Southern District of Florida
Press releases recorded for this federal judicial district.
California Man Pleads Guilty to Fraud Charges in Mortgage Fraud, Identity Theft SchemeRead the Press Release
On December 21, 2018, George French Jones, Jr., 50, of Santa Monica, California, pled to mail fraud and identity theft charges in connection with a mortgage fraud scheme involving two waterfront residential properties in Broward County, Florida.
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 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.
Jones pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). At sentencing, Jones faces a maximum possible sentence of 22 years in prison. He is scheduled to be sentenced by U.S. District Judge Robert N. Scola on March 1, 2018, at 8:30 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI. This case is being 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.
Jury Convicts Lake Worth Resident of Sex Trafficking and ObstructionRead the Press Release
Today, a West Palm Beach federal jury convicted a Lake Worth resident 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 convicted at trial 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) (Case No. 18-CR-80053). The sentencing hearing, to be held before U.S. District Court Judge Robin L. Rosenberg, will be scheduled at a later date. At sentencing, Williams faces a mandatory minimum sentence of 15 years in prison and a combined statutory maximum sentence of life in prison.
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 is being 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.
City of Fort Lauderdale Department of Parks and Recreation Employee Pleads GuiltyRead the Press Release
Two individuals, including a City of Fort Lauderdale Parks and Recreation Department employee, pled guilty yesterday before U.S. District Judge Beth Bloom in Miami.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD) made the announcement.
Phillip Richard Peterson, 42, of Coral Springs, Florida, pled guilty to six counts of an indictment, charging him with theft from a program receiving federal funds and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 666, 1343 and 1349 (18-CR-60278). Each theft count of conviction covers a single year, beginning in 2013 and running through 2017. Peterson faces a maximum statutory sentence of ten years in prison, for each theft count. In addition, he faces a fine of up to $250,000.
Co-defendant Gino Joseph Ferraro, age 49, of Fort Lauderdale, Florida, also pled guilty to one count of conspiracy to commit wire fraud. Both defendants face a maximum statutory sentence of twenty years in prison and a potential fine of up to $250,000, for the conspiracy conviction.
According to the court docket, including an agreed upon factual proffer, Peterson had been issued a credit card by the City of Fort Lauderdale in connection with his employment to allow him to make job related purchases, on behalf of the Department of Parks and Recreation. Peterson purchased items using his City of Fort Lauderdale credit card, and then sold the items to a local pawn store. Each year, between 2013 and 2017, Peterson sold more than $5,000 worth of merchandise in this manner.
The court docket also indicates that Peterson and Ferraro unjustly enriched themselves by charging the City of Fort Lauderdale Parks and Recreation Department for volleyball court repairs and other items that were not completed or provided. Ferraro admitted that Peterson had paid him using his City issued credit card, and he would give Peterson approximately half of the amount that had been charged.
The defendants are scheduled to be sentenced by Judge Bloom on March 1, 2019.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and FLPD in this matter. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Palm Beach Sales Representative Sentenced to Prison for Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical LaboratoriesRead the Press Release
A top sales representative was sentenced to prison today for his participation in a money laundering conspiracy involving alcohol and drug addiction treatment centers and clinical laboratories.
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, U.S. Department of Labor, Employee Benefits Security Administration (DOL-EBSA); Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB); and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) made the announcement.
Lanny Fried, 41, of Miami Beach, previously pled guilty to one count of conspiracy to commit money laundering. U.S. District Judge Robin L. Rosenberg sentenced Fried to 57 months in prison, to be followed by 3 years of supervised release. He was also ordered to pay a $81,163.17 fine.
According to court documents, Smart Lab LLC of Palm Beach Gardens was established by Chief Executive Officer H. Hamilton Wayne, a/k/a “Hawkeye,” and Chief Operating Officer Justin Morgan Wayne, to perform confirmatory urinalysis testing. Smart Lab, H. Wayne and J. Wayne established bank accounts to receive proceeds of insurance claims for medically unnecessary urinalysis testing and to pay kickbacks and bribes to individuals and entities that referred urine samples to Smart Lab for testing.
Fried, a top Smart Lab sales representative, had an agreement with Smart Lab to receive commissions of approximately 50% of the insurance reimbursements for the substance abuse treatment facilities he referred to Smart Lab. These payments were classified as commissions when in reality they were kickbacks for the referral of excessive, medically unnecessary, fraudulent and duplicative confirmatory drug testing. Fried served as the sales representative for Smart Lab’s largest account, Reflections Treatment Center in Margate, Florida. Fried used a portion of these commissions to pay Reflections’ owner, Kenneth Chatman, illegal cash kickbacks to induce him to continue referring urine samples to Smart Lab. Using Fried as a “middleman” for the payments to Chatman disguised the true ownership and purpose of the funds. From 2005 through 2017, Smart Lab paid Fried over $600,000. These payments came from proceeds of health care fraud.
Fried also recruited friends and business associates to engage in similar activity. These individuals signed employment agreements with Smart Lab that purported to make them “sales representatives”. These agreements were used to make it appear that monies paid to Fried and others were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Fried and the others involved did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. These funds were then disbursed to others, per Fried’s instructions.
H. Hamilton, J. Wayne and Smart Lab previously pled guilty to one count of conspiracy to commit health care fraud. U.S. District Judge Donald M. Middlebrooks sentenced H. Wayne to 63 months in prison, J. Wayne to 46 months in prison, and the corporation to 3 years of probation. The three defendants were jointly and severally ordered to pay $2,897,389.50 in restitution to the victims of their offenses. H. Wayne was separately ordered to pay $954,344 to the TRICARE program for his involvement in fraud at RX to You, along with a $50,000 fine. J. Wayne was separately ordered to pay a $20,000 fine.
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, Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, NICB and DCIS. These and related cases are being prosecuted by Assistant U.S. 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at www.usdoj.gov/usao/fls.
Former Tax Return Preparer Sentenced for $1.75 Million Stolen Identity Tax Refund SchemeRead the Press Release
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, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), announced that Saul Frederick, 45, of Port-au-Prince, Haiti, was sentenced on December 14, 2018, to 61 months in prison, followed by three years of supervised release, and was ordered to pay $1,757,397 in restitution for his role in a stolen identity tax refund scheme.
Frederick previously pled guilty to one count of conspiracy to file false claims and aggravated identity theft.
According to the court record, including the plea documents, in early 2010, Frederick worked as a tax return preparer with co-conspirators Hugues Jean Noel, Frandy Prophete, and Edy St. Jean at a tax preparation business called H&A Tax Multi-Service, LLC, located in North Miami, Florida. The defendant and his co-conspirators used stolen personal identification information (PII) to prepare and file false federal income tax returns with the Internal Revenue Service (IRS) for tax years 2009 and 2010. Many of the individuals whose information was used died during tax years 2009 and 2010, and the defendants further sought refunds using fabricated employment and income information.
According to court records, Frederick traveled to Haiti in 2012, shortly before the charges were filed against him. He was apprehended in Port-au-Prince, Haiti, on July 17, 2018.
Jean Noel was sentenced on April 17, 2018 to 75 months in prison, followed by 4 years of supervised release, and ordered to pay $1.79 million in restitution. The defendant previously pled guilty to one count of conspiracy to defraud the U.S. government, one count of aggravated identity theft, and one count of failure to appear.
Prophete, 34, of Miami, was sentenced on April 16, 2013 to 61 months in prison, followed by 3 years of supervised release, and ordered to pay $1.85 million in restitution. Prophete previously pled guilty to one count of conspiracy to file false and fraudulent claims and another count of aggravated identity theft.
Edy St. Jean remains a fugitive.
U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI, the USSS, and NMBPD in this matter. She also thanked the U.S. Marshals Service, South Florida Regional Fugitive Task Force for their assistance in locating and apprehending Frederick. The case was prosecuted by Assistant U.S. Attorney Christopher Browne.
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 at www.usdoj.gov/usao/fls.
Florida Department of Corrections Officer Charged with Conspiring to Commit Civil Rights Violations and Making False StatementsRead the Press Release
The Justice Department today announced that a federal grand jury in Miami indicted Florida Department of Corrections officer, Terrance Reynolds, 28, for conspiring with former sergeant Brendan Butler to physically assault and intimidate youthful offenders for conduct perceived by the officers as disruptive or disrespectful. The announcement was made by U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Lester Fernandez, Inspector General - Florida Department of Correction (FDC).
According to the indictment, on March 27, 2017, Reynolds and Butler instructed three inmates to exit their housing unit and took them into a mop closet. Each of these inmates had been classified as youthful offenders requiring that they be separated from the general population for their own protection. Once inside the mop closet, it is alleged that Reynolds and Butler assaulted one of the inmates with a stick and their fists, causing him bodily injury, while the other two inmates stood nearby. The indictment states that the following day, Reynolds and Butler assaulted one of the other inmates to punish him for talking about the previous day’s assault and for being disrespectful. Both of these assaults caused bodily injury to the victims. Reynolds is also charged with making false statements to the FBI about his whereabouts on the dates of the assaults.
Inmates are classified as youthful offenders by a court or the Department of Corrections if they meet certain criteria and are 24 years old or younger.
Brendan Butler pleaded guilty on May 18 to conspiracy to commit civil rights violations. He was sentenced to 24 months in prison on Aug. 23. Reynolds faces five counts in the indictment with a statutory maximum sentence of 40 years in prison.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI Miami Area Corruption Task Force and the FDC’s Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Robert Senior of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florida Department of Corrections Officer Charged with Conspiring to Commit Civil Rights Violations and Making False StatementsRead the Press Release
The Justice Department today announced that a federal grand jury in Miami indicted Florida Department of Corrections officer, Terrance Reynolds, 28, for conspiring with former sergeant Brendan Butler to physically assault and intimidate youthful offenders for conduct perceived by the officers as disruptive or disrespectful. The announcement was made by Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights 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 Lester Fernandez, Inspector General - Florida Department of Correction (FDC).
According to the indictment, on March 27, 2017, Reynolds and Butler instructed three inmates to exit their housing unit and took them into a mop closet. Each of these inmates had been classified as youthful offenders requiring that they be separated from the general population for their own protection. Once inside the mop closet, it is alleged that Reynolds and Butler assaulted one of the inmates with a stick and their fists, causing him bodily injury, while the other two inmates stood nearby. The indictment states that the following day, Reynolds and Butler assaulted one of the other inmates to punish him for talking about the previous day’s assault and for being disrespectful. Both of these assaults caused bodily injury to the victims. Reynolds is also charged with making false statements to the FBI about his whereabouts on the dates of the assaults.
Inmates are classified as youthful offenders by a court or the Department of Corrections if they meet certain criteria and are 24 years old or younger.
Brendan Butler pleaded guilty on May 18 to conspiracy to commit civil rights violations. He was sentenced to 24 months in prison on Aug. 23. Reynolds faces five counts in the indictment with a statutory maximum sentence of 40 years in prison.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI Miami Area Corruption Task Force and the FDC’s Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorney Robert Senior of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.
Broward County Resident Convicted by Trial Jury of Participating in a Two Million Dollar Securities Fraud Conspiracy Scheme that Targeted the ElderlyRead the Press Release
On December 13, 2018, a Broward County resident was convicted by a federal jury of one count of conspiracy to commit mail and wire fraud and four counts of mail fraud, in connection with a scheme to fraudulently raise $2 million from over a dozen elderly victims 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, and Pamela Epting, Interim Commissioner, Florida Office of Financial Regulation (OFR), made the announcement.
Thomas Michael White, 60, of Parkland, Florida, was convicted by a federal jury after a two week trial before U.S. District Judge Beth Bloom in Miami (Case No. 18-60174-CR-Bloom). White faces a maximum statutory sentence of twenty years in prison for the mail and wire fraud conspiracy count, twenty years in prison for each mail fraud count, and a fine up to $250,000 or double the proceeds as to each count of conviction. White is scheduled to be sentenced by Judge Bloom on February 26, 2019.
According to the court record, including evidence introduced at trial, White was President and CEO of First Call Ventures, LLC, the parent company of First Call Movers & Transport of Florida, LLC, a moving company that also brokered customer moves for other companies. From November 2011 through mid-2014, White ran the Broward-based moving business’ call center that booked moves throughout the Southeast. He also oversaw a "phone room" out of his corporate offices to raise money from investors. During telephone calls, White and his co-conspirators used false statements, manipulation, and high-pressure tactics to target elderly investors (victims) and their retirement money. The victims included retired teachers, farmers, small business owners, and homemakers, from across the United States. When his targets did not have available funds to invest, White tricked them into converting their Individual Retirement Account ("IRA") money and transferring the funds to his corporate bank account. White promised his investors that their money was safe and secure, would be returned after a year, and yield high-value interest payments to be paid on a monthly basis. White and his co-conspirators provided written and oral "Investor Reports" that falsely conveyed security and profitability of the First Call Ventures moving business. As a result, White and his conspirators were given a total of more than $2 million from over a dozen senior citizens.
