Southern District of Florida

On November 20, 2018, Jason Ford, a former teaching assistant and travel softball coach, pled guilty in South Florida to attempting to produce child pornography.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Miami, Florida Field Office, Charles P. Spencer,  Special Agent in Charge of the FBI Jacksonville, Florida Field Office, James E. Jewell, Special Agent in Charge of the FBI Mobile, Alabama Field Office, and Alphonso Norris, Special Agent in Charge of the FBI Columbia, South Carolina Field Office made the announcement.

Ford, 42, of Dothan, Alabama, is scheduled to be sentenced by U.S. District Judge Beth Bloom on February 1, 2019, in Fort Lauderdale, Florida (Case No. 18-cr-60117).  He faces a mandatory minimum sentence of 15 years in prison.

According to the court docket, including the agreed upon factual proffer Ford was a teaching assistant and travel softball coach, working out of Dothan, Alabama.   However, Ford falsely represented himself to be a University of North Florida and University of South Carolina softball coach, in order to have contact with female high school softball players.  Ford engaged in a calculated scheme to gain the trust of minor females who aspired to earn college athletic scholarships.  Ford engaged in inappropriate conversations with teen softball players in Florida, Alabama and Tennessee. Ultimately, Ford made contact online with an undercover agent he believed to be a 15-year-old female softball player. Ford was arrested after he sent the teen (who in fact was an undercover agent) currency for a sexually explicit video.         

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami, Florida; Jacksonville, Florida; Mobile, Alabama; and Columbia, South Carolina Field Offices in this matter.  She also thanked the Dothan Police Department for their assistance.  The case is being prosecuted by Special Assistant U.S. Attorney M. Catherine Koontz.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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

Merkourios Alexopoulos, 46, and Sabrina Schnekker, 32, of Miami Beach, were arrested on an indictment charging them with conspiracy to commit wire fraud and wire fraud in connection with a fraudulent online car sales website.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office and Daniel Oates, Chief, Miami Beach Police Department (MBPD) made the announcement. 

According to the allegations contained in the indictment, from in or around August 2013, through May 2018, Alexopoulos and Schnekker operated Salvageworldauctions.com as an online retailer purporting to sell salvaged vehicles.  Potential buyers would pay a $500 entrance fee to bid on the vehicles purportedly for sale. 

Once a bid was accepted, Alexopoulos would allegedly discuss the final terms for the payment and delivery of the vehicles with the individual purchasers and instructed the victims to send the purchase monies via wire transfer or money orders to the various bank accounts controlled by Alexopoulos and Schnekker and maintained at City National Bank, Citi Bank, PNC Bank, Wells Fargo, Regions Bank, BB&T, Suntrust Bank, and Chase Bank, among others.  After the victims transferred the purchase monies to the bank accounts controlled by Alexopoulos and Schnekker, the conspirators would use those monies to pay their personal expenses and to further the fraudulent scheme.  

The indictment further alleges that Alexopoulos and Schnekker never delivered, nor did the victims receive, the vehicles ordered and paid for by the victim purchasers from Alexopoulos and Schnekker through Salvageworldauctions.com.  In total, the investigation has revealed approximately 51 victims, with an approximately loss amount of $1.2 million. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the USSS and MBPD.  This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.

An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

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

On November 16, 2018, Peter Vincent Cruz, a resident of Washington State and Alaska, pleaded guilty to money laundering charges, stemming from his decision to launder hundreds of thousands of dollars in fraud proceeds from online romance and business email compromise (“BEC”) scams, announced U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Special Agent George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office.

According to documents filed with the court, from approximately June 2016 through June 2018, in Broward County, Florida, and elsewhere, Cruz knowingly and willfully agreed to participate in, and did participate in, a conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).  The purpose of the conspiracy was for Cruz and his co-conspirators to unlawfully enrich themselves, to hide illegal proceeds, and to further wire fraud schemes by, among other things, withdrawing, depositing, and transferring fraudulently obtained funds between federally insured credit unions, federally insured banks, and individuals, and converting the fraudulently obtained funds to cash and cryptocurrency.  Cruz laundered proceeds from BEC and romance scams. 

According to court documents, Cruz’s co-conspirators in Nigeria and elsewhere contacted businesses (the “business victims”) located throughout the United States, using email, social media, and other Internet-based methods of communication, and falsely and fraudulently posed as vendors seeking payment for services rendered, in order to facilitate the BEC scam.  The co-conspirators, posing as vendors, used spoofed emails and email account takeover techniques to send emails falsely and fraudulently directing the business victims to make payments to various bank accounts, through wire transfers, in purported satisfaction of invoices due to the actual vendors. 

The court docket further indicates that Cruz’s co-conspirators also used stolen and false identification information to create online personas, utilizing online dating applications, email, social media, and other forms of communication, in order to facilitate romance scams.  The co-conspirators then pursued false and fraudulent relationships online with individual victims (the “romance scam victims” or “individual victims”), and tricked these victims into falling in love with them.  Eventually, the co-conspirators would persuade these individuals to open bank accounts and shell companies; to conduct financial transactions (cash withdrawals or transfers) under false pretenses, such as to purportedly aid with medical bills or business expenses; and to send money from the victims’ personal savings, or in the form of iTunes gift cards. 

At times, Cruz’s co-conspirators directed fraudulently obtained funds from the business victims into accounts established by the romance scam victims.  They then directed the romance scam victims to wire the fraud proceeds on to accounts controlled by other co-conspirators, such as the defendant, Cruz.  One of these victims resided in Broward County, Florida.

According to the court record, Cruz’s role in the laundering conspiracy was to convert fraud proceeds from the cyber and romance scams via wire, in United States dollars, into cryptocurrency.  Cruz then provided the cryptocurrency to his co-conspirators via email, and in doing so, Cruz assisted them in further concealing their true identities, and their role in the underlying fraud schemes.  Cruz met, and routinely communicated with, his co-conspirators via e-mail, over the dark web, and through online cryptocurrency exchange forums.  Indeed, Cruz regularly received funds from multiple anonymous sources, and regularly sent cryptocurrency payments to anonymous counterparties. 

Cruz is scheduled to be sentenced on January 25, 2018 before U.S. District Judge William P. Dimitrouleas.  He faces a statutory maximum sentence of twenty years in prison.  He also faces a period of supervised release of up to three years, restitution and monetary penalties. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the FBI, FBI Miami’s Cyber Task Force and USSS in this matter. This case is being prosecuted by Assistant U.S. Attorney Lisa H. Miller.

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

A Venezuelan billionaire who owns Globovision news network was charged in an indictment unsealed yesterday for his role in a billion-dollar currency exchange and money laundering scheme.  A former Venezuelan national treasurer and a former owner of Banco Peravia bank in the Dominican Republic each pleaded guilty in proceedings unsealed today for their roles in the scheme.

U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, Special Agent in Charge Mark B. Dawson of HSI Houston Field Office, Special Agent in Charge Peter C. Fitzhugh of HSI Boston Field Office, Special Agent in Charge George L. Piro of the FBI Miami Field Office and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation’s (FDIC) Washington, D.C. Office made the announcement.

Raul Gorrin Belisario (Gorrin), 50, a Venezuelan citizen with a residence in Miami, Florida, was charged in an indictment filed on Aug. 16, 2017 in the Southern District of Florida with one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of conspiracy to commit money laundering and nine counts of money laundering.  The case has been assigned to U.S. District Judge William P. Dimitrouleas of the Southern District of Florida.  Alejandro Andrade Cedeno (Andrade), 54, a Venezuelan citizen residing in Wellington, Florida and a former Venezuelan national treasurer, pleaded guilty under seal on Dec. 22, 2017 before U.S. District Judge Robin L. Rosenberg of the Southern District of Florida to one count of conspiracy to commit money laundering.  Gabriel Arturo Jimenez Aray (Jimenez), 50, a Venezuelan citizen residing in Chicago, Illinois and former owner of Banco Peravia bank, pleaded guilty under seal on March 20, 2018 in the Southern District of Florida before Judge Rosenberg to one count of conspiracy to commit money laundering.  Charges against Andrade and Jimenez were unsealed today. 

The indictment alleges that Gorrin paid millions of dollars in bribes to two high-level Venezuelan officials, including Andrade, to secure the rights to conduct foreign currency exchange transactions at favorable rates for the Venezuelan government.  In addition to wiring money to and for the officials, Gorrin allegedly purchased and paid expenses for them related to private jets, yachts, homes, champion horses, high-end watches and a fashion line.  To conceal the bribe payments, Gorrin made payments through multiple shell companies.  Gorrin allegedly partnered with Jimenez to acquire Banco Peravia, a bank in the Dominican Republic, to launder bribes paid to Venezuelan officials and proceeds of the scheme. 

As part of his guilty plea, Andrade admitted that he received over $1 billion in bribes from Gorrin and other co-conspirators in exchange for using his position as Venezuelan national treasurer to select them to conduct currency exchange transactions for the Venezuelan government.  As part of his plea agreement, Andrade agreed to a forfeiture money judgment of $1 billion and forfeiture of all assets involved in the corrupt scheme, including real estate, vehicles, horses, watches, aircraft and bank accounts.  His sentencing is scheduled for Nov. 27.

As part of his guilty plea, Jimenez admitted that, as part of the scheme, he conspired with Gorrin and others to acquire Banco Peravia, through which he helped launder bribe money and scheme proceeds.  His sentencing is scheduled for Nov. 29.

HSI Miami, HSI Houston, HSI Boston, FBI Miami, and the FDIC D.C. investigated this case.  This case is being prosecuted by Assistant U.S. Attorneys Michael B. Nadler and Nalina Sombuntham of the Southern District of Florida’s Criminal Division and Trial Attorneys Vanessa Sisti Snyder, Paul A. Hayden and John-Alex Romano of the Criminal Division’s Fraud Section.  The Criminal Division’s Office of International Affairs provided significant assistance in this matter.  The Policía Nacional (Spanish National Police) also provided significant assistance. 

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

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

A South Florida doctor residing in Hobe Sound, Florida, pleaded guilty today to tax evasion, wire fraud, and Social Security disability fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida.

According to court documents and information provided to the court, Arthur John Kranz was a doctor specializing in psychiatry.  Beginning in 2002, Kranz made a claim on his private disability policy that he was unable to work, and began receiving disability payments from his insurance company.  In December 2003, Kranz submitted an application to the Social Security Administration (SSA) for disability benefits, which was later approved. Kranz then began receiving SSA disability payments in addition to the private disability insurance payments.  Kranz was required to notify his insurance company and the SSA if he returned to work.

From January 2006 to March 2013, Kranz worked as a psychiatrist at a hospital in Pennsylvania and earned over $1.6 million in income.  Kranz did not report his employment to either the SSA or his insurance company.  Rather, in order to continue collecting disability benefits, Kranz took steps to conceal his income from the insurance company, the SSA, and the Internal Revenue Service (IRS). He directed that his income be paid to nominee individuals and corporations.  Kranz also filed false personal tax returns that did not report the income from his work as a psychiatrist.  

Kranz also submitted fraudulent documentation to his insurance company that falsely stated that he was not working. 

Sentencing is scheduled for February 6, 2019.  Kranz faces a maximum sentence of five years in prison for tax evasion, 20 years in prison for wire fraud, and five years in prison for Social Security fraud.  Kranz also faces a period of supervised release, restitution of $451,026 to SSA, $341,032 to his insurance company, and an amount to the IRS to be determined by the court, as well as monetary penalties. 

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation and the SSA Office of Inspector General, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr., Michael C. Boteler, and Terri-Lei O’Malley of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

A Brooklyn, New York resident was convicted at trial yesterday in South Florida of enticing a minor to produce child pornography while he was a registered sex offender.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

Dondell Cyrus Davidson, 51, of Brooklyn, New York, was convicted at trial of producing material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections2251(a) and (e), and while being required to register as a sex offender, he committed a felony offense involving a minor, in violation of Title 18, United States Code, Section 2260A.  Davidson is scheduled to be sentenced on February 8, 2019, by U.S. District Judge Kenneth A. Mara.  Davidson faces a total statutory minimum sentence of 35 years in prison.

According to court records, between on or about July 24, 2016, and August 1, 2016, Davidson, while living in Brooklyn, engaged in an online sexual relationship with an 11 year-old minor victim who resided in the Southern District of Florida.  Davidson exchanged sexually explicit photographs, videos, and chat communications with the minor victim through the use of online social media applications.  During his communications with the minor victim, the defendant used a fake online identity in which he represented himself to be someone much younger.  

At the time of the criminal acts Davidson was required by federal or other law to register as a sex offender.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

U.S. Attorney Fajardo Orshan commended the investigation efforts of ICE-HSI in Miami and New York in this matter.  She also thanked the Port St. Lucie Police Department, New York City Police Department, and St. Lucie County Sheriff’s Office for their assistance.  This case is being prosecuted by Assistant United States Attorneys Daniel Funk and Marton Gyires.

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

Dante Starks, an influential figure in Opa Locka and close associate of former City Commissioner Luis Santiago, was sentenced today to five years in prison by U.S. District Judge Jose E. Martinez for his participation in the long-running Opa Locka municipal corruption conspiracy and his failure to file federal income tax returns. 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Starks pled guilty on June 25, 2018, to a two-count Superseding Information.  Specifically, Starks pled guilty to conspiring to commit extortion under color of official right and federal programs bribery, in violation of Title 18, United States Code, Sections 371, 1951(a) and 666(a)(1)(B), and to failing to file his 2015 federal income tax return, in violation of Title 26, United States Code, Section 7203 (18-20313-CR-MARTINEZ).  Judge Martinez sentenced Starks to 60 months in prison, to be followed by 3 years of supervised release.  Starks was also ordered to forfeit $45,700 to the United States, to pay restitution to the victims of the corruption scheme and to pay $39,416 in restitution to the IRS for unpaid taxes.  A victim restitution hearing has been scheduled for December 14, 2018, before Judge Martinez. 

“Today, a significant participant in the long-running Opa Locka municipal corruption conspiracy was held accountable for his many criminal acts that compromised the integrity of the city’s governmental functions,” stated U.S. Attorney Fajardo Orshan.  “The cases announced to date, as part of the Opa Locka corruption investigation, do not signal an end to our enforcement efforts.  The U.S. Attorney’s Office and our dedicated partners at the FBI and IRS-CI remain committed to the investigation and prosecution of corrupt officials and encourage the public to continue to report all suspected criminal acts.”

"Corrupt Opa Locka municipal officials and their associates breached the public's trust and are now being held to account," said George L. Piro, Special Agent in Charge, FBI Miami.  “Public corruption remains a top priority for the FBI.  We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”

“Today's sentencing brings an important defendant in this corruption investigation to justice.  The results of this case send a clear message that the law applies to everyone, regardless of position or power,” stated Michael J. De Palma, Special Agent in Charge, IRS-CI. “This joint law enforcement effort shows our commitment to investigate individuals who violate the public trust, and IRS-CI will continue to utilize our financial expertise in these cases where individuals misuse official positions and ignore their tax obligations.”

According to the court record, including the stipulated factual basis for the plea, Starks conspired with former Opa Locka City Commissioner Luis Santiago, former Opa Locka City Manager David Chiverton, and former Opa Locka Assistant Public Works Director Gregory Harris, to use the official positions and authority that Santiago, Chiverton, and Harris had with the City of Opa Locka to solicit, demand, and obtain personal payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their official dealings with the City of Opa Locka.

Although Starks was not an official or employee of the City of Opa Locka, he was closely associated with and had great influence over Santiago.  Starks also had, and exercised significant influence over, numerous other city officials and employees, including Chiverton and Harris, and he regularly used that significant influence to pressure and direct city officials and employees to take official actions on matters relating to occupational licenses, code enforcement citations and fines, liens, water service and billing, zoning, and city contracting.  Working together, Santiago and Starks solicited and obtained illegal payments from businesses and individuals in Opa Locka, and in exchange, Santiago would take official actions on their behalf, and Starks and Santiago would pressure and direct Chiverton, Harris, and other City of Opa Locka employees to take official actions on behalf of those businesses and individuals. 

In addition, Starks participated in a conspiracy with Santiago and others to receive bribes in exchange for ensuring that a particular company received a city contract.  In April 2015, Santiago and Starks met with Raul Sosa Sr. (“Sosa Sr.”), who agreed to pay them a $10,000 bribe to ensure that the company Sosa Sr. was associated with, referred to as the “Towing Company,” was selected as one of the companies receiving a city towing contract.  Over the next two months, Starks collected $10,000 in cash payments from Raul Sosa Jr. (“Sosa Jr.”), the Towing Company’s manager, and in exchange, Starks arranged for Opa Locka’s Purchasing Director to assemble and prepare the Towing Company’s bid package.  After this bid was submitted, Starks violated the city’s purchasing Cone of Silence by contacting a member of the city’s committee evaluating the towing bids and directing that individual to rank the Towing Company as the number one company.  To complete the illegal arrangement, at the June 24, 2015, City Commission meeting authorizing the award of the towing contracts, Santiago used his position as a City Commissioner to bring forward and vote in favor of the resolution authorizing the City Manager to enter into a city contract with the Towing Company.

Starks also willfully failed to file federal income tax returns for the tax years 2014, 2015 and 2016.  Starks had over $39,000 in unpaid tax liability arising from the income he earned during those years.

Starks was the seventh individual to be sentenced for his involvement in the Opa Locka corruption conspiracy.  Related cases arising from the Opa Locka corruption investigation are the following:

Santiago previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20971-CR-WILLIAMS).  Santiago was sentenced to 51 months in prison (the sentence was subsequently reduced to 30 months in prison). 

Chiverton previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20596-CR-ALTONAGA).  Chiverton was sentenced to 38 months in prison, to be followed by 8 months of home confinement.

Harris previously pled guilty to conspiring to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20589-CR-BLOOM).  Harris was the first defendant to plead guilty to charges arising from this investigation, and received a sentence of probation. 

Sosa Sr. and Sosa Jr. previously pled guilty to conspiracy to commit Federal programs bribery (Case No. 18-20256-CR-MARTINEZ).  Sosa Sr. was sentenced to 30 months in prison, consecutive to a 78-month sentence he received for an unrelated federal tax conviction in 2016.  Sosa Jr. was sentenced to probation.

Demetrius Corleon Taylor, a non-employee who also helped collect money from Opa Locka businesses in exchange for official actions by city employees, previously pled guilty to conspiracy to commit Federal programs bribery and Hobbs Act extortion under color of official right (Case No. 16-20890-CR-GAYLES).  He was sentenced to 5 months in prison, to be followed by 5 months of home confinement.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI Miami Area Corruption Task Force and IRS-CI in this matter.  Mrs. Fajardo Orshan thanked the Miami-Dade Police Department and Hialeah Police Department for their assistance.   This case was prosecuted by Assistant U.S. Attorneys Edward N. Stamm and Maurice Johnson.

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

Sayoc Allegedly Mailed 16 IEDs to 13 Victims Across the United States and Now Faces Charges Including Use of Weapons of Mass Destruction, Interstate Mailing of Explosives, and Use of Destructive Devices During Crimes of Violence

WASHINGTON – Cesar Altieri Sayoc, aka Cesar Randazzo, aka Cesar Altieri, and aka Cesar Altieri Randazzo, 56, was charged today in a 30-count Indictment for offenses relating to his alleged execution of a domestic terrorist attack in October 2018, which involved the mailing of 16 improvised explosive devices (IEDs) to 13 victims throughout the country.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Office, and Police Commissioner James P. O’Neill of the NYPD made the announcement. The case is assigned to U.S. District Judge Jed S. Rakoff.

“According to court filings, Cesar Sayoc mailed 16 IEDs to more than a dozen victims throughout the country, including current and former elected leaders.  Less than five days after the first IED was discovered, he was tracked down and arrested, thanks to the outstanding work of the FBI, the U.S. Postal Inspection Service and other law enforcement partners,” said Assistant Attorney General Demers. 

“Cesar Sayoc allegedly targeted former high-ranking officials such as President Barack Obama, President Bill Clinton, Vice President Joe Biden, Secretary of State Hillary Clinton, and others, as well as CNN, by sending explosive packages to them through the U.S. Postal Service,” said U.S. Attorney Berman.  “Sayoc’s alleged conduct put numerous lives at risk.  It was also an assault on a nation that values the rule of law, a free press, and tolerance of differences without rancor or resort to violence.  Thanks to the diligent and determined work of our law enforcement partners here and across the country, it took just five days to identify and apprehend Sayoc and end his reign of terror.  He now faces justice from a nation of laws.”

“As alleged, Cesar Sayoc deliberately targeted 13 individuals with 16 improvised explosive devices, attempting to create an atmosphere of fear and intimidation from California to the eastern seaboard,” said Assistant Director in Charge Sweeney.  “Thanks to the seamless integration of FBI JTTFs across the country, working side-by-side with many other law enforcement agencies and first responders, his campaign of terror was brought to a rapid conclusion just five days after the discovery of the first device.  The FBI remains steadfast in our mission to protect the American public, and we will move with speed to bring justice to anyone seeking to harm our communities.”

“I commend everyone involved in investigating and prosecuting this case, particularly the agents and detectives on the FBI’s Joint Terrorism Task Force in New York, which includes 56 agencies and 300 individuals – 113 of them NYPD cops,” said Commissioner O’Neill. “Standing shoulder to shoulder with the FBI, the ATF, the U.S. Marshals, the U.S. Postal Inspection Service, the New York State Police, and others, we said from the outset that we would identify and bring to justice the person allegedly responsible for these acts. We could make that promise because of our proven history of effective partnership. The public’s vigilance also greatly assisted this investigation and helped lead to today’s 30-count indictment. What is clear is that New Yorkers are always resilient in the face of threats – we refuse to back down, and we will never be deterred.”

According to the Indictment, Complaint, other court filings, and statements made during court proceedings[1]:

Between Oct. 22 and Nov. 2, the FBI and the U.S. Postal Service recovered 16 padded manila envelopes containing IEDs allegedly mailed by Sayoc from Florida to addresses in New York, New Jersey, Washington, D.C., Delaware, Atlanta and California. Sayoc’s alleged victims, listed alphabetically, were former Vice President Joseph Biden, Senator Cory Booker, former CIA Director John Brennan, former Director of National Intelligence James Clapper, former Secretary of State Hillary Clinton, CNN, Robert De Niro, Senator Kamala Harris, former Attorney General Eric Holder, former President Barack Obama, George Soros, Thomas Steyer, and Representative Maxine Walters.

Each of the 16 envelopes allegedly mailed by Sayoc had similar features, including the return addressee “Debbie Wasserman Shultz” at an address in “Florids,” six self-adhesive postage stamps bearing the American flag, and address labels printed on white paper with blank ink in similar typeface and font size. Each of the 16 envelopes also contained an IED. The 16 IEDs also had similar features, including approximately six inches of PVC pipe packed with explosive material, a small clock, and wiring. Some of the IEDs also contained shards of glass.

Preliminary analysis by the FBI has revealed forensic evidence linking 11 of the 16 mailings to Sayoc. Specifically, latent fingerprints on two of the envelopes have been identified to Sayoc, and there are possible DNA associations between a DNA sample collected from Sayoc prior to his arrest in this case and DNA found on components from 10 of the IEDs (including one of the IEDs that was mailed in an envelope from which a latent fingerprint identified to Sayoc was recovered).

The FBI arrested Sayoc in Plantation, Florida, on Oct. 26 – less than five days after the Oct. 22 recovery of the first IED, which Sayoc allegedly mailed to Soros in New York. The FBI seized a laptop from Sayoc’s van in connection with the arrest that contained lists of physical addresses that match many of the labels on the envelopes that Sayoc allegedly mailed. The lists were saved at a file path on the laptop that includes a variant of Sayoc’s first name: “Users/Ceasar/Documents.” A document from that path, titled “Debbie W.docx” and bearing a creation date of July 26, contained repeated copies of an address for “Debbie W. Schultz” in Sunrise, Florida, that is nearly identical, except for typographical errors, to the return address that Sayoc allegedly used on the packages. Similar documents bearing file titles that include the name “Debbie,” and creation dates of Sept. 22, contain exact matches of the return address allegedly used by Sayoc on the 16 envelopes.

Sayoc possessed a cellphone at the time of his arrest, and the FBI’s ongoing forensic analysis of the device has revealed additional evidence. For example, Sayoc allegedly used the phone to conduct the following Internet searches, among others, on the dates indicated:

 

• July 15: “hilary Clinton hime address”

• July 26: “address Debbie wauserman Shultz”

• Sept. 19: “address kamila harrias”

• Sept. 26: “address for barack Obama”

• Sept. 26: “michelle obama mailing address”

• Sept. 26: “joseph biden jr”

• Oct. 1: “address cory booker new jersey”

• Oct. 20: “tom steyers mailing address”

• Oct. 23: “address kamala harris”

Sayoc’s phone also contained photographs of some of the victims.        

Sayoc, a U.S. citizen, is charged in the Indictment with 30 counts: one count of six different offenses for each of the five IEDs that he allegedly mailed to Clinton, Brennan, Clapper, Soros and De Niro in the Southern District of New York. In aggregate, the 30 counts in the Indictment carry a potential maximum penalty of life imprisonment, and a mandatory minimum penalty of life imprisonment. A chart providing more information regarding the charges and potential penalties is set forth below. The statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Counts

Charge

Penalties Per Count

1 – 5

Using a weapon of mass destruction

Maximum per count: life

6 – 10

Interstate transportation of an explosive

Maximum per count: 20 years

11 – 15

Conveying a threat in interstate commerce

Maximum per count: 5 years

16 – 20

Unlawful use of mails

Maximum per count: 10 years

21 – 25

Carrying an explosive during the commission of a felony

Minimum for first conviction: 10 years

 

Minimum for additional convictions: 20 years

26 – 30

Using and carrying a destructive device in furtherance of a crime of violence

Maximum per count: life

 

Minimum for first conviction: 30 years

 

Minimum for additional convictions: life

 

 

Mr. Demers and Mr. Berman praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD, and the U.S. Postal Inspection Service. Mr. Demers and Mr. Berman also thanked the U.S. Attorney’s Office for the Southern District of Florida for its assistance.

Assistant U.S. Attorneys Sam Adelsberg, Emil J. Bove III, Jane Kim, and Jason A. Richman of the Southern District of New York are in charge of the prosecution, with assistance from Trial Attorneys David Cora and Kiersten Korczynski of the National Security Division’s Counterterrorism Section.

---

As the introductory phrase signifies, the entirety of the text of the Complaint and the Indictment, and the description of the Complaint and Indictment set forth herein, constitute only allegations and every fact described should be treated as an allegation.

On November 9, 2018, Etevaldo Ferreira De Souza, 47, of West Palm Beach, was found guilty by a jury of one count of making false statements in a naturalization proceeding, in violation of Title 18, United States Code, Section 1015(a).

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office made the announcement.

According to the evidence presented at trial, De Souza was charged with aggravated homicide and armed conspiracy in Brazil in 1993. According to the Brazilian charges, De Souza, although not himself a police officer, conspired with corrupt police officers to commit a murder. In or before 1998, De Souza entered the United States illegally.  In 2012, De Souza applied to become a lawful permanent resident pursuant to the Legal Immigration Family Equity (“LIFE”) Act of 2000, which allowed certain people who entered the United States illegally to obtain legal status. In his application for residency, De Souza attested that had never been charged for breaking or violating any law or ordinance, excluding traffic violations. De Souza’s application was granted, and he became a lawful resident, in January 2013.   In April of that year, the Brazilian charges were dismissed.   On July 28, 2017, De Souza applied to become a United States citizen. On his application, De Souza attested that he had never been charged with committing, attempting to commit, or assisting in committing a crime or offense.

De Souza’s sentencing is scheduled for January 18, 2019 before U.S. District Judge Kenneth A. Marra. De Souza faces a maximum possible statutory sentence of five years in prison.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI in this matter.  She thanked the U.S. Citizenship and Immigration Services for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.

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

Anthony Joseph Safiotti, 35, of St. Lucie County, was convicted by a federal jury yesterday of aiding and abetting false statements to unlawfully purchase a firearm, in violation of Title 18, United States Code, Sections 922(a)(6) and 2.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office made the announcement.

According to the court docket, including evidence introduced at trial, Safiotti, a convicted felon, convinced a young pregnant drug addict, to be a straw buyer of a firearm in exchange for opioids.  On February 2, 2018, Safiotti and the straw buyer entered a pawn shop in Martin County.  The straw buyer purchased a semi-automatic firearm, gun case, ammunition, and an extra 40 round magazine for Safiotti.   Following Safiotti’s directives, the straw buyer falsely completed the ATF Form 4473 paperwork, as the actual/true buyer of the firearm and ammunition. 

Safiotti had previously been convicted of several felony offenses and was prohibited from possessing a firearm or ammunition. 

Safiotti is scheduled to be sentenced by U.S. District Judge Donald M. Middlebrooks on January 17, 2019 at 10:00 a.m.

This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  The PSN program was reinvigorated in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the ATF in this matter.  This case was prosecuted by Assistant United States Attorney Carmen Lineberger.

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

A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.

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

Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.  Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida. 

According to the plea agreement, De la Cruz and his co-conspirators participated in a scheme to steal access to existing cell phone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States. 

De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach.  He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled.  According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates.  The calls were billed to the customers’ compromised accounts. 

In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States.  He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.

De la Cruz is a citizen of the Dominican Republic.  He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.

De la Cruz is the fifth defendant to plead guilty in the case.  Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, and Ramon Batista pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months.

The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.

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

Seth Alan Gissen pled guilty yesterday to knowingly and willfully violating a Captain of the Port Order, in violation of Title 33, United States Code, Section 1232(b)(1).

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region made the announcement.

According to the court record, Gissen is the registered owner of the motor yacht NO RULES II.  On October 26, 2017, during a routine law enforcement boarding, the Coast Guard discovered the yacht NO RULES II operating illegally as a charter vessel. Illegal charters can cause accidents resulting in property damage, injuries, and death.

On October 30, 2017, the Coast Guard issued a Captain of the Port Order to Gissen.  This Order required Gissen to immediately cease operating NO RULES II as a passenger vessel until he was in compliance with federal laws and regulations. 

On or about August 4, 2018, on Biscayne Bay, a Coast Guard team observed that the yacht NO RULES II appeared to be overloaded and so initiated a law enforcement boarding. An investigation revealed that Gissen was again illegally operating as a commercial charter, in violation of the Captain of the Port Order.

Gissen is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 10, 2018, at 10 a.m.

U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS in this matter.  This case is being prosecuted by Coast Guard Special Assistant U.S. Attorney Philip Jones.

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

Laurent Marc-Antoine Jean Maubert-Cayla pled guilty on November 5, 2018, to misconduct or neglect of a charter owner that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115.

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region and Major Alfredo Escanio, Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC), Division of Law Enforcement, South B Region, made the announcement.

According to the court record, including the agreed upon factual proffer, Maubert-Cayla, originally of France, was a part owner of the MIAMI VICE, a 91-foot performance yacht.  Maubert-Cayla offered the yacht for charters on a website, and employed Captain Mauricio Alvarez to drive the yacht during charters from approximately November of 2017 until April of 2018.  The MIAMI VICE charter operation was illegal because, among other reasons, Alvarez did not have a valid United States Coast Guard license.  In fact, Alvarez received a ticket from the United States Coast Guard in March of 2018 for operating a charter on board the MIAMI VICE without an appropriate Coast Guard license.  In addition, Maubert-Cayla knew that Alvarez was heavily using cocaine and alcohol during the period he served as captain on board the MIAMI VICE, and had filmed Alvarez using cocaine as recently as March 29, 2018.

On April 1, 2018, Maubert-Cayla chartered the MIAMI VICE to a group of individuals, who met and paid Maubert-Cayla at the Sea Isle Marina.  The MIAMI VICE then left the Sea Isle Marina with Alvarez acting as captain.  Alvarez drove the yacht at a high rate of speed and beached it on Monument Island, where the charter patrons, including victim R.M.P., began to swim.  Alvarez then decided to leave the Island, but did not ensure that everybody was on board the yacht before doing so.  Alvarez started the yacht’s 4500 horsepower engines and accelerated them in reverse, directly to where victim R.M.P. was swimming.  R.M.P. was caught in the MIAMI VICE’s propellers and killed.

Maubert-Cayla is scheduled to be sentenced by U.S. District Judge Federico A. Moreno on January 20, 2019, at 9:30 a.m.

Mauricio Alvarez pled guilty for his misconduct or neglect as a ship officer (yacht captain) that resulted in the death of an individual, in violation of Title 18, United States Code, Section 1115 (Case No. 18-CR-20314). He is scheduled to be sentenced by U.S. District Judge Cecilia M. Altonaga on November 28, 2018, at 9:00 a.m.

U.S. Attorney Fajardo Orshan commended the investigative efforts of CGIS and FWC in this matter.  This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet and Coast Guard Special Assistant U.S. Attorneys Philip Jones and Emily Rose.

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

Lewis Bennett, 41, a dual citizen of Australia and the United Kingdom, pleaded guilty to involuntary manslaughter for killing his wife, Isabella Hellman, while on board a sailing vessel on the high seas.

Ariana Fajardo Orshan, U.S. Attorney of the Southern District of Florida, Tom Jones, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Zinnia P. James, Special Agent in Charge, U.S. Coast Guard Investigative Service (CGIS), Southeast Region, made the announcement. 

Bennett pleaded guilty to a superseding information charging him with one count of involuntary manslaughter of Ms. Hellman, a naturalized U.S. citizen, on the high seas, in violation of Title 18, United States Code, Section 1112 (Case No. 18-CR-20136).  He is scheduled to be sentenced by U.S. District Court Judge Federico A. Moreno in Miami, on January 10, 2019 at 9:45 a.m.  Bennett faces a maximum statutory sentence of eight years in prison.

“Although nothing can ever erase the pain and suffering caused by Lewis Bennett’s criminal acts, the U.S. Attorney’s Office and our law enforcement partners hope that the defendant’s admission of guilt is a step toward justice for the victim, Ms. Isabella Hellman, and her family,” stated U.S. Attorney Fajardo Orshan. “The federal government remains committed to the safety and security of our U.S. citizens, whether they are at home in South Florida or traveling on the high seas.” 

“Lewis Bennett will now be held accountable for his wife's death while on the high seas” said Tom Jones, acting Special Agent in Charge, FBI Miami.  "We commend the U.S. Coast Guard for their professionalism and close cooperation throughout this case."

“The arduous work by all key partners in this investigation demonstrates the impact of solid investigative effort and the strength of collaborative enforcement,” stated Zinnia James, Special Agent in Charge CGIS.

According to the court docket, including an agreed upon factual proffer, Bennett is an experienced sailor who received a certification from the Royal Yachting Association in the United Kingdom as a Coastal Skipper.  This training included instruction on emergency procedures such as man overboard protocols and night sailing safety.  Bennett also had hands-on sailing experience on the open water for extended periods of time, including a three month voyage from St. Maarten to Australia.  In contrast to Bennett, his wife had not been trained in emergency sailing procedures, did not have a sailing certification and had substantially less sailing experience. 

In late April 2017, Bennett and Ms. Hellman set sail from St. Maarten on board the vessel “Surf Into Summer,” with the intention of sailing to the United States.  On May 14, 2017, Bennett and Ms. Hellman departed Cuba on Bennett’s catamaran (“the vessel”), bound for Florida. At approximately 8 p.m. that evening, Bennett had Ms. Hellman take over control of the vessel. Bennett did not require Ms. Hellman to wear a life jacket, harness, or personal locator beacon (“PLB”) while at the helm during this night watch.

In the early morning hours of May 15, 2017, Bennett was awoken by a loud noise, while the vessel was on the high seas.  He climbed to the exterior of the boat and observed that the sails and rigging were loose.  The helm of the vessel was unmanned, and his wife was not there.   Bennett could not recall whether he called out for his wife.  He did not deploy flares to illuminate the area in order to look for Ms. Hellman or to signal his position in the open water for safety and/or recovery.  Additionally, Bennett did not search for Ms. Hellman with either the catamaran or the attached dinghy (a small boat).  Further, Bennett did not immediately activate any emergency equipment or utilize the satellite phone to signal and/or call for help to locate Ms. Hellman.  Bennett ultimately abandoned the vessel and boarded the life raft.  When Bennett abandoned the vessel, the catamaran and the dinghy attached to it were inoperable.  The factual proffer also states that the United States has evidence in the form of expert testimony that the catamaran was intentionally scuttled.

Before Bennett abandoned the catamaran and boarded the life raft, Bennett loaded various items from the vessel onto the life raft, including a suitcase, two duffle bags, a backpack, water, unexpended parachute flares, a radio transmitter, buoys, food, and silver coins.   It was not until Bennett boarded the life raft that he called for help and reported his wife missing, approximately 45 minutes after he was awakened. 

The U.S. Coast Guard received an emergency alert from Bennett when he was approximately 26 nautical miles west of Cay Sal Bank, Bahamas, upon the high seas and in international waters.  A Coast Guard helicopter ultimately rescued Bennett shortly after 4:30 a.m. and transported him to the Marathon Jet Center, in Marathon, Florida, which is located in the Southern District of Florida.

In the following days, Coast Guard ships, planes, and helicopters searched over approximately 4,980 square miles. On the evening of May 18, 2017, the Coast Guard suspended the search. To date, Ms. Hellman has not been found and has not contacted any of her family.  Based on all evidence, Ms. Hellman is dead.  

According to the stipulated factual proffer, Ms. Hellman’s death occurred as a result of Bennett’s knowledge of circumstances that existed that could have reasonably enabled him to foresee the threat to life to which his acts or failures to act might subject another, namely Ms. Hellman; and his gross negligence, amounting to wanton and reckless disregard for human life, in acting or failing to act as a result of that.

Bennett was arrested in connection with criminal charges related to these events in Miami on February 20, 2018.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and CGIS in this matter.  This case is being prosecuted by Assistant U.S. Attorney Kurt K. Lunkenheimer and Special Assistant U.S. Attorney Emily A. Rose.

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

A Port St. Lucie, Florida, man was convicted by a federal jury yesterday in the U.S. District Court for the Southern District of Florida of ten counts of aiding and assisting in the filing of false income tax returns and three counts of filing false income tax returns announced U.S. Attorney Ariana Fajardo Orshan and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits and false business expenses, and other deductions to inflate by thousands of dollars refunds paid by the Internal Revenue Service.  In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own income tax returns, by not fully reporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.

U.S. District Judge James Ivan Cohn for the Southern District of Florida set sentencing for January 17, 2019. The defendant faces a maximum possible sentence of 3 years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties. 

U.S. Attorney Fajardo Orshan and Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Diana Acosta and Tax Division Trial Attorney Grace Albinson, who prosecuted the case.

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

Court Finds that Tax Return Preparer Assisted in Preparing Returns in Violation of an October 2016 Injunction and Orders Him to Reimburse the United States for Its Investigation Expenses

WASHINGTON – On Friday, November 2, 2018, a federal court in West Palm Beach, Florida, held that Renel Herard violated a permanent injunction entered against him on October 18, 2016, which barred him from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.

In March 2017, following an investigation of Herard’s activities, the United States filed a Motion for Order to Show Cause asking the court to hold Herard in civil contempt based on evidence that he was assisting a business located three doors down from his own to prepare returns for his former customers in violation of the injunction against him. That investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban. 

Faced with the evidence against him, Herard admitted that he assisted others to prepare returns in 2017 and agreed to reimburse the United States for the cost of its investigation into his activities.  Based on those admissions, the U.S. District Court for the Southern District of Florida found that Herard violated the injunction entered in October, 2016, and held him in civil contempt. For that contempt, the court ordered Herard to pay the United States $52,654 to reimburse the government for the costs that it incurred to investigate Herard’s post-injunction conduct.

Additionally, the court further enjoined Herard from maintaining any interest in, working at, or providing any direct or indirect assistance to an individual or entity that provides tax preparation services.

The injunction barring Herard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor his compliance with its orders.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Gary Linder, Jr., a TSA employee, was sentenced in federal court on Friday to fifteen years in prison for enticing a minor to engage in illicit sexual activity and attempting to produce child pornography. 

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Thomas J. Jones, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.

Gary Linder, Jr., 27, of Fort Lauderdale, was charged with attempted production of child pornography and enticing a minor to engage in sexual activity in violation of, Title 18, United States Code, Sections 2251(a) and 2422(b).  Linder pled guilty to both charges on July 26, 2018.  U.S. District Judge Beth Bloom sentenced Linder to fifteen years’ imprisonment, followed by fifteen years of supervised release.

According to court records, in February 2018, Linder initially began communicating with an eleven-year old female child via text message.  The child’s telephone was turned over to law enforcement.   Over the course of the next several months, Linder discussed sexually explicit content with the individual he believed to be the minor child via text message.  On several occasions, Linder requested nude photos of the minor child engaged in sex acts. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI, including the FBI Miami Child Exploitation Task Force, and the Plantation Police Department.  U.S. Attorney Fajardo Orshan also thanked the Coral Springs Police Department and Miramar Police Department for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Jodi L. Anton.

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

Lucius Brown III, 35, of Riveria Beach, pled guilty today to possessing fentanyl and crack cocaine with the intent to distribute and being a felon in possession of a firearm.

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

According to the court docket, including the agreed upon factual proffer, on June 8, 2018, PBSO deputies conducted a traffic stop in Lake Worth, Florida.  Law enforcement smelled the odor of marijuana and found Brown to be in possession of narcotics.  During arrest processing, deputies learned that Brown may have left his one-month old baby alone in a hotel room.  Based on their concerns for the safety of the child, law enforcement went to the hotel and entered Brown’s hotel room.  Inside the hotel room, they found cocaine and marijuana in plain-view on a desk and Brