Southern District of Florida
Press releases recorded for this federal judicial district.
South Florida Patient Recruiter Sentenced for Role in $1.6 Million Kickback SchemeRead the Press Release
A South Florida patient recruiter was sentenced to 87 months in prison today for her role in a scheme involving approximately $1.6 million in Medicare claims for home health care services that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Yamilet Diaz, 50, of Hialeah, Florida, was sentenced by U.S. District Judge James I. Cohn of the Southern District of Florida. After a four-day trial in February 2019, which Judge Cohn presided over, Diaz was convicted of one count of conspiracy to defraud the United States and to receive health care kickbacks and four counts of receiving health care kickbacks.
According to evidence presented at trial and at sentencing, from approximately February 2012 to August 2013, Diaz received kickbacks in return for referring Medicare beneficiaries to five South Florida home health agencies to serve as patients. The evidence established that Diaz and her co-conspirators caused Medicare to make over $1.6 million in payments to the home health agencies based upon claims for home health services submitted on behalf of the beneficiaries recruited by Diaz. The evidence further established that Diaz personally benefited from the fraud and received at least $710,000.
This case was investigated by the FBI with support from 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. The case was prosecuted by Trial Attorneys Patrick Mott, John (Fritz) Scanlon and Timothy Loper of the Fraud Section. Assistant U.S. Attorney Leslie Wright of the District of Massachusetts, formerly with the Fraud Section, previously worked on the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Peruvian Man Pleads Guilty to Operating Spanish-Speaking Call Center that Threatened and Extorted U.S. ConsumersRead the Press Release
A resident of Lima, Peru, pleaded guilty today to extortion for operating call centers that threatened Spanish-speaking victims in the United States, the Justice Department and U.S. Postal Inspection Service announced.
Omar Portocarrero Caceres, 39, was extradited from Peru in April and pleaded guilty in the U.S. District Court for the Southern District of Florida. The charges against Portocarrero allege that he owned and operated a call center 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.
“The Department of Justice is committed to identifying and prosecuting criminals who target and extort consumers in the United States,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Those who threaten U.S. consumers by phone cannot escape justice by placing their calls from abroad. Working with our international partners, we will bring them to justice no matter where they reside. I thank the Republic of Peru for extraditing the defendants in this case to face justice in our courts.”
Portocarrero and his co-conspirators in Peru contacted U.S. consumers, many of whom were elderly and vulnerable, using Internet-based telephone calls. Claiming to be attorneys and government representatives, the callers falsely told victims that they had failed to pay for or receive a delivery of products. The callers also 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 threats.
“If an individual who claims to be an attorney or government representative calls and instructs you to pay money to: receive products you did not buy; avoid a lawsuit; avoid imprisonment; or avoid a change in immigration status, hang up and immediately report that threat to www.ftccomplaintassistant.gov,” said U.S. Attorney for the Southern District of Florida Ariana Fajardo Orshan. “I thank the Republic of Peru for extraditing the defendants in this case and the U.S. Postal Inspection Service for their unwavering commitment to investigate and pursue those who threaten U.S. consumers.”
“The U.S. Postal Inspection Service will not allow overseas criminal enterprises to illegally enrich themselves by using the U.S. Mail to defraud U.S. consumers,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “With the continued cooperation of law enforcement colleagues in countries like Peru, these criminals will be aggressively pursued and brought to justice.”
Portocarrero is the second defendant to plead guilty in connection with the scheme. Three of his co-defendants have been detained pending trial before U.S. District Court Judge Roy K. Altman in Fort Lauderdale. Judge Altman has scheduled their trial to begin on June 10, 2019.
Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch is prosecuting the case. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
West Palm Beach Man Sentenced to Prison for Sex Trafficking of a Minor and Child PornographyRead the Press Release
Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.
“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”
“Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”
“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.
“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”
According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl. After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim.
Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.
This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.
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.
West Palm Beach Man Sentenced to Prison for Sex Trafficking of a Minor and Child PornographyRead the Press Release
Steven Snipe, 27, of West Palm Beach, Florida, was sentenced yesterday in federal court to 15 years in prison after previously pleading guilty to one count of sex trafficking a minor and one count of producing child pornography, announced Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (ICE-HSI) Chief Michael G. Gregory of the Boynton Beach Police Department, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office.
“Yesterday’s sentencing demonstrates the Department of Justice’s unwavering commitment to combatting the heinous crime of sex trafficking,” said Assistant Attorney General Eric Dreiband. “The defendant’s depraved actions will not be tolerated and the Civil Rights Division’s Human Trafficking Prosecution Unit will continue to fight to eradicate this criminal exploitation.”
“Those who sexually exploit our youth turn children into victims of deplorable acts,” stated U.S. Attorney Fajardo Orshan. “Our law enforcement partners in the Southern District of Florida and throughout the Department commend the strength of those who have raised their voices against an abuser. We hear your calls for help and will continue to seek justice for all, through the united force of our federal human trafficking prosecutions.”
“While the harm caused to this minor cannot be undone, our HSI special agents hope yesterday’s sentencing is another step in the recovery process for the young victim,” said HSI Miami Special Agent in Charge Anthony Salisbury.
“The Boynton Beach Police Department remains committed to vigorously investigating those who prey on youth in our community,” Chief Gregory of the Boynton Beach Police Department said. “We thank the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division for partnering with us in our ongoing efforts to fight sex trafficking.”
According to the indictment and facts detailed during Snipe’s plea hearing, between late May 2017 and June 29, 2017, Snipe began a sexual relationship with a 15-year-old girl. After several days, he provided her with a cell phone and instructed her to create an account on Backpage.com. He showed her how to post advertisements on the website, directed her to claim she was 19, and advertised her to clients. Snipe then caused the victim to engage in commercial sex for his profit at multiple hotels until June 29, 2017, when the victim called 911 to report that she was being forced to prostitute. Officers responded to a hotel and located Snipe and the victim.
Law enforcement obtained lawful authorization to search the cell phone that Snipe had provided to the victim. The cell phone contained several sexually explicit videos and multiple photographs depicting the victim in various stages of undress and Snipe engaging in sexual intercourse with the victim.
The Southern District of Florida is one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The prosecution is the result of a joint investigation by ICE-HSI, the Boynton Beach Police Department, the Palm Beach County Sheriff’s Office, the U.S. Attorney’s Office for the Southern District of Florida, and the Civil Rights Division’s Human Trafficking Prosecution Unit.
This case was prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida, Special Litigation Counsel Matthew T. Grady and Trial Attorney Maryam Zhuravitsky of the Human Trafficking Prosecution Unit.
Lake Worth Tax Preparer Charged FederallyRead the Press Release
A Lake Worth tax preparer is charged with fraudulently endorsing a Treasury check and committing tax return fraud.
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) made the announcement.
Paul E. Senat, 38, of West Palm Beach, Florida, has been charged by indictment with one count of fraudulent endorsement of a Treasury check, one count of theft of government money, one count of aggravated identity theft, and twelve counts of aiding and assisting the preparation of false tax returns (Case No. 19-80024-CR-Rosenberg). If convicted, Senat faces up to 10 years in prison for fraudulent endorsement and/or theft of government money, a mandatory consecutive 2 year prison term for aggravated identity theft, and up to 3 years in prison for preparing false tax returns. He also faces fines and a term of supervisory release. Senat is scheduled to be arraigned on May 6, 2019.
According to the indictment and allegations made in court, Senat owns and operates American Justice, a tax preparation storefront in Lake Worth, Florida. He opened the business in December 2010. Senat personally prepares and/or oversees all filing of all returns from his business storefront. Returns filed by Senat routinely claim business losses and other credits, including an education credit, that did not truly exist. This increases the amount of the tax refund paid by the IRS.
It is alleged that Senat not only charges an upfront preparer fee from the client, but he also allegedly takes approximately $1,000 from each refund as an additional fee before issuing the funds to the taxpayer.
It is further alleged that Senat has had two Electronic Filer Identification Numbers (EFINs) suspended by the IRS. These allow a person to electronically file tax returns on behalf of other taxpayers. After these were suspended, Senat allegedly began using nominees to obtain EFINs to continue his perpetration of the tax scheme.
The estimated total loss attributable to Senat’s tax preparer fraud scheme is $11,719,087.
A stolen U.S. Treasury check was allegedly deposited into a Chase bank account for which Senat was the sole signatory.
An indictment merely contains allegations. A defendant is presumed innocent until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI in this matter. This case is being prosecuted by Assistant U. S. Attorney Alexandra Chase.
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 Florida Medical Clinic Sentenced to PrisonRead the Press Release
WASHINGTON – An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution. Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud. Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.
Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions. In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.
The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.
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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Lake Worth Resident Sentenced to Life in Prison for Sex Trafficking and ObstructionRead the Press Release
A Lake Worth resident was sentenced to life in prison today, after having been convicted at trial of sex trafficking and obstruction of a sex trafficking investigation.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
Alston Orlando Leroy Williams, 42, of Lake Worth, Florida, was sentenced by U.S. District Judge Robin L. Rosenberg to five life sentences and an additional 20 years in prison, to be followed by a lifetime of supervised release (Case No. 18-CR-80053). In December of 2018, Williams was convicted by a federal trial jury of two counts of sex trafficking of a minor in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2), three counts of sex trafficking by force, fraud or coercion in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(1), and one count of obstructing a human trafficking investigation, in violation of Title 18, United States Code, Section 1591(d).
According to evidence and testimony presented at trial, from 2008 through 2017, Williams trafficked multiple women, including two juveniles, for commercial sex throughout Florida. Williams had the women live at his homes and travel to hotels and other locations to meet adult men and engage in sexual acts for money. Williams used force, violence and coercion to traffic the women and kept all of the money earned by the victims. He was arrested on November 29, 2017 on related state charges, before being charged and convicted federally.
U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI, PBSO, and the Palm Beach County Human Trafficking Task Force in this matter. Mrs. Fajardo Orshan thanked Palm Beach County State Attorney Dave Aronberg for the 15th Judicial Circuit and his staff for their assistance with this investigation. This case was prosecuted by Assistant U.S. Attorney Gregory Schiller and Special Assistant U.S. Attorney Justin Hoover.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Fort Pierce Felon Sentenced to Prison for Unlawfully Possessing a Firearm and More Than Two Pounds of MarijuanaRead the Press Release
Jose Antonio Morales, 33, of Fort Pierce, was sentenced by U.S. District Judge Robin L. Rosenberg to a total of 84 months in prison today, after having been convicted at trial of being a felon unlawfully in possession of a firearm and possessing marijuana with the intent to distribute the controlled substance (Case No. 18-Cr-14056).
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 Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
According to the court record, including evidence introduced during the trial in West Palm Beach, in June 2018, law enforcement seized two pounds of high-grade marijuana and a loaded firearm from a safe in Morales’ bedroom while executing a search warrant at his residence in Fort Pierce. When the search warrant was executed, Morales’ residence was occupied by five children. A toddler was sleeping within a few feet of the safe where the loaded firearm and two pounds of marijuana were discovered.
Morales is a convicted felon and was prohibited, by law, to possess a firearm and/or ammunition.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF and St. Lucie County Sheriff’s Office in this matter. The case was prosecuted by Assistant U.S. Attorneys Michael D. Porter and Marton Gyires.
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 Doctor Sentenced to Prison for Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, was sentenced to 51 months in prison yesterday for tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry. Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company. In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits The SSA approved his application. Kranz then began receiving SSA disability payments, in addition to the private disability insurance payments. Because of the disability payments, Kranz was required to notify his insurance company and the SSA if he returned to work.
From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income. Kranz did not report his employment to either the SSA or his insurance company. Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and sham corporations he had created to receive his payments. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist, and provided .
fraudulent documentation to his insurance company that falsely stated that he was not working.
In addition to the term of imprisonment imposed, Kranz was order to serve three years of supervised release and pay restitution of $1,013,284.
Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Assistant Chief Charles M. Edgar, Jr. and Trial Attorneys Michael C. Boteler and Terri-Lei O’Malley of the Tax Division, who prosecuted the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Owner of Florida Medical Clinic Sentenced to PrisonRead the Press Release
An owner of a Florida medical clinic was sentenced to serve 91 months in prison today for her role in a $2.5 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.
Juliette Anais Tamayo, 54, the owner of Miami-based clinic Sunshine Medical Care Group Inc. (Sunshine), was sentenced by U.S. District Judge Cecilia Altonaga of the Southern District of Florida. Judge Altonaga also ordered Tamayo to pay $2.5 million in restitution. Tamayo pleaded guilty in February 2019 to one count of conspiracy to commit health care fraud and wire fraud. Also, Tamayo previously pleaded guilty to conspiracy to pay and receive kickbacks and to defraud the United States.
Tamayo was charged in a December 2018 superseding indictment with charges stemming from her involvement in a Part A home health care and Part B medical services fraud scheme in which she sold medically unnecessary home health care prescriptions to home health agency owners who in turn billed Medicare. According to her admissions made as part of her separate pleas to the health care fraud and kickback conspiracies, Tamayo solicited and accepted kickbacks from patient recruiters and from the owners of several Miami-area home health agencies in exchange for providing prescriptions for home health services to patients at Sunshine. The prescriptions, in turn, were used by the home health agencies to bill Medicare for home health services purportedly provided to Medicare beneficiaries. Tamayo paid a portion of the kickbacks she received from the home health agencies to physicians who worked at Sunshine to induce them to write the fraudulent prescriptions. In addition, Sunshine billed Medicare directly for medical services purportedly provided at the clinic that were not necessary and/or were not provided.
The case was investigated by the FBI, HHS-OIG, and USSS. Trial Attorneys Adam G. Yoffie, Gary A. Winters and Sara Clingan of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida handled the asset forfeiture proceedings.
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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
North Lauderdale Resident Sentenced to Prison for Being a Felon in Possession of a Firearm and Possession of CocaineRead the Press Release
A North Lauderdale resident was sentenced today to more than six years in prison for being a felon in possession of a firearm and possession of cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Christopher Sergo Denis, 28, of North Lauderdale, was sentenced by U.S. District Judge James I. Cohn to 77 months in prison, to be followed by 3 years of supervised release for being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and a concurrent term of 12 months in prison, to be followed by 1 year of supervised release for possession of cocaine, in violation of Title 21, United States Code, Section 844 (Case No. 18-CR-60296).
According to the court record, including the agreed upon factual proffer, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook as he was firing three firearms at a local gun range. A BSO detective discovered the Facebook posting and brought it to the attention of ATF. An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range as well as a video recording made by the gun range of Denis firing the firearms.
On October 18, 2018, an ATF Special Agent and BSO detectives arrested Denis outside a courtroom in the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case. In his pocket, Denis had a small container in which there were fourteen plastic zip-lock bags, each containing a small quantity of cocaine.
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 BSO in this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Man Sentenced to 78 Months in Prison for Possessing over 5,000 Images of Child PornographyRead the Press Release
A Miami man was sentenced to six and one-half years in prison for maintaining two separate storage units that contained over 5,000 images of child pornography.
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.
Adolfo Zayas-Bazan Albaisa, 56, was sentenced on April 29, 2019, by U.S. District Judge Federico A. Moreno to serve 78 months in prison. Judge Moreno also ordered Albaisa to serve 20 years of supervised release following his prison sentence. Albaisa pled guilty in February 2019 to one count of possession of child pornography.
According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Albaisa had earned a Master’s Degree in Architecture from Harvard University and taught as an adjunct professor at the University of Miami (1994-2002) and Florida International University (2000-2002). From 2007 to 2016, Albaisa maintained control of two separate storage units, one located in Miami and the other in Doral. Albaisa stopped making payments on each storage unit and pursuant to company policy, the storage units were auctioned off to the highest bidder in 2013 and 2016, respectively. In each instance, the auction winner reviewed the unit’s items and discovered pictures of underage boys engaged in sexual activity. The FBI submitted the evidence for fingerprint examination and Albaisa’s fingerprints were positively identified on two images of child pornography. Albaisa also stored additional items in the storage units, such as boy scout paraphernalia, children’s clothing, and photographs of teenagers taken at swimming meets and wrestling matches. He also kept personal items in the storage units, such as architectural drawings and magazines, his library card to the University of Miami library, family photographs, his resume, and various articles of mail addressed to his home. In total, Albaisa collected and stored over 5,000 images of child pornography between the two units that he paid for and controlled.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI and FBI Miami Child Exploitation Task Force in this matter. She thanked the Doral Police Department and the City of Miami Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Admits to Laundering More than $1.5 Million in Proceeds from Business Email Compromise Schemes and to Selling Reptiles Without a LicenseRead the Press Release
Alfredo Veloso, 43, of Miami, today admitted to opening bank accounts, and to recruiting others to open bank accounts, as a conduit for stolen funds in connection with a wide-ranging international money laundering operation for business email compromise and other cyber-schemes. Veloso also admitted to selling reptiles without a license, in violation of the Lacey Act.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service (FWS), Office of Law Enforcement, Southeast, Florida, made the announcement.
Veloso pled guilty before U.S. District Judge Kathleen M. Williams to one charge of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h), and four counts of violating the Lacey Act, that is, knowingly engaging in conduct that involved the sale and purchase of, and intent to sell and purchase, wildlife, that is, reptiles, with a market value in excess of $350.00, knowing that said wildlife was taken, possessed, transported, and sold in violation of and in a manner unlawful under the laws and regulations of the State of Florida, specifically, Florida Statute 379.3761, all in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1)(B).
According to court documents and statements, from April 2017 to December 2018, Veloso, together with co-conspirators Roda Taher a/k/a “Rezi,” Karina Rosado, and Alvaro Lugo, and others participated in a scheme to help steal more than $1.5 million dollars from individual and corporate victims, which proceeds were later laundered. The scheme involved recruiting “money mules,” including Veloso, who allowed their respective names and personal identifying information to be used by co-conspirators to incorporate a sham business through the Florida Department of State, Division of Corporations, under such mule’s name. As part of the scheme, a mule would then open bank accounts at multiple banks in the name of his or her shell company. Several mules, including Veloso, later recruited and managed new money mules. To date, more than 200 money mules and money mule recruiters have been identified as part of this international money laundering network.
As stated in court records, a related cyberattack aspect of the scheme involved the creation, by co-conspirators, of email addresses that mimicked, but differed slightly from, legitimate email addresses of supervisory employees at various companies. The conspirators used these deceptive email addresses to send emails that appeared to be requests for payment of legitimate invoices or debts owed by the victims. The victims were deceived into transferring funds by wire into the bank accounts opened by the money mules and controlled by Veloso and the co-conspirators. After the victims complied with the fraudulent wiring instructions, Veloso, Rosado, and Lugo, under the direction of other conspirators, quickly debited thousands of dollars from the accounts through in-person withdrawals, ATM withdrawals, and debit card purchases. The co-conspirators also transferred funds to foreign bank accounts that co-conspirators controlled.
Veloso, Rosado, Lugo, and other co-conspirators kept a fraction of the proceeds as payment. For example, over a two-day period in April 2017, Veloso’s shell company, Veloso Bulk Trade, received incoming wires totaling more than $1,000,000 from four victims, which included two corporations, a law firm, and an individual. Of these funds, Veloso withdrew or spent approximately $26,686.
Veloso admitted that he recruited more than eight individuals to participate as mules in the money laundering scheme, many of whom were women he met through his kink pornography/adult film business. Veloso and his mules laundered between $1.5 to $3.5 million dollars.
Additionally, Veloso used his reptile business, known as Tri Reptiles and Xtreme Reptiles, to knowingly sell and ship wildlife in interstate commerce in 2018. His yearly reptile sales volume was at least approximately $150,000. Veloso acted as a reptile wholesaler, reselling hundreds of reptiles without obtaining the required Florida license.
At sentencing, on the money laundering count, Veloso faces up to 20 years imprisonment and a fine of $250,000, or twice the gross pecuniary gain/loss. Veloso faces up to five years imprisonment, and a fine of $20,000, or twice the gross gain, on each count of the Lacey Act violation. Sentencing is scheduled before Judge Williams on July 8, 2019, at 3:00 p.m.
Lugo pled guilty to one count of conspiracy to commit money laundering on November 19, 2018, and on April 8, 2019, Judge Williams sentenced Lugo to 34 months in prison. Rosado is a fugitive and remains at large.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, USSS, and FWS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
In related cases in this District, more than thirty members of the money laundering network have been prosecuted and convicted. See United States v. Roda Taher, et al., 17-cr-60223-UU; United States v. Luis Pujols, et al., 17-cr-20702-JEM; United States v. Cynthia Rodriguez, et al., 17-cr-20748-JEM; United States v. Eliot Pereira, et al., 18-cr-20170-MGC; and United States v. Gustavo Gomez, et al., 18-CR-20415-UU. Assistant U.S. Attorneys Jared M. Strauss, Dwayne E. Williams, and Lisa H. Miller prosecuted those cases.
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 Florida Property Manager Sentenced to More than 12 Years in Prison for Orchestrating an International Fraud SchemeRead the Press Release
A former resident of Fort Lauderdale, Florida was sentenced to over twelve years in prison and ordered to pay over $7 million in restitution for orchestrating an international property fraud scheme.
Ariana Fajardo Orshan, U.S Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, made the announcement.
Dale Scott Wood, 46, formerly of Fort Lauderdale, Florida, pled guilty to a single count information that charged him with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, on July 25, 2018 (Case No. 18-CR-60202) U.S. District Judge William P. Dimitrouleas sentenced Wood to 151 months in prison, to be followed by 3 years of supervised release. Wood was also ordered to pay $7,130,410 in restitution.
According to court documents, investors in Germany formed a limited partnership to invest in the United States real estate mortgage market. The partnership made mortgage loans secured by commercial properties throughout the United States. After the United States real estate market crash beginning in 2007, the partnership had to foreclose on many of the mortgages it owned domestically. The partnership needed someone to oversee the foreclosure process and manage, maintain, and market the properties when the partnership acquired title. The partnership retained Wood for that purpose. From November 2009 to November 2013, Wood retained Theodore Gunter Gies, a bookkeeper, to assist him. Wood and Gies, without disclosure to or authorization from the partnership, sold the properties to third parties. Wood and Gies then submitted, via international e-mail, false financial and status reports indicating that the properties were still held by the partnership. The loss to the partnership by the actions of Wood and Gies was $7,130,410.
Gies previously pled guilty for his role in the conspiracy and was sentenced to 51 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. The case was prosecuted by Assistant U.S. Attorneys Thomas P. Lanigan and Karen Olivia-Marie Stewart.
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.
Traveling Bandit Indicted by Grand Jury in South FloridaRead the Press Release
A Kentucky man who is alleged to have robbed banks throughout the United States was indicted for robbing a Capital Bank branch located in Aventura, Florida. He remains in custody.
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.
Jason Lee Robinson, 40, of Pikeville, Kentucky, was charged with one count of bank robbery, in violation of Title 18, United States Code, 2113(a). Robinson was previously charged by criminal complaint (Case No. 19-mj-2082). Robinson is currently being detained in South Florida. If convicted of the single count of bank robbery, Robinson faces a maximum statutory sentence of 20 years in prison.
According to court records and allegations, Robinson robbed seven banks in states around the country. 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 Asheville, North Carolina. On January 4, 2019, he robbed a Mountain Commerce Bank in Johnson City, Tennessee. On January 8, 2019, he robbed a U.S. Bank in Mount Juliet, Tennessee. On January 10, 2019, he robbed a Trustmark Bank in Prattville, Alabama. On January 14, 2019, he robbed a Fifth Third Bank in Mount Vernon, Illinois. On January 17, 2019, he robbed a Wells Fargo Bank in Price Branch, Utah.
Each bank deposit was insured by the Federal Deposit Insurance Corporation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. Mrs. Fajardo Orshan thanked the FBI’s Field Offices in Charlotte, North Carolina, Knoxville, Tennessee, Memphis, Tennessee, Mobile, Alabama, Springfield, Illinois, Salt Lake City, Utah, Price Branch, Utah, Denver, Colorado, and Louisville, Kentucky, for their assistance. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
An indictment is merely an accusation. 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.
Serial Bank Robber Sentenced to Twenty Years in PrisonRead the Press Release
A Jupiter resident was sentenced to twenty years in prison for a string of bank robberies in Palm Beach and Martin Counties in 2017 and 2018.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Bruce H. Colton, State Attorney for Indian River, Martin, Okeechobee, and Saint Lucie Counties, Dave Aronberg, State Attorney for Palm Beach County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office and Daniel J. Kerr, Chief, Jupiter Police Department, made the announcement.
Ronnie Montsdeoca, 59, of Jupiter, Florida, previously pled guilty to a superseding indictment which charged three counts of bank robbery and one count of attempted bank robbery (Case No. 18-Cr-80194). U.S. District Judge Donald M. Middlebrooks sentenced Montsdeoca to a total of 240 months in prison, to be followed by 3 years of supervised release. He also ordered the defendant to pay more than $37,000 in restitution.
According to the court record, including the indictment and the defendant’s admissions at the time of the plea, Montsdeoca robbed a TD Bank in Jupiter Florida on April 21, 2017, a Wells Fargo Bank in West Palm Beach, Florida on August 27, 2018, and another TD Bank in Stuart, Florida, on September 10, 2018. Montsdeoca also attempted to rob a Bank United in Hobe Sound, Florida, shortly before the TD Bank robbery on September 10, 2018.
The defendant took, by means of intimidation during the course of the bank robberies, in excess of $37,000 from the institutions whose deposits were insured by the Federal Deposit Insurance Corporation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of FBI, Martin County Sheriff’s Office, Palm Beach County Sheriff’s Office and Jupiter Police Department in this matter. She thanked the State Attorney’s Office for Saint Lucie County and State Attorney’s Office for Palm Beach County for their assistance. The case was prosecuted by Assistant U.S. Attorney Adam McMichael and Special Assistant U.S. Attorney Christopher Hudock.
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.
Real Estate Developer from Palm Beach, Florida Admits Role in Investment Fraud, Bank Fraud, Money Laundering and Tax Evasion SchemesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, Brian C. Turner, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation in New England, announced that ROBERT V. MATTHEWS, 61, of Palm Beach Florida, pleaded guilty today in Bridgeport federal court to conspiracy, money laundering and tax evasion offenses related to multiple schemes to defraud foreign investors and financial institutions. In addition, Matthews’ wife, MARIA MATTHEWS, 52, pleaded guilty today in Bridgeport to tax evasion.
According to court documents and statements made in court, Robert Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach. Robert and Maria Matthews maintained residences in both Florida and Connecticut.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
In pleading guilty, Matthews admitted that he and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.
While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. Robert Matthews and other used EB-5 funding for purposes not related to the PHH project, including for Robert and Maria Matthews’ personal gain. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club.
As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert and Maria Matthews’ credit card debts, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Nicholas Laudano and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano is a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
Since approximately 2008, Robert and Maria Matthews willfully attempted to evade paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses. For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual with the initials K.M. The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company. The proceeds of this loan were eventually disbursed into an account controlled by the Robert and Maria Matthews in the name of Mirabia LLC. Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.
The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts. In addition, in June 2010, Robert Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews.
Finally, in pleading guilty, Robert Matthews admitted that, between approximately December 2010 and January 2013, he conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.
Robert Matthews pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, an offense that carries a maximum term of imprisonment of 30 years; one count of illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years.
Maria Matthews, who is also known as “Mia Matthews,” pleaded guilty to one count of tax evasion.
Robert and Maria Matthews are released on bonds pending sentencing. Sentencing dates are not scheduled.
On March 7, 2018, Gerry Matthews, of Middlebury, Connecticut, pleaded guilty to one count of conspiracy to commit wire fraud. On March 12, 2018, Laudano, of Boynton Beach, Florida, pleaded guilty to one count of conspiracy to commit bank fraud and one count of illegal monetary transactions. They await sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.
Delray Beach Resident Sentenced to Prison for Being a Felon in Possession of AmmunitionRead the Press Release
A Delray Beach resident was sentenced today to a total of nine years in prison for being a felon in possession of ammunition.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Gadyaces S. Serralta, U.S. Marshal, Southern District of Florida, and Gregory Tony, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.
Pender Senatus, 38, of Delray Beach, was convicted by a trial jury on January 25, 2019, of being a felon in possession of ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Case No. 18-80029-Cr-Marra). The trial jury acquitted Senatus of assaulting three federal officers with a firearm, in violation of Title 18, United States Code, Section 111(a)(1) and (b), and using, carrying and brandishing a firearm during and in relation to the assaults, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i) and (ii). Senatus was sentenced today by U.S. District Judge Kenneth A. Marra to 108 months in prison, to be followed by 3 years of supervised release for being a felon in possession of ammunition.
According to the court record, including facts contained in the indictment, filings in the case, and evidence presented at trial, on July 25, 2017, Senatus was arrested outside his Delray Beach residence on an arrest warrant for second degree murder in a Broward County case. The arrest was made by BSO detectives assigned to the SWAT/Fugitive Unit, each of whom had been sworn in as a Special Deputy U.S. Marshal, and was working as a Task Force Officer with the Florida/Caribbean Regional Fugitive Task Force of the U.S. Marshals Service. When advised he was under arrest and ordered to get on the ground, Senatus said, “Hell no,” and fled toward the front door of his residence. The detectives tackled Senatus, who then pulled out a loaded handgun from a holster inside his waistband. The handgun fell from his hand as Senatus was wrestled to the ground.
Senatus could not be charged with the federal offense of being a felon in possession of a firearm because the handgun had been manufactured in Florida and had not traveled in interstate or foreign commerce. The ammunition inside the handgun, however, had been manufactured outside the state of Florida, so Senatus was charged with being a felon in possession of ammunition.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the ATF, U.S. Marshals Service, and BSO in this matter. This case was prosecuted by Assistant U.S. Attorney William T. Shockley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
DEA and Partners to Hold National Prescription Drug Take Back Day on April 27Read the Press Release
MIAMI – With robust public participation over the course of 16 prior events, the National Prescription Drug Take Back Day Initiative continues to remove ever-higher amounts of opioids and other medicines from the nation’s homes where they are vulnerable to misuse, theft, or abuse by family members and visitors; including children and teens. In continuation of this effort DEA, along with their national, tribal, and community partners will hold the 17th National Prescription Drug Take Back Day across the country on Saturday, April 27th. The drug take back service is free and anonymous for the public.
Now in its ninth year, DEA has collected nearly 11 million pounds (more than 5,400 tons) of expired, unused, and unwanted prescription medications through its Take Back Day events. This weekend, approximately 6,000 collection sites manned by nearly 5,000 law enforcement partner agencies will be open from 10 a.m. to 2 p.m. local time. The public can find a nearby collection site at www.DEATakeBack.com or by calling 800-882-9539. (DEA cannot accept liquids, needles, or sharp material.)
"Addiction causes a tremendous amount of pain and suffering, not just for those addicted to drugs but also for their family members and friends," said Acting Administrator Uttam Dhillon. "Helping people keep their loved ones safe by disposing of unwanted, unused, and expired prescription medications is just one of many ways that DEA is working to break the cycle of addiction and overdose deaths plaguing this country."
“Keeping our homes free of harmful prescription medication, when no longer needed, is a way of keeping everyone safe.” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division. “We strongly encourage the public to do your part by discarding your expired, unused, and unwanted medications at any of the 200+ sites throughout Florida.”
Rates of prescription drug abuse in the United States continue to be alarmingly high, as are the number of accidental poisonings and overdoses due to these medicines. The majority of prescription drug abusers have often reported receiving their drugs from friends, family, and the home medicine cabinet. Take Back Day serves as a unique opportunity for Americans to secure their medicine cabinets from theft and abuse.
National Prescription Drug Take Back Day has received enthusiastic public support since its inception in 2010. Last October, the public surrendered 457 tons (914,236 pounds) of prescription drugs at more than 5,800 sites operated by the DEA, and nearly 4,800 sites manned by local and tribal partners.
Stuart Physician Sentenced to Prison After Having Been Convicted at Trial of Health Care FraudRead the Press Release
Yesterday, a doctor who previously worked in Stuart, Florida, was sentenced to prison after having been convicted by a federal jury of committing repeated acts of health care fraud.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.
Sheetal Kanar Kumar, M.D., 48, formerly of Stuart, Florida, was found guilty by a trial jury, on February 15, 2019, of committing twenty-three counts of health care fraud (Case No. 18-14063-CR-Marra). U.S. District Judge Kenneth A. Marra, sitting in Fort Pierce, Florida, sentenced Dr. Kumar to a total of 24 months in prison, to be followed by 2 years of supervised release.
“No one has a license to defraud our health care system,” stated U.S. Attorney Fajardo Orshan. “Those individuals, like Dr. Kumar, who cast aside their professional responsibilities to pad their personal pockets with fraudulently obtained tax dollars will face serious consequences. We encourage the public to report suspected health care fraud to law enforcement. We must protect our vital healthcare programs from abuse.”
“Vulnerable patients sought out Dr. Kumar for critical medical treatment. Instead she was exploiting these individuals for personal gain,” said Shimon R. Richmond, Special Agent in Charge HHS-OIG. “We will continue to protect patients and federal healthcare programs by investigating individuals who seek to enrich themselves at the expense of beneficiaries and taxpayers.”
"The FBI and our partners devote vast resources to investigate, catch and prosecute those committing health care fraud," said Justin E. Fleck, Assistant Special Agent in Charge, FBI Miami. "To those fraudsters still bilking the system to line their pockets with illicit cash, know that we are committed to rooting out this kind of fraud and reclaiming money that was dishonestly obtained."
Attorney General Ashley Moody said, “Make no mistake, health care fraud is a serious crime that steals tax dollars and increases insurance rates. The Florida Attorney General’s Office will continue to work with our federal partners to protect Florida’s health care market and arrest, prosecute and convict anyone trying to defraud Medicaid and Medicare.”
According to the court record, including evidence introduced at trial, Dr. Sheetal Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida. Dr. Kumar was an obstetrician and gynecologist who treated incontinence. From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submissions of claims to Medicare, Medicaid and private insurance companies. The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed. As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $637,000.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Attorney General’s Medicaid Fraud Control Unit in this matter. This case was prosecuted by Assistant U. S. Attorneys Daniel E. Funk and Diana M. Acosta.
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.
Tamarac Resident Arrested for Making Multiple Threats to Members of CongressRead the Press Release
John Kless, 49, of Tamarac, Florida, was arrested today after being charged with Making Threatening Communications, in violation of Title 18, United States Code, Section 875(c). Kless made his initial appearance earlier today before United States Magistrate Judge Barry S. Seltzer.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and Matthew R. Verderosa, Chief of Police, United States Capitol Police, made the announcement.
According to allegations in the complaint, on April 16, 2019, Kless made multiple threatening communications to the Congressional offices of members from California, Michigan, and New Jersey.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the United States Capitol Police Threat Assessment Section. The case is being prosecuted by Assistant U.S. Attorney Marc S. Anton.
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.
Florida Man and Two Florida Companies Charged with Wire FraudRead the Press Release
Jean Joseph, 48, of Boca Raton, Evergreen United Investments, LLC, (Evergreen), a Florida Limited Liability Company, and GSA Income and Development Fund, L.P., (GSA) a Foreign Limited Partnership, charged with wire fraud, in violation of Title 18, United States Code, Section 1343. Joseph was arrested yesterday.
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 the Indictment, in October 2013, Kolmat do Brasil Ltda. (Kolmat), a Brazilian based company, sought to obtain a $30,000,000 construction loan from Evergreen, f/k/a USBREI, Inc., for its construction of the Magia Hotel Suite Resort, a luxury resort in Ipioca, Maceio City, Brazil. Kolmat negotiated the terms of the Evergreen loan with Joseph, Evergreen’s manager. The parties agreed on the loan terms, including a requirement that Kolmat invest $3,000,000 in GSA, f/k/a UBREI Capital Partners, L.P., an investor in properties leased to federal government agencies. Joseph was an authorized person and registered agent for GSA. The loan terms provided that if the loan was not authorized by Evergreen, Evergreen was to return to Kolmat within five business days the funds it paid to GSA. Kolmat paid to GSA the agreed upon $3,000,000, but did not receive the $30,000,000 loan or a return of the $3,000,000 investment. Instead, as alleged, Joseph used the funds for his own personal use and benefit.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. The case is being prosecuted by Assistant United States Attorney Lois Foster-Steers.
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 Man Sentenced to More than 9 Years in Prison for Mortgage Fraud and Identity Theft SchemeRead the Press Release
George French Jones, Jr., 50, of Santa Monica, California, was sentenced to 113 months in prison today by U.S. District Judge Robert N. Scola in Miami, after previously pleading guilty to mail fraud and identity theft charges in connection with a mortgage fraud scheme involving two waterfront residential properties in Broward County, Florida. He was also ordered to pay $1,824,581 in restitution.
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 information disclosed in open court, in early 2018 Jones identified two residential properties in Fort Lauderdale, Florida, which Jones fraudulently pledged as collateral in order to obtain mortgage loans from a private lender.
The two Broward County properties were owned by corporate entities that Jones had no affiliation with and which were in fact owned by independent third parties. To execute his fraudulent loan scheme, Jones created fake identification documents and email addresses in order to impersonate officers of the corporate owners of the two properties. Jones then submitted bogus loan applications and other documents to a private lender in which he pretended to be the owners of the Fort Lauderdale properties. As a result of this scheme, Jones defrauded the private lender out of approximately $1.7 million dollars.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, Miami Beach Police Department, and Florida Office of Financial Regulation. This case was prosecuted by Assistant U.S. Attorney Christopher Browne. Assistant U.S. Attorney Nalina Sombuntham is handling the asset forfeiture aspects of the prosecution.
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.
United States Government and Cooperating U.S. Gold Refinery Enter an Agreement After Money Laundering InvestigationRead the Press Release
Miami-based, gold refinery Republic Metals Corporation (“RMC”) executed a non-prosecution agreement with the United States Attorney’s Office for the Southern District of Florida (the “Office”) after cooperating in an investigation focusing on money laundering and violations of the Bank Secrecy Act in the gold importation and refining industry. Under the terms of the agreement, RMC agreed to continue cooperating in the ongoing investigation, as well as to make improvements in its anti-money laundering and compliance programs.
Ariana Fajardo Orshan, United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, Anthony Salisbury, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Carlos L. Mitchem, Regional Director, Drug Enforcement Administration (DEA-Peru), Southern Cone Region, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA-Miami), Homestead Field Office, made the announcement.
RMC is the second U.S. gold refinery that has been implicated in the Office’s investigation into the gold importation and refining industry. Previously, Elemetal LLC, doing business as “Elemetal” and “NTR Metals,” pled guilty to a single-count information for failure to maintain an adequate anti-money laundering program under the Bank Secrecy Act (BSA). (U.S. v. Elemetal LLC, Case No. 18-cr-20173). The investigation into the gold importation and refining industry remains ongoing.