In truth and fact, White and his partners used the investors’ money for themselves, including millions in cash and bank check payments. Bank records also demonstrated that over the course of the fraud scheme, White withdrew over $130,000 in investor proceeds at the Seminole Coconut Creek casino. White and his partners siphoned all profits and victim money to their own personal accounts, declared a $1.8 million "loss," and shuttered the business. As a result of the fraudulent scheme, some of the senior citizens are now living on food stamps, lost their homes, or were forced to take on odd jobs for income.
Four other individuals tied to this case and a related indictment previously pled guilty. White's co-defendants, John Kevin Reech, 56, of Delray Beach, Florida, and Joseph Mario Genzone, 53, of Boca Raton, Florida, previously pled guilty. Genzone and Reech were also recently charged by Information for operating a separate offering fraud (Case No. 18-80193-CR-Bloom). Reech pled guilty in both matters and was sentenced to a concurrent term of 51 months in prison. Genzone also pled guilty and is scheduled to be sentenced by Judge Bloom on December 21, 2018, in both cases. Daniel Joseph Touizer, 44, of Aventura, Florida was sentenced to 68 month in prison for leading a similar fraud scheme linked to White and Reech’s criminal conduct (Case No. 17-60286-CR-Bloom). Saul Daniel Suster, 66, of Sunny Isles Beach, Florida, a phone room worker of Touizer's, was sentenced to 30 months in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and Florida Office of Financial Regulation in this matter. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Broward County Resident Charged with Distributing Information Pertaining to Explosives OnlineRead the Press Release
A Broward County resident was arrested and charged with distributing information pertaining to explosives over the internet.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office made the announcement.
Tayyab Tahir Ismail, 33, of Pembroke Pines, Florida, was charged by criminal complaint with distributing information pertaining to explosives, destructive devices, and weapons of mass destruction, in violation of Title 18, United States Code, Section 842(p)(2) (Case No. 18-mj-06588). He had his initial appearance in front of U.S. Magistrate Judge Barry S. Seltzer this morning. A detention hearing is scheduled before U.S. Magistrate Judge Seltzer, in Fort Lauderdale, on Wednesday, December 26, 2018 at 10:00 a.m.
According to allegations contained within the criminal complaint, on or about July 15, 2018, through on or about September 17, 2018, Ismail posted and distributed online documents including, but not limited to, documents containing step-by-step instructions on how to construct a bomb and other explosives, with the intent that the information be used for and in furtherance of an activity that constitutes a Federal crime of violence.
If convicted, Ismail faces a maximum statutory sentence of twenty years in prison on each count of unlawfully distributing information. In addition, Ismail faces up to three years of supervised release and up to a $250,000 fine on each count of conviction.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office and South Florida’s Joint Terrorism Task Force (JTTF) in this matter. The case is being jointly prosecuted by Assistant U.S. Attorney Karen E. Gilbert of the Southern District of Florida and Trial Attorney Troy Edwards of the National Security Division’s Counterterrorism Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four South Florida Residents and Jet Link, Inc. Charged with Aircraft Parts FraudRead the Press Release
Four individuals and a company were charged in a five-count indictment in connection with their operation of Jet Link, Inc., an aircraft parts broker based in Margate, Florida.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Wendell W. Palmer, Special Agent-in-Charge, U.S. Air Force Office of Special Investigations - Office of Procurement Fraud, Detachment 5, Dobbins ARB, GA, Frank Robey, Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (CID-MPFU), John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office 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.
Robert Cantone, 73, of Coral Springs, Alex Cantone, 41, of Sunrise, Brenda Snelgrove, 58, of Coconut Creek, Ronald Burns, 45, of Hollywood, and Jet Link, Inc, operating out of Margate, Florida were charged in the indictment (Case No. 18-CR-60329). R. Cantone, A. Cantone, Snelgrove and Burns have been arrested. R. Cantone and Snelgrove had their initial appearances in Miami. A. Cantone will have his initial hearing today in the Northern District of Texas. Burns remains a fugitive. Each defendant faces charges of conspiracy to commit aircraft parts fraud and aircraft parts fraud, in violation of Title 18, United States Code, Section 38. If convicted on any one of the counts alleged in the indictment, the defendants each face a maximum statutory sentence of up to ten years in prison, and Jet Link, Inc. faces a fine of up to $10,000,000.
According to conduct alleged in the indictment, R. Cantone, A. Cantone, Snelgrove, and Burns, would unjustly enrich themselves by fraudulently winning contracts for the supply of military aircraft parts to the Defense Logistics Agency (DLA), by supplying the DLA with false certifications on their electronic bid quotations, wherein they stated JET LINK “currently possesses the material,” and that the parts were “inspected for correct part number and for absence of corrosion or any obvious defects,” were “in its original package,” and were “new, unused, and not of such age or so deteriorated as to impair its usefulness or safety,” when in fact such parts were not purchased until after the contracts had been awarded by DLA. These parts were thereafter shipped to the Department of Defense, and were often either non-conforming or substandard.
“This indictment and the related arrests demonstrate that the U.S. Attorney’s Office remains committed to protecting the integrity of the defense procurement process,” stated U.S. Attorney Fajardo Orshan. “We will continue to prosecute those individuals who choose to manipulate the system for their financial gain.”
"The Air Force Office of Special Investigations, along with its law enforcement partners, has, and always will, aggressively identify and investigative anyone who attempts to commit aircraft part fraud and put our nation's warfighters at risk," stated Special Agent-in-Charge Wendell W. Palmer, U.S. Air Force Office of Special Investigations - Office of Procurement Fraud, Detachment 5, Dobbins ARB, GA.
“These arrests represent the unwavering commitment by DCIS and our investigative partners to ensure that the Defense procurement system is protected from unscrupulous contractors who choose illicit profits over quality and integrity. DCIS will pursue anyone who uses fraud and deception to undermine our critical warfighting missions or compromise safety in DoD programs and activities," stated John F. Khin, Special Agent in Charge, Southeast Field Office, DCIS.
“Defrauding the government and providing substandard components intended for use in U.S. military aircraft puts our service members in harm’s way,” said Special Agent in Charge Mark Selby of HSI Miami. “HSI will continue to work with our partners at the Department of Defense and aggressively target individuals and companies engaged in this type of criminal act.”
U.S. Attorney Fajardo Orshan commended the investigative efforts of the U.S. Air Force Office of Special Investigations, U.S. Army CID-MPFU, DCIS, and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Marc Anton.
An indictment is a charging instrument containing accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former South Florida Attorney and Stock Promoter Plead Guilty to Conspiracy to Commit Securities Fraud in Relation to Pump and Dump Stock Manipulation SchemeRead the Press Release
A former South Florida attorney and a stock promoter pled guilty today in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”).
Ariana Fajardo Orshan, United States Attorney, Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami Field Office made the announcement.
Mark E. Fisher, 53, of Boca Raton, Florida, and Joseph F. Capuozzo, 57, of Davie, Florida, pled guilty before U.S. District Judge Kathleen M. Williams, in Miami, to one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371, in Case No. 18-CR-20823. Judge Williams is scheduled to sentence Capuozzo on February 21, 2019 and Fisher on March 25, 2019. Each defendant faces a maximum statutory sentence of up to five years in prison and a fine up to $250,000 or double the gross proceeds of the offense.
Previously, Eddy Ubaldo Marin, 56, of Ft. Lauderdale, Florida, and Shane R. Spierdowis, 27, formerly of Boca Raton, were charged with securities fraud offenses in connection with the same VLBI scheme. Marin pled guilty and was sentenced on September 5, 2018, to 210 months in prison by U.S. District Judge Darrin P. Gayles (Case No. 18-CR-20354-DPG). Spierdowis also pled guilty and was sentenced by U.S. District Judge Ursala Ungaro to 5 years on probation. (Case No. 18-CR-20355-UU).
According to court documents, VLBI was a beauty products supply company with operations in Sunrise, Florida, that marketed its products on television infomercials and elsewhere. Shares of VLBI stock were publicly traded and quoted over the counter on OTC Link. In approximately November 2013, Marin and other accomplices arranged to secretly obtain a controlling interest in VLBI stock by issuing shares to certain third parties, including Green Tree Capital, Inc., a company controlled by Marin and Capuozzo, based in Ft. Lauderdale, Florida.
Fisher, formerly a practicing lawyer licensed to practice in Florida and New York, was a securities lawyer based in Boca Raton who allegedly became involved with the manipulation of VLBI shares at the invitation of Marin. Fisher allegedly executed various false and fraudulent documents to facilitate the scheme, including certain legal opinion letters that falsely indicated that shares controlled by Marin and other conspirators, were not in fact owned or controlled by “affiliates” of the companies. Such letters allowed shares of VLBI to be falsely classified as “free trading” and thus sold to the public, when in reality that were restricted. In March and April, 2014, Marin, Fisher, Capuozzo, Spierdowis, and other conspirators arranged to transfer a substantial number of shares into brokerage accounts in the name of fictitious entities, but in reality controlled by the conspirators. In addition, according to court documents, Fisher, Capuozzo and other conspirators knew that Marin was a convicted felon and attempted to conceal his role in the scheme by keeping his name off of corporate documents. To facilitate the concealment of Marin’s role, Capuozzo became the listed owner of an entity that held Marin’s VLBI shares and traded the shares at the direction of Marin. Capuozzo also served as the nominee Chief Executive Officer of VLBI, while acting at the direction of Marin and the conspirators.
Thereafter, beginning in approximately May 2014 and continuing through in or around September 2014, Marin, Fisher, Capuozzo, Spierdowis, and others arranged for VLBI to issue rosy press releases, while also using internet marketing and penny stock newsletters to tout VLBI stock. These efforts were intended to artificially increase the trading volume and price of VLBI shares, so that Marin, Fisher, Capuozzo, Spierdowis and their co-conspirators could secretly sell shares at a profit. During the conspiracy period, the conspirators sold approximately $1 million worth of VLBI shares to the investing public.
In approximately June 2014, Marin began a term of federal imprisonment due to a different federal offense, and was ultimately incarcerated at FCI Miami. While Marin was at FCI Miami, Fisher, Capuozzo, Spierdowis, and others continued the stock manipulation scheme, while keeping a larger portion of the trading profits for themselves. The conspirators continued to sell shares of VLBI, while continuing the same pattern of issuing press releases and engaging in coordinated sales of shares, until approximately April 26, 2016, when trading in VLBI shares was suspended by the U.S. Securities and Exchange Commission (SEC).
Previously, the SEC filed parallel civil enforcement actions against Fisher, Capuozzo, Marin and Spierdowis.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jerrob Duffy, and Assistant U.S. Attorney Alison Lehr is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Federal Indictment Charges Twenty-Four Members and Associates of a Drug Trafficking and Money Laundering Organization Operating in Little HavanaRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Juan J. Perez, Director of the Miami-Dade Police Department (MDPD); Jorge R. Colina, Chief of the City of Miami Police Department (MPD), and Gadyaces S. Serralta, U.S. Marshal for the Southern District of Florida, announced the unsealing of federal charges today against 24 members and associates of a drug trafficking and money laundering organization ("DTO”) operating in the Little Havana neighborhood of Miami-Dade County, Florida and elsewhere. The defendants are charged in a 59-count indictment for their conduct related to drug trafficking, violent crime, federal firearms offenses, and money laundering.
“As your new U.S. Attorney, life-long South Florida resident and concerned citizen, I remain committed to supporting the U.S. Attorney’s Office and its dedicated law enforcement partners as we continue to target the members and associates of drug trafficking and violent criminal enterprises that threaten the public’s safety and security,” stated U.S. Attorney Ariana Fajardo Orshan. “As evidenced by the handing down of federal charges against 24 defendants today, we stand ready to prosecute those individuals who terrorize our local communities, fuel the narcotics epidemic and endanger the lives of others with gun violence.”
ATF Special Agent in Charge Ari Shapira said, “This indictment demonstrates, most clearly, the ATF commitment to reducing violent crime in South Florida. We will never waver in our efforts to battle the drug-fueled firearms violence that threatens our communities. I am proud to lead our dedicated law enforcement professionals and applaud their collective collaboration with our partners at all levels of government. The people of South Florida deserve no less.”
“This success is the product of local, state, and federal law enforcement agencies collaborating with our partners at the U.S. Attorney’s Office, to rid our communities of illegal narcotics and the violence that so often comes with it,” said Miami-Dade Police Department Director Juan J. Perez. “All of those involved in this investigation worked relentlessly to ensure that everyone responsible would be brought to justice.”
“The U.S. Marshal Service is thankful to be a part of the law enforcement efforts that brought forth the dismantling of this criminal enterprise,” stated U.S. Marshal Gadyaces Serralta. “Together with our federal, state, and local partners we have made this community a safer place to live, work and play.”
