firearm in furtherance of a drug trafficking crime. If convicted on all counts, Williams faces up to 20 years in prison on each possession with intent to distribute charge and life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge.
The third indictment also charges Cammon with possession with intent to distribute a controlled substance, such as marijuana, crack cocaine, cocaine, eutylone, and heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. If convicted on all counts, Cammon faces up to 20 years in prison on each possession with intent to distribute charge, life imprisonment on the possession of a firearm in furtherance of a drug trafficking charge with a five-year mandatory minimum term in prison on this charge, and 10 years in prison on the felon in possession charge.
(4) United States of America v. Dana De Von Smith, Case No. 19-20420-CR-King/Becerra.
The fourth indictment charges Dana De Von Smith (“D. Smith”), 49, of Miami Gardens, with two counts of possession with intent to distribute cocaine. If convicted on both counts, D. Smith faces up to 20 years in prison on each count.
(5) United States of America v. Theothis Rogers, Case No. 19-20419-CR-Gayles/Otazo-Reyes.
The fifth indictment charges Theothis Rogers (“Rogers”), 37, of Miami Gardens, with two counts of possession with intent to distribute N-Ethylpentylone. If convicted on both counts, Rogers faces up to 20 years in prison on each count.
(6) United States of America v. Jason Adam Dulman, Case No. 19-20422-CR-Bloom/Louis.
The sixth indictment charges Jason Adam Dulman (“Dulman”), 40, of Dania Beach, with possession with intent to distribute heroin and use of communications facility. If convicted on both counts, Dulman faces up to 20 years in prison on the possession with intent to distribute charge and four years in prison on the use of communications charge.
(7) United States of America v. Anthony Maurice Smith, Case No. 19-20418-CR-Ungaro/O’Sullivan.
The seventh indictment charges Anthony Maurice Smith (“A. Smith”), 29, of Miami Gardens, with possession with intent to distribute cocaine. If convicted, A. Smith faces up to 20 years in prison.
(8) United States of America v. Steven Alcime, Case No. 19-20421-CR-Scola/Torres
The eighth indictment charges Steven Alcime (“Alcime”), 30, of Miami, with dealing in firearms and being a felon in possession. If convicted on both counts, Alcime faces up to five years in prison on the firearms charge and 10 years in prison on the felon in possession charge.
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.
Through the collaborative Southern District of Florida’s Violence Reduction Partnership (“VRP”), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. Through these Partnerships, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties. The VRP strives to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
The members of the VRP who participated or assisted in this investigation include the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Miami Field Office, Federal Bureau of Investigation, United States Marshals Service Fugitive Task Force, Miami Gardens Police Department, Miami-Dade Police Department, Miami Field Office, Miami-Dade Police Department.
This investigation, Operation End Zone, is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan commended the FBI, ATF, City of Miami Gardens Police Department, and USMS for their dedicated efforts to combat violent crime and drug trafficking in South Florida. She thanked the Miami-Dade Police Department for their assistance. These cases are being prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Stephanie Hauser. Assistant U.S. Attorney William Zloch is handling the forfeiture aspects of this case.
An indictment is a charging instrument containing allegations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt 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.
Treasure Coast Corporation and Corporate Officers Charged with Conspiring to Conceal and Harbor Aliens for the Purpose of Commercial AdvantageRead the Press Release
Tentlogix, Inc., a Florida corporation headquartered in Fort Piece, Florida and three of its corporate officers, Gary Hendry, Dennis Birdsall and Kent Hughes of Martin County, have been charged by indictment with conspiring to conceal and harbor aliens for the purpose of commercial advantage. Hendry and Birdsall are also charged with making false statements to a federal agency.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge for U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to the indictment, beginning as early as January 2016, and continuing through March 2018, TentLogix, Hendry, and Birdsall recruited and employed aliens to work for TentLogix knowing and in reckless disregard of the fact that many of the aliens had entered and remained in the United States unlawfully, and were not authorized to work in the United States (Case No. 19-14035-CR-ROSENBERG/MAYNARD). During the course of the conspiracy, a large portion of TentLogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States. While TentLogix was being investigated by HSI, Hendry, Birdsall, and Hughes devised a scheme to “transfer” the aliens employed by TentLogix to KH Services, LLC, a company owned by Hughes, so that they no longer appeared on TentLogix’s payroll. Hughes formed KH Services, LLC for the sole purpose of concealing, harboring, and shielding the aliens employed by TentLogix from HSI’s investigation. Birdsall directed wire transfers to be sent from TentLogix’s bank account to KH Services, LLC’s bank account on a bi-weekly basis to cover the payroll expenses for the aliens who worked for TentLogix but were purportedly employed by KH Services, LLC. Between May 2017 and March 2018, TentLogix transferred over $3,000,000 to KH Services, LLC in 23 separate wire transfers for the express purpose of paying aliens employed by TentLogix who were not authorized to work in the United States.
The indictment further alleges that in 2016, TentLogix generated more than $21,000,000 in gross receipts and $10,000,000 in gross profit from its business operations. In 2017, Tentlogix allegedly generated more than $36,000,000 in gross receipts and $14,000,000 in gross profit from its business operations. During the course of the conspiracy, a large portion of Tentlogix’s workforce in the Southern District of Florida was comprised of aliens who were not authorized to work in the United States.
If convicted of the conspiracy charge, Hendry, Birdsall, and Hughes face up to 10 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense. TentLogix faces a maximum fine of $500,000 or twice the loss or twice the gain caused by the offense. If convicted of making false statements to a federal agency, Hendry and Birdsall face up to 5 years in prison and a maximum fine of $250,000 or twice the loss or twice the gain caused by the offense.