U.S. Attorney Ariana Fajardo Orshan stated, “We commend Republic Metals Corporation for cooperating in this investigation and agreeing to strengthen their anti-money laundering and compliance program after deficiencies had been discovered. This Office’s investigation into the gold importation and refining industry will continue and the resolution with Republic Metals Corporation, as well as the guilty plea of NTR, should place others on notice that there are benefits to cooperating and there are grave consequences for those who engage in money laundering or fail in their legal requirement to prevent it.”
These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) “Operation Arch Stanton”, 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 investigative efforts of FBI, ICE-HSI, IRS-CI, and DEA-Peru and DEA-Homestead. This case is being prosecuted by International Narcotics and Money Laundering Section Assistant U.S. Attorneys Walter M. Norkin and Brian Shack. Southern District of Florida Assistant U.S. Attorney Adrienne Rosen is handling the asset forfeiture aspects of 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 City of Miami Police Officer Sentenced to 15 ½ Years After She Pled Guilty to Conspiracy to Possess Cocaine with Intent to DistributeRead the Press Release
U.S. District Judge Cecilia M. Altonaga sentenced former City of Miami Police officer, Schonton Harris, of Miami, to 15 ½ years in prison for her involvement in a 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 officer Schonton Harris previously pled guilty to conspiring with other officers to possess cocaine from August through October 2018. According to court filings, on September 13, 2018, during an undercover operation, Schonton Harris, who was in full uniform and carrying her service firearm, provided police protection for what she believed was a multiple-kilogram shipment of cocaine by escorting the transportation of such cocaine from a bus station to a Miami-area hotel. Later, on September 28, 2018, Schonton Harris provided police protection for a 40-kilogram shipment of what she again believed to be cocaine. The sham cocaine, divided into two 20-kilogram containers, was transported by undercover FBI employees in two separate vehicles to two different Miami-area hotels. Finally, on October 11, 2018, Schonton Harris personally took possession of two large coolers from a Miami-area marina, which coolers she believed to each contain 15 kilograms of cocaine, and transported such coolers to two hotels in Miami. After the described incidents, Schonton Harris received a cash payment in the amount of $17,000.
“The sentence announced today is a victory for all law enforcement officers who protect and serve our community with pride, honor, and dignity,” said U.S. Attorney Ariana Fajardo Orshan. “We will not allow those who abuse their positions of trust to tarnish the reputation of the City of Miami Police Department and those dedicated officers who, every day, serve the City of Miami residents. Those who use their badge to break the law and enrich themselves will be brought to justice.”
"Individuals who use the badge for their own personal gain have no place in law enforcement, " said George L. Piro, Special Agent in Charge, FBI Miami. "We commend the City of Miami Police Department for their close cooperation and commitment throughout this investigation."
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and 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.
Florida Man Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Port St. Lucie, Florida, man was sentenced to 84 months in prison today for filing false tax returns on behalf of his clients and for failing to report his true income on his own income tax returns, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits, business expenses, and other deductions in order to inflate by thousands of dollars tax refunds issued by the Internal Revenue Service (IRS). In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own returns, underreporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.
In addition to the term of imprisonment, U.S. District Judge James Ivan Cohn for the Southern District of Florida ordered Maurival to serve one year of supervised release and pay $267,995 in restitution to the IRS.
U.S. Attorney Fajardo Orshan Principal and Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Southern District of Florida Assistant U.S. Attorney Diana Acosta and Tax Division Trial Attorney Grace Albinson who prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florida Man Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
A Port St. Lucie, Florida, man was sentenced to 84 months in prison today for filing false tax returns on behalf of his clients and for failing to report his true income on his own income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.
According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits, business expenses, and other deductions in order to inflate by thousands of dollars tax refunds issued by the Internal Revenue Service (IRS). In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own returns, underreporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.
In addition to the term of imprisonment, U.S. District Judge James Ivan Cohn for the Southern District of Florida ordered Maurival to serve one year of supervised release and pay $267,995 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Fajardo Orshan commended special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Diana Acosta, who prosecuted the case.
Miami-Based Violent Criminal Enterprise Members and Associates Sentenced for RICO Conspiracy, Drug Trafficking, Robbery and Use of FirearmsRead the Press Release
This month, the last of 14 defendants were sentenced for their respective roles in a violent criminal enterprise that operated in the Miami neighborhood of Allapattah for crimes committed as early as the year 2000.
Ariana Fajardo Orshan, United States 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, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Jorge Colina, Chief, Miami Police Department (MPD), Juan Perez, Director, Miami-Dade Police Department (MDPD), and Daniel Junior, Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), made the announcement as part of the Southern District of Florida Violence Reduction Partnership (VRP).
On September 14, 2018, at the conclusion of a two-month trial before U.S. District Judge Jose E. Martinez, the jury convicted 10 defendants for racketeering and drug-related offenses. On April 12, 2019, Judge Martinez completed the sentencing of the final defendant. The sentences as to the defendants convicted at trial are as follows:
Antonio Glass, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Glass was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Jerimaine Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment;
Curtis Bryant, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to life imprisonment for his conduct, which included the death of a victim arising from the racketeering conspiracy;
Samuel Hayes, of Miami, was convicted at trial of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Firearm Possession in Furtherance of a Crime of Violence. Hayes was sentenced to 27 years imprisonment;
Mario Rodriguez, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Rodriguez was sentenced to 21 years imprisonment;
Michael Walker, of Miami, was convicted at trial of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Walker was sentenced to 19 years imprisonment;
Reginald Graham, of Miami, was convicted at trial of one count of Racketeering Conspiracy, Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Graham was sentenced to 19 years imprisonment;
Daniel Jones, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy. Jones was sentenced to 19 years imprisonment;
Levi Bryant, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Bryant was sentenced to 16 years imprisonment; and
Torivis Reginald Ingram, of Miami, was convicted at trial of one count of Drug Distribution Conspiracy and one count of Possession of a Controlled Substance with Intent to Distribute. Ingram was sentenced to 14 years imprisonment.
The other four defendants, of Miami, pled guilty prior to trial and were sentenced for periods of sixty months to 15 years imprisonment.
During the trial, evidence, that included civilian and law enforcement witness testimony, presented proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), for over 17 years conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics. The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.
The evidence at trial showed that the DSBF became so emboldened that it told a future homicide victim’s own mother that her son would be killed. The DBSF followed through on that promise with his subsequent murder. Trial evidence also established that members of the group celebrated after another victim’s murder by posting images of the deceased’s body in a casket. Trial evidence included jailhouse phone calls and private messages, which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise. Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when its members were incarcerated.
U.S. Attorney Fajardo Orshan commended the collaborative investigative efforts of ATF, FBI, DEA, MPD, MDPD, and MDCR, including the following key participants: MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. Ms. Fajardo Orshan also thanked the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department, Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force for their support in the investigation.
Through the collaborative 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. The sentences 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 case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF), Operation Northern Light. The Northern Light Task Force is a federal multi-agency, multi-jurisdictional task force that was formed to combat organized violent crime in Northern Miami-Dade County. To date the Northern Light Task Force has secured the conviction of 27 defendants involved in complex violent crimes involving homicide, attempted murder, serial robbery, firearms offenses, drug trafficking, and other crimes. The principal mission of the Northern Light Task Force is to identify, disrupt, and dismantle the most serious organized violent criminal conspiracies operating in Miami-Dade County, Florida.
This case was prosecuted by Assistant U.S. Attorneys Ignacio J. Vázquez, Jr. and Ilham A. Hosseini.
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 Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Four Extradited from Peru for Operating Spanish-Speaking Call Centers that Extorted U.S. ConsumersRead the Press Release
Four Peruvian residents have been extradited to the United States, where they stand accused of operating a large-scale extortion scheme from 2012 through 2015, the Justice Department and U.S. Postal Inspection Service today announced.
Jesus Gerardo Gutierrez Rojas, 37, Maria de Guadalupe Alexandra Podesta Bengoa, 38, Virgilio Ignacio Polo Davila, 43, and Omar Alfredo Portocarrero Caceres, 39, face federal charges in Miami. Peruvian authorities arrested the four in late 2017, based upon a U.S. indictment. All four remained incarcerated in Peru since the time of their arrest. Peru approved their extradition to the U.S. on Jan. 18, 2019.
“The Department of Justice will pursue criminals who target and extort U.S. consumers, wherever they are,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Those who extort U.S. consumers by phone cannot escape justice by placing their calls from abroad. I thank the Republic of Peru for extraditing these individuals to face charges in U.S. courts.”
“Individuals who defraud American consumers will be brought to justice, no matter where they are located,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “Protecting the elderly and vulnerable members of our community from extortion schemes, such as this one, is a top priority of this Office and the Department of Justice, and I thank the U.S. Postal Inspection Service for their unwavering commitment to rid the U.S. mail system of these schemes. This is a reminder to our community to be wary of those individuals who threaten imprisonment, a negative credit score or a change in immigration status; please report those threats immediately.”
“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten U.S. consumers and extort them of their hard earned money, regardless of what country they operate from,” said U.S. Postal Inspector in Charge Antonio J. Gomez. “The U.S. Postal Inspection Service appreciates the continued partnership with the Department of Justice’s Consumer Protection Branch in pursuing South American call center operators who victimize consumers through the U.S. mail.”
Podesta, Polo, and Portocarrero allegedly managed and operated Peruvian call centers that placed calls to Spanish-speaking consumers across the United States while lying and threatening them into paying fraudulent settlements for nonexistent debts. Many of the consumer victims were elderly. Gutierrez was allegedly the general manager of a larger company where he worked in partnership with Podesta, Polo, and Portocarrero to facilitate their extortion scheme. The defendants’ associates in Miami collected the payments and sometimes shipped packages to victims in the U.S.
According to the allegations in the indictment, Podesta, Polo, Portocarrero, and their employees in Peru used Internet-based telephone calls and claimed to be attorneys and government representatives to threaten victims in the United States. The callers falsely claimed that victims failed to pay for or receive a delivery of products. The callers also falsely claimed that victims would be sued and that the companies would obtain large monetary judgements against them. Some victims were also threatened with negative marks on their credit reports, imprisonment, or immigration status. The callers said these threatened consequences could be avoided if the victims immediately paid “settlement fees.” Many victims made monetary payments based on these baseless threats.
A 34-count federal indictment was filed against the defendants in the U.S. District Court for the Southern District of Florida on Dec. 6, 2016, and was unsealed upon the defendants’ extradition to the U.S. The defendants are approved to face 12 extortion counts pending against them. An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Consumer Protection Branch. The Postal Inspection Service investigated the case. The Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance.
Lake Worth Resident Sentenced to 12 Years in Prison for Distributing Cocaine and Heroin Containing FentanylRead the Press Release
A Palm Beach County resident was sentenced to 12 years in prison for distributing cocaine and heroin containing Fentanyl.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, Dave Aaronberg, State Attorney, Palm Beach County State Attorney’s Office, made the announcement.
Duwayne Jones, 44, of Lake Worth, Florida, previously pled guilty to distributing a controlled substance (Case No. 19-CR-80004). On April 12, 2019, Jones was sentenced by U.S. District Judge Kenneth A. Marra to 144 months in prison, to be followed by 3 years of supervised release.
According to the court record, on October 2, 2018, Jones sold cocaine and heroin laced with Fentanyl to an undercover police officer. On December 12, 2018, Jones again sold heroin to an undercover officer and was subsequently arrested. During a search incident to his arrest additional heroin, cocaine, marijuana, and $415 in U.S. currency was recovered.
Based upon prior police reports and telephone records, Jones was connected to two prior non-fatal overdoses.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Palm Beach County Sheriff’s Office in this matter. She thanked the Palm Beach County State Attorney’s Office for their assistance. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci and Special Assistant U.S. Attorney Andrew Carrabis.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
California Tobacco Company Executive Charged in Scheme to Avoid the Payment of More than $5 Million in Federal Excise TaxesRead the Press Release
A California tobacco company executive on Friday was arrested after being charged with a conspiracy to evade the payment of millions of dollars in excise taxes on imported cigars.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Nicholas Colucci, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Washington, DC Field Office, made the announcement.
Akrum Alrahib, 41, of Los Angeles, California, was charged by indictment with the following counts: conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371; 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. The indictment also charged Alrahib with violations of the Internal Revenue Code, including: refusing to pay Federal Tobacco Excise Tax on large cigars, and attempting to evade or defeat the tax or payment thereof, in violation of 26 U.S.C. § 5762(a)(3); and willfully attempting to evade or defeat Federal Tobacco Excise Tax on large cigars, in violation of Title 26 U.S.C. § 7201.
According to the indictment, Alrahib was the President of Trendsettah USA, Inc. (“Trendsettah”), a California tobacco company authorized to transact business in the State of Florida. Trendsettah sold various tobacco products, such as large cigars, and marijuana paraphernalia, such as “blunt wraps,” many of which were imported from the Dominican Republic.
In 2013, Alrahib partnered with Gitano Pierre Bryant, Jr., a TTB-permitted tobacco importer, to import large cigars from the Dominican Republic into Miami, Florida. The indictment alleges that Alrahib and Bryant agreed to lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on the imported cigars. According to the charging document, Alrahib and Bryant consistently evaded Federal Tobacco Excise Tax by concealing the price Alrahib actually paid for the cigars.
It is alleged that Alrahib paid over $9 million for untaxed tobacco products during the course of the charged conspiracies and received over $700,000 in kickbacks from Bryant, on which aggregate amount he did not pay the required federal excise tax.
Alrahib will remain in custody pending his removal to the Southern District of Florida.
If convicted, Alrahib can be sentenced up to five years imprisonment on the conspiracy to defraud the United States charge and each of the charges for violations of the Internal Revenue Code, and up to 20 years imprisonment on the wire fraud and wire fraud conspiracy 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 TTB and IRS-CI. 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.
Tax Preparer and Two Employees Indicted on Fraud ChargesRead the Press Release
A tax preparer and two employees were indicted on charges related to the preparation and filing of false tax returns.
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), made the announcement.
Olry Maurival, of West Palm Beach, Florida, Paula Pognon, also of West Palm Beach, Florida and Amos Regusme, of Felton, Delaware, have been indicted for conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371 (Case No. 19-80054-CR-Middlebrooks). Maurival and Pognon have also been indicted for aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2) and Maurival has been indicted for filing false tax returns, in violation of Title 26, United States Code, Section 7206(1). Their initial appearances are scheduled for April 25, 2019, in West Palm Beach.
According to the allegations in the indictment, Maurival operated a tax preparation business where he, Pognon, and Regusme prepared taxes. From 2012 through 2015, they prepared and filed returns on which they claimed a variety of credits and deductions to which their clients were not entitled, including the Earned Income Credit, the Fuel Tax Credit, deductions for unreimbursed employee expenses, and deductions and credit for educational expenses. In addition, Maurival underreported his gross earnings from the operation of his tax business on his personal tax returns.
If convicted, the defendants face maximum possible statutory sentences of 5 years in prison, for the conspiracy. In addition, Maurival and Pognon face maximum possible statutory sentences of 3 years in prison on each of the other counts.
An indictment is only an accusation and 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 IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
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 Sentenced to Prison in connection with a $1.4 Million Insurance Fraud SchemeRead the Press Release
A Palm Beach County resident was sentenced to prison in connection with a $1.4 million dollar insurance fraud scheme.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Alexander Hartman, of Palm Beach County, pled guilty, on January 24, 2019, to four counts of wire fraud, in violation of Title 18, United States Code, Section 1343 (18-80236-CR-Rosenberg). On April 5, 2019, Hartman was sentenced by U.S. District Judge Robin L. Rosenberg to 33 months in prison, to be followed by three years of supervised release.
According to the court record, including the agreed upon factual proffer, Hartman was the sole owner and operator of Alexander Insurance Consultants (“AIC”). During the period of August 2014 through May 2017, Hartman, while operating as the insurance agent/broker of AIC, engaged in a fraudulent course of conduct aimed at enriching himself. Hartman submitted to Premium Assignment Corporation (“PAC”), via wire, false documentation in support of premium finance loans. Hartman falsely represented to PAC that Lloyds of London had issued insurance policies for companies, that these companies were using PAC’s financing services to finance their premium payments, and that AIC had brokered the contracts and was entitled to collect the premiums on behalf of the insured. None of the named companies were clients of AIC or Hartman and three of the companies did not exist.
Hartman defrauded PAC of approximately $1.4 million when he submitted false insurance obligations and used non-existent clients for which he sought premium financing.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS in this matter. This case was prosecuted by Assistant U.S. Attorney Robin Waugh.
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 Woodbridge Group and Two Former Directors Charged with $1.3 Billion Investment Fraud (Ponzi) Scheme Involving 10k VictimsRead the Press Release
The owner of Woodbridge Group of Companies LLC and two former directors of investments have been charged criminally, in the Southern District of Florida, with orchestrating a massive investment fraud (Ponzi) scheme.
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 Ronald L. Rubin, Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
Robert Shapiro, 61, of Sherman Oaks, California, Dane R. Roseman, a/k/a “Dayne Roseman,” 35, of Encino, California, and Ivan Acevedo, 42, of Chatsworth, California, were charged, by an indictment out of the Southern District of Florida that was unsealed today, with conspiracy to commit mail and wire fraud and substantive mail fraud counts (Case No. 19-20178-CR-Altonaga/Goodman). Shapiro and Roseman were also charged with substantive wire fraud counts. In addition, Shapiro was charged with conspiracy to commit money laundering and evasion of payment of federal income taxes. Shapiro, Roseman and Acevedo were arrested today in California and had their initial appearances before a U.S. Magistrate Judge in the Central District of California. Shapiro was ordered to be detained in prison. Roseman and Acevedo were ordered to appear in the Southern District Florida for their arraignment. An arraignment date has not yet been scheduled.
According to the indictment, the owner of Woodbridge Group of Companies LLC (Woodbridge) Shapiro, and his former Directors of Investments, Acevedo and Roseman, orchestrated a massive Ponzi scheme through the business. They ran their scheme through Woodbridge offices located throughout the United States, including Boca Raton, Florida and Sherman Oaks, California. The conspiracy ran from July 2012 to December 2017, and involved material misrepresentations and material omissions to investors in the sale of Woodbridge investments. Through telephone and in-person conversations, emails and website displays, Shapiro, Acevedo, Roseman and their co-conspirators promoted speculative and fraudulent securities to potential investors, targeting elderly investors who had Individual Retirement Accounts (IRAs). Shapiro hired sales agents to solicit potential investors from the Woodbridge “phone room” that Roseman and Acevedo managed. The phone room functioned as a “boiler room,” and featured high-pressure sales tactics, deception, material misrepresentations, and investor manipulation. Through telemarketing, Woodbridge sales agents contacted potential investors located throughout the United States, and solicited, offered, and sold Woodbridge investments to them. For the fraud-based investments, the defendants and their co-conspirators’ main business model was to solicit money from investors and, in exchange, issue investors promissory notes reflecting purported loans to Woodbridge that paid monthly interest and matured in twelve to eighteen months. The defendants claimed that the investments were tied to real property owned by third-party property owners.
The indictment alleges that Shapiro, Acevedo, Roseman and their co-conspirators, made and caused others to make materially false and fraudulent statements to induce investors to provide money, such as, that Woodbridge investments were “low risk,” “simpler,” “safe” and “conservative;” that Woodbridge was profitable, but in reality new Woodbridge investor money was used to pay prior Woodbridge investors, and that third-party affiliates were property owners, when in fact Shapiro owned nearly all of the real property at the center of every investment product offered by Woodbridge.
According to the indictment, Shapiro took approximately $35 million in investor money for his benefit, spending 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, $1.4 million to his ex-wife, and over $672,000 on luxury automobiles.
The indictment further alleges that Shapiro caused most of the Woodbridge companies to file Chapter 11 bankruptcy, which caused investors to suffer substantial losses, as they were owed close to $1 billion in principal.
At least 2,600 of these investor victims invested their retirement savings, totaling approximately $400 million.
According to information presented to the court, search warrants related to the indictment were executed today in California.
The U.S. Securities and Exchange Commission (SEC) filed parallel civil enforcement actions against Acevedo and Roseman related to the Ponzi scheme.
An indictment contains allegations. Every 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, 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 is being prosecuted by Assistant U. S. Attorneys Roger Cruz 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 at http://pacer.flsd.uscourts.gov.
Ft. Lauderdale Resident Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
A Ft. Lauderdale resident has been charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Jean Jameson, 35, of Broward County, was indicted on one count of distribution of fentanyl resulting in death and two counts of distribution of fentanyl (Case No. 19-60083-CR-Zloch/Hunt). A calendar call has been set for May 10, 2019 at 10:00 a.m. in Fort Lauderdale before Senior Judge William J. Zloch. A jury trial has been scheduled for the trial period beginning May 13, 2019. If convicted of the narcotics distribution resulting in death charge, Jameson faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars. If convicted of the additional charges, Jameson faces a maximum statutory term of 20 years in prison, to be followed by supervised release and a potential fine of up to $1 million dollars.
According to the court record, on September 25, 2018, Jameson distributed fentanyl, a Schedule II controlled substance, to A.M., an individual who died as a result of ingesting the drug. Thereafter, on two separate occasions, Jameson distributed a controlled substances, to wit, fentanyl.
“Men and women in our community are losing their lives to the drug trade,” stated US Attorney Fajardo Orshan. “Fentanyl, a highly potent controlled substance, is being illegally distributed with deadly results. We implore the public to educate themselves, friends and loved ones about the dangers of drug abuse and addiction. Federal law enforcement authorities will continue to prosecute those who endanger our residents by fueling the opioid epidemic.”
“The DEA takes the distribution of any illegal drug very seriously,” said DEA Special Agent in Charge Adolphus P. Wright. “The recent spike in opioid sales, which correlates to an increased death toll, only heightens our commitment to continue in this fight. The DEA Miami Field Division will continue to work very closely with our law enforcement partners in the Tri-County area along with the United States Attorney’s Office to fully investigate and prosecute those responsible for illicit drug trafficking activities to ensure that they are held accountable for their actions, especially when the consequences from those actions result in the tragic death of another individual.”
Fort Lauderdale Chief of Police Rick Maglione stated, “Individuals who knowingly distribute a substance that often results in death should absolutely be held accountable for the results of their actions. Hopefully these individuals will begin to think twice before taking advantage of people who are suffering from an addiction now that they realize the severity of the charges and potential penalties that can be associated with their crimes.”
In December of 2014, the DEA, the Fort Lauderdale Police Department, and the Broward County Sheriff's Office formed a partnership with the Broward Medical Examiner's Office to track both synthetic drug and heroin related overdoses. From that, and as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) National Heroin strategy to combat heroin/fentanyl trafficking and related overdose deaths, Operation Phantom Chase emerged. The operation, begun in July 2017, is a multi-jurisdictional heroin/fentanyl initiative between the DEA, the U.S. Marshals Service, Homeland Security Investigations, U.S. Postal Inspection Service, Fort Lauderdale Police Department, Broward County Sheriff’s Office, Sunrise Police Department, Hollywood Police Department, Coral Springs Police Department and the U.S. Attorney’ Office in Broward County which operates as a data collection clearinghouse to analyze intelligence gathered from fatal and non-fatal heroin and fentanyl overdoses that occur in Broward County. The charges being announced today result from the diligent investigative work of this successful federal-local partnership.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and the Ft. Lauderdale police. She also thanked the Broward Sheriff’s Office for their support during the course of this investigation. This case is being prosecuted by Assistant U.S. Attorney Robert Juman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Health Care Facility Owner Convicted for Role in Largest Health Care Fraud Scheme Ever Charged by the Department of Justice, Involving $1.3 Billion in Fraudulent ClaimsRead the Press Release
A federal jury found a South Florida health care facility owner guilty today for his role in the largest health care fraud scheme ever charged by the Justice Department, involving over $1.3 billion in fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary or were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Deputy Administrator and Director Alec Alexander of the Centers for Medicare and Medicaid Services Center for Program Integrity made the announcement.
After an eight-week trial, Philip Esformes, 50, of Miami Beach, Florida, was convicted 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 before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Sentencing has not yet been scheduled.
“Philip Esformes orchestrated one of the largest health care fraud schemes in U.S. history, defrauding Medicare and Medicaid to the tune of over a billion dollars,” said Assistant Attorney General Benczkowski. “I commend our dedicated prosecutors and law enforcement partners for their professionalism and unyielding pursuit of justice on behalf of American taxpayers and vulnerable beneficiaries who, as a result of Esformes’s crimes, were denied the level of care that they needed and deserved.”
“Philip Esformes’s criminal scheme defrauded America’s health care system out of millions of dollars, that would have otherwise provided quality care to patients in need,” said U.S. Attorney Fajardo Orshan. “I commend the Assistant U.S. Attorneys from the Southern District of Florida, who worked tirelessly alongside their partners at the Department’s Criminal Division, the FBI and HHS-OIG to bring this case to justice. This massive fraud scheme, perpetuated in nursing and assisted living facilities in our South Florida communities, compromised the integrity of our local health care system. We remain united in our commitment to root out health care fraud and support quality patient care.”
“Philip Esformes is a man driven by almost unbounded greed,” said Assistant Special Agent in Charge Denise M. Stemen of FBI Miami. “The illicit road Esformes took to satisfy his greediness led to over $800 million 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.”
“This largest ever healthcare fraud conviction highlights the awful toll criminal schemes take on federal health programs,” said HHS-OIG Special Agent in Charge Richmond. “Even beyond the vital dollars lost though, Esformes exploited and victimized patients by providing inadequate medical care and poor conditions in his nursing homes. Along with our law enforcement partners, we will continue the fight against such parasites.”
According to evidence presented at trial, from approximately January 1998 through July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities that he owned. Esformes bribed physicians to admit patients into his facilities, and then cycled the patients through his facilities, where they often failed to receive appropriate medical services, or received medically unnecessary services, which were then billed to Medicare and Medicaid, the evidence showed. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients received, which Esformes was able to conceal 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 that 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 is scheduled to be sentenced on April 10. Esformes’s coconspirator Odette Barcha also pleaded guilty to one count of conspiring to violate the anti-kickback statute. She was sentenced on April 3, 2019, to 15 months in prison.