The federal indictment and ”Motion to Seek Pre-Trial Detention” allege that from approximately December 7, 2013, through on or about October 30, 2018, in Miami-Dade County, Ulysses Cabrera, a/k/a “Uley,” a/k/a “Big Cuz,” 29, and Bernardo Quinonez, a/k/a “Macho,” 30, both of Miami, were the leaders and organizers of the continuing criminal enterprise, the DTO. Rafael Quinonez, a/k/a “Gigi,” a/k/a “Big Junkz,” 27, Henry Feliciano-Torres, a/k/a “Mafia,” 31, Daniel Quinonez, a/k/a “Julio,” 31 Marvin Melendez-Reyes, a/k/a “Homicide Marvin,” 22, Victor Smith, a/k/a “OGP,” 22, Hector Salgado, a/k/a “Teto,” 18, Issac Leal, a/k/a “Chico Black,” a/k/a “King Felony,” 28, Jose Luis Diaz, a/k/a “Lil Cuz,” 26, Peter Rodriguez, a/k/a “Hot Boy,” 25, Rogelio Ramos, 22, Peter Simo, a/k/a “Worm,” 20, Elizabeth Legon, a/k/a “Eli,” 29, Ricardo Perez-Castro, 62 Orlando Lorenzo, 52, Roberto Garcia, 24, Miguel Haber, 34, Pedro Rene Gonzalez, a/k/a “Pete,” 42, Eduardo Bobadilla-Orol, a/k/a “Chupa,” 62, Gilbert Cruz Baez, a/k/a “Bori,” 20, Alain Terry, a/k/a “Youngin,” Ronald Reyes-Melo, a/k/a “Cueyo,” 22, and Charlie Gonzalez, 28, are alleged members and associates of the criminal enterprise. Rogelio Ramos is an illegal alien from Honduras. All other defendants charged in the indictment are from Miami.
From as early as 2013, the DTO distributed cocaine, crack cocaine, and marijuana onto the streets of Little Havana, in Miami-Dade County, Florida and elsewhere. In November of 2017, a High Intensity Drug Trafficking Area (HIDTA) Task Force, headed by ATF, began a proactive investigation into the Little Havana based DTO. The indictment announced today charges members, former members and associates of the DTO with various drug trafficking, money laundering and violent crimes.
According to allegations in the court docket, Cabrera supplied the cocaine and acted as a manager of the DTO. B. Quinonez oversaw the operation and man-power used to transform the cocaine into crack cocaine and distribution into the streets of Little Havana and elsewhere. Cabrera and B. Quinonez were charged in the indictment with being the principal administrators, organizers, supervisors and leaders of the continuing criminal enterprise, the DTO, and that they earned substantial income and resources from the criminal operation (Count 1).
The court docket further alleges that co-defendants, including Diaz, P. Rodriguez and R. Quinonez, were mid-level management members of the DTO, who worked to bring the narcotics into the South Florida community for distribution. R. Quinonez oversaw the distribution of marijuana by the DTO. Residences in Little Havana and Brickell, within Miami-Dade County, were used to manufacture, consume and distribute the illegal narcotics. The DTO used the area of 10th Avenue and 4th Street, in Little Havana as their base of operation. Co-defendants including Feliciano-Torres, D. Quinonez and Smith oversaw the local drug trade, as street-level narcotics distributors including co-defendants Leal, Ramos, Simo, Baez, Haber, Legon and Terry introduced the drugs directly into the community. Cabrera, B. Quinonez, R. Quinonez, Feliciano-Torres, D. Quinonez, Melendez-Reyes, Smith, Leal, Diaz, Ramos, Simo, Baez and Terry were collectively charged in the indictment with participating in a conspiracy to possess with the intent to distribute the controlled substances (Count 2).
When rival drug dealers threatened the territory controlled by their criminal enterprise or when individuals questioned their authority, Cabrera and B. Quinonez allegedly directed armed members of the charged narcotics conspiracy to intimidate, maim, and in some instances kill others. As a result, innocent bystanders were shot and sustained serious physical injuries.
The indictment charges specific firearms offenses and violent criminal conduct, including:
Baez, a former member of the DTO turned rival, was charged with committing a drive-by shooting on October 30, 2017, in furtherance of a drug trafficking conspiracy.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, Haber and Terry were charged federally for their involvement in a drive-by shooting which occurred on October 31, 2017, November 2 and November 6, 2017, in furtherance of a drug trafficking conspiracy.
Gonzalez, Bobadillo-Orol, Leal, Melendez-Reyes, Reyes-Melo, Gonzalez and Simo were charged with being convicted felons unlawfully in possession of firearms.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, Haber and Terry were collectively charged with possessing a firearm in furtherance of drug trafficking on April 3, 2018.
Cabrera, Bernardo Quinonez, Rafael Quinonez, Feliciano-Torres, Daniel Quinonez, Melendez-Reyes, Smith, Leal, Ramos, Simo, and Haber were also charged with collectively possessing a firearm in furtherance of drug trafficking on June 11, 2018.
Smith and Salgado were charged with committing an armed robbery of a Miami hotel guest on July 10, 2018.
Baez and Terry were charged for their involvement in a drive-by shooting which occurred on July 27, 2018, in furtherance of a drug trafficking conspiracy.
Ramos was charged with being an illegal alien unlawfully in possession of a firearm on September 13, 2018.
In addition, Cabrera, Bernardo Quinonez, Rodriguez and Diaz were charged with laundering money, in that they allegedly conducted financial transactions affecting interstate and foreign commerce (including the purchase of property), with proceeds of the drug trafficking enterprise.
Law enforcement seized approximately 1.5 kilograms of cocaine, several grams of crack cocaine, more than 26 pounds of marijuana, 4 assault rifles, 10 pistols, 10 extended magazines, 10 semi-automatic firearms, a short barrel rifle, a revolver and hundreds of rounds of ammunition related to the criminal conduct charged in the indictment.
If convicted of the varied charges set forth in the indictment each defendant will face his/her respective sentencing guidelines. The maximum penalty for: participating in a continuing criminal enterprise is life in prison; participating in a conspiracy to possess controlled substances with the intent to distribute is life in prison; maintaining an establishment for distribution of controlled substances is 20 years in prison; possessing controlled substances with the intent to distribute is 20 years in prison; participating in a conspiracy to possess a firearm in furtherance of a drug trafficking crime is life in prison; committing a drive by shooting is 25 years in prison; brandishing and discharging a firearm in furtherance of a drug trafficking crime is life in prison; being a felon in possession of a firearm and/or ammunition is 10 years in prison; participating in a conspiracy to commit money laundering is 20 years in prison; and using a two-way radio to facilitate drug trafficking is 20 years in prison.
This case stems from Project Safe Neighborhoods (PSN), an evidence-based program proven to be effective at reducing violent crime. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
This investigation, Operation Havana Ghost, is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan commended the ATF, MDPD, including the MDPD Street Terror Offender Program (STOP), MPD and U.S. Marshals Service for their dedicated efforts to combat violent crime and drug trafficking in South Florida. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair. Assistant U.S. Attorney Eloisa D. Fernandez is handling the forfeiture aspects of this case.
An indictment is a charging instrument containing allegations. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Attached: Indictment and United States’ Omnibus Motion to Seek Pre-Trial Detention
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.
West Palm Beach Police Department in Southern District of Florida to Receive Project Safe Neighborhoods AwardRead the Press Release
On December 6, 2018, during the 2018 Project Safe Neighborhoods (PSN) National Conference in Kansas City, Missouri, Acting Attorney General Matthew Whitaker announced that sixteen Project Safe Neighborhoods Awards will be distributed nationally. The West Palm Beach Police Department in the Southern District of Florida will be a recipient of one of the Project Safe Neighborhoods Awards. These awards recognize individuals and groups for their dedication and contribution to the success of PSN.
One year ago, the Department of Justice announced the revitalization and enhancement of PSN, the centerpiece of the Department’s violent crime reduction strategy. PSN is an evidence-based program, proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."
“The U.S. Attorney’s Office applauds the tremendous community engagement initiatives and law enforcement partnerships that the West Palm Beach Police Department has cultivated to serve and protect our local residents,” stated U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “The West Palm Beach Police Department’s commitment to the success of Project Safe Neighborhoods is to be commended.”
A Project Safe Neighborhoods Award, for Outstanding Local Police/Sheriff Department Involvement, will be bestowed upon the West Palm Beach Police Department in the Southern District of Florida. The West Palm Beach Police Department’s commitment to the core principles of the reinvigorated PSN has had, and continues to have, a dramatic effect in the Southern District of Florida. West Palm Beach officers serve full-time as task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), and Federal Bureau of Investigation (FBI) to combat violent crime. In 2018, the West Palm Beach Police Department created a “Real Time Crime Center” that uses intelligence from a number of sources to generate current and actionable law enforcement leads. In addition to enforcement activity, the West Palm Beach Police Department has also made a commitment to community engagement and successfully built bridges between law enforcement and the communities they serve. The West Palm Beach Police Department’s community engagement initiatives are extensive, and include not only national programs, but also local programs like “R.I.P.” program that interacts weekly with juvenile offenders arrested for gun and violent crimes, and “Cops and Scholars,” which champions kids in vulnerable communities. West Palm Beach Police Department also serves as a partner to many outside organizations and programs. All of these efforts are contributing to the success of PSN in local West Palm Beach communities.
South Florida Securities Lawyer Convicted by Jury of Conspiracy, Securities Fraud, Wire Fraud, and Money Laundering in Connection with Shell Factory Stock SwindleRead the Press Release
A Boca Raton attorney was convicted by a federal jury this afternoon of 33 counts of conspiracy, securities fraud, wire fraud, and money laundering offenses in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue a class of free-trading shares in the companies that were secretly controlled, and sell these shares as part of pump-and-dump stock swindles.
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.
James M. Schneider, 77, a securities lawyer from Boca Raton, Florida, was convicted by a federal jury after a two-week trial before U.S. District Judge Federico A. Moreno in Miami (Case No. 17-20712-CR-FAM(s)). Schneider was convicted of conspiracy to commit securities and wire fraud, in violation of Title 18, United States Code, Section 1349; securities fraud, in violation of Title 18, United States Code, Section 1348; wire fraud, in violation of Title 18, United States Code, Section 1343; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h); and, money laundering, in violation of Title 18, United States Code, Section 1957. Schneider faces a maximum statutory sentence of twenty-five years for the securities fraud conspiracy count, twenty-five years each for the securities and wire fraud counts, and ten years each for the conspiracy to commit money laundering and money laundering counts, as well as a fine up to $250,000 or double the proceeds as to each. Schneider is scheduled to be sentenced by Judge Moreno on February 14, 2019.
According to evidence introduced at trial, from approximately March 2008 through at least May 2015, Schneider participated in a scheme to operate a fraudulent shell factory in which the conspirators created approximately 20 shell companies and filed numerous false documents with the SEC. The filings falsely stated that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the undisclosed principals. The control block of shares listed in the name of the sole officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later become “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval to sell the companies’ shares publicly in the open market. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure to the SEC or the investing public. These buyers would then use the shares to conduct pump-and-dump stock swindles and other securities manipulation schemes. Evidence at trial showed that the shares of the fake companies were then sold to investors for millions of dollars.
Schneider was an attorney licensed to practice in Florida who authored false and fraudulent legal opinion letters indicating that shares of the 20 companies were owned by persons who were not “affiliates,” when in truth and in fact the shares were owned and controlled by the conspirators. Schneider also created false billing records to make it appear that he was performing work for, and taking direction from, the straw CEOs. In reality, he took his direction from his co-conspirators, who would keep their names off of documents. Schneider also performed so-called escrow services for the sale of the shell entities, including the illegal sale of the purported free trading shares, and wired more than $5.6 million in proceeds to bank accounts controlled by the conspirators. Schneider did this, according to evidence introduced at trial, even though he had no authorization from the named shareholders or verification that the persons whose names were listed on escrow agreements authorized or approved these transfers.
Eleven other defendants have been convicted in the Southern District of Florida in connection with the Shell Factory Fraud investigation: John Ahearn and Andrew Wilson, Case No. 17-20883-CR-KMW; Yelena Furman, Case No. 17-20713-CR-CMA; David Lubin, Case No. 17-20508-CR-MGC; Sheldon Rose and Ian Kass, Case No. 16-20706-CR-JEM; Steven Sanders and Alvin S. Mirman, Case No. 16-20572-CR-CMA; Daniel McKelvey and Jeffrey Lamson, Case No. 16-20546-CR-RNS; and, Delaney Equity Group LLC, Case No. 18-20336-CR-CMA. Defendant Myron Gushlak has also been charged but his case was transferred to fugitive status in Case No. 17-20713-CR-CMA. These convicted defendants included two attorneys who practice securities law (Lubin and Wilson), a registered securities representative (Kass), a stock transfer agent (Ahearn), a securities broker-dealer (Delaney Equity Group LLC), an accountant (Lamson), and four stock promoters (Sanders, McKelvey, Mirman, Rose, and Furman).