An indictment merely contains 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 Michael D. Porter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Charged with Export Control Violations for Illegally Exporting Hundreds of Parts for AR-15 Assault RiflesRead the Press Release
A Palm Beach County resident was arrested on July 11, 2019, based on a complaint charging him with conspiracy to violate and attempted violations of the Arms Export Control Act (AECA) and International Traffic in Arms Regulations (ITAR) (18 U.S.C. 371 and 22 U.S.C. 2778).
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.
Cristian German Barrera, 47, was charged with conspiracy to violate the AECA and ITAR, and attempts to illegally export to Argentina defense articles, specifically, parts and components for AR-15 assault rifles, which were smuggled across international borders by a transnational weapons trafficking group in Argentina. He had an initial appearance before U.S. Magistrate Judge Jacqueline Becerra.
According to the complaint and other court documents, Barrera illegally exported without a required license from the U.S. Department of State, to the Argentine weapons trafficking organization, hundreds of AR-15 assault rifle parts. The investigative efforts of HSI agents in the Miami Field Office along with HSI agents stationed in Argentina, and their proactive cooperation with Argentine law enforcement officials between October and December 2019, led to the execution of search warrants in Florida and Argentina that resulted in the seizure of the equivalent of 52 AR-15 assault rifles in Florida and in Argentina: 189 long arms, 156 handguns, one mortar round, one hand grenade, over 30,000 rounds of assorted caliber ammunition, five vehicles, and $110,000 in cash. On June 26, 2019, Argentina’s National Gendarmeria conducted an operation that led to the arrest of additional subjects and the seizure of thousands of firearms and explosive materials.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HSI, U.S. Customs and Border Protection and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Rick Del Toro and Trial Attorney Evan Turgeon of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
A complaint is merely an allegation. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt 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.
Former Army Corps Employee Pleads Guilty to Lying to Law EnforcementRead the Press Release
A former employee of the United States Army Corps of Engineers pled guilty to making false statements to law enforcement agents.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Colonel Andrew D. Kelly, Jr., Jacksonville District Commander, U.S. Army Corps of Engineers, Cyndy A. Bruce, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Manny Antonaras, Deputy Special Agent in Charge, National Oceanographic and Atmospheric Administration (NOAA), Southeast Office of Enforcement, Andres Castro, Special Agent in Charge, Environmental Protection Agency Criminal Investigations Division (EPA- CID), Atlanta Area Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command Major Procurement Fraud Unit (MPFU), made the announcement.
Tracey Jordan Sellers, 49, of Duval County, pled guilty to an Information containing one count of making a false official statement to federal law enforcement agents, in violation of 18 U.S.C. § 1001(a)(2). Sellers faces a maximum statutory penalty of five years and is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on September 19, 2019, in Miami.
“Tracey Jordan Sellers’s conduct undermined the integrity of the U.S. Army Corps of Engineers,” said U.S. Attorney Fajardo Orshan. “Together with our partner law enforcement agencies, we remain committed to defending the institutions of federal government.”
“We take this matter very seriously,” said Col. Andrew D. Kelly. “We have assisted the U.S. Attorney’s Office and federal investigators throughout their investigation. The defendant is no longer employed with the Corps. Her actions are not representative of the Corps and its values. Such conduct is never tolerated.”
According to the criminal Information and Joint Factual Statement filed with the Court, Sellers was a civilian employee of the U.S. Army Corps of Engineers’ Jacksonville District. A biologist, Sellers coordinated and advised on environmental issues related to Army Corps projects. Part of her responsibilities included planning and coordinating environmental requirements related to Army Corps projects and reviewing products from environmental consulting companies.
Federal ethics laws and regulations prohibit federal employees from engaging in outside employment that conflicts with employees’ official duties. From 2014 through February 8, 2019, while employed with the Army Corps, Sellers violated these laws and regulations by engaging in outside employment with a consulting company despite being part of a team that oversaw that company’s work for the Army Corps in relation to large dredging projects in South Florida.
In secret from her colleagues and management at the Army Corps, Sellers accepted offers of part-time employment from the consulting company. In November 2014, in October 2018, and in January 2019, the consulting company offered Sellers part-time work on three different projects with the company. Sellers accepted the offers from the consulting company, provided them her resume, entered into an independent consulting contract with them, and performed work on the projects for them. In an interview occurring in February 2019, Sellers falsely and willfully misled federal agents about her outside involvement with the consulting company. One of those false statements comprises the offense in the criminal Information.
Sellers no longer works for the Army Corps.
“Sellers ignored her oath and instead pursued personal profit from the same contractor whose work she reviewed,” said Cyndy Bruce Special Agent in Charge of the Defense Criminal Investigative Service, Southeast Field Office. “DCIS and its law enforcement partners are committed to strike against those who undermine and jeopardize the integrity of the DoD’s procurement process.”
“Ms. Sellers not only violated federal ethics laws but also the trust and confidence the U.S. Army places in our soldiers, civilian employees and contractors,” said Frank Robey, the director of the Major Procurement Fraud Unit for the U.S. Army Criminal Investigation Command. “The work that our Army does on a daily basis is vital to the success and security of our nation. Anyone who violates that trust by committing criminal acts will be fully investigated by our agents and our fellow law enforcement professionals.”
“Federal employees who oversee the environmental compliance of government contractors must be free of any conflicts of interest,” said Andres Castro, Special Agent in Charge of EPA’s criminal enforcement program in Florida. “This case shows that EPA and our federal partners are committed to protecting the integrity of federal contracts and safeguarding our nation’s natural resources.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DCIS, NOAA, EPA-CID, and the MPFU. U.S. Attorney Fajardo Orshan also thanked the U.S. Army Corps of Engineers for its assistance. This case is being prosecuted by Assistant U.S. Attorney Jaime Raich.
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.