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 Assistant Chiefs Allan Medina and Drew Bradylyons and Trial Attorneys James Hayes, Elizabeth Young 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 are handling 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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
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 Health Care Facility Owner Convicted for Role in Largest Health Care Fraud Scheme Ever Charged by the Department of Justice, Involving $1.3 Billion in Fraudulent ClaimsRead the Press Release
A federal jury found a South Florida health care facility owner guilty today for his role in the largest health care fraud scheme ever charged by the Justice Department, involving over $1.3 billion in fraudulent claims to Medicare and Medicaid for services that were not provided, were not medically necessary or were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Deputy Administrator and Director Alec Alexander of the Centers for Medicare and Medicaid Services Center for Program Integrity made the announcement.
After an eight-week trial, Philip Esformes, 50, of Miami Beach, Florida, was convicted 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 before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. Sentencing has not yet been scheduled.
“Philip Esformes orchestrated one of the largest health care fraud schemes in U.S. history, defrauding Medicare and Medicaid to the tune of over a billion dollars,” said Assistant Attorney General Benczkowski. “I commend our dedicated prosecutors and law enforcement partners for their professionalism and unyielding pursuit of justice on behalf of American taxpayers and vulnerable beneficiaries who, as a result of Esformes’s crimes, were denied the level of care that they needed and deserved.”
“Philip Esformes’ criminal scheme defrauded America’s health care system out of millions of dollars, that would have otherwise provided quality care to patients in need,” said U.S. Attorney Fajardo Orshan. “I commend the Assistant U.S. Attorneys from the Southern District of Florida, who worked tirelessly alongside their partners at the Department’s Criminal Division, the FBI and HHS-OIG to bring this case to justice. This massive fraud scheme, perpetuated in nursing and assisted living facilities in our South Florida communities, compromised the integrity of our local health care system. We remain united in our commitment to root out health care fraud and support quality patient care.”
“Philip Esformes is a man driven by almost unbounded greed,” said Assistant Special Agent in Charge Denise M. Stemen of FBI Miami. “The illicit road Esformes took to satisfy his greediness led to over $800 million 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.”
“This largest ever healthcare fraud conviction highlights the awful toll criminal schemes take on federal health programs,” said HHS-OIG Special Agent in Charge Richmond. “Even beyond the vital dollars lost though, Esformes exploited and victimized patients by providing inadequate medical care and poor conditions in his nursing homes. Along with our law enforcement partners, we will continue the fight against such parasites.”
According to evidence presented at trial, from approximately January 1998 through July 2016, Esformes led an extensive health care fraud conspiracy involving a network of assisted living facilities and skilled nursing facilities that he owned. Esformes bribed physicians to admit patients into his facilities, and then cycled the patients through his facilities, where they often failed to receive appropriate medical services, or received medically unnecessary services, which were then billed to Medicare and Medicaid, the evidence showed. Several witnesses testified to the poor conditions in the facilities and the inadequate care patients received, which Esformes was able to conceal 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 that 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 is scheduled to be sentenced on April 10. Esformes’s coconspirator Odette Barcha also pleaded guilty to one count of conspiring to violate the anti-kickback statute. Barcha was sentenced on April 3 to serve 15 months in prison followed by three years of supervised release. She was also 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 Assistant Chiefs Allan Medina and Drew Bradylyons and Trial Attorneys James Hayes, Elizabeth Young 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 are handling 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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Former Stuart Housing Authority Employee Pleads Guilty to Theft of Government FundsRead the Press Release
A former Stuart Housing Authority employee pled guilty today to stealing government funds from the federal Housing Choice Voucher Program.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), made the announcement.
Cynthia Cabrera, 49, of Port St. Lucie, Florida, pled guilty today to one count of theft of government funds (Case No. 19-14014-CR-Rosenberg). She is scheduled to be sentenced by U.S. District Judge Robin L. Rosenberg, in Fort Pierce, on June 12, 2019 at 10:00 a.m. Cabrera faces a maximum statutory sentence of 10 years in prison and a $250,000 fine.
The Housing Choice Voucher Program is the federal government's main program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects.
Housing choice vouchers are administered locally by public housing agencies that receive federal funds from HUD. The Stuart Housing Authority is one such public housing agency. A housing subsidy is paid to the landlord directly by the public housing agency, on behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.
Eligibility for the voucher program depends upon the applicant’s income and household composition. A family with a greater number of dependents will allow a family to be eligible for more benefits. A lower household income will allow applicants to obtain more benefits. The threshold for eligibility to receive benefits is also influenced by the total household income and the number of dependents.
Stuart Housing Authority employee Cynthia Cabrera unlawfully received benefits from the Housing Choice Voucher Program. Between 2009 and 2015, while working as the Stuart Housing Authority bookkeeper Cabrera submitted fraudulent annual applications, in which she failed to accurately report her total income and assets. Additionally, Cabrera failed to accurately report the number of people who occupied the residence and their income.
The Section 8 benefit file reflected that Cabrera’s housing authority income was only reported for the first month of her program participation (January 2010). Thereafter, her housing authority income was never declared, despite the fact that Cabrera was employed with the agency from 2009 through 2018. Additionally, the presence of her husband, and his housing authority income, was never reflected on the applications.
During the period between 2010 and 2016, Cabrera significantly under-reported her household income by failing to disclose her actual earnings and the income of her husband, which resulted in her receipt of $73,953.00 in housing subsidies for which she would not have been entitled to receive had she accurately reported her total household income.
U.S. Attorney Fajardo Orshan commended the investigative efforts of HUD-OIG in this matter. This case is being prosecuted by Assistant U. S. Attorney Daniel E. Funk.
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.
Executive Director and CEO of Sponsor Organization and Owner of Catering Company Guilty of Participating in a Multi-Million Dollar Scheme to Defraud Food Program for Underprivileged South Florida ChildrenRead the Press Release
Sandra Ruballo, 47, of Davie, Florida, and Carlos Andres Montoya, 48, of Miramar, Florida, participated in a conspiracy to defraud the federally funded Child Care Food Program, which provides free and reduced meals to underprivileged children at hundreds of South Florida daycare centers. As part of the scheme, the conspirators falsified paperwork, entered into various kickback arrangements, manipulated the catering contract bid process, and inflated annual budgets, all in order to receive millions of dollars of falsely and fraudulently obtained federal funds for their own personal use and benefit.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture (USDA), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
On March 29, 2019, following a four-week jury trial, Montoya was convicted of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of federal program bribery, in violation of Title 18, United States Code, Section 666(a)(2) (Case No. 18-CR-20393-Cooke(s)).
On February 27, 2019, co-defendant Ruballo pleaded guilty, without a plea agreement, to all counts of the superseding indictment, including: one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; three counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and four counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).
U.S. District Judge Marcia G. Cooke is scheduled to sentence Ruballo on May 8, 2019 at 10:30 a.m. and Montoya on June 5, 2019 at 10:00 a.m. As to the conspiracy, as well as substantive wire fraud and money laundering counts, each defendant faces a maximum statutory sentence of 20 years’ imprisonment. As to the bribery count, Montoya faces an additional maximum statutory sentence of 10 years’ imprisonment.
According to court documents and evidence presented at trial, the purpose of the Child Care Food Program (CCFP) is to provide nutritious meals and snacks for underprivileged, low-income children in daycare centers across Florida, including within the Southern District of Florida. As such, the CCFP provides children classified at or below a certain family income level with daily meals and snacks, at a free or a reduced rate. The government pays vastly higher reimbursement rates for children classified as “free,” as opposed to “non-needy,” for example, up to nine times more per meal. Daycare centers often contract with a sponsoring organization to process and submit their program paperwork. In those situations, the sponsoring organization enters into an agreement to operate the CCFP, and assumes administrative and financial responsibility on behalf of the center. For many children in the CCFP, the subsidized food served at daycare centers is their only source of food each day.
Ruballo was the owner and operator of Highland Food Resources, Inc. (HFR), a sponsoring organization of more than two hundred child daycare centers that participated in the CCFP, covering the geographic area from Key West to West Palm Beach and across the State to Florida’s West Coast. In this role, HFR processed paperwork and electronically submitted monthly reimbursement claims on behalf of such centers. Reimbursement was calculated on a sliding scale, with the largest amount allocated for children at the daycare centers who were classified as free, then reduced, then non-needy meal recipients. Once HFR was reimbursed with federal funds, they paid the daycare centers, less HFR’s fee, which is a percentage of the total monthly meal reimbursements. Thus, the size of HFR’s payment was driven, in part, by the number of meals claimed by daycare centers that are multiplied by a higher reimbursement rate for the free and reduced meals/snacks.
On behalf of HFR, Ruballo was responsible for soliciting meal catering companies and awarding contracts through a competitive, anonymous bidding process.
Montoya was the owner and operator of Montoya Holdings, Inc., d/b/a Healthy Children Catering and Pelota Café and Pizzeria. The evidence at trial showed that Montoya, Ruballo, and others conspired to rig the catering bid process and award contracts to Montoya from 2012 to 2016. As a result of the bid-rigging scheme, Montoya Holdings received lucrative contracts, and was paid more than $14 million in federal funds, via HFR, which were supposed to be used for providing nutritious meals to children at daycare centers in South Florida.
Ruballo, Montoya and others conspired to rig the catering bid process through materially false and fraudulent representations to the CCFP. For a period of five years, Ruballo agreed to accept kickbacks in exchange for awarding catering contracts to Montoya Holdings at participating CCFP centers that used HFR as a sponsoring organization. During the course of the scheme, the kickbacks added up to hundreds of thousands of dollars. Montoya and co-conspirators withdrew more than $1.6 million in cash during the conspiracy, and hundreds of thousands of dollars of cash, in turn, were deposited into accounts controlled by Ruballo – including into an account for Ruballo’s husband’s purported mobile car wash business.
Montoya’s bribes bought him protection from regulating agencies, most notably, the Florida Department of Health, and ensured that HFR and Ruballo did not terminate contracts despite repeated complaints about spoiled food. Indeed, the evidence showed that Ruballo and other employees at HFR, at Ruballo’s direction, created falsified reports about other caterers and submitted them to the Department of Health in an attempt to detract attention from Montoya when investigators became suspicious.
After Montoya Holdings caused a staph-induced foodborne illness outbreak in November 2016, affecting more than 140 preschool children in Miami-Dade and Broward Counties, the Department of Health and regulators ultimately banned Montoya Holdings from participating in the CCFP. Despite this prohibition, the bribery continued February 2017, Montoya paid a $160,000 bribe to Ruballo, which the co-conspirators attempted to disguise as a “donation” or “settlement.”
Montoya failed to report more than $27 million in income to the IRS for Montoya Holdings from 2013-2016. Evidence at trial also showed that he used the proceeds of the crime to fund personal expenditures, including visits to the Seminole Hard Rock Casino, a strip club, homes, cars, and jewelry.
Ruballo and other co-conspirators also falsified paperwork for children enrolled at daycare centers in order to qualify more kids for free and reduced meals under the CCFP. This fraudulent paperwork was used as the basis for inflated monthly reimbursement claims that Ruballo submitted to the program, for which HFR received reimbursement from the CCFP.
Ruballo falsely and fraudulently inflated the HFR budget by adding non-existent companies and employees to the budget, thereby deceiving the Department of Health and USDA, to illegally obtain additional program funds. In total, Ruballo caused a loss to the CCFP of at least $22 million.
A co-conspirator, Yudy Miranda, pleaded guilty in connection with the wire fraud conspiracy (Case No. 18-CR-20040) and was sentenced to 84 months in prison by U.S. District Judge Jose E. Martinez. Assistant U.S. Attorney Anne McNamara was the lead prosecutor in that case.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI, USSS, USDA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Daniel J. Marcet.
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 Salesman of Porsche Dealership Charged in $2.2 Million Fraud Scheme Involving Non-Existent Rare Porsche ModelsRead the Press Release
A former salesman for Copans Motorsports d/b/a Champion Porsche was charged by criminal complaint for his participation in a scheme in which he entered into bogus sales orders for the sale of exotic Porsche models to over 30 customers throughout the United States.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Gregory Tony, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
A criminal complaint charged Shiraaz Sookralli, 44, of Plantation, with mail fraud, wire fraud, conspiracy to commit mail and wire fraud, and money laundering. Sookralli made his initial appearance earlier today, and is scheduled to appear before U.S. Magistrate Judge Patrick M. Hunt on Friday, April 5, at 10:00 a.m. for his pretrial detention hearing.
According to the criminal complaint, in 2017, Sookralli opened a shell corporation with a name bearing a close resemblance to both Champion Porsche and another corporate affiliate of the dealership. After forming the shell corporation, Sookralli opened a bank account in the shell corporation’s name. Sookralli then entered into bogus sales orders with customers for the unauthorized sales of non-existent future exotic Porsche models. The majority of the vehicles were rare, highly sought-after, Carrera 911 models. The defendant required deposits from his victims in the form of, wire transfers, bank checks, and cash that he later deposited into his shell company’s bank account. The buyers relied on Sookralli’s longtime employment at Champion Porsche, title as “Vice President of Marketing,” representations that he or she would receive a yet-to-be-built Porsche vehicle, and the seemingly legitimate bank account for wiring deposits to Sookralli. Champion Porsche did not authorize Sookralli to conduct these transactions.
The complaint also alleges that Sookralli received over $2,200,000 from approximately 30 customers who never received the Porsche vehicles, as agreed. As set forth in the complaint, the defendant used the money for extravagant expenditures including luxury vehicles, jewelry, nightclubs, and restaurants. Sookralli also funneled amounts in excess of $10,000 at a time from his shell company account to bank accounts he controlled.
After Champion Porsche uncovered Sookralli’s fraud scheme, it contacted his victims and began its cooperation with the criminal investigation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI, and BSO in this matter. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
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.
Florida Keys Preparer Sentenced to Five Years for Filing Fraudulent Tax Returns That Resulted in an Aggregate Loss to the IRS of $14,500,000Read the Press Release
A Monroe County, Florida tax return preparer was sentenced today to 60 months imprisonment after he pled guilty to filing fraudulent tax returns with the Internal Revenue Service (IRS).
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to documents filed with the court, Pedro C. Rodriguez, 51, of Marathon, owned and operated the JC Mar Tax Services tax preparation business, located in Marathon, Florida. From approximately 2007 through 2017, Rodriguez filed fraudulent returns for his clients seeking refunds to which the clients were not entitled by reporting fictitious itemized deductions and fraudulent education and residential energy credits. For each of the years 2013 through 2017, Rodriguez submitted between 1,900 and 2,200 tax returns on behalf of his clients. At the sentencing hearing, the government provided evidence that established Rodriguez’s submission of fraudulent tax returns resulted in a loss amount to the IRS of $14,500,000.
U.S. District Judge K. Michael Moore also sentenced Rodriguez to one year of supervised release and ordered him to pay $14,569,171 in restitution.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the IRS-CI and FBI in this matter. Assistant U.S. Attorney Daniel J. Marcet prosecuted this case.
Information about how the public can protect themselves from tax fraud and report criminal practices may be found at https://www.irs.gov/compliance/criminal-investigation/tax-fraud-alerts. 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.
Daughter, Father Charged with Filing Lottery Ticket Tax Refund Claims Seeking $175 Million Resulting in Payment of Approximately $3.4 MillionRead the Press Release
Broward County father and daughter were arrested today for charges related to filing fraudulent lottery ticket tax refund claims that collectively sought in excess of $175,000,000.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Fred Stolper, Special Agent in Charge, Diplomatic Security Service (DSS), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and James S. Jackson, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
A criminal complaint unsealed today charged Danielle Takeila Edmonson (“D. Edmonson”), 35, of Boynton Beach, and Kenneth Roger Edmonson (“K. Edmonson”), 50, of Oakland Park, with filing false claims, mail fraud, and false statements. K. Edmonson will appear before U.S. Magistrate Judge Patrick M. Hunt, on Friday, April 5, for his pretrial detention hearing. D. Edmonson will make her initial appearance tomorrow, April 3, before Judge Hunt.
According to the affidavit filed in support of the criminal complaint, from 2015 through 2018 (the “relevant period”), D. Edmonson and K. Edmonson filed lottery ticket tax refund claims with the IRS totaling approximately $175 million, including individual refund claims ranging from hundreds of thousands of dollars to as high as eighty million dollars. Despite the false nature of the claims, the Department of Treasury paid out approximately $3.4 million in refunds through the issuance of U.S. Treasury checks.
According to the affidavit, D. Edmonson filed a fraudulent tax return seeking a large refund for tax year 2014 falsely indicating on handwritten forms that she had paid taxes of over $300,000. The IRS did not receive any corresponding records indicating that D. Edmonson had actually paid these taxes. Despite the false nature of the tax return, the Department of Treasury issued a tax refund check for $239,700 in 2015. D. Edmonson deposited this tax refund check into her bank account and used the funds to purchase a BMW and make large cash withdrawals.
According to the affidavit, D. Edmonson filed fraudulent tax returns for each of tax years 2015, 2016, and 2017, seeking refunds of approximately $80 million, $2.4 million, and $9 million, respectively. These tax returns contained forms falsely claiming that D. Edmonson had paid over $145 million in taxes during this period. The IRS did not receive any corresponding forms to support the payment of any of these taxes. Despite the false nature of the tax returns, on September 4, 2017, the Department of Treasury issued a tax refund check to D. Edmonson in the amount of $2,405,703. D. Edmonson subsequently deposited this tax refund check into her bank account.
According to the affidavit, K. Edmonson filed a fraudulent tax return in September 2017 seeking a refund of approximately $725,111. The return contained false and fraudulent claims that K. Edmonson had paid a substantial amount of withholding taxes. The IRS did not receive corresponding forms to support the claimed payments. Despite the false nature of the tax return, on January 28, 2018, the Department of Treasury mailed a tax refund check to K. Edmonson for $734,266.27 (including $9,036.27 in interest). Shortly thereafter, K. Edmonson deposited this tax refund check into his bank account.
According to the affidavit, in January 2018, IRS agents conducted a search of the defendants’ residence. During the search, in D. Edmonson’s bedroom, law enforcement found a letter from the Department of Treasury, dated June 2017, advising her that her tax refund claims are “worthless . . . [and] akin to a fraud” and handwritten “wish list” by D. Edmonson asking for a “refund check in the amount of $80,112.167.” In addition, during the search, IRS agents advised K. Edmonson of the fraudulent nature of his tax return. Shortly after law enforcement left, K. Edmonson went to his bank to attempt to withdraw the funds from the account that received the fraudulent refund check.
If convicted, each defendant faces a maximum sentence of 20 years in prison for each count of mail fraud and five years in prison for each count of filing false claims and false statements.
Ms. Fajardo Orshan thanked IRS-CI, DSS, FBI, and TIGTA for their work on the case. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A criminal complaint is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Dakota Resident Who Visited South Beach Pleads Guilty to Federal Weapons ViolationRead the Press Release
A South Dakota resident pled guilty today to possession of an unregistered firearm.
Ariana Fajardo Orshan, United States 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 Daniel J. Oates, Chief, Miami Beach Police Department (“MBPD”), made the announcement.
David James Goldammer, 32, of Sioux Falls, South Dakota, pled guilty to the single count Indictment that charged him with possession of an unregistered firearm in violation of Title 26, United States Code, Section 5861(d) (Case No. 18-20889-CR-Martinez). Goldammer is scheduled to be sentenced by U.S. District Judge Jose E. Martinez on June 4, 2019, at 1:30 p.m. Goldammer faces a maximum statutory sentence of 10 years in prison, up to 3 years of supervised release, and a fine of up to $10,000. Goldammer will also have to forfeit the unregistered firearm.
According to court documents, on or about October 25, 2018, MBPD officers found Goldammer asleep behind the wheel of a vehicle parked with the engine running in an alleyway at the 1400 block of Ocean Court. The MBPD officers observed in plain view several open beer bottles and two handguns. The officers asked Goldammer to exit the vehicle so that they could conduct a driving under the influence (“DUI”) and weapon violations investigation. Later, Goldammer was asked to perform standard field sobriety exercises in order to determine whether he was under the influence of drugs and/or alcohol. Goldammer refused to perform the field sobriety exercises. The MBPD officers arrested Goldammer based upon their own observations.
After Goldammer was arrested, the MBPD officers determined that Goldammer’s vehicle needed to be towed in accordance with MBPD policy. Before Goldammer’s vehicle was towed, the officers were required to conduct an inventory search of the vehicle. During the inventory search, the MBPD officers located a green rifle bag underneath of the rear driver-side seat that contained a loaded rifle with a barrel of less than 16 inches in length, commonly referred to as a “short-barrel rifle”, a separate upper receiver that was longer than 16 inches in length and an additional loaded magazine. In addition, the MBPD officers found five handguns, several thousand rounds of ammunition, body armor, empty and loaded magazines, and other firearms accessories.
An ATF expert later examined the short-barrel rifle and determined that the overall length of the barrel was 7-5/8 inches, which is smaller than the legal limit of 16 inches before a rifle is exempt from registration under the National Firearms Act (“NFA”). The ATF expert also determined that the short-barrel rifle bore no NFA manufacturer’s marks of identification, as required by law. ATF further conducted a records check and determined that the short-barrel rifle was not registered to Goldammer in the National Firearms Registration and Transfer Record, as required by law.
Ms. Fajardo Orshan commended the investigative efforts of ATF and MBPD. Ms. Fajardo Orshan also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Benjamin A. Gellis from the Miami-Dade State Attorney’s Office, and Assistant U.S. Attorneys Daniel J. Marcet and Christine Hernandez.
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.
Hialeah Resident Sentenced to Twenty Years in Prison for Distributing and Possessing Child PornographyRead the Press Release
Gabriel Dominguez, 31, of Hialeah, Florida, was sentenced yesterday by U.S. District Court Judge Donald L. Graham to 240 months in prison and a lifetime of supervised release for distributing and possessing child pornography in connection with chats he had with minors over Instagram’s direct message feature and his cellular telephone.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
According to the stipulated facts filed in court, on April 8, 2018, Instagram, a social media network, reported to the National Center for Missing and Exploited Children that an Instagram user had uploaded one file of child pornography onto their Instagram account. Instagram also reported that the account in question was registered to Dominguez. The cellular telephone number associated with Dominguez’s Instagram account was his personal cellular telephone number.
On September 17, 2018, a search warrant was executed for Dominguez’s Instagram account, which showed Dominguez was engaged in multiple sexually explicit chats with numerous minors, including a 9-year-old, through the Instagram direct message feature. Dominguez also received and distributed child pornography, some involving children as young as 2 years of age, through the direct messaging feature.
On October 16, 2018, a search warrant was executed at Dominguez’s residence in Hialeah. During a search of his residence, law enforcement seized multiple pieces of electronic media, including Dominguez’s Motorola Moto cellular telephone. A forensic examination of the Motorola Moto cellular telephone by law enforcement revealed multiple images and videos of child pornography. On December 18, 2018, Dominguez pled guilty to the distribution and possession of child pornography.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of ICE-HSI in this matter. She thanked the National Center for Missing and Exploited Children and the Miami-Dade Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorney Alejandra L. López.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov
Former Pension Benefit Guaranty Corporation Contractor Pleads Guilty to Stealing Monthly Pension Payments by Commandeering Retirees’ Online AccountsRead the Press Release
A Florida man pleaded guilty today to one count of wire fraud in connection with his scheme to steal monthly pension payments from victims enrolled in pension plans managed by the Pension Benefit Guaranty Corporation (PBGC).
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia and Inspector General Robert A. Westbrooks of the PBGC made the announcement.
According to court documents, Kessey Reggie Durand, 27, of Miami, Florida, used personally identifiable information (PII) he obtained while working as a contractor at the PBGC’s Miami Field Office to create or take over online MyPBA accounts of pension plan participants. After commandeering those accounts, Durand changed the associated electronic direct deposit information in order to funnel victims’ monthly pension payments into accounts Durand controlled. In other cases, Durand tried to change participants’ electronic direct deposit information through social engineering, using stolen PII to call into the PBGC call center to trick operators into believing he was the participant requesting the change.
“Over a five-month span, Durand stole the confidential information of elderly retirees and then used it to commandeer their retirement accounts for his own benefit,” said Assistant Attorney General Benczkowski, “The Department of Justice and our law enforcement partners are committed to rooting out fraud by those who have been entrusted with access to sensitive financial and personal information, especially when that fraud harms vulnerable senior citizens.”
“Kessey Reggie Durand took advantage of his position as a PBGC contractor to use the personal information of retired workers and to steal their monthly pension payments,” said U.S. Attorney Liu, “Our office will aggressively prosecute those who seek to deprive retirees of what may be their only form of income.”
“PBGC’s retirees rightfully expect that their pension accounts are secure and their personal information is safeguarded—especially from insider threats,” said Inspector General Westbrooks, “We will continue to make data protection a top priority and greatly appreciate the support of the Justice Department in helping to ensure the integrity of PBGC’s MyPBA online system.”
According to court documents, Durand’s scheme spanned approximately five months and targeted over $100,000 in monthly pension payments. Sentencing is set for June 28, 2019, before Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia.
The case was investigated by the PBGC Office of Inspector General, with assistance from the U.S. Attorney’s Office for the Southern District of Florida and the Miami Gardens Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Joss Nichols, on detail from the Criminal Division’s Computer Crime and Intellectual Property Section.
Four Broward County Residents Convicted at Trial for Their Roles in a String of Armed Robberies – Using FirearmsRead the Press Release
On March 15, 2019, four Broward County, Florida residents were convicted by a federal jury for their participation in a string of armed robberies using firearms. One defendant was also convicted of kidnapping four victims.
