Southern District of Florida

Seven defendants, in multiple cases, have been sentenced for their roles in schemes related to defrauding health care benefit programs, unlawful dispensing of opioids, and money laundering.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); Jimmy Patronis, Florida Chief Financial Officer; Michael J. Waters, Special Agent in Charge, Amtrak Office of Inspector General (Amtrak-OIG); Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA); and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.

Dr. Arman Abovyan and Tina Marie Barbuto (Case No. 18cr80122)

Dr. Arman Abovyan, 44, of Boca Raton, was sentenced today to 135 months in prison, to be followed by three years of supervised release, and was ordered to pay $1,058,097.88 in restitution. He was previously convicted at trial of one count of conspiracy to commit health care fraud; one count of conspiracy to possess, distribute, and dispense controlled substances; and seven counts of unlawfully dispensing controlled substances. On January 24, 2019, co-defendant Tina Marie Barbuto, 39, of Boca Raton, was sentenced to 36 months in prison, to be followed by three years of supervised release, and was ordered to pay $3,132,806.13 in restitution. She previously pled guilty to one count of conspiracy to commit health care fraud.

Abovyan, a licensed medical doctor in the State of Florida, was the Medical Director of Journey to Recovery (Journey) in Boca Raton and Reflections Treatment Center (Reflections) in Margate from July 2016 to December 2016. As medical director, Abovyan was responsible for evaluating patients, developing appropriate plans of treatment, and prescribing medically necessary treatment and testing. Barbuto served as the Assistant Clinical Director of Reflections from December 2015 to November 2016, and served as the Clinical Director of Reflections from November 2016 to December 2016. As Clinical Director, Barbuto was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees.

The co-defendants established sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.

Abovyan and Barbuto’s co-conspirators, who owned, operated and managed sober homes, referred the residents with insurance to become patients at Journey and Reflections, in return for kickbacks and bribes which were often disguised as marketing fees, consulting fees, commissions, and case management fees. Barbuto and co-conspirators caused confirmatory testing to be performed and testing and substance abuse treatment to be billed for patients knowing that the patients had been discharged or had left the treatment centers and were no longer receiving treatment or submitting bodily fluid samples for testing at the treatment centers. Abovyan ordered drug testing for the treatment center patients, regardless of whether such testing was medically necessary or conducted and billed in compliance with the terms of the insurance plans; electronically signed hundreds of lab test results for Reflections' patients falsely certifying that he had reviewed the results and the statements of medical necessity for the lab testing; and provided blank, pre-signed prescriptions to other individuals who were not certified to prescribe controlled substances without those patients being examined.

Abovyan and Barbuto and their co-conspirators prepared and submitted fraudulent insurance claim forms to the insurance plans falsely stating that the testing and treatment had been medically necessary and actually rendered when some of the claimed testing and treatment had not been necessary or performed; failing to disclose that the patients had not been asked to pay their co-payments and deductibles; and failing to disclose that Journey and Reflections had obtained their licenses through false statements and omissions.

Mark Jeffrey Hollander (Case No. 18cr80102) and Bosco Jose Vega (Case No. 18cr80101)

On January 28, 2019, Mark Jeffrey Hollander, 44, of Miami, was sentenced to 21 months in prison, to be followed by two years of supervised release. On February 1, 2019, Bosco Jose Vega, 52, of Miami, was sentenced to 9 months in prison, to be followed by one year of supervised release. Both defendants previously pled guilty to one count of engaging in a monetary transaction of a value greater than $10,000 that was derived from health care fraud.

Smart Lab, LLC was a company that offered bodily fluid testing services, including confirmatory urinalysis testing. Smart Lab’s Chief Executive and Chief Operating Officers established employment agreements where co-conspirators would solicit bodily fluid samples from substance abuse treatment centers that would be submitted to Smart Lab for expensive confirmatory drug testing. In exchange, Smart Lab would kick back a portion of the insurance reimbursements, disguised as payments for sales commissions, to co-conspirators, understanding that a portion of these payments would then be paid, directly or indirectly, to owners, operators, or clinicians at the substance abuse treatment centers that referred the testing of urine samples from insured patients.

To achieve the goal, form standing orders and drug testing protocols were established that provided for duplicative, medically unnecessary, and expensive confirmatory testing regardless of the individual needs of any patients. To further the scheme, co-conspirator treatment center owners required the insured substance abuse treatment center patients to submit to confirmatory drug testing approximately three times per week, which Smart Lab could bill to the insurance plans. Smart Lab elected not to collect mandatory co-payments, deductibles, and other co-insurance from patients that could cause patients to be unable or unwilling to submit to testing. The defendants did not inform the insurance plans that they were not collecting the required co-insurance payments.

Hollander and Vega both 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 them were for services rendered. The employment contracts were created to hide the true purpose and recipient of the payments. Hollander and Vega did not perform any actual services for Smart Lab and they were paid “commissions” from the proceeds of health care fraud. 

John Michael Skeffington, Babette Hayes, and Mona Montanino (Case No. 18cr80018)

On January 25, 2019, John Michael Skeffington, 52, of Boca Raton, was sentenced to 52 months in prison, to be followed by three years of supervised release. He previously pled guilty to one count of participating in a health care fraud conspiracy and one count of obstructing a criminal health care investigation.  Co-defendants Babette Hayes, 58, of Sarasota, and Mona Montanino, 56, of Boca Raton, were both sentenced to probation after previously pleading guilty to one count of obstructing a criminal heath care investigation. 

According to court documents, Skeffington, Hayes and Montanino established five shell companies, disguised as “laboratory marketing companies,” in order to unlawfully refer medically unnecessary and excessive bodily fluid tests for residents and patients of sober homes and substance abuse treatment facilities to various clinical laboratories and rural hospitals.  Hayes and Montanino purported to be the chief executive officers of some of the companies, but it was Skeffington who actually operated and controlled the companies and directed the co-defendants’ actions.  In exchange for patient referrals, the laboratories and hospitals would provide a pre-set percentage of insurance payments (“kickbacks”) to the defendants, which they would then share with the sober homes and substance abuse treatment facilities.

The fraud scheme took advantage of higher insurance reimbursement rates for testing conducted by hospitals.  In some cases, the hospitals would submit claim forms as if the patients submitted samples in person when, in reality, the patients were hundreds of miles away, were never treated at the hospitals, and were unaware that their insurance plans were billed for the services. During the course of the scheme, Skeffington increased his use of rural hospitals for the fraudulent testing, after insurance companies began to scrutinize claims from clinical laboratories for bodily fluid tests. 

The kickback amounts, often disguised as payments for sales commissions to Skeffington’s companies, were based on written and unwritten agreements between Skeffington and the laboratories and hospitals. Upon receiving the payments, Skeffington would directly or indirectly provide kickback payments to the sober homes and substance abuse treatment center owners who were accomplices in the scheme.

Once Skeffington, Montanino and Hayes became aware of the FBI investigation into fraudulent medical claims, they created dozens of fake documents meant to obstruct the investigation and disguise the kickbacks as hourly payments for marketing services. They asked, both those from whom they had received kickbacks and those to whom they provided kickbacks, to sign the documents to further conceal their illegal activities.  Signed documents and invoices were back-dated to make it appear as though they had been signed and submitted before the kickback payments were made.

These cases are all the result of the work of the Greater Palm Beach Health Care Fraud Task Force. The Task Force’s ongoing investigation into substance abuse treatment fraud in the Southern District of Florida has resulted in 30 convictions to date.  Agencies of the Task Force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak OIG, DOL-EBSA, and NICB.

U.S. Attorney Fajardo Orshan commended the investigative efforts of all law enforcement agencies connected with the Task Force, as they continue to combat sober home abuses and health care fraud. 

These cases were 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 at http://pacer.flsd.uscourts.gov

Joaquin Archivaldo Guzman Loera, known by various aliases, including “El Chapo” and “El Rapido,” was convicted today by a federal jury in Brooklyn, New York of being a principal operator of a continuing criminal enterprise – the Mexican organized crime syndicate known as the Sinaloa Cartel – a charge that includes 26 drug-related violations and one murder conspiracy.  Guzman Loera was convicted of all 10 counts of a superseding indictment, including narcotics trafficking, using a firearm in furtherance of his drug crimes and participating in a money laundering conspiracy.  The verdict followed a 12-week trial before U.S. District Judge Brian M. Cogan.  Guzman Loera faces a mandatory sentence of life imprisonment at his sentencing scheduled on June 25.

Acting Attorney General Matthew G. Whitaker, U.S. Department of Homeland Security Secretary Kirstjen Nielsen, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), FBI Director Christopher Wray, Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Acting U.S. Marshal Bryan T. Mullee of the Eastern District of New York, announced the verdict.

The Evidence at Trial:

As proven at trial, Guzman Loera was a principal leader of the Sinaloa Cartel, a Mexico-based international drug trafficking organization responsible for importing and distributing vast quantities of cocaine, marijuana, methamphetamine and heroin into the United States.  The evidence at trial, including testimony from 14 cooperating witnesses; narcotics seizures totaling over 130,000 kilograms of cocaine and heroin; weapons, including AK-47s and a rocket-propelled grenade launcher; ledgers; text messages; videos; photographs and intercepted recordings, detailed the drug trafficking activity of Guzman Loera and his co-conspirators over a 25-year period from January 1989 until December 2014.  Guzman Loera was repeatedly referred to by witnesses as one of the leaders of the Sinaloa Cartel.

Guzman Loera oversaw the smuggling of narcotics to wholesale distributors in Arizona, Atlanta, Chicago, Los Angeles, Miami, New York, and elsewhere.  The billions of illicit dollars generated from drug sales in the United States were then clandestinely transported back to Mexico.  Guzman Loera also used “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico to enforce Sinaloa’s control of territories and to eliminate those who posed a threat to the Sinaloa Cartel.

Drug Trafficking

In the course of the decades-long drug trafficking conspiracy, the Sinaloa Cartel transported tens of thousands of kilograms of narcotics from Central and South America for distribution in the United States.  Guzman Loera used various methods to transport the cartel’s narcotics into the United States, including submarines, carbon fiber airplanes, trains with secret compartments and transnational underground tunnels.  Multiple witnesses testified about seizures by law enforcement officers of massive amounts of cocaine, heroin and marijuana linked to the Sinaloa Cartel.  One of the largest seizures of drugs bound for the United States involved over seven tons of cocaine concealed in jalapeño cans. 

The jury also heard recordings of Guzman Loera’s own damning words discussing his drug trafficking, corruption and violence.  The calls included Guzman Loera discussing sending “ice,” meaning methamphetamine, to Los Angeles, California; Minneapolis, Minnesota; Ohio and Tucson, Arizona. 

Communications Network

Guzman Loera also utilized a sophisticated encrypted communications network to operate the global narcotics trafficking operation.  As an information technology engineer testified at trial, Guzman Loera paid him one million dollars to purchase and set up a network to enable the defendant to communicate via the internet with his drug trafficking associates in Colombia, Ecuador, Canada and the United States without fear of being intercepted by law enforcement or his rivals.  The witness devised a secret and secure system, consisting of encrypted cell phones and encrypted apps.

Cartel Violence

The success of the Sinaloa Cartel relied upon the use of violence to maintain their power throughout the region and beyond.  Numerous co-conspirators testified that Guzman Loera directed his hitmen to kidnap, interrogate, torture and shoot members of rival drug organizations, at times carrying out acts of violence himself.  A former hitman testified that Guzman Loera beat two men with a tree branch until their bodies “were completely like rag dolls,” before shooting the men and ordering their bodies be tossed into a bonfire.  The former hitman also testified that Guzman Loera interrogated a rival drug cartel member, shot him and ordered that he be buried alive.  In an intercepted call, the jury heard Guzman Loera order one of his sicarios to kidnap rival cartel members, but not to kill them without first checking with him.

Weapons

The Sinaloa Cartel had unfettered access to weapons.  A law enforcement witness showed the jury over 40 AK-47s that were seized in El Paso, Texas before they could be delivered to Guzman Loera in Mexico.  Additionally, witnesses identifed photographs of various weapons, including grenades and a rocket-propelled grenade launcher utilized by the Sinaloa Cartel.  Guzman Loera’s personal arsenal included a gold plated AK-47 and three diamond-encrusted .38 caliber handguns, one emblazoned with his initials, “JGL.” 

Corruption

              The evidence presented at trial demonstrated that to further the interests of the Sinaloa Cartel, Guzman Loera and his organization took advantage of a vast network of corrupt government officials.  These officials ranged from local law enforcement officers, prison guards, state officials, high ranking members of the armed forces, as well as politicians.  These corrupt officials assisted Guzman Loera and his organization in exchange for millions of dollars’ worth of bribery payments.  For example, according to the testimony of several witnesses, in many instances, Guzman Loera and his workers were warned of pending law enforcement operations which allowed Guzman Loera to avoid capture on multiple occasions.  In other instances, Guzman Loera, through his employees, paid officials to turn a blind eye to trafficking activities in an effort to facilitate the shipment of drugs, weapons, and bulk cash. 

Money Laundering

Guzman Loera’s lucrative drug trafficking business generated billions of dollars in illicit proceeds.  Guzman Loera used various methods to launder money including bulk cash smuggling from the United States to Mexico.  One of the largest seizures was of $1.26 million seized from hidden compartments in a truck driven by Guzman Loera’s brother in Douglas, Arizona in 1989.  In addition to the bulk cash smuggling, Guzman Loera oversaw numerous shell companies, including a juice company and a fish flour company to launder the cartel’s narcotics trafficking proceeds.

“I am pleased that the Department has brought Joaquin Guzman Loera (El Chapo) to justice by securing a conviction against this drug kingpin, who was a principal leader of the Sinaloa Cartel,” said Acting Attorney General Whitaker.  “As was clear to the jury, Guzman Loera’s massive, multi-billion dollar criminal enterprise was responsible for flooding the streets of the United States with hundreds of tons of cocaine, as well as enormous quantities of other dangerous drugs such as heroin and methamphetamine.  The trial evidence also overwhelmingly showed that Guzman’s unceasing efforts to expand his cartel’s control and consolidate its power left a wake of corruption and violence in communities in both Mexico and the United States.  This case demonstrated the extraordinary reach of the U.S. government, our tenacity and commitment to pursuing kingpins like Guzman whom if their power is unchecked — will, like Guzman, develop what for 25 years was an almost unstoppable capacity to move massive quantities of drugs into our country.  Guzman had the capital to absorb huge losses and run his enterprise with impunity; the enormous power to corrupt; and the capability to employ violence on a massive scale.  This case, and more importantly, this conviction serves as an irrefutable message to the kingpins that remain in Mexico, and those that aspire to be the next Chapo Guzman, that eventually you will be apprehended and prosecuted.  Finally, this verdict demonstrates that the United States, working in close partnership with the Mexican government, will continue to bring all possible resources to bear in its fight against international drug traffickers and their violent organizations.”

“The guilty verdict against Joaquin Guzman Loera, one of the most violent and feared drug kingpins of our time, is a testament to the hard work and courage of America’s frontline law enforcement personnel, including ICE’s Homeland Security Investigations,” said DHS Secretary Nielsen.  “They gathered substantial evidence over multiple investigations, which made his extradition to the United States and a successful prosecution possible.  Today’s verdict sends an unmistakable message to transnational criminals: you cannot hide, you are not beyond our reach, and we will find you and bring you to face justice.  Like Guzman, you will suffer the consequences of your criminal behavior.  I applaud the brave men and women at DHS who helped make this conviction possible and thank our interagency and international partners for their exceptional work.”

“Guzman Loera’s bloody reign atop the Sinaloa Cartel has come to an end, and the myth that he could not be brought to justice has been laid to rest,” said U.S. Attorney Donoghue.  “Today, Guzman Loera has been held accountable for the tons of illegal narcotics he trafficked for more than two decades, the murders he ordered and committed, and the billions of dollars he reaped while causing incalculable pain and suffering to those devastated by his drugs.  Today’s verdict is the culmination of the tireless work of countless brave members of law enforcement, here and abroad, and we congratulate them.  The Department of Justice is committed to eradicating criminal organizations that fuel America’s drug epidemic, and our mission will continue until it is completed.”

“The conviction of former Sinaloa Cartel leader Joaquin Guzman Loera strips the power from a man who employed horrific acts of violence to infect communities, throughout the United States and abroad, with the venom of illicit drugs,” said U.S. Attorney Fajardo Orshan.  “Today’s verdict is a reminder to all, that our international borders do not protect narco-traffickers and the cartels’ criminal enterprises from federal prosecution.  U.S. Attorney’s Offices across the nation stand united with our domestic and foreign law enforcement partners, as we continue our fight against transnational criminal organizations.”

“The reign of Joaquin Guzman Loera’s crime and violence has come to an end,” said FBI Director Wray.  “As leader of the Sinaloa Cartel, Guzman Loera carried out and directed acts of brazen violence as he oversaw the import and distribution of vast amounts of illegal drugs throughout the United States.  But today, through the steadfast determination and collective efforts of the FBI and our law enforcement partners both domestic and abroad, and due to our continuing partnership with the Government of Mexico, justice has been served.”

“Today’s conviction of Joaquin “El Chapo” Guzman demonstrates the dedication and determination of the men and women of DEA to bring the world’s most dangerous and prolific drug trafficker to justice,” said DEA Acting Administrator Dhillon.  “Those who bring drugs and violence into the United States that destroy lives and communities will not be tolerated, nor evade our reach. The success of this case is a testament to the strength of our relationship with our Mexican counterparts. DEA will continue to pursue justice worldwide and protect Americans.”

“HSI is committed to using our unique border authority to target and dismantle transnational criminal organizations responsible for trafficking narcotics and bringing violence into the United States,” said HSI Executive Associate Director Benner.  “Through collaboration with local, federal and international law enforcement partners, HSI special agents were able to bring an end to Joaquin Guzman Loera’s criminal activities, and help ensure he was brought to justice.”

“The conviction of Joaquin “El Chapo” Guzman demonstrates what is possible when law enforcement works collectively and coordinates their efforts,” said Acting U.S. Marshal Mullee.  “The U.S. Marshals Service ensured the integrity of the judicial process in this case.  From providing safe and secure detention and transportation of the world’s most notorious drug kingpin to ensuring the anonymity of the jury, protecting the judge, attorneys, witnesses and the public, the Marshals Service proudly played its important role in the process.  I would like to express my gratitude to all of our law enforcement partners who worked tirelessly in support of our mission.  They are the talented men and women of the New York City Police Department, Federal Protective Service, 24th Civil Support Team of the New York National Guard, and the Federal Bureau of Prisons.  The U.S. Marshals take our responsibility of protecting the federal judicial process very seriously.  We must anticipate and deter threats, while continuously developing and employing innovative protective tactics.  We carry out these responsibilities with precision every day across the country.  The successful prosecution of Joaquin “El Chapo” Guzman stands as a shining example of our mission.”

When sentenced by Judge Cogan, Guzman Loera faces a mandatory life sentence without the possibility of parole for leading a continuing criminal enterprise, and a sentence of up to life imprisonment on the seven remaining drug counts.  After the verdict, the government will seek a forfeiture money judgment for billions of dollars constituting the cartel’s illegal drug-trafficking proceeds.

The government’s case is being prosecuted by U.S. Department of Justice Trial Attorneys Amanda Liskamm, Anthony Nardozzi, Michael Lang and Brett Reynolds of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Gina Parlovecchio, Andrea Goldbarg, Michael Robotti, Patricia Notopoulos and Hiral Mehta of the Eastern District of New York and Assistant U.S. Attorneys Adam Fels and Lynn Kirkpatrick of the Southern District of Florida.

The case was investigated by the DEA, HSI and the FBI, in cooperation with Mexican, Ecuadorian, Netherlands, Dominican, and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorneys’ Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California and the District of New Hampshire.  The Department of Justice’s Office of International Affairs also played an integral role in securing the extradition of Guzman Loera to the United States, in cooperation with authorities of the Mexican government, without which his extradition and prosecution would not have been possible.  The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising of agents, analysts and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section; DEA New York, DEA Miami, FBI Washington Field Office, FBI New York Field Office, FBI Miami Field Office; HSI New York, HSI Nogales; Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Marshals Service; IRS Criminal Investigation; U.S. Bureau of Prisons, NYPD and New York State Police.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

Two Colombian nationals were sentenced to 45 and 50 years in prison for their roles 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 Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Carlos Emilio Ibarguen Palacios, 27, and Jhoan Stiven Carreazo Asprilla, 23, Colombian nationals, extradited to the United States in 2017 and 2018 respectively, 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.  Ibarguen Palacios and Carreazo Asprilla were sentenced to serve 540 months and 600 months in prison, respectively, by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered them to serve three years of supervised release following their prison sentence.

“The defendants’ carried out a fatal human smuggling trip for which two victims paid the ultimate price,” said U.S. Attorney Fajardo Orshan.  “But for the strength of the surviving victim, the defendants’ brutality would have been washed away at sea.  The significant federal prison sentences imposed against the smugglers cannot bring back life but we hope can serve to thwart the dangerous business of alien smuggling.”

“The heinous acts committed by the defendants in this case provide a stark reminder that alien smuggling is inherently dangerous—and can be deadly,” said Assistant Attorney General Benczkowski.  “But for the desperate escape of one of the victims, the defendants’ acts would have remained hidden with the bodies they left behind.  The substantial prison sentence imposed today against these two smugglers demonstrates the Department of Justice’s continuing commitment to prosecute those who violate this country’s immigration laws.”

“These two individuals were involved in one of the most cold and callous cases investigated by HSI Miami,” said HSI Special Agent in Charge Salisbury.  “Although the sentences will not return the victims to their loved ones, it does bring justice for their friends and family.  HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”

According to the court record, including agreed-upon factual proffers, since 2014, Carlos Emilio Ibarguen Palacios, Jhoan Stiven Carreazo Asprilla, and their co-defendants, 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 co-defendant Fredis Valencia Palacios to a boat captained by Ibarguen Palacios.  After some delay, Ibarguen Palacios was joined by Carreazo Asprilla and they began their journey to Panama.  During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and gun, respectively, on the victims.  Ibarguen Palacios 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 Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her.  The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him.  While his fellow travelers were being murdered, the survivor managed to free himself and escape by swimming away.  Ibarguen Palacios and Carreazo Asprilla 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.  Shortly thereafter, Ibarguen Palacios and Carreazo Asprilla were located and arrested.

Co-defendant Valencia Palacios who assisted in arranging this smuggling event was sentenced to serve 15 years in prison on Dec. 4, 2018 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 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 http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

Two Colombian nationals were sentenced to 45 and 50 years in prison for their roles 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.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Carlos Emilio Ibarguen Palacios, 27, and Jhoan Stiven Carreazo Asprilla, 23, Colombian nationals, extradited to the United States in 2017 and 2018 respectively, 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.  Ibarguen Palacios and Carreazo Asprilla were sentenced to serve 540 months and 600 months in prison, respectively, by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered them to serve three years of supervised release following their prison sentence.

“The heinous acts committed by the defendants in this case provide a stark reminder that alien smuggling is inherently dangerous—and can be deadly,” said Assistant Attorney General Benczkowski.  “But for the desperate escape of one of the victims, the defendants’ acts would have remained hidden with the bodies they left behind.  The substantial prison sentence imposed today against these two smugglers demonstrates the Department of Justice’s continuing commitment to prosecute those who violate this country’s immigration laws.”

“The defendants’ carried out a fatal human smuggling trip for which two victims paid the ultimate price,” said U.S. Attorney Fajardo Orshan.  “But for the strength of the surviving victim, the defendants’ brutality would have been washed away at sea.  The significant federal prison sentences imposed against the smugglers cannot bring back life but we hope can serve to thwart the dangerous business of alien smuggling.”

“These two individuals were involved in one of the most cold and callous cases investigated by HSI Miami,” said HSI Special Agent in Charge Salisbury.  “Although the sentences will not return the victims to their loved ones, it does bring justice for their friends and family.  HSI will continue to aggressively investigate, pursue and shut down these organizations that are involved in this heinous criminal act.”

According to the court record, including agreed-upon factual proffers, since 2014, Carlos Emilio Ibarguen Palacios, Jhoan Stiven Carreazo Asprilla, and their co-defendants, 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 co-defendant Fredis Valencia Palacios to a boat captained by Ibarguen Palacios.  After some delay, Ibarguen Palacios was joined by Carreazo Asprilla and they began their journey to Panama.  During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and gun, respectively, on the victims.  Ibarguen Palacios 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 Ibarguen Palacios and Carreazo Asprilla sexually assault the female victim before cutting her throat and murdering her.  The surviving victim also heard Ibarguen Palacios and Carreazo Asprilla cut the other male victim’s throat, killing him.  While his fellow travelers were being murdered, the survivor managed to free himself and escape by swimming away.  Ibarguen Palacios and Carreazo Asprilla 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.  Shortly thereafter, Ibarguen Palacios and Carreazo Asprilla were located and arrested.

Co-defendant Valencia Palacios who assisted in arranging this smuggling event was sentenced to serve 15 years in prison on Dec. 4, 2018 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. 

Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.

On February 6, 2019, a former Palm Beach County School Police Officer was sentenced federally for filing a false income tax return.

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), Frank Kitzerow, Chief of Police, Palm Beach County School District, made the announcement.

Ronnie Arnest Williams, 57, of West Palm Beach, Florida, previously pled guilty to filing a false personal income tax return for tax year 2017.  As part of his plea, Williams was required to surrender his certificate to be a police officer and resigned as a school police officer.  Williams had held certificates to be a corrections officer since 1985 and a police officer since 1994 and had worked in law enforcement for approximately 32 years.  Williams was sentenced by U.S. District Judge Robin L. Rosenberg to time served and 12 months of supervised release.

According to the court docket, including information presented to the court at the time Williams entered his guilty plea, the defendant contacted a parent of a child at the school where he was employed as a safety officer, to obtain the names of minor children he could claim as dependents on his pending 2017 personal income tax return.  Williams wanted two children’s names and social security numbers to claim as dependents so that his refund for the 2017 tax year would be increased.  Law enforcement was notified of Williams desire to defraud the IRS.

In order to facilitate the investigation, Williams, was provided, by the FBI, with false names and social security numbers that he used when filing his return.  The IRS received the false tax return that claimed a refund of more than $5,000 greater than that which Williams was entitled and promptly rejected the filing as the social security numbers did not match the ages of the children being claimed.  Immediately after the rejection, Williams filed a personal income tax return that did not claim any dependents.

During this tax season, citizens should be aware of the extensive investigative efforts conducted by federal law enforcement agents of the Internal Revenue Service, the FBI and other agencies into the crime of filing false income tax returns.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, IRS-CI and the Palm Beach County School Police Department in this matter.  This case was prosecuted by Assistant U.S. Attorney Ellen L. Cohen.

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.

Two South Florida doctors were arrested on charges related to the unlawful dispensing of opioids.

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, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Ashley B. Moody, Florida Attorney General, made the announcement.

Dr. Victor Hugo Espinosa, 57, of Fort Lauderdale, Florida is charged by criminal complaint with conspiring to unlawfully dispense controlled substances from August 9, 2017 to May 3, 2018. According to the complaint, as the designated physician at East Medical Office Inc., a pain clinic located in Hialeah Florida, Espinosa provided over 1,000 prescriptions for Oxycodone for no legitimate medical purpose in exchange for cash. During his time at East Medical, Espinosa prescribed approximately 119,534 tablets of Oxycodone, which accounted for approximately 99% of all controlled substances he prescribed at East Medical.  Many of the patients to whom Espinosa prescribed Oxycodone were brought to East Medical by patient recruiters, who received and then illegally sold all or a portion of the Oxycodone Espinosa prescribed. 

Dr. Rodolfo Gonzalez-Garcia, 65, of Weston, Florida, is charged by indictment, along with his wife Arlene Gonzalez, 60, of Weston, Florida, Sucett Lopez, 36, of, Hialeah, Florida, Annie Suarez-Gonzalez, 35, of Westmont, Illinois, and Fidel Marrero-Castellanos, 56, of Miami, Florida.  The indictment alleges that between November 2016 and September 2018, Gonzalez-Garcia was the physician provider for West Medical Office, Inc. in Hialeah, Florida.  Marrero-Castellanos and others recruited Medicare and Medicaid beneficiaries as patients to West and paid Gonzalez-Garcia, Gonzalez, Lopez and Suarez-Gonzalez, and others, for Oxycodone and OxyContin prescriptions. 

Each defendant faces a maximum statutory sentence of 20 years’ imprisonment. The defendants had their initial appearance today in Miami, Florida before U.S. Magistrate Judge Edwin G. Torres.   Pre-trial detention hearings have been scheduled, for Dr. Gonzalez-Garcia and Marrero-Castellanos, on February 12, 2019. 

An indictment and a criminal complaint are charging instruments containing allegations.  Every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Today’s enforcement actions were coordinated by the U.S. Attorney’s Office for the Southern District of Florida, the Department of Justice’s Criminal Division Fraud Section’s Health Care Fraud Unit, the FBI, HHS, DEA, USSS and Florida Attorney General’s Medicaid Fraud Control Unit.  They were initiated as part of the Medicare Fraud Strike Force.  The cases are being prosecuted by Assistant U.S. Attorneys Brian J. Shack and Michael Gilfarb.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (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.

Indictment allege series of lies, including failure to disclose membership in the Cuban government’s Department of State Security  

           A Cuban citizen residing in Miami, Florida, was arrested on Feb. 5, by federal agents after being indicted on one count of making false statements in an immigration document.

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 and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement. 

            Saul Santos Ferro, 73, was charged in an indictment alleging that Santos made a number of lies and misrepresentations in his application to register as a permanent resident which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status.  Specifically, the indictment asserts that, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit, and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a high-ranking officer in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades.  Additionally, Santos falsely stated that he never by fraud or willful misrepresentation of a material fact, ever sought to procure, or procured, a visa, other documentation, entry into the United States, or any other immigration benefit.

            “Individuals who make false statements in immigration documents expose themselves to the serious threat of federal prosecution,” said U.S. Attorney Fajardo Orshan.  “Law enforcement in South Florida will continue to work together to prosecute those individuals who knowingly deceive the authorities about their criminal past or foreign ties, in order to fraudulently obtain immigration benefits.”

“Saul Santos Ferro allegedly lied to immigration authorities about his membership in the Cuban government’s internal security force to obtain lawful permanent residence status,” said Assistant Attorney General Benczkowski.  “The Justice Department will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”

“The United States has a lawful system of immigration that is necessary for our country to be a prosperous and orderly nation,” said Special Agent in Charge Piro.  “When the system is circumvented, the FBI and our law enforcement partners have a duty to investigate in order to protect our citizens from lawbreakers who may be hiding amongst us.”  

“The arrest of Saul Santos Ferro should send a clear message that we will not tolerate individuals who purposely deceive the government and violate our immigration laws,” said HSI Special Agent in Charge Salisbury.  “HSI is committed to working with our federal law enforcement partners to ensure that these crimes are properly investigated and prosecuted to the fullest extent of the law.”

Santos Ferro had his initial court appearance today before U.S. Magistrate Judge Edwin G. Torres for the Southern District of Florida, who ordered him released to home confinement with GPS monitoring and a $100,000 bond. 

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

The case is being investigated by the FBI and HSI.  The case is being jointly prosecuted by Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida and Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section.

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

A third individual has been indicted on charges related to the armed robbery of gold bars.

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.

Pedro Santamaria, 56, is charged by indictment with conspiring to commit a Hobbs Act robbery and with conspiring to use and carry a firearm in furtherance of that robbery.  The indictment alleges that Santamaria conspired to commit these crimes with Adalberto Perez and Roberto Cabrera, both of whom previously pled guilty for their involvement in the robbery (Case Nos. 16-Cr-20158-JAL and 16-Cr-20160-KMM). 

According to the court records, including the indictment, Santamaria, Perez and Cabrera caused noxious fumes to fill the cabin of the TransValue, Inc. truck that was transporting gold bars to Massachusetts.  At gunpoint, two robbers removed and bound the TransValue employees.  The robbers then transferred the gold bars to their vehicle and fled.

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

U.S. Attorney Fajardo Orshan commended the FBI for their continued assistance in this matter.  The case is being prosecuted by Assistant U.S. Attorneys Michael Gilfarb and Alejandra Lopez.

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

A Cuban citizen residing in Miami, Florida, was arrested on Feb. 5, by federal agents after being indicted on one count of making false statements in an immigration document.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement. 

Saul Santos Ferro, 73, was charged in an indictment alleging that Santos made a number of lies and misrepresentations in his application to register as a permanent resident which he knowingly presented to U.S. immigration authorities, ultimately obtaining lawful permanent resident status.  Specifically, the indictment asserts that, when he applied to register as a permanent resident, Santos failed to disclose his membership or affiliation with any organization, falsely stated that he never served in or been a member of a police unit, and falsely stated that he never served in any situation that involved detaining persons. In fact, Santos served as a high-ranking officer in the Cuban government’s Department of State Security or Departamento de Seguridad del Estado (DSE) for decades.  Additionally, Santos falsely stated that he never by fraud or willful misrepresentation of a material fact, ever sought to procure, or procured, a visa, other documentation, entry into the United States, or any other immigration benefit.

“Saul Santos Ferro allegedly lied to immigration authorities about his membership in the Cuban government’s internal security force to obtain lawful permanent residence status,” said Assistant Attorney General Benczkowski.  “The Justice Department will continue to aggressively prosecute those who seek to exploit our immigration system through fraud and deceit.”

“Individuals who make false statements in immigration documents expose themselves to the serious threat of federal prosecution,” said U.S. Attorney Fajardo Orshan.  “Law enforcement in South Florida will continue to work together to prosecute those individuals who knowingly deceive the authorities about their criminal past or foreign ties, in order to fraudulently obtain immigration benefits.”

“The United States has a lawful system of immigration that is necessary for our country to be a prosperous and orderly nation,” said Special Agent in Charge Piro.  “When the system is circumvented, the FBI and our law enforcement partners have a duty to investigate in order to protect our citizens from lawbreakers who may be hiding amongst us.”  

“The arrest of Saul Santos Ferro should send a clear message that we will not tolerate individuals who purposely deceive the government and violate our immigration laws,” said HSI Special Agent in Charge Salisbury.  “HSI is committed to working with our federal law enforcement partners to ensure that these crimes are properly investigated and prosecuted to the fullest extent of the law.”

Santos Ferro had his initial court appearance today before U.S. Magistrate Judge Edwin G. Torres for the Southern District of Florida, who ordered him released to home confinement with GPS monitoring and a $100,000 bond. 

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

The case is being investigated by the FBI and HSI.  The case is being jointly prosecuted by Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Daniel Cervantes of the Southern District of Florida.

A Key Biscayne, Florida resident was found guilty yesterday by a federal jury for his role in a $100 million scheme to defraud Westernbank of Puerto Rico (Westernbank); the losses triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.  The defendant was also convicted of a $3 million scheme to defraud Mellon United National Bank of Miami (Mellon Bank). 

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, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Special Agent in Charge Michael J. De Palma of IRS Criminal Investigation (IRS-CI) for Miami and Puerto Rico, Special Agent in Charge Iván J. Arvelo of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Juan and Special Agent in Charge Douglas A. Leff of the FBI’s San Juan, Puerto Rico Field Office made the announcement. 

Jack Kachkar, 55, was convicted of eight counts of wire fraud affecting a financial institution after a three-week trial before U.S. District Judge Donald L. Graham of the Southern District of Florida.  Kachkar is scheduled to be sentenced by Judge Graham on April 30, 2019.  

“Jack Kachkar’s fraud caused substantial harm to the 1,500 employees of Westernbank and the people of Puerto Rico,” said U.S. Attorney Fajardo Orshan. “The U.S. Attorney’s Office remains committed to the prosecution of those individuals and corporations that use Miami and other South Florida communities as their base to operate multinational fraud schemes.”

“Jack Kachkar engineered a massive fraud scheme that led directly to the failure of a major Puerto Rican bank with more than 1,500 employees,” said Assistant Attorney General Benczkowski.  “I want to commend the prosecutors and our law enforcement partners for their tireless work investigating this complex case and holding the defendant to account for these crimes.”

“Today’s verdict holds the defendant accountable for orchestrating fraudulent schemes that resulted in more than $100 million in losses to insured institutions and the FDIC as receiver,” said Inspector General Lerner.  “The FDIC Office of Inspector General remains committed to investigate cases of deception and swindles that undermine the integrity of financial institutions, and we will continue to work with our law enforcement partners to bring to justice those who commit such offenses.”

“IRS Criminal Investigation will always pursue investigations like this where Mr. Kachkar, for his own personal benefit, orchestrated such a large scheme at the expense of one of Puerto Rico’s largest banks and its 1,500 employees,” said IRS-CI Special Agent in Charge De Palma.  “This investigation shows that the appearance of success can be a mask for a tangled financial web of lies, and we are proud to be part of the prosecution team that is bringing Mr. Kachkar to justice.”

“HSI San Juan will continue working with our local, state and federal partners to investigate and prosecute these types of cases as well as those involving violations to the more than 400 federal statutes that we investigate, “ said HSI Special Agent in Charge Arvelo.  “This man was responsible for one of the largest fraud schemes ever recorded in the banking business in Puerto Rico and he will pay the consequences.”

“This defendant’s greed was powerful enough to destroy a bank, taking with it the jobs of approximately 1,500 hard working citizens of Puerto Rico,” said FBI Special Agent in Charge Leff.  “The FBI thanks the US Attorney’s Office for sending an equally strong message that most fraud schemes will eventually lead to a prison cell.”

According to evidence presented at trial, from 2005 to 2007, Kachkar served as chairman and CEO of Inyx Inc., a publicly traded multinational pharmaceutical manufacturing company.  Beginning in early 2005, Kachkar caused Westernbank to enter into a series of loan agreements in exchange for a security interest in the assets of Inyx and its subsidiaries.  Under the loan agreements, Westernbank agreed to advance money based on Inyx’s customer invoices from “actual and bona fide” sales to Inyx customers, the evidence showed. 

The trial evidence showed that Kachkar orchestrated a scheme to defraud Westernbank by causing numerous Inyx employees to make tens of millions of dollars worth of fake customer invoices purportedly payable by customers in the United Kingdom, Sweden and elsewhere.  Kachkar caused these invoices to be presented to Westernbank as valid invoices.   Kachkar made false and fraudulent representations to Westernbank executives about purported and imminent repayments from lenders in the United Kingdom, Norway, Libya and elsewhere in order to lull Westernbank into continuing to lend money to Inyx, the evidence showed.  In fact, these lenders had not agreed to repay Westernbank’s loan.  Kachkar made false and fraudulent representations to Westernbank executives that he had additional collateral, including purported mines in Mexico and Canada worth hundreds of millions of dollars, to induce Westernbank to lend additional funds, the evidence showed.  In fact, this additional collateral was worth barely a fraction of that represented by Kachkar.

During the course of the scheme, Kachkar caused Westernbank to lend approximately $142 million, primarily based on false and fraudulent customer invoices.  The evidence showed that the defendant diverted tens of millions of dollars for his own personal benefit, including for the purchase of, among other things, a private jet, luxury homes in Key Biscayne and Brickell, Miami, luxury cars, luxury hotel stays, and extravagant jewelry and clothing expenditures. 

In or around June 2007, Westernbank declared the loan in default and ultimately suffered losses exceeding $100 million on the Inyx loans.  According to trial evidence, these losses later triggered a series of events leading to Westernbank’s insolvency and ultimate collapse.  At the time of its collapse, Westernbank had approximately 1,500 employees and was one of the largest banks in Puerto Rico.

In addition, the evidence showed, Kachkar knowingly deposited a $3 million check at Mellon Bank from the purported sale of his private jet.  At the time of its deposit, based on the evidence presented, Kachkar knew that the check was worthless.  In fact, the defendant agreed to sell his plane to a different buyer.   After receiving a provisional credit for the check from Mellon Bank, the defendant wired out all of the provisional credit, including a $1 million wire to Kachkar’s personal account in Canada.  Upon Mellon Bank’s request to reverse this $1 million wire, Kachkar refused to do so, resulting in at least a $1 million loss to Mellon Bank, the evidence showed. 

This matter was investigated by the FDIC-OIG, IRS-CI, HSI and FBI.  The Department of Justice’s Office of International Affairs provided significant support in the investigation.  The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger of the Southern District of Florida and Trial Attorney Michael O’Neill of the Criminal Division’s Fraud 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.

Dr. Jeanne E. Germeil, 55, of Aventura, Florida was convicted by a federal jury, on January 31, 2019, of eleven counts of dispensing controlled substances, opioid pain medications, without a legitimate medical purpose.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division made the announcement.

“Physicians, such as Dr. Jeanne Germeil, who dispense pain medications without a legitimate medical purpose fuel the opioid epidemic,” stated U.S. Attorney Fajardo Orshan.  “The U.S. Attorney’s Office and our law enforcement partners will continue to prosecute those medical professionals who seek to profit off of a public health crisis.”

“Dr. Germeil’s conviction clearly illustrates the consequences of what could happen when medical professionals misuse their authority and dispense narcotics illegally,” said DEA Special Agent in Charge Adolphus P. Wright.  “The DEA remains committed to working with our law enforcement partners to rid our communities of these rogue medical professionals who have violated the trust of many.”

According to evidence admitted at trial, Dr. Germeil ran Germeil Medical, Inc., a family medicine and pain management clinic, in North Miami Beach, Florida. Beginning in or around March 2016 and continuing through November 2017, Dr. Germeil prescribed controlled opioid pain medication to patients.  The true and intended purpose of the consultations was to improperly issue prescriptions to patients for opioids, such as Hydromorphone, Oxycodone, and Oxycodone-Acetaminophen, in exchange for cash, cash co-pays, and other payments.  Pursuant to Dr. Germeil’s instructions, office staff were required to obtain an MRI from patients to create a façade of legitimacy before an office consult.  After passing the gate-keeping function, Dr. Germeil prescribed opioids at levels consistent with treating end of life, cancer, and terminally ill patients and maintained those prescription levels throughout the duration of the patient visits.

Between February 1, 2016 and September 26, 2017, Dr. Germeil wrote 13,759 prescriptions to patients for 1,458,727 units of Hydromorphone, Oxycodone, and/or Oxycodone-Acetaminophen. Dr. Germeil was not providing a medically meaningful consultation but was in fact acting outside the scope of her professional practice and without legitimate medical purpose.  

Dr. Germeil is scheduled to be sentenced by U.S. District Judge Ursula M. Ungaro on April 9, at 2:00 p.m. in Miami.

U.S. Attorney Fajardo Orshan commended the investigation conducted by the DEA and the Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, Miami Gardens Police Department, North Miami Beach Department and Florida Department of Health’s Prescription Drug Monitoring Program, E-FORCSE.  This case is being prosecuted by Assistant U.S. Attorneys Andy R. Camacho and Kurt Lunkenheimer of the Southern District of Florida. 

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

A People’s Republic of China (PRC) foreign national was sentenced to prison today for illegal photography of the U.S. Naval Air Station Key West, Joint Interagency Task Force, South (JIATF-South).

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. 

Zhao Qianli, 21, of Shanxi, PRC was sentenced today to the statutory maximum term of 12 months in prison, to be followed by 1 year of supervised release, by Chief U.S. District Judge K. Michael Moore, after previously pleading guilty to one count of photographing defense installations (Case No. 18-10035-CR).

According to the court record, in September 2018, Zhao Qianli was apprehended after illegally entering JIATF-South.  At the time of his arrest, Zhao Qianli was observed taking photographs of JIATF-South and associated military hardware.  A search warrant of Zhao Qianli’s cellular telephone and digital camera revealed multiple photographs and video footage of the Key West military installation. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF).  The case was prosecuted by Assistant U.S. Attorney Michael R. Sherwin.

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

A St. Lucie County resident was sentenced in federal court, on January 28, 2019, for falsely claiming to be a veteran of the U.S. Armed Forces, in order to apply for employment and obtain free medical services.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, David Spilker, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VAOIG CID), Southeast Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.

On November 9, 2018, Edward Louis Liroff, 47, of St. Lucie County, pled guilty to theft of government property and making false claims of military accomplishments (Case No. 18-14049-CR). U.S. District Judge Robin L. Rosenberg sentenced Liroff to four years’ probation and ordered him to pay over $4,000 in restitution.

According to the court record, including an agreed upon factual proffer, in March of 2018, Liroff submitted two job applications with the city of Port St. Lucie, claiming to be a decorated military combat veteran, in order to obtain veteran’s preference in hiring.  As proof of his veteran’s status, Liroff presented a fraudulent and forged DD Form 214 “Certificate of Release and Discharge From Active Duty,” which is the document the U.S. Department of Defense issues upon a military service member's retirement, separation, or discharge from active duty in the U.S. Armed Forces.  Liroff supplemented his application with a resume, claiming to be a highly decorated retired U.S. Army Ranger, Combat Medic and Recruiter, holding a top-secret security clearance.

In addition, in January of 2013, Liroff used the same fraudulent DD Form 214 and claimed, to the U.S. Department of Veteran Affairs, that he was awarded numerous Army medals, including two Purple Hearts, the Silver Star, the Bronze Star, Legion of Merit, and an Air Medal for Valor.  As a result of his false representation of being a Purple Heart recipient, Liroff received free health care benefits from the VA, in excess of $4,000, including prescriptions, outpatient and inpatient services. A Purple Heart recipient receives medical treatment priority, and is never responsible for a copay for medical treatment. 

In truth and fact, Liroff never served in the U.S. military.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the VAOIG-CID and the Port St. Lucie Police Department in this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

A Miami resident was sentenced today to a total of thirteen years in federal prison for robbing a Miami Shores TD Bank Branch at gunpoint and discharging the firearm during the course of the robbery.

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.

Following a one-week jury trial, on September 21, 2018, Joudanorve Lafleur, 24, of Miami, Florida, was convicted of armed bank robbery, and brandishing and discharging a firearm in furtherance of the armed robbery.  U.S. District Judge Jose E. Martinez sentenced Lafleur to a total of 161 months in prison, to be followed by 5 years of supervised release and was ordered to pay $3,000 in restitution.  

According to the evidence presented at trial, at approximately 9:20 a.m. on April 20, 2018, Lafleur, wearing a black ski mask, black hoodie, and pants, robbed two bank tellers and one bank customer at gunpoint.  After demanding “all of the hundreds” from his victims repeatedly, Lafleur fired a bullet into the ceiling of the bank.  Then, he fled, with more than $2,000. 

The FBI tracked Lafleur to his residence within an hour of the robbery, and after a search of Lafleur’s home, investigators recovered Lafleur’s disguise (mask and hoodie); the stolen money; and the firearm used in the robbery, among other items.  Evidence at trial also showed that Lafleur robbed one of his elderly neighbors, stealing his clothes in the minutes before law enforcement arrived, in an attempt to distance himself from the crime and change his appearance.  The evidence against Lafleur presented at trial included witness testimony, bank surveillance video, DNA expert testimony, cellular telephone analysis, and other evidence.  The jury found Lafleur guilty of all counts of the Indictment.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI.  This case was prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Jessica K. Obenauf. 

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

A Lantana resident was sentenced yesterday to more twenty-one years in prison for distributing heroin and fentanyl and possessing a firearm in furtherance of drug trafficking.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Adolphus P.  Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Sean Scheller, Chief, Lantana Police Department, and Dave Aronberg, State Attorney, Palm Beach County State Attorney made the announcement.

Kerry Maurice McCray, 41, of Palm Beach County, was sentenced by U.S. District Judge Robin L. Rosenberg to a total of 262 months in prison, to be followed by 5 years of supervised release, after previously pleading guilty to two counts of possession with intent to distribute heroin and fentanyl, and one count of knowingly possessing a firearm in furtherance of drug trafficking (Case No. 18-80159-CR).

Following a number of undercover purchases of heroin from McCray, law enforcement obtained search warrants for his vehicles, cell phones, and motel room.  As officers approached McCray’s motel room he fled, tossing items from his person and refusing to obey their lawful orders to stop.  He was eventually apprehended and taken into custody.  Several pieces of crack cocaine were discovered around McCray’s person, along with three cell phones.  Additionally, officers found a baggie containing heroin and fentanyl that had fallen from McCray, when he was fleeing the police.  The search of McCray’s motel room revealed additional pre-packaged heroin, marijuana, a scale, a cutting agent, a Ruger 9mm handgun and two magazines containing ammunition. 

Based upon an analysis of telephone records and two victim reports, McCray was connected to eight non-fatal overdoses of narcotics.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and Lantana Police Department.  She thanked the Palm Beach County State Attorney’s Office for their assistance in this matter.  This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci and Special Assistant U.S. Attorney John Parnofiello.

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

 

A Fort Pierce resident was sentenced to prison yesterday for making ISIS related threats.

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. 

Charlton Edward LaChase, 28, of Fort Pierce, Florida, was sentenced yesterday to 18 months in prison, to be followed by three years of supervised release, by U.S. District Judge Robin Rosenberg, after previously pleading guilty to two counts of transmitting threats through interstate or foreign commerce (Case No. 18-24011-CR).

According to the court record, LaChase sent text messages professing his support for ISIS and threatening to kill several people while committing acts of terrorism and mass murder.  A search warrant for LaChase’s Facebook account revealed several attempts by LaChase to purchase firearms, as well as threats to commit mass murder, threats to kill politicians, and statements of support for ISIS.  

LaChase received an enhancement at sentencing for obstruction of justice because he disposed of the cellphone he used to send the text messages, shortly after becoming aware that he was under investigation by the FBI.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and the South Florida Joint Terrorism Task Force (JTTF).  The case was prosecuted by Assistant United States Attorneys Rolando Garcia and Michael Porter. 

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

Five residents of Miami were sentenced to federal prison for their participation in a tax fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.

Jamal Dyer, 32, of Miami, was sentenced to 28 months in prison, to be followed by 3 years of supervised release.  Jorge Alfonso Osorio Rodriguez, 35, of Miami, was sentenced to 28 months in prison, to be followed by 3 years of supervised release.  Tramaine Das Sealy, 34, of Miami, was sentenced to 14 months in prison, to be followed by 3 years of supervised release.  Jonathan Charles Edwards, 33, of Miami, was sentenced to 12 months in prison, to be followed by 3 years of supervised release.  The final defendant, Daniel Alvaro Murias, 28, of Miami, was sentenced today to 14 months in prison, to be followed by one year of supervised release. Dyer, Osorio, Das Sealy, and Edwards previously pled guilty to one count of conspiracy to aid and assist the preparation of false tax returns, in violation of Title 18, United States Code, Section 371, and Murias previously pled guilty to one count of aiding and assisting the preparation of a false tax return, in violation of Title 26, United States Code, Section 7206(2) (Case No. 18-20581-CR-SCOLA).

According to the court docket, including the agreed upon factual proffer, from February of 2015 through May of 2017, the defendants operated a tax preparation business called “The Tax Firm Miami” in Miami, Florida.  While operating out of The Tax Firm Miami, all five defendants knowingly and willfully submitted thousands of false statements and claims on their clients’ tax returns, including false claims to the Education Credit, the American Opportunity Credit, and the Residential Energy Credit, resulting in a greater tax refund being paid from the IRS to their clients, or a lesser tax liability owed by their clients to the IRS.  Collectively, through the submission of tax returns claiming these false credits, the defendants stole more than $12 million on behalf of themselves and their clients.

U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI in this matter.   Assistant U.S. Attorney Daniel J. Marcet prosecuted this 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.

Eugene Hilton Russell, 51, of Miami-Dade County, was sentenced today by U.S. District Judge to Jose E. Martinez to 300 months in prison for trafficking in cocaine.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, U.S. Coast Guard (USCG), 7th District, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office made the announcement.

On November 28, 2018, Russell was convicted by a trial jury of importation, and possession with the intent to distribute, five kilograms or more of cocaine (Case No. 18-20518-CR).  The sentence imposed for the cocaine trafficking offenses of conviction will run consecutively to a 37-month term of imprisonment imposed by U.S. District Judge Patricia A. Seitz for the defendant’s violation of supervised release (Case No. 07-20338-CR).  

The evidence presented at trial showed that, on the morning of June 2, 2018, Russell travelled from Miami to Bahamian waters, just off the coast of Bimini.  There he met up with another boat for refueling.  When he left the area, the defendant had a cooler in the back of the boat.  Inside the cooler, there were a load of fish, some bottled water, and some Gatorade.  There was one fishing pole on the boat, but it was unrigged and had no hook.  All that was designed to cover up the 12 bricks of cocaine hidden in the walls of the cooler.

When Russell’s boat entered U.S. territorial waters, CBP attempted an interception.  As the CBP marine boats approached, the defendant abruptly changed course and sped away.  The CBP boats gave chase. They soon caught up with Russell and were able to stop his boat. Upon  inspection of Russell’s boat, CBP agents discovered the concealed cocaine (with an approximate street value of over $300,000 U.S. dollars). 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the ICE-HSI, CBP, USCG, and DEA in this matter.  She thanked the Miami-Dade Police Department for their assistance.  This case was prosecuted by Assistant U.S. Attorneys Arimentha Walkins and Brooke Watson.

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

On January 17, 2019, a Monroe County, Florida tax return preparer pleaded guilty to two counts of filing fraudulent tax returns with the Internal Revenue Service.

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.

According to documents filed with the court, Pedro C. Rodriguez, 51, of Marathon, owned and operated the JC Mar Tax Services tax preparation business in Marathon, Florida. From approximately 2007 through 2017, Rodriguez filed fraudulent returns for his clients seeking refunds to which the clients were not entitled by reporting fictitious itemized deductions and fraudulent education and residential energy credits.  For each of the years 2013 through 2017, Rodriguez submitted between 1,900 and 2,200 tax returns on behalf of his clients.  Rodriguez’s submission of false tax returns caused multi-million dollar losses to the IRS.  A final calculation of the loss amount will be made at sentencing. 

Sentencing is scheduled for April 1, 2019 at 9:00 a.m. before Chief Judge K. Michael Moore, in Key West (Case No. 18-10024-CR).  Rodriguez faces a statutory maximum sentence of three years in prison on each false return count. The defendant also faces a period of supervised release, restitution and monetary penalties.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and IRS-CI in this matter.   Assistant U.S. Attorney Daniel J. Marcet is prosecuting the case.

Information about how the public can protect themselves from tax fraud and report criminal practices may be found at https://www.irs.gov/compliance/criminal-investigation/tax-fraud-alerts.

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

A former West Palm Beach, Florida resident who was extradited to the United States from the Dominican Republic was sentenced to 65 months in prison today for 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 earlier 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.  De la Cruz also pleaded guilty to one count of wire fraud and one count of aggravated identity theft.  He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida.

            According to the plea agreement, De le 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 be sentenced 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 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.  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.

A former West Palm Beach, Florida resident who was extradited to the United States from the Dominican Republic was sentenced to 65 months in prison today for 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.

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

Braulio De la Cruz Vasquez, 54, pleaded guilty earlier 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.  De la Cruz also pleaded guilty to one count of wire fraud and one count of aggravated identity theft.  He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida.

According to the plea agreement, De le 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 be sentenced 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 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.  Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.

A West Palm Beach resident was convicted by a federal jury today of participating in a heroin trafficking conspiracy.

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.

Balmy Lincoln Joseph, 24, of West Palm Beach, was convicted of conspiracy to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, possession with intent to distribute one kilogram or more of a mixture and substance containing a detectable amount of heroin, possession with intent to distribute a mixture and substance containing fentanyl, and possession with intent to distribute a mixture and substance containing heroin (Case No. 18-CR-80153).  Joseph is scheduled to be sentenced by U.S. District Judge William P. Dimitrouleas on March 21, 2019 at 1:15 p.m. in Fort Lauderdale. 

According to the court records, including evidence introduced at trial, on July 18, 2018, a search warrant was executed by PBSO personnel at Joseph’s residence in West Palm Beach.  The investigation revealed that Joseph had rented his apartment using a stolen identity.  During the course of the search, law enforcement discovered 14 grams of fentanyl and 59 grams of heroin in the pockets of a jacket hanging in Joseph’s closet.  In Joseph’s bathroom, officers discovered empty capsules, a cutting agent, and a scale associated with heroin trafficking.  Joseph shared the residence with his co-defendant, Delson Marc.  In Marc’s room, which was open and accessible to Joseph, law enforcement found a garage door clicker and keys that opened a locked garage freezer.  Law enforcement executed a second search warrant in the detached garage and found 7.1 kilograms of heroin in the freezer, with an estimated street value of 1.4 million dollars.   Ketamine and fentanyl were also found in the freezer.

Marc previously pled guilty to participating in the conspiracy and is scheduled to be sentenced on January 15, 2019 by Judge Dimitrouleas. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the DEA and PBSO in this matter. This case is being prosecuted by Assistant U.S. Attorney Rinku Tribuiani and Special Assistant U.S. Attorney John Parnofiello.  

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.

The former National Director of Anti-Corruption in Colombia and a foreign attorney were sentenced to prison today in federal court in Miami for their participation in a conspiracy to launder money with the intent to promote foreign bribery.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.

Luis Gustavo Moreno Rivera, 37, the former National Director of Anti-Corruption in Colombia and Leonardo Luis Pinilla Gomez, 32, an attorney practicing in Colombia, each previously pled guilty to conspiracy to launder money in order to promote foreign bribery.  U.S. District Judge Ursula Ungaro sentenced Moreno to 48 months and Pinilla to 24 months. 

According to the court docket, including the agreed upon factual proffers, beginning in November 2016, in Colombia, a cooperating source of information (CS) was approached by Moreno and Pinilla who attempted to entice a bribe from the CS.  Specifically, in exchange for 100 million Colombian pesos (the equivalent of approximately $34,500 US), Moreno and Pinilla offered to give the CS copies of sworn statements taken from cooperators who had testified against the CS.  In June 2017, Moreno and Pinilla traveled to Miami, Florida and met with the CS who, under the direction of the DEA, provided Moreno and Pinilla with a $10,000 deposit of the bribe money.  Recorded conversations revealed that Moreno and Pinilla discussed Moreno’s ability to control the investigation into the CS and that Moreno could inundate his prosecutors with work so that they would be unable to focus on the CS’s investigation.  In exchange, Moreno and Pinilla were asking for a 400 million Colombian peso payment (the equivalent of approximately $132,000 US), with an additional $30,000 to be paid prior to Moreno leaving the United States.

Several of the $100 bills, from the $10,000 paid to Moreno and Pinilla, were found on Moreno and his traveling companion as they boarded their flight back to Bogota, Colombia from Miami. Both Moreno and Pinilla were arrested in Colombia pursuant to an Interpol Red Notice.

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.

U.S. Attorney Fajardo Orshan commends the DEA for their investigative assistance with this case.  She also thanked the Criminal Division’s Office of International Affairs and Office of Judicial Attache in Colombia along with the DEA Bogota Country Office; the Internal Revenue Service, Criminal Investigations (IRS-CI), Miami Field Office and Attache Office in Colombia; U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office and Attache Office in Colombia; U.S. Customs and Border Protection, Miami Office of Field Operations; and Federal Bureau of Investigation (FBI), Legal Attache Office in Colombia, for their assistance in this matter. Assistant U.S. Attorneys Juan Antonio Gonzalez and Lynn M. Kirkpatrick of the International Narcotics and Money Laundering Section in the Southern District of Florida prosecuted the case.

The U.S. Attorney’s Office and our federal partners commend the Attorney General of Colombia and the Cuerpo Tecnico de Investigacion (CTI) for their cooperative efforts in this investigation.

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

On 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.

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.

 

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.   

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.

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.

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.

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.

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.