Previously, the SEC filed parallel civil enforcement actions against Schneider and the other criminal defendants charged in the Shell Factory Fraud investigation.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office, and also thanked the SEC’s Miami Regional Office for their assistance with the ongoing Shell Factory Fraud investigation. The United States was represented at trial by Assistant U.S. Attorneys Jerrob Duffy and Christopher B. Browne, and Special Assistant U.S. Attorney Jeffrey T. Cook.
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.
Indictment Charges Three City of Miami Police Department Officers with Federal Drug Trafficking OffensesRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office, and Jorge R. Colina, Chief of the City of Miami Police Department (MPD), today announced the indictment of City of Miami Police Officers Schonton Harris, Kelvin Harris, and James Archibald for their involvement in a drug trafficking conspiracy.
Schonton Harris, Kelvin Harris and Archibald were charged by indictment with conspiracy to possess cocaine with the intent to distribute it, in violation of Title 21, United States Code, Section 846; and attempting to possess cocaine with the intent to distribute it, in violation of Title 21, United States Code, Section 846 and Title 18, United States Code, Section 2. If convicted of the conspiracy and attempted possession with intent to distribute cocaine charges, the defendants each face life in prison and a mandatory-minimum sentence of 10 years in prison.
The indictment alleges that from August 2018 to approximately October 23, 2018, Officers Schonton Harris, Kelvin Harris and James Archibald were involved in a scheme to possess with intent to distribute cocaine (Count 1). On September 13,, 2018, Officers Schonton Harris and Kelvin Harris are alleged to have attempted to possess 500 grams or more of cocaine with the intent to distribute it (Count 2). Also, on September 28 and October 11, 2018, Officers Schonton Harris, Kelvin Harris and James Archibald allegedly attempted to possess with the intent to distribute 5 or more kilograms of cocaine (Counts 3 and 4).
An indictment is a charging instrument containing allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Fajardo Orshan commends the investigative efforts of the FBI, the FBI Miami Area Corruption Task Force and MPD in this matter. The case is being prosecuted by Assistant U.S. Attorneys Harry Wallace and Jessica Obenauf.
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 on http://pacer.flsd.uscourts.gov.
Fort Lauderdale Broker Sentenced to More than Six Years in Prison for $16 Million Precious Metals and Securities Fraud SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) announced that Salvatore Colonna, 69, of Fort Lauderdale, was sentenced on November 30, 2018, to 78 months in prison for his role in a $16 million precious metals and securities fraud scheme and ordered to pay approximately $13 million in restitution.
According to court record, including the plea documents, from January 2010, through October 2013, the defendant worked as a broker for Liberty International Financial Services and related entities (together, “Liberty”) in Fort Lauderdale, Florida. During that period, Colonna agreed on a scheme with other co-conspirators to obtain money from investors by means of materially false and fraudulent pretenses, including (a) that investors’ money would be used to buy precious metals; (b) that investors would receive substantial dividends on Liberty investments; and (c) that the defendant would only take a five to fifteen percent commission on investments. In truth and in fact, as the defendant knew, Liberty was not using investor money to buy precious metals, Liberty investments would not pay substantial dividends, and Colonna knowingly took commissions on investors’ monies as high as forty percent.
According to the plea documents and statements at sentencing, from January 2010, through October 2013, investors sent over $16 million in funds to Liberty. Liberty returned only around $3 million to investors. A substantial percentage of the money was used to pay the founders of Liberty and Colonna received approximately $2.4 million in victims’ funds.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and IRS-CI in this matter. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
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 Home Health Services Company Owner and Co-Conspirator Plead Guilty for Roles in $8.6 Million Health Care Fraud SchemeRead the Press Release
Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 million health care fraud scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.
Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud. Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez.
As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami. He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services. As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services. Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have. Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018.
The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations. Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida and Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting 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.
Colombian National Sentenced to 15 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.
“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski. “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”
“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby. “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims. One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. The co-defendants left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting 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.
Yacht Captain Sentenced to Three Years in Prison for Misconduct or Neglect that Resulted in DeathRead the Press Release
On November 28, 2018, Mauricio Alvarez was sentenced to 33 months in prison by U.S. District Judge Cecilia M. Altonaga for his misconduct or neglect of a ship officer that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314).
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, and Zinnia P. James, Special Agent in Charge, Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.
According to the court record, including the agreed upon factual proffer, Alvarez, was the captain of the MIAMI VICE, a 91-foot performance yacht. Alvarez was hired to serve as captain during illegal charters on board the MIAMI VICE by the yacht’s owner, Laurent Marc-Antoine Jean Maubert-Cayla (Maubert-Cayla). The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, Alvarez was heavily using cocaine during the period he served as captain on board the MIAMI VICE, and was filmed using cocaine by the owner of the MIAMI VICE as recently as March 29, 2018.
On April 1, 2018, Alvarez was captain of the MIAMI VICE during a paid charter. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim “R.M.,” began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where the victim was swimming. The victim was caught in the MIAMI VICE’s propellers and killed.
On November 5, 2018, Maubert-Cayla pled guilty to misconduct or neglect of a ship owner that resulted in the death of an individual (Case No. 18-CR-20678). He is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2019, at 9:30 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Phil Jones and Emily Rose.
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 Three Years in Prison for Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with at Least 80 OthersRead the Press Release
A Homestead, Florida man was sentenced today in federal court in Miami to 36 months in prison for surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today. Deneumostier was arrested in July 2018 and has been held in custody since then.
Bryan Deneumostier, 34, a national of Peru, also known by the screen name “susanleon33326,” was sentenced today by U.S. District Judge Cecilia M. Altonga of the Southern District of Florida. Judge Altonga also ordered Deneumostier to serve three years of supervised release following his prison sentence. Deneumostier pleaded guilty in September 2018 to two counts of illegal interception of oral communications.
According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Deneumostier assisted in the operation of a subscription-based pornography website called “straightboyz.net.” The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men. The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent. In many of the videos, the individuals, at Deneumostier’s direction, wore a blindfold and restraints and could not see the defendant or the room (or recording equipment) in which they were located. Deneumostier later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website.
In many cases, in order to find men for his surreptitious recordings, Deneumostier would use social media accounts or Craigslist to post that he would be hosting sexual parties or encounters at his residence. In several of these advertisements, Deneumostier would state he was either a man looking for men (m4m), a transvestite looking for men (t4m), or a woman looking for men (w4m). In most advertisements he stated he was looking for “young sexy guys.”
The indictment and plea agreement refer to four known victims whose identities are being withheld to protect their privacy. Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men whom were featured on his website and that approximately 80 of those did not know that he was recording them; one of the victims recorded was a blindfolded 16-year-old male.
The investigation was conducted by HSI. Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section 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.
Broward County Resident Sentenced to over Thirteen Years in Prison for Being a Felon in Possession of a Firearm, Drugs and Personal Identifying InformationRead the Press Release
On November 28, 2018, Trenard Caldwell, 27, of Broward County, was sentenced to 161 months in prison by U.S. District Judge William P. Dimitrouleas, after previously pleading guilty to being a felon unlawfully in possession of a firearm and ammunition, possession of methamphetamine with intent to distribute, possession of unauthorized access devices, and aggravated identity theft.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office made the announcement.
According to the court docket, including the criminal complaint and several search warrant applications, on September 19, 2015, Caldwell was found in a stolen car. His cellular phones were seized by local police and searched pursuant to a search warrant. A large amount of personal identifying information, including credit/debit card and social security numbers, was located in his phones. The phones’ web history included almost 800 visits to sites on which you can purchase credit card details in bulk. Between October 28, 2016, and September 3, 2017, Caldwell posted several photos on social media in which he was pictured in possession of a firearm. In his posts, he also indicated he was “the plug,” a slang term for the source of illegal narcotics. During another traffic stop in early 2017, Caldwell was found in possession of two cellular phones which were later searched pursuant to a search warrant. The phones contained photographs of Caldwell in possession of a firearm, including some of the same pictures that were posted on his social media account. Caldwell was living at a home in Lauderhill he had rented using another person’s identity. On May 4, 2018, a search warrant was executed on the Lauderhill residence. Inside the home, agents located Caldwell and a .40 caliber Glock 22 pistol fitted with an extended magazine and laser sight. Caldwell had previously been convicted of several felonies, and was prohibited from possessing a firearm or ammunition. Agents also recovered approximately 28 grams of methamphetamine, counterfeit credit and identification cards, and a number of cellular phones, laptop computers, and notebooks, which all contained the personal identifying information of dozens of individuals.
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. The PSN program 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 investigatory efforts of the ATF in this matter. This case was prosecuted by Assistant United States Attorneys Anita G. White.
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 Owner of Dominican Republic Bank Sentenced to Three Years in Prison for Money Laundering ConspiracyRead the Press Release
A former owner of Banco Peravia bank in the Dominican Republic was sentenced to three years imprisonment today for his role in a billion-dollar money laundering scheme involving currency exchange.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI's Houston Field Office, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, was sentenced today to three years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Jimenez pleaded guilty under seal on March 20, 2018 to one count of conspiracy to commit money laundering. As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with co-conspirator Raul Gorrin Belisario, 50, and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds. Jimenez and his co-conspirators made the decision to use Banco Peravia to pay bribes to Venezuelan government officials in exchange for contracts to conduct currency exchange schemes and to launder the money obtained from running those currency exchange schemes. Jimenez facilitated illegal transactions and bribe payments to foreign officials and others via bank issued credit cards, cash disbursements, wire transfers and other financial transactions, he admitted.
HSI Miami, HSI Houston, HSI Boston, FBI Miami and the FDIC investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida and Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Haitian Political Candidate Pleads Guilty to Cocaine Trafficking in South FloridaRead the Press Release
On November 20, 2018, Vincent Casseus, a former political candidate in Haiti, pled guilty in South Florida to possession with intent to distribute 500 grams or more of cocaine.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami Field Office made the announcement.
Casseus, a/k/a “Angelo,” 44, of Jérémie, Haiti, is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on January 30, 2019, in Miami, Florida (Case No. 18-CR-20470). He faces a mandatory minimum sentence of 5 years in prison.
According to the court docket, including the agreed upon factual proffer, Casseus led a drug-trafficking organization that used drug mules to import cocaine into the United States, concealed in commercial-grade tomato paste cans. Law enforcement intercepted cocaine from Casseus’s organization in south Florida and Port-Au-Prince, Haiti, including on November 6, 2016, when FBI agents seized approximately 2,999 grams of cocaine from Casseus and his co-defendant, Vito Antenor, in Miami, Florida.
Casseus was extradited to the United States, from Haiti, for prosecution.
Antenor, 40, of Miami-Dade, pled guilty to possession with intent to distribute 500 grams or more of cocaine on September 13, 2018, and is scheduled to be sentenced by U.S. District Judge Williams on January 11, 2019.
This investigation and prosecution was carried out by members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The South Florida HIDTA, established in 1990, is made up of federal, state and local law enforcement agencies who, cooperatively, target the region’s drug-trafficking and money laundering organizations. The South Florida HIDTA is funded by the Office of National Drug Control Policy, which sponsors a variety of initiatives focused on the nation’s illicit drug trafficking threats.
This prosecution is a result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter. She also thanked Homeland Security Investigations, the Miami-Dade Police Department, Doral Police Department, the United States Embassy in Port au Prince, Haiti, the U.S. Drug Enforcement Administration Country Attaché in Haiti, the U.S. Department of State's Diplomatic Security Service and the Haitian National Police. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. 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.
Florida Lobster Fisherman Pleads Guilty to Illegal Harvesting ActivitiesRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and M. L. Goodro, Superintendent of Biscayne National Park announced that Alfredo Sardinas-Garcia, 43, of Miami, pled guilty yesterday to violating the Lacey Act by illegally harvesting spiny lobster in violation of the laws and regulations applicable to the waters of Biscayne National Park.
According to the court record, including the Joint Factual Statement agreed to by the parties, and statements in Court, the “SILVITA” is a Florida commercial fishing vessel, owned and operated by defendant Deep Atlantic, Inc. Sardines-Garcia was employed by Deep Atlantic, Inc., as the master in charge of the day-to-day operations and fishing activities of the vessel.
On August 22, 2018, at 3:25 p.m., the SILVITA was within the boundaries of Biscayne National Park when it was boarded and inspected by National Park Service Officers. Sardinas-Garcia was the captain of the vessel, which had concluded commercial fishing for the day and was returning to the dock. The vessel held a Special Product License and Crawfish Endorsement, issued by the Florida Fish and Wildlife Conservation Commission, allowing it to conduct lobstering activities under Florida law, including in Biscayne National Park and for the saltwater products harvested to be sold commercially.
A holding pen/live well full of live spiny lobster was in plain view on the vessel. Measurement of the whole lobster revealed that 28 were less than the legally required carapace length of 3 inches. Examination of other compartments on the vessel, revealed a red bag containing wrung spiny lobster tails, hidden in the forwarded bulkhead area, underneath life jackets. The bag contained 231 wrung spiny lobster tails, of which 209 were undersized, and 2 egg-bearing wrung lobster tails. The inspection also revealed 22 Florida stone crab claws on the vessel. This saltwater product was illegally possessed due to the closure of the harvesting season on May 16, 2018 until October 15, 2018.
The Lacey Act makes it unlawful for any person to import, export, transport, sell, receive, acquire, or purchase any fish or wildlife or plant taken, possessed, transported, or sold in violation of any law, treaty, or regulation of the United States (Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B)). It is illegal under the laws and regulations of Florida to possess wrung lobster tails on a vessel while on the waters of the State; to possess egg-bearing spiny lobster; and to possess undersized spiny lobster (Florida Administrative Code, Sections 68B-24.003(4), (1) and 24.007(1)). Federal regulations mandate that fishing in National Park waters must be conducted in accordance with the laws and regulations of the State within which the boundaries of the Park are located (Title 36, Code of Federal Regulations, Section 2.3(a)). The waters of Biscayne National Park are within the waters of the State of Florida.
Sardinas-Garcia faces a possible prison term of up to five years, followed by a three-year period of supervised release. Additionally, he faces a potential criminal fine of up to $250,000. He is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on February 7, 2019, at 2:00 p.m. in Miami.
The case against the co-defendant, Deep Atlantic-Inc., a Florida-based corporation is pending before the Court. An information is merely an allegation and the 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 National Park Service Officers at Biscayne National Park who led the investigation into the illegal harvesting of the spiny lobster and other marine resources. This case is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section and Alison Lehr of the Asset Forfeiture Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Venezuelan National Treasurer Sentenced to 10 years in Prison for Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A former Venezuelan national treasurer was sentenced today for his role in a billion-dollar currency exchange and money laundering scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, was sentenced today to 10 years in prison by U.S. District Judge Robin L. Rosenberg of the Southern District of Florida. Andrade pleaded guilty under seal on Dec. 22, 2017 to one count of conspiracy to commit money laundering. As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from co-conspirator Raul Gorrin Belisario, 50, and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions at favorable rates for the Venezuelan government. Andrade received cash as well as private jets, yachts, cars, homes, champion horses, and high-end watches from his co-conspirators. As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division and Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Biscayne Park Police Chief Sentenced for Conspiracy to Deprive Persons of Civil Rights by Ordering Officers to Make False ArrestsRead the Press Release
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, Katherine Fernandez Rundle, Miami-Dade State Attorney, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Chief Raimundo Atesiano was sentenced to 36 months incarceration for conspiracy to deprive individuals of their civil rights.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered former officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. According to court filings, Chief Atesiano intentionally encouraged those officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries. This created a fictitious 100% clearance rate for that category of crime.
“The U.S. Attorney’s Office is committed to holding those individuals accountable who abuse their positions of power to strip others of their civil rights,” stated U.S. Attorney Fajardo Orshan. “Today, former Police Chief Raimundo Atesiano stood before the court to answer for his crimes and the federal prison sentence that was imposed is one step toward justice for the victims and our South Florida community.”
“For his own professional benefit, Chief Atesiano corruptly and disgracefully abused his authority and the power of his office to create fictitious clearance statistics by falsely arresting individuals,” said Assistant Attorney General Eric Dreiband. “This kind of abuse of power has no place in our nation and is contrary to American ideals, the rule of law, and fundamental fairness. The Department will continue to hold accountable officers who violate individual rights and betray the communities that they have been entrusted to serve and protect.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on their behalf that the FBI seeks to root out police officers, and other government officials, who violate the civil rights of our citizens.”
“Putting an arrest statistic above the rights of an innocent man instead of working to protect all our citizens undermines the safety goals of every Miami-Dade police department,” said State Attorney Katherine Fernandez Rundle. “Miami-Dade’s residents deserve honesty and integrity, qualities that Raimundo Atesiano deliberately failed to deliver.”
“Atesiano’s self-serving actions are contrary to the law enforcement values that officers are sworn to uphold and deplorable to the citizens of Biscayne Park and the men and women in law enforcement who put their lives in harm’s way to keep us safe,” said FDLE Miami Special Agent in Charge Troy Walker.
According to previous court filings, at Chief Atesiano’s direction, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In court filings related to his guilty plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions.
In a prior hearing, it was disclosed that Chief Atesiano also instructed former officers Dayoub and Fernandez to unlawfully arrest and falsely charge “T.D.,” a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting T.D., a 16-year old juvenile. Former officer Guillermo Ravelo was sentenced to 27 months incarceration for his role in conspiring to deprive persons of civil rights and, in a separate incident, depriving a motorist of civil rights under color law by using excessive force.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
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 Biscayne Park Police Chief Sentenced for Conspiracy to Deprive Persons of Civil Rights by Ordering Officers to Make False ArrestsRead the Press Release
WASHINGTON – Assistant Attorney General Eric Dreiband for the Justice Department’s Civil Rights Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced that former Biscayne Park Police Chief Raimundo Atesiano was sentenced to 36 months incarceration for conspiracy to deprive individuals of their civil rights.
Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered former officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries. According to court filings, Chief Atesiano intentionally encouraged those officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries. This created a fictitious 100% clearance rate for that category of crime.
“For his own professional benefit, Chief Atesiano corruptly and disgracefully abused his authority and the power of his office to create fictitious clearance statistics by falsely arresting individuals,” said Assistant Attorney General Eric Dreiband. “This kind of abuse of power has no place in our nation and is contrary to American ideals, the rule of law, and fundamental fairness. The Department will continue to hold accountable officers who violate individual rights and betray the communities that they have been entrusted to serve and protect.”
“The U.S. Attorney’s Office is committed to holding those individuals accountable who abuse their positions of power to strip others of their civil rights,” stated U.S. Attorney Fajardo Orshan. “Today, former Police Chief Raimundo Atesiano stood before the court to answer for his crimes and the federal prison sentence that was imposed is one step toward justice for the victims and our South Florida community.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on their behalf that the FBI seeks to root out police officers, and other government officials, who violate the civil rights of our citizens.”
“Putting an arrest statistic above the rights of an innocent man instead of working to protect all our citizens undermines the safety goals of every Miami-Dade police department,” said State Attorney Katherine Fernandez Rundle. “Miami-Dade’s residents deserve honesty and integrity, qualities that Raimundo Atesiano deliberately failed to deliver.”
“Atesiano’s self-serving actions are contrary to the law enforcement values that officers are sworn to uphold and deplorable to the citizens of Biscayne Park and the men and women in law enforcement who put their lives in harm’s way to keep us safe,” said FDLE Miami Special Agent in Charge Troy Walker.
According to previous court filings, at Chief Atesiano’s direction, Ravelo falsely arrested a victim identified as “C.D.” and another victim identified as “E.B.” C.D. was charged with two residential burglaries, and E.B. was charged with five vehicle burglaries, both without probable cause. In court filings related to his guilty plea, Atesiano admitted that he instructed Ravelo to falsely arrest and charge E.B for five vehicle burglaries based upon what Atesiano knew were false confessions.
In a prior hearing, it was disclosed that Chief Atesiano also instructed former officers Dayoub and Fernandez to unlawfully arrest and falsely charge “T.D.,” a juvenile previously known to Chief Atesiano and Dayoub. Dayoub and Fernandez complied with Chief Atesiano’s instructions and falsely arrested T.D. Fernandez wrote narratives containing fabricated information in support of the four arrest affidavits that falsely claimed an investigation revealed that T.D. had committed the four burglaries. Dayoub signed and attested that the contents of the affidavits were true even though he, like Chief Atesiano and Fernandez, knew that no evidence existed to substantiate the arrest. T.D. was subsequently arrested for the four burglaries.
Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting T.D., a 16-year old juvenile. Former officer Guillermo Ravelo was sentenced to 27 months incarceration for his role in conspiring to deprive persons of civil rights and, in a separate incident, depriving a motorist of civil rights under color law by using excessive force.
This case was investigated by the FBI, including the FBI Miami Area Corruption Task Force, and FDLE, and assisted by the Miami-Dade State Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Department of Justice Trial Attorney Donald W. Tunnage, and Assistant State Attorney Trent Reichling.
Alabama Man Pretending to be College Softball Coach Pleads Guilty in South Florida to Producing Child PornographyRead the Press Release
On November 20, 2018, Jason Ford, a former teaching assistant and travel softball coach, pled guilty in South Florida to attempting to produce child pornography.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami, Florida Field Office, Charles P. Spencer, Special Agent in Charge of the FBI Jacksonville, Florida Field Office, James E. Jewell, Special Agent in Charge of the FBI Mobile, Alabama Field Office, and Alphonso Norris, Special Agent in Charge of the FBI Columbia, South Carolina Field Office made the announcement.
Ford, 42, of Dothan, Alabama, is scheduled to be sentenced by U.S. District Judge Beth Bloom on February 1, 2019, in Fort Lauderdale, Florida (Case No. 18-cr-60117). He faces a mandatory minimum sentence of 15 years in prison.
According to the court docket, including the agreed upon factual proffer Ford was a teaching assistant and travel softball coach, working out of Dothan, Alabama. However, Ford falsely represented himself to be a University of North Florida and University of South Carolina softball coach, in order to have contact with female high school softball players. Ford engaged in a calculated scheme to gain the trust of minor females who aspired to earn college athletic scholarships. Ford engaged in inappropriate conversations with teen softball players in Florida, Alabama and Tennessee. Ultimately, Ford made contact online with an undercover agent he believed to be a 15-year-old female softball player. Ford was arrested after he sent the teen (who in fact was an undercover agent) currency for a sexually explicit video.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami, Florida; Jacksonville, Florida; Mobile, Alabama; and Columbia, South Carolina Field Offices in this matter. She also thanked the Dothan Police Department for their assistance. The case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 Beach Residents Charged with Wire Fraud in Connection with Fraudulent Online Car Sales WebsiteRead the Press Release
Merkourios Alexopoulos, 46, and Sabrina Schnekker, 32, of Miami Beach, were arrested on an indictment charging them with conspiracy to commit wire fraud and wire fraud in connection with a fraudulent online car sales website.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office and Daniel Oates, Chief, Miami Beach Police Department (MBPD) made the announcement.
According to the allegations contained in the indictment, from in or around August 2013, through May 2018, Alexopoulos and Schnekker operated Salvageworldauctions.com as an online retailer purporting to sell salvaged vehicles. Potential buyers would pay a $500 entrance fee to bid on the vehicles purportedly for sale.
Once a bid was accepted, Alexopoulos would allegedly discuss the final terms for the payment and delivery of the vehicles with the individual purchasers and instructed the victims to send the purchase monies via wire transfer or money orders to the various bank accounts controlled by Alexopoulos and Schnekker and maintained at City National Bank, Citi Bank, PNC Bank, Wells Fargo, Regions Bank, BB&T, Suntrust Bank, and Chase Bank, among others. After the victims transferred the purchase monies to the bank accounts controlled by Alexopoulos and Schnekker, the conspirators would use those monies to pay their personal expenses and to further the fraudulent scheme.
The indictment further alleges that Alexopoulos and Schnekker never delivered, nor did the victims receive, the vehicles ordered and paid for by the victim purchasers from Alexopoulos and Schnekker through Salvageworldauctions.com. In total, the investigation has revealed approximately 51 victims, with an approximately loss amount of $1.2 million.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and MBPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Man Pleads Guilty to Laundering Proceeds from Romance and Cyber ScamsRead the Press Release
On November 16, 2018, Peter Vincent Cruz, a resident of Washington State and Alaska, pleaded guilty to money laundering charges, stemming from his decision to launder hundreds of thousands of dollars in fraud proceeds from online romance and business email compromise (“BEC”) scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office.
According to documents filed with the court, from approximately June 2016 through June 2018, in Broward County, Florida, and elsewhere, Cruz knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). The purpose of the conspiracy was for Cruz and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between federally insured credit unions, federally insured banks, and individuals, and converting the fraudulently obtained funds to cash and cryptocurrency. Cruz laundered proceeds from BEC and romance scams.
According to court documents, Cruz’s co-conspirators in Nigeria and elsewhere contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scam. The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors.
The court docket further indicates that Cruz’s co-conspirators also used stolen and false identification information to create online personas, utilizing online dating applications, email, social media, and other forms of communication, in order to facilitate romance scams. The co-conspirators then pursued false and fraudulent relationships online with individual victims (the “romance scam victims” or “individual victims”), and tricked these victims into falling in love with them. Eventually, the co-conspirators would persuade these individuals to open bank accounts and shell companies; to conduct financial transactions (cash withdrawals or transfers) under false pretenses, such as to purportedly aid with medical bills or business expenses; and to send money from the victims’ personal savings, or in the form of iTunes gift cards.
At times, Cruz’s co-conspirators directed fraudulently obtained funds from the business victims into accounts established by the romance scam victims. They then directed the romance scam victims to wire the fraud proceeds on to accounts controlled by other co-conspirators, such as the defendant, Cruz. One of these victims resided in Broward County, Florida.
According to the court record, Cruz’s role in the laundering conspiracy was to convert fraud proceeds from the cyber and romance scams via wire, in United States dollars, into cryptocurrency. Cruz then provided the cryptocurrency to his co-conspirators via email, and in doing so, Cruz assisted them in further concealing their true identities, and their role in the underlying fraud schemes. Cruz met, and routinely communicated with, his co-conspirators via e-mail, over the dark web, and through online cryptocurrency exchange forums. Indeed, Cruz regularly received funds from multiple anonymous sources, and regularly sent cryptocurrency payments to anonymous counterparties.
Cruz is scheduled to be sentenced on January 25, 2018 before U.S. District Judge William P. Dimitrouleas. He faces a statutory maximum sentence of twenty years in prison. He also faces a period of supervised release of up to three years, restitution and monetary penalties.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, FBI Miami’s Cyber Task Force and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Venezuelan Billionaire News Network Owner, Former Venezuelan National Treasurer and Former Owner of Dominican Republic Bank Charged in Money Laundering Conspiracy Involving over $1 Billion in BribesRead the Press Release
A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme. A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge Peter C. Fitzhugh of HSI Boston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.
Raul Gorrin Belisario (Gorrin), 50, a Venezuelan citizen with a residence in Miami, Florida, was charged in an indictment filed on Aug. 16, 2017 in the Southern District of Florida with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit money laundering and nine counts of money laundering. The case has been assigned to U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, pleaded guilty under seal on Dec. 22, 2017 before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida to one count of conspiracy to commit money laundering. Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, pleaded guilty under seal on March 20, 2018 in the Southern District of Florida before Judge Rosenberg to one count of conspiracy to commit money laundering. Charges against Andrade and Jimenez were unsealed today.
The indictment alleges that Gorrin paid millions of dollars in bribes to two high-level Venezuelan officials, including Andrade, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government. In addition to wiring money to and for the officials, Gorrin allegedly purchased and paid expenses for them related to private jets, yachts, homes, champion horses, high-end watches and a fashion line. To conceal the bribe payments, Gorrin made payments through multiple shell companies. Gorrin allegedly partnered with Jimenez to acquire Banco Peravia, a bank in the Dominican Republic, to launder bribes paid to Venezuelan officials and proceeds of the scheme.
As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions for the Venezuelan government. As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts. His sentencing is scheduled for Nov. 27.
As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with Gorrin and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds. His sentencing is scheduled for Nov. 29.
HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case. This case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division and Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section. The Criminal Division’s Office of International Affairs provided significant assistance in this matter. The Policía Nacional (Spanish National Police) also provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Doctor Pleads Guilty to Tax Evasion and Disability FraudRead the Press Release
A South Florida doctor residing in Hobe Sound, Florida, pleaded guilty today to 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, which was later approved. Kranz then began receiving SSA disability payments in addition to the private disability insurance 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 corporations. Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist.
Kranz also submitted fraudulent documentation to his insurance company that falsely stated that he was not working.
Sentencing is scheduled for February 6, 2019. Kranz faces a maximum sentence of five years in prison for tax evasion, 20 years in prison for wire fraud, and five years in prison for Social Security fraud. Kranz also faces a period of supervised release, restitution of $451,026 to SSA, $341,032 to his insurance company, and an amount to the IRS to be determined by the court, as well as monetary penalties.
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 Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting 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.
Resident of Brooklyn, New York Convicted at Trial of Enticing a Minor Produce Child Pornography While a Registered Sex OffenderRead the Press Release
A Brooklyn, New York resident was convicted at trial yesterday in South Florida of enticing a minor to produce child pornography while he was a registered sex offender.
Ariana Fajardo Orshan, United States 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.
Dondell Cyrus Davidson, 51, of Brooklyn, New York, was convicted at trial of producing material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections2251(a) and (e), and while being required to register as a sex offender, he committed a felony offense involving a minor, in violation of Title 18, United States Code, Section 2260A. Davidson is scheduled to be sentenced on February 8, 2019, by U.S. District Judge Kenneth A. Mara. Davidson faces a total statutory minimum sentence of 35 years in prison.
According to court records, between on or about July 24, 2016, and August 1, 2016, Davidson, while living in Brooklyn, engaged in an online sexual relationship with an 11 year-old minor victim who resided in the Southern District of Florida. Davidson exchanged sexually explicit photographs, videos, and chat communications with the minor victim through the use of online social media applications. During his communications with the minor victim, the defendant used a fake online identity in which he represented himself to be someone much younger.
At the time of the criminal acts Davidson was required by federal or other law to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Fajardo Orshan commended the investigation efforts of ICE-HSI in Miami and New York in this matter. She also thanked the Port St. Lucie Police Department, New York City Police Department, and St. Lucie County Sheriff’s Office for their assistance. This case is being prosecuted by Assistant United States Attorneys Daniel Funk 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.
Seventh Individual Sentenced to 5 Years in Prison for Role in Opa Locka Municipal Corruption InvestigationRead the Press Release
Dante Starks, an influential figure in Opa Locka and close associate of former City Commissioner Luis Santiago, was sentenced today to five years in prison by U.S. District Judge Jose E. Martinez for his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns.
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 Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Starks pled guilty on June 25, 2018, to a two-count Superseding Information. Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 1951(a) and 666(a)(1)(B), and to failing to file his 2015 federal income tax return, in violation of Title 26, United States Code, Section 7203 (18-20313-CR-MARTINEZ). Judge Martinez sentenced Starks to 60 months in prison, to be followed by 3 years of supervised release. Starks was also ordered to forfeit $45,700 to the United States, to pay restitution to the victims of the corruption scheme and to pay $39,416 in restitution to the IRS for unpaid taxes. A victim restitution hearing has been scheduled for December 14, 2018, before Judge Martinez.
“Today, a significant participant in the long-running Opa Locka municipal corruption conspiracy was held accountable for his many criminal acts that compromised the integrity of the city’s governmental functions,” stated U.S. Attorney Fajardo Orshan. “The cases announced to date, as part of the Opa Locka corruption investigation, do not signal an end to our enforcement efforts. The U.S. Attorney’s Office and our dedicated partners at the FBI and IRS-CI remain committed to the investigation and prosecution of corrupt officials and encourage the public to continue to report all suspected criminal acts.”
"Corrupt Opa Locka municipal officials and their associates breached the public's trust and are now being held to account," said George L. Piro, Special Agent in Charge, FBI Miami. “Public corruption remains a top priority for the FBI. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
“Today's sentencing brings an important defendant in this corruption investigation to justice. The results of this case send a clear message that the law applies to everyone, regardless of position or power,” stated Michael J. De Palma, Special Agent in Charge, IRS-CI. “This joint law enforcement effort shows our commitment to investigate individuals who violate the public trust, and IRS-CI will continue to utilize our financial expertise in these cases where individuals misuse official positions and ignore their tax obligations.”
According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.
Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago. Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and direct city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting. Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and direct Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals.
In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract. In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract. Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package. After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company. To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.
Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016. Starks had over $39,000 in unpaid tax liability arising from the income he earned during those years.
Starks was the seventh individual to be sentenced for his involvement in the Opa Locka corruption conspiracy. Related cases arising from the Opa Locka corruption investigation are the following:
Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR-WILLIAMS). Santiago was sentenced to 51 months in prison (the sentence was subsequently reduced to 30 months in prison).
Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR-ALTONAGA). Chiverton was sentenced to 38 months in prison, to be followed by 8 months of home confinement.
Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM). Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation.
Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR-MARTINEZ). Sosa Sr. was sentenced to 30 months in prison, consecutive to a 78-month sentence he received for an unrelated federal tax conviction in 2016. Sosa Jr. was sentenced to probation.
Demetrius Corleon Taylor, a non-employee who also helped collect money from Opa Locka businesses in exchange for official actions by city employees, previously pled guilty to conspiracy to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20890-CR-GAYLES). He was sentenced to 5 months in prison, to be followed by 5 months of home confinement.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter. Mrs. Fajardo Orshan thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance. This case was prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.
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.
Cesar Altieri Sayoc Charged in 30-Count Indictment with Mailing Improvised Explosive Devices in Connection with Domestic Terrorist AttackRead the Press Release
Sayoc Allegedly Mailed 16 IEDs to 13 Victims Across the United States and Now Faces Charges Including Use of Weapons of Mass Destruction, Interstate Mailing of Explosives, and Use of Destructive Devices During Crimes of Violence
WASHINGTON – Cesar Altieri Sayoc, aka Cesar Randazzo, aka Cesar Altieri, and aka Cesar Altieri Randazzo, 56, was charged today in a 30-count Indictment for offenses relating to his alleged execution of a domestic terrorist attack in October 2018, which involved the mailing of 16 improvised explosive devices (IEDs) to 13 victims throughout the country.
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office, and Police Commissioner James P. O’Neill of the NYPD made the announcement. The case is assigned to U.S. District Judge Jed S. Rakoff.
“According to court filings, Cesar Sayoc mailed 16 IEDs to more than a dozen victims throughout the country, including current and former elected leaders. Less than five days after the first IED was discovered, he was tracked down and arrested, thanks to the outstanding work of the FBI, the U.S. Postal Inspection Service and other law enforcement partners,” said Assistant Attorney General Demers.
“Cesar Sayoc allegedly targeted former high-ranking officials such as President Barack Obama, President Bill Clinton, Vice President Joe Biden, Secretary of State Hillary Clinton, and others, as well as CNN, by sending explosive packages to them through the U.S. Postal Service,” said U.S. Attorney Berman. “Sayoc’s alleged conduct put numerous lives at risk. It was also an assault on a nation that values the rule of law, a free press, and tolerance of differences without rancor or resort to violence. Thanks to the diligent and determined work of our law enforcement partners here and across the country, it took just five days to identify and apprehend Sayoc and end his reign of terror. He now faces justice from a nation of laws.”
“As alleged, Cesar Sayoc deliberately targeted 13 individuals with 16 improvised explosive devices, attempting to create an atmosphere of fear and intimidation from California to the eastern seaboard,” said Assistant Director in Charge Sweeney. “Thanks to the seamless integration of FBI JTTFs across the country, working side-by-side with many other law enforcement agencies and first responders, his campaign of terror was brought to a rapid conclusion just five days after the discovery of the first device. The FBI remains steadfast in our mission to protect the American public, and we will move with speed to bring justice to anyone seeking to harm our communities.”
“I commend everyone involved in investigating and prosecuting this case, particularly the agents and detectives on the FBI’s Joint Terrorism Task Force in New York, which includes 56 agencies and 300 individuals – 113 of them NYPD cops,” said Commissioner O’Neill. “Standing shoulder to shoulder with the FBI, the ATF, the U.S. Marshals, the U.S. Postal Inspection Service, the New York State Police, and others, we said from the outset that we would identify and bring to justice the person allegedly responsible for these acts. We could make that promise because of our proven history of effective partnership. The public’s vigilance also greatly assisted this investigation and helped lead to today’s 30-count indictment. What is clear is that New Yorkers are always resilient in the face of threats – we refuse to back down, and we will never be deterred.”
According to the Indictment, Complaint, other court filings, and statements made during court proceedings[1]:
Between Oct. 22 and Nov. 2, the FBI and the U.S. Postal Service recovered 16 padded manila envelopes containing IEDs allegedly mailed by Sayoc from Florida to addresses in New York, New Jersey, Washington, D.C., Delaware, Atlanta and California. Sayoc’s alleged victims, listed alphabetically, were former Vice President Joseph Biden, Senator Cory Booker, former CIA Director John Brennan, former Director of National Intelligence James Clapper, former Secretary of State Hillary Clinton, CNN, Robert De Niro, Senator Kamala Harris, former Attorney General Eric Holder, former President Barack Obama, George Soros, Thomas Steyer, and Representative Maxine Walters.
Each of the 16 envelopes allegedly mailed by Sayoc had similar features, including the return addressee “Debbie Wasserman Shultz” at an address in “Florids,” six self-adhesive postage stamps bearing the American flag, and address labels printed on white paper with blank ink in similar typeface and font size. Each of the 16 envelopes also contained an IED. The 16 IEDs also had similar features, including approximately six inches of PVC pipe packed with explosive material, a small clock, and wiring. Some of the IEDs also contained shards of glass.
Preliminary analysis by the FBI has revealed forensic evidence linking 11 of the 16 mailings to Sayoc. Specifically, latent fingerprints on two of the envelopes have been identified to Sayoc, and there are possible DNA associations between a DNA sample collected from Sayoc prior to his arrest in this case and DNA found on components from 10 of the IEDs (including one of the IEDs that was mailed in an envelope from which a latent fingerprint identified to Sayoc was recovered).
The FBI arrested Sayoc in Plantation, Florida, on Oct. 26 – less than five days after the Oct. 22 recovery of the first IED, which Sayoc allegedly mailed to Soros in New York. The FBI seized a laptop from Sayoc’s van in connection with the arrest that contained lists of physical addresses that match many of the labels on the envelopes that Sayoc allegedly mailed. The lists were saved at a file path on the laptop that includes a variant of Sayoc’s first name: “Users/Ceasar/Documents.” A document from that path, titled “Debbie W.docx” and bearing a creation date of July 26, contained repeated copies of an address for “Debbie W. Schultz” in Sunrise, Florida, that is nearly identical, except for typographical errors, to the return address that Sayoc allegedly used on the packages. Similar documents bearing file titles that include the name “Debbie,” and creation dates of Sept. 22, contain exact matches of the return address allegedly used by Sayoc on the 16 envelopes.
Sayoc possessed a cellphone at the time of his arrest, and the FBI’s ongoing forensic analysis of the device has revealed additional evidence. For example, Sayoc allegedly used the phone to conduct the following Internet searches, among others, on the dates indicated:
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July 15: “hilary Clinton hime address”
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July 26: “address Debbie wauserman Shultz”
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Sept. 19: “address kamila harrias”
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Sept. 26: “address for barack Obama”
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Sept. 26: “michelle obama mailing address”
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Sept. 26: “joseph biden jr”
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Oct. 1: “address cory booker new jersey”
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Oct. 20: “tom steyers mailing address”
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Oct. 23: “address kamala harris”
Sayoc’s phone also contained photographs of some of the victims.
Sayoc, a U.S. citizen, is charged in the Indictment with 30 counts: one count of six different offenses for each of the five IEDs that he allegedly mailed to Clinton, Brennan, Clapper, Soros and De Niro in the Southern District of New York. In aggregate, the 30 counts in the Indictment carry a potential maximum penalty of life imprisonment, and a mandatory minimum penalty of life imprisonment. A chart providing more information regarding the charges and potential penalties is set forth below. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Counts
Charge
Penalties Per Count
1 – 5
Using a weapon of mass destruction
Maximum per count: life
6 – 10
Interstate transportation of an explosive
Maximum per count: 20 years
11 – 15
Conveying a threat in interstate commerce
Maximum per count: 5 years
16 – 20
Unlawful use of mails
Maximum per count: 10 years
21 – 25
Carrying an explosive during the commission of a felony
Minimum for first conviction: 10 years
Minimum for additional convictions: 20 years
26 – 30
Using and carrying a destructive device in furtherance of a crime of violence
Maximum per count: life
Minimum for first conviction: 30 years
Minimum for additional convictions: life
Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the U.S. Postal Inspection Service. Mr. Demers and Mr. Berman also thanked the U.S. Attorney’s Office for the Southern District of Florida for its assistance.
Assistant U.S. Attorneys Sam Adelsberg, Emil J. Bove III, Jane Kim, and Jason A. Richman of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorneys David Cora and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.
As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.
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Brazilian National Found Guilty of Making False Statements in Naturalization ProceedingsRead the Press Release
On November 9, 2018, Etevaldo Ferreira De Souza, 47, of West Palm Beach, was found guilty by a jury of one count of making false statements in a naturalization proceeding, in violation of Title 18, United States Code, Section 1015(a).
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, Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.
According to the evidence presented at trial, De Souza was charged with aggravated homicide and armed conspiracy in Brazil in 1993. According to the Brazilian charges, De Souza, although not himself a police officer, conspired with corrupt police officers to commit a murder. In or before 1998, De Souza entered the United States illegally. In 2012, De Souza applied to become a lawful permanent resident pursuant to the Legal Immigration Family Equity (“LIFE”) Act of 2000, which allowed certain people who entered the United States illegally to obtain legal status. In his application for residency, De Souza attested that had never been charged for breaking or violating any law or ordinance, excluding traffic violations. De Souza’s application was granted, and he became a lawful resident, in January 2013. In April of that year, the Brazilian charges were dismissed. On July 28, 2017, De Souza applied to become a United States citizen. On his application, De Souza attested that he had never been charged with committing, attempting to commit, or assisting in committing a crime or offense.
De Souza’s sentencing is scheduled for January 18, 2019 before U.S. District Judge Kenneth A. Marra. De Souza faces a maximum possible statutory sentence of five years in prison.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI in this matter. She thanked the U.S. Citizenship and Immigration Services for their assistance. 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.
St. Lucie County Felon Convicted at Trial of Aiding and Abetting False Statements to Unlawfully Purchase a FirearmRead the Press Release
Anthony Joseph Safiotti, 35, of St. Lucie County, was convicted by a federal jury yesterday of aiding and abetting false statements to unlawfully purchase a firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 2.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office made the announcement.
According to the court docket, including evidence introduced at trial, Safiotti, a convicted felon, convinced a young pregnant drug addict, to be a straw buyer of a firearm in exchange for opioids. On February 2, 2018, Safiotti and the straw buyer entered a pawn shop in Martin County. The straw buyer purchased a semi-automatic firearm, gun case, ammunition, and an extra 40 round magazine for Safiotti. Following Safiotti’s directives, the straw buyer falsely completed the ATF Form 4473 paperwork, as the actual/true buyer of the firearm and ammunition.
Safiotti had previously been convicted of several felony offenses and was prohibited from possessing a firearm or ammunition.
Safiotti is scheduled to be sentenced by U.S. District Judge Donald M. Middlebrooks on January 17, 2019 at 10:00 a.m.
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. The PSN program 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 investigatory efforts of the ATF in this matter. This case was prosecuted by Assistant United States Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fifth Defendant Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida.
According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States.
De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States. He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.
De la Cruz is a citizen of the Dominican Republic. He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.
De la Cruz is the fifth defendant to plead guilty in the case. Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.
The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting 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.
Illegal Charter Operator Pleads Guilty to Violating Coast Guard OrderRead the Press Release
Seth Alan Gissen pled guilty yesterday to knowingly and willfully violating a Captain of the Port Order, in violation of Title 33, United States Code, Section 1232(b)(1).
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.
According to the court record, Gissen is the registered owner of the motor yacht NO RULES II. On October 26, 2017, during a routine law enforcement boarding, the Coast Guard discovered the yacht NO RULES II operating illegally as a charter vessel. Illegal charters can cause accidents resulting in property damage, injuries, and death.
On October 30, 2017, the Coast Guard issued a Captain of the Port Order to Gissen. This Order required Gissen to immediately cease operating NO RULES II as a passenger vessel until he was in compliance with federal laws and regulations.
On or about August 4, 2018, on Biscayne Bay, a Coast Guard team observed that the yacht NO RULES II appeared to be overloaded and so initiated a law enforcement boarding. An investigation revealed that Gissen was again illegally operating as a commercial charter, in violation of the Captain of the Port Order.
Gissen is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2018, at 10 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter. This case is being prosecuted by Coast Guard Special Assistant U.S. Attorney Philip Jones.
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.
Charter Owner Pleads Guilty to Misconduct or Neglect that Resulted in DeathRead the Press Release
Laurent Marc-Antoine Jean Maubert-Cayla pled guilty on November 5, 2018, to misconduct or neglect of a charter owner that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.
According to the court record, including the agreed upon factual proffer, Maubert-Cayla, originally of France, was a part owner of the MIAMI VICE, a 91-foot performance yacht. Maubert-Cayla offered the yacht for charters on a website, and employed Captain Mauricio Alvarez to drive the yacht during charters from approximately November of 2017 until April of 2018. The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license. In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license. In addition, Maubert-Cayla knew that Alvarez was heavily using cocaine and alcohol during the period he served as captain on board the MIAMI VICE, and had filmed Alvarez using cocaine as recently as March 29, 2018.
On April 1, 2018, Maubert-Cayla chartered the MIAMI VICE to a group of individuals, who met and paid Maubert-Cayla at the Sea Isle Marina. The MIAMI VICE then left the Sea Isle Marina with Alvarez acting as captain. Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim R.M.P., began to swim. Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so. Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where victim R.M.P. was swimming. R.M.P. was caught in the MIAMI VICE’s propellers and killed.
Maubert-Cayla is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 20, 2019, at 9:30 a.m.
Mauricio Alvarez pled guilty for his misconduct or neglect as a ship officer (yacht captain) that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314). He is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on November 28, 2018, at 9:00 a.m.
U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS and FWC in this matter. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Philip Jones and Emily Rose.
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.
Foreign National Pleads Guilty to Involuntary Manslaughter on the High SeasRead the Press Release
Lewis Bennett, 41, a dual citizen of Australia and the United Kingdom, pleaded guilty to involuntary manslaughter for killing his wife, Isabella Hellman, while on board a sailing vessel on the high seas.
Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Tom Jones, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement.
Bennett pleaded guilty to a superseding information charging him with one count of involuntary manslaughter of Ms. Hellman, a naturalized U.S. citizen, on the high seas, in violation of Title 18, United States Code, Section 1112 (Case No. 18-CR-20136). He is scheduled to be sentenced by U.S. District Court Judge Federico A. Moreno in Miami, on January 10, 2019 at 9:45 a.m. Bennett faces a maximum statutory sentence of eight years in prison.
“Although nothing can ever erase the pain and suffering caused by Lewis Bennett’s criminal acts, the U.S. Attorney’s Office and our law enforcement partners hope that the defendant’s admission of guilt is a step toward justice for the victim, Ms. Isabella Hellman, and her family,” stated U.S. Attorney Fajardo Orshan. “The federal government remains committed to the safety and security of our U.S. citizens, whether they are at home in South Florida or traveling on the high seas.”
“Lewis Bennett will now be held accountable for his wife's death while on the high seas” said Tom Jones, acting Special Agent in Charge, FBI Miami. "We commend the U.S. Coast Guard for their professionalism and close cooperation throughout this case."
“The arduous work by all key partners in this investigation demonstrates the impact of solid investigative effort and the strength of collaborative enforcement,” stated Zinnia James, Special Agent in Charge CGIS.
According to the court docket, including an agreed upon factual proffer, Bennett is an experienced sailor who received a certification from the Royal Yachting Association in the United Kingdom as a Coastal Skipper. This training included instruction on emergency procedures such as man overboard protocols and night sailing safety. Bennett also had hands-on sailing experience on the open water for extended periods of time, including a three month voyage from St. Maarten to Australia. In contrast to Bennett, his wife had not been trained in emergency sailing procedures, did not have a sailing certification and had substantially less sailing experience.
In late April 2017, Bennett and Ms. Hellman set sail from St. Maarten on board the vessel “Surf Into Summer,” with the intention of sailing to the United States. On May 14, 2017, Bennett and Ms. Hellman departed Cuba on Bennett’s catamaran (“the vessel”), bound for Florida. At approximately 8 p.m. that evening, Bennett had Ms. Hellman take over control of the vessel. Bennett did not require Ms. Hellman to wear a life jacket, harness, or personal locator beacon (“PLB”) while at the helm during this night watch.
In the early morning hours of May 15, 2017, Bennett was awoken by a loud noise, while the vessel was on the high seas. He climbed to the exterior of the boat and observed that the sails and rigging were loose. The helm of the vessel was unmanned, and his wife was not there. Bennett could not recall whether he called out for his wife. He did not deploy flares to illuminate the area in order to look for Ms. Hellman or to signal his position in the open water for safety and/or recovery. Additionally, Bennett did not search for Ms. Hellman with either the catamaran or the attached dinghy (a small boat). Further, Bennett did not immediately activate any emergency equipment or utilize the satellite phone to signal and/or call for help to locate Ms. Hellman. Bennett ultimately abandoned the vessel and boarded the life raft. When Bennett abandoned the vessel, the catamaran and the dinghy attached to it were inoperable. The factual proffer also states that the United States has evidence in the form of expert testimony that the catamaran was intentionally scuttled.
Before Bennett abandoned the catamaran and boarded the life raft, Bennett loaded various items from the vessel onto the life raft, including a suitcase, two duffle bags, a backpack, water, unexpended parachute flares, a radio transmitter, buoys, food, and silver coins. It was not until Bennett boarded the life raft that he called for help and reported his wife missing, approximately 45 minutes after he was awakened.
The U.S. Coast Guard received an emergency alert from Bennett when he was approximately 26 nautical miles west of Cay Sal Bank, Bahamas, upon the high seas and in international waters. A Coast Guard helicopter ultimately rescued Bennett shortly after 4:30 a.m. and transported him to the Marathon Jet Center, in Marathon, Florida, which is located in the Southern District of Florida.
In the following days, Coast Guard ships, planes, and helicopters searched over approximately 4,980 square miles. On the evening of May 18, 2017, the Coast Guard suspended the search. To date, Ms. Hellman has not been found and has not contacted any of her family. Based on all evidence, Ms. Hellman is dead.
According to the stipulated factual proffer, Ms. Hellman’s death occurred as a result of Bennett’s knowledge of circumstances that existed that could have reasonably enabled him to foresee the threat to life to which his acts or failures to act might subject another, namely Ms. Hellman; and his gross negligence, amounting to wanton and reckless disregard for human life, in acting or failing to act as a result of that.
Bennett was arrested in connection with criminal charges related to these events in Miami on February 20, 2018.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CGIS in this matter. This case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.
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 Tax Return Preparer Convicted of Filing False Income Tax ReturnsRead the Press Release
A Port St. Lucie, Florida, man was convicted by a federal jury yesterday in the U.S. District Court for the Southern District of Florida of ten counts of aiding and assisting in the filing of false income tax returns and three counts of filing false income tax returns announced U.S. Attorney Ariana Fajardo Orshan 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 and false business expenses, and other deductions to inflate by thousands of dollars refunds paid by the Internal Revenue Service. In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own income tax returns, by not fully reporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.
U.S. District Judge James Ivan Cohn for the Southern District of Florida set sentencing for January 17, 2019. The defendant faces a maximum possible sentence of 3 years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case, and 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.
Federal Court Holds West Palm Beach Tax Preparer in ContemptRead the Press Release
Court Finds that Tax Return Preparer Assisted in Preparing Returns in Violation of an October 2016 Injunction and Orders Him to Reimburse the United States for Its Investigation Expenses
WASHINGTON – On Friday, November 2, 2018, a federal court in West Palm Beach, Florida, held that Renel Herard violated a permanent injunction entered against him on October 18, 2016, which barred him from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.
In March 2017, following an investigation of Herard’s activities, the United States filed a Motion for Order to Show Cause asking the court to hold Herard in civil contempt based on evidence that he was assisting a business located three doors down from his own to prepare returns for his former customers in violation of the injunction against him. That investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban.
Faced with the evidence against him, Herard admitted that he assisted others to prepare returns in 2017 and agreed to reimburse the United States for the cost of its investigation into his activities. Based on those admissions, the U.S. District Court for the Southern District of Florida found that Herard violated the injunction entered in October, 2016, and held him in civil contempt. For that contempt, the court ordered Herard to pay the United States $52,654 to reimburse the government for the costs that it incurred to investigate Herard’s post-injunction conduct.
Additionally, the court further enjoined Herard from maintaining any interest in, working at, or providing any direct or indirect assistance to an individual or entity that provides tax preparation services.
The injunction barring Herard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor his compliance with its orders.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
TSA Employee Sentenced to 15 years in Prison for Attempted Production of Child Pornography and Enticement of a MinorRead the Press Release
Gary Linder, Jr., a TSA employee, was sentenced in federal court on Friday to fifteen years in prison for enticing a minor to engage in illicit sexual activity and attempting to produce child pornography.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Thomas J. Jones, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Gary Linder, Jr., 27, of Fort Lauderdale, was charged with attempted production of child pornography and enticing a minor to engage in sexual activity in violation of, Title 18, United States Code, Sections 2251(a) and 2422(b). Linder pled guilty to both charges on July 26, 2018. U.S. District Judge Beth Bloom sentenced Linder to fifteen years’ imprisonment, followed by fifteen years of supervised release.
According to court records, in February 2018, Linder initially began communicating with an eleven-year old female child via text message. The child’s telephone was turned over to law enforcement. Over the course of the next several months, Linder discussed sexually explicit content with the individual he believed to be the minor child via text message. On several occasions, Linder requested nude photos of the minor child engaged in sex acts.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, including the FBI Miami Child Exploitation Task Force, and the Plantation Police Department. U.S. Attorney Fajardo Orshan also thanked the Coral Springs Police Department and Miramar Police Department for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Pleads Guilty to Possessing Fentanyl and Crack Cocaine with Intent to Distribute and Being a Felon in Possession of a FirearmRead the Press Release
Lucius Brown III, 35, of Riveria Beach, pled guilty today to possessing fentanyl and crack cocaine with the intent to distribute and being a felon in possession of a firearm.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
According to the court docket, including the agreed upon factual proffer, on June 8, 2018, PBSO deputies conducted a traffic stop in Lake Worth, Florida. Law enforcement smelled the odor of marijuana and found Brown to be in possession of narcotics. During arrest processing, deputies learned that Brown may have left his one-month old baby alone in a hotel room. Based on their concerns for the safety of the child, law enforcement went to the hotel and entered Brown’s hotel room. Inside the hotel room, they found cocaine and marijuana in plain-view on a desk and Brown’s baby lying face down on the bed. Subsequently, a search warrant was executed in the hotel room and other items, including fentanyl and materials for drug distribution, were discovered. Additionally, located in the desk near the sleeping baby was Brown’s semi-automatic pistol, containing six rounds of ammunition. A hollow-point round was in the chamber of the firearm.
Brown had previously been convicted of several felony offenses and was prohibited from possessing a firearm and ammunition.
Brown is scheduled to be sentenced to by U.S. District Court Chief Judge Robin L. Rosenberg on January 31, 2019 at 10 a.m. He faces a statutory maximum term of imprisonment of twenty years for the narcotics conviction. Because Brown qualifies as an armed career criminal, he faces a mandatory minimum term of fifteen years in prison for being a felon in possession. These sentences can be imposed consecutively.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises. This case is part of OCDETF’s strategic initiative to combat heroin and opioid related addiction and drug trafficking and results from the collective enforcement efforts of Operation Strike Out and Operation White Dragon.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of the DEA and PBSO in this matter. This case was 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.
Opa-Locka Resident Sentenced to 63 Months in Prison for Possession of an Unregistered FirearmRead the Press Release
An Opa-Locka resident was sentenced yesterday to 63 months in federal prison, after having been convicted at trial of possession of an unregistered firearm.
Ariana Fajardo Orshan, United States 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 Daniel Giustino, Chief, Pembroke Pines Police Department, made the announcement.
On February 9, 2017, Adrian Tremayne Wilson, 39, of Opa-Locka, was convicted at trial by a federal jury of possession of an unregistered firearm, commonly referred to as a sawed-off shotgun, in violation of Title 26, United States Code, Sections 5861(d) and 5871. Yesterday, United States District Judge William J. Zloch sentenced Wilson to 63 months in prison followed by 3 years of supervised release.
According to court records, including evidence presented during the defendant’s trial, on June 12, 2016, an officer of the Pembroke Pines Police Department approached Wilson inside a Speedway gas station and convenience store intending to issue traffic citations to him. Before Wilson pulled into the gas station, he had been observed speeding and committing other traffic infractions. When the officer asked Wilson for his driver’s license, Wilson began cursing at the officer, calling him a racist, claiming he was being harassed, and he refused to provide his driver’s license, which at the time he had in his pocket.
The officer told Wilson that if he refused to produce his driver’s license, he would be arrested. Wilson replied, “Then arrest me.” After Wilson was arrested, the officer impounded his vehicle. During a routine inventory of the contents of Wilson’s vehicle, the officer discovered a firearm located next to the driver’s seat. The firearm was loaded with four 12 gauge shotgun shells, one of which was in the firing chamber. The firearm was not registered to Wilson in the National Firearms Registration and Transfer Record as required by law.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Pembroke Pines Police Department. 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 on http://pacer.flsd.uscourts.gov.
Justice Department to Monitor Compliance with Federal Voting Rights Laws on Election DayRead the Press Release
WASHINGTON – The Justice Department today announced its Election Day plans for the Nov. 6, 2018 general election. The Civil Rights Division will monitor compliance with the federal voting rights laws by deploying personnel to 35 jurisdictions in 19 states.
“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation. This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America. Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”
State and local governments have primary responsibility for administering elections in the United States. The Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act in 1965, the Division has regularly monitored all kinds of elections in the field around the country throughout every year to protect the rights of all voters, and not just in federal general elections. On Nov. 6, the Division again will be monitoring in the field around the country.
On Election Day, the Division staff members will be available all day by telephone to receive complaints from the public related to possible violations of the federal voting rights laws (1-800-253-3931 toll free or 202-307-2767 or TTY 202-305-0082). In addition, individuals may also report complaints by fax to 202-307-3961, by email to [email protected], and by a complaint form on the Department’s website: www.justice.gov/crt/votercomplaint.
Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to the local U.S. Attorneys’ Office or local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and their telephone numbers can be found at www.fbi.gov/contact-us.
Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the Department after local authorities have been contacted.
On Election Day, the Civil Rights Division plans to deploy personnel to 35 jurisdictions in 19 states to monitor for compliance with the federal voting rights laws:
- Bethel Census Area, Alaska;
- Dillingham Census Area, Alaska;
- Kusilvak Census Area, Alaska;
- Yukon-Koyukuk Census Area, Alaska;
- Apache County, Arizona;
- Cochise County, Arizona;
- Maricopa County, Arizona;
- Navajo County, Arizona;
- Sacramento County, California;
- San Mateo County, California;
- DeSoto County, Florida;
- Palm Beach County, Florida;
- Pinellas County, Florida;
- Fulton County, Georgia;
- Gwinnett County, Georgia;
- Buena Vista County, Iowa;
- Ford County, Kansas;
- Lowell, Massachusetts;
- Malden, Massachusetts;
- Clark County, Nevada;
- Washoe County, Nevada;
- Middlesex County, New Jersey;
- Union County, New Jersey;
- Erie County, New York;
- Benson County, North Dakota;
- Rolette County, North Dakota;
- Texas County, Oklahoma;
- Lehigh County, Pennsylvania;
- Pawtucket, Rhode Island;
- Buffalo County, South Dakota;
- Harris County, Texas;
- Tarrant County, Texas;
- Waller County, Texas;
- San Juan County, Utah; and
- Fairfax County, Virginia.
The Civil Rights Division will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the language minority provisions of the Voting Rights Act; whether jurisdictions permit a voter to receive assistance by a person of his or her choice if the voter has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act. Division personnel will also maintain contact with local election officials.
The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act to ensure that persons with disabilities have a full and equal opportunity to vote. Information about the Americans with Disabilities Act and about how to file a disability related complaint can be found at www.ada.gov. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.
Last week, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process. More information about the federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.
Opa-Locka Resident Sentenced to 63 Months in Prison for Possession of an Unregistered FirearmRead the Press Release
An Opa-Locka resident was sentenced yesterday to 63 months in federal prison, after having been convicted at trial of possession of an unregistered firearm.
Ariana Fajardo Orshan, United States 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 Daniel Giustino, Chief, Pembroke Pines Police Department, made the announcement.
On February 9, 2017, Adrian Tremayne Wilson, 39, of Opa-Locka, was convicted at trial by a federal jury of possession of an unregistered firearm, commonly referred to as a sawed-off shotgun, in violation of Title 26, United States Code, Sections 5861(d) and 5871. Yesterday, United States District Judge William J. Zloch sentenced Wilson to 63 months in prison followed by 3 years of supervised release.
According to court records, including evidence presented during the defendant’s trial, on June 12, 2016, an officer of the Pembroke Pines Police Department approached Wilson inside a Speedway gas station and convenience store intending to issue traffic citations to him. Before Wilson pulled into the gas station, he had been observed speeding and committing other traffic infractions. When the officer asked Wilson for his driver’s license, Wilson began cursing at the officer, calling him a racist, claiming he was being harassed, and he refused to provide his driver’s license, which at the time he had in his pocket.
The officer told Wilson that if he refused to produce his driver’s license, he would be arrested. Wilson replied, “Then arrest me.” After Wilson was arrested, the officer impounded his vehicle. During a routine inventory of the contents of Wilson’s vehicle, the officer discovered a firearm located next to the driver’s seat. The firearm was loaded with four 12 gauge shotgun shells, one of which was in the firing chamber. The firearm was not registered to Wilson in the National Firearms Registration and Transfer Record as required by law.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Pembroke Pines Police Department. 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 on http://pacer.flsd.uscourts.gov
Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos de Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering ConspiracyRead the Press Release
A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.
As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA. Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA. Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.
Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments. Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund. Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.
Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among 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.
HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
U.S. Attorney Fajardo Orshan Encourages the Public to Report Election Fraud and Voting Rights AbusesRead the Press Release
U.S. Attorney Ariana Fajardo Orshan announced today that Assistant U.S. Attorney (AUSA) Harry Wallace will lead the efforts of U.S. Attorney’s Office for the Southern District of Florida in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections. AUSA Wallace has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen has the right to vote without interference or discrimination and to have that vote counted,” said U.S. Attorney Fajardo Oshan. “The U.S. Attorney’s Office, Department of Justice and our FBI partners are committed to protecting the integrity of the election process. Anyone with information regarding voter fraud or election abuses is encouraged to immediately contact our local FBI Elections Crime Coordinator or District Election Officer Harry Wallace.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to complete their own ballot or to be assisted by a person of their choice.
The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to vote exercise that right if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, an Election Crimes Coordinator (ECC) of the FBI’s Miami field office and Southern District of Florida District Election Officer AUSA Harry Wallace will be on duty while the polls are open on Election Day to receive allegations of election fraud and other election abuses. If the public has any concerns regarding possible election fraud or voting rights abuses, they are encouraged to directly contact FBI ECC at (754) 703-2000 or AUSA/DEO Wallace at (305) 961-9401.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at (754) 703-2000.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1 (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.