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 Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
Following a four-week trial, all four defendants were convicted. Jerome Simmons, 31, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery. Adrian Hardy, 34, of Fort Lauderdale, Florida, was convicted of one count of Hobbs Act robbery, two counts of brandishing a firearm in furtherance of a crime of violence, one count of conspiracy to commit Hobbs Act robbery, and four counts of kidnapping. Christopher Brinson, 33, of Fort Lauderdale, Florida, was convicted of two counts of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery. Emmory Moore, 34, of Coral Springs, Florida, was convicted of one count of Hobbs Act robbery, one count of brandishing a firearm in furtherance of a crime of violence, and one count of conspiracy to commit Hobbs Act robbery.
According to the court record, including evidence introduced at trial, on March 3, 2017, Christopher Brinson entered Class Jewelers in Deerfield Beach, Florida and engaged one of the employee’s in conversation. Approximately, ten minutes later, Moore and Simmons entered the store, dressed in wigs, makeup and women’s clothing. They held the two employees at gunpoint and demanded they open the safe. Moore and Simmons stole jewelry and other items from the store then left in a waiting vehicle.
On March 15, 2017, historical cell site information showed that cell phones owned by Simmons, Hardy, Brinson, and Moore traveled to Spring Hill, Florida. On March 6, 2017, two men dressed as women entered Lily’s Jewelry in Spring Hill and held the owner at gunpoint while stealing the store’s merchandise. One of the individuals dropped a cellular phone, which was later tied to Moore.
On March 31, 2017, historical cell site information showed that cell phones owned by Hardy, Brinson, and Moore traveled to Valdosta, Georgia. Hotel records established that Simmons checked into a local inn that evening. On April 1, 2017, three men dressed as women entered Bishop’s Jewelers in Valdosta. While holding the business owners at gunpoint, the men stole money, jewelry, and a firearm from the store’s safe. On April 6, 2017, during a traffic stop, the Fort Lauderdale Police Department recovered the firearm stolen in that robbery from the trunk of a car driven by Moore.
On April 16, 2017, three men dressed as women, left a white Jeep and entered LSO Jewelers in Port St. Lucie, Florida. Holding the owner and an employee at gunpoint, the men attempted to steal the store’s jewelry stock. An off duty state agent called the police and reported the robbery. As police arrived, the waiting white Jeep pulled away and the men inside the store fled on foot. Port Saint Lucie officers located Simmons in a nearby hospital parking lot wearing only his underwear and a sock. Brinson, who was driving the white Jeep, was located at a nearby restaurant. Hardy escaped into a nearby retirement community and held the four residents, snowbirds from Toronto, Ontario, at gunpoint for several hours, eventually forcing them to drive him from Port St. Lucie to Fort Lauderdale.
The defendants are scheduled to be sentenced by U.S. District Judge Kenneth A. Marra on June 7, 2019, beginning at 1:30 p.m. Simmons, Hardy, Brinson, and Moore face up to 20 years in prison for the robbery and robbery conspiracy charges and a consecutive mandatory minimum term of 7 years to life in prison for each conviction for brandishing a firearm during a crime of violence. Additionally, Hardy faces up to 15 years in prison for each of the kidnapping charges.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and ATF in this matter. She thanked the Broward Sheriff’s Office, Fort Lauderdale Police Department, Port St. Lucie Police Department, Hernando County Sheriff’s Office, Valdosta Police Department, and U.S. Marshals Service for their assistance. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Anita White.
Related court documents and information can 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.
Florida Pharmacist Sentenced to 10 Years in Prison for $100 Million Compounding Pharmacy Fraud SchemeRead the Press Release
A Florida pharmacist was sentenced to 120 months in prison today followed by three years supervised release. He was also orderd to pay $3.2 million in restitution and $1.4 million in forfeiture for his role in a massive compounding pharmacy fraud scheme, which impacted private insurance companies, Medicare and TRICARE. Eight other individuals have previously been sentenced in connection with the scheme. Various real properties, cars and a 50-foot boat have been forfeited as part of the sentencings.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge John F. Khin of the U.S. Defense Criminal Investigative Service’s (DCIS) Southeast Field Office made the announcement.
Ademola O. Adebayo, 55, of Odessa, Florida, was convicted on Jan. 11 after a four-day trial of one count of conspiracy to commit health care fraud and wire fraud, three counts of health care fraud, and one count of conspiracy to commit money laundering. He was sentenced before U.S. District Judge Federico A. Moreno of the Southern District of Florida, who presided over the trial.
According to evidence presented at trial, from 2012 to 2015, Adebayo and his co-conspirators engaged in a scheme to defraud private insurance companies, Medicare and TRICARE out of $121 million by submitting false and fraudulent claims for compounded drugs, primarily pain and scar creams, and other prescription medications that were not medically necessary, never provided, or both. The evidence established that in his role as the pharmacist at A to Z Pharmacy, a now-defunct pharmacy located in New Port Richey, Florida, Adebayo conspired to submit or cause the submission of claims that often amounted to several thousands of dollars for a single tube of pain or scar cream. In 2014, when insurance companies discovered the fraud at A to Z Pharmacy and terminated their contracts with the pharmacy, Adebayo agreed to become the straw owner of Havana Pharmacy & Discount in Miami, which Adebayo and his co-conspirators used to continue the fraud, the evidence showed.
The evidence further established that Adebayo personally benefited from the fraud and received $1.5 million through the fraud, which he used to purchase luxury vehicles, including a Ferrari, a Lamborghini, a Bentley, a Porsche and two Cadillacs, as well as a house in Land O Lakes, Florida. All of these items were seized by the government.
Eight other defendants have pleaded guilty in this case. Nicholas Borgesano, 46, of New Port Richey, is serving 15 years for his role as the owner of A to Z Pharmacy in the fraud that involved Havana Pharmacy, Medplus/New Life Pharmacy and Metropolitan Pharmacy, all of Miami; and Jaimy Pharmacy and Prestige Pharmacy, both of Hialeah, Florida.
In addition to Borgesano, the following defendants have previously been sentenced for their roles in the scheme:
- Scott P. Piccininni, 50, of Fort Lauderdale, Florida, sentenced to serve 51 months in prison;
- Bradley Sirkin, 56, of Boca Raton, Florida, sentenced to serve 46 months in prison;
- Peter B. Williams, 58, of New Port Richey, sentenced to serve 26 months in prison, to be served consecutively to a 60-month sentence of imprisonment he is serving as a result of his guilty plea to a separate indictment returned in the Southern District of Florida;
- Wayne M. Kreisberg, 41, of Parkland, Florida, placed on probation for a term of five years, to be served consecutively to a sentence of probation he is serving as a result of his guilty plea to a separate indictment returned in the Middle District of Florida;
- Joseph Degregorio, 71, of New Port Richey, sentenced to serve one year and one day in prison;
- Matthew N. Sterner, 48, of New Port Richey, sentenced to serve 36 months in prison; and
- Edwin Patrick Young, 49, of New Port Richey, sentenced to serve 66 months in prison.
This case was investigated by the FBI with support from HHS-OIG and DCIS 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. The case was prosecuted by Trial Attorneys Timothy P. Loper and Aleza Remis of the Fraud Section.
The Criminal Division’s 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 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Six Individuals and Two Companies Charged in Illegal Dietary Supplements SchemeRead the Press Release
Six people and two Florida corporations were charged in an indictment for their roles in a scheme to distribute illegal dietary supplements, the Department of Justice announced today.
Phillip Braun, 38, of Boca Raton, Florida, Aaron Singerman, 39, of Delray Beach, Florida, Robert DiMaggio, 49, of Henderson, Nevada, Anthony Ventrella, 41, of Boynton Beach, Florida, David Winsauer, 32, of Boca Raton, Florida, and James Boccuzzi, 34, of Parkland, Florida, were charged in a 14-count indictment that was returned by a federal grand jury in Miami, Florida on March 7, 2019, and was unsealed today. The indictment also charged Blackstone Labs and Ventech Labs, two Florida limited liability companies in Palm Beach County, Florida.
The indictment alleges that the defendants sold hundreds of thousands of illegal products, including anabolic steroids, nationwide and internationally, fraudulently representing that those products and pills were high-quality, legal dietary supplements. According to the indictment, the defendants created an illicit manufacturing company and routed sales of illegal products through trusted distributors, knowing that the products were unsafe or could not legally be sold to consumers.
“Fraud by supplement manufacturers and distributors is extremely dangerous for consumers, who rightly assume that a dietary supplement product sold in stores or online will not contain unapproved drugs,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “These products are not safe and that is why we will continue to aggressively pursue and prosecute those who import, manufacture, and distribute dangerous and illegal ingredients for fraudulent purposes.”
“Consumers who use dietary supplements expect those products to be safe. When they contain drugs that are not FDA-approved, the health of the public is put at risk,” said Catherine A. Hermsen, Acting Director, FDA Office of Criminal Investigations. “We will continue to pursue and bring to justice those who place consumers’ health in jeopardy.”
All of the defendants were charged with one count of a conspiracy to defraud consumers and the Food and Drug Administration (FDA) by selling products labeled as dietary supplements that contained unapproved new drugs, illegal steroids, and other ingredients that were hazardous and prohibited by law. The indictment also charges Braun, an owner of Blackstone Labs, and Singerman, a former company owner, with two counts of introducing a product known as Super DMZ RX 2.0, an unapproved new drug, into interstate commerce. The maximum punishment for the conspiracy to defraud is five years in prison and a fine of $250,000 or twice the gross gain or loss from the offense. The maximum punishment for each of the two counts of introducing an unapproved new drug is three years in prison and a fine of $250,000 or twice the gross gain or loss from the offense.
The indictment further charges Braun, Singerman, and six other defendants with one count of a conspiracy to distribute anabolic steroids, which are Schedule III controlled substances under federal law and which may cause kidney failure, liver damage, and other permanent health problems when misused. The indictment alleges that one person suffered serious bodily injury from the use of one of the steroids involved in the conspiracy. The maximum punishment for the conspiracy to distribute controlled substances is 15 years’ imprisonment and a fine of $500,000 or twice the gross gain or loss from the offense.
The indictment additionally charges several defendants in three separate counts of distribution of anabolic steroids and charges Ventrella with one count of possession of an anabolic steroid with the intent to distribute. The maximum punishment for each count of distribution of a controlled substance and for the count of possession of a controlled substance with intent to distribute is 10 years in prison and a fine of $500,000. Finally, Braun and Singerman are each charged with three counts of money laundering. The maximum punishment for each money laundering charge is 10 years in prison and a fine of $250,000 or twice the amount of the property involved in the money laundering transaction.
“Illegal dietary supplements pose a public health risk,” stated U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office for the Southern District of Florida and our partners at the Food and Drug Administration strive to ensure that consumers are fully apprised of the ingredients contained in the substances they are ingesting. Those who attempt to circumvent the law and create a public safety hazard will be held accountable.”
This case is being prosecuted by Trial Attorneys Alistair Reader and David Frank of the Department of Justice’s Consumer Protection Branch, with assistance from Daren Grove, Assistant United States Attorney for the Southern District of Florida. The case was investigated by FDA’s Office of Criminal Investigations with assistance from Sarah Hawkins of the Office of Chief Counsel.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
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.
Medical Director of Substance Abuse Treatment Facility Sentenced to Prison for Unlawfully Distributing Opioids, Barbiturates, and BenzodiazepinesRead the Press Release
The Medical Director of a substance abuse treatment center in Wellington, Florida, was sentenced to prison today after having previously pled guilty today to unlawfully distributing controlled substances (opioids, barbiturates, and benzodiazepines).
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); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
Kenneth Rivera-Kolb, M.D., 65, of Largo, previously pled guilty to one count of conspiracy to unlawfully dispense and distribute controlled substances (Case No. 18cr80121). Senior U.S. District Court Judge James I. Cohn sentenced Dr. Rivera-Kolb to 30 months in prison, to be followed by 2 years of supervised release.
According to court documents, in 2013, Rivera-Kolb was hired to serve as the Medical Director of Angel’s House LLC (“Angel’s Recovery”), a substance abuse treatment facility located in Wellington, Florida. Angel’s Recovery was owned and operated by Tovah Lynn Jasperson and her father, Alan Martin Bostom (Case No. 17cr80194). In addition to the treatment facility, Angel’s Recovery also operated sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction.
As the medical director, Dr. Rivera-Kolb was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing. In February 2015, Rivera-Kolb had his medical license suspended by the State of Florida for a period of four years. Despite the absence of a medical license, the defendant continued to serve as the medical director of Angel’s Recovery, and knowingly prescribed controlled substances at the facility. Jasperson and Bostom were aware of Rivera-Kolb’s license suspension, having hired chauffeurs to transport him to hearings before the Board of Medicine of the State of Florida, but continued to employ him as a treating physician and allowed him to write prescriptions for patients. The defendant continued to serve in this capacity until at least September 2015.
Jasperson previously pled guilty to conspiracy to commit health care fraud and was sentenced to 78 months in prison. Bostom previously pled guilty to knowingly and willfully falsifying, concealing, and covering up by a trick, scheme, and device a material fact in a matter involving health care benefit programs and was sentenced to 30 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB. This matter was prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or at http://pacer.flsd.uscourts.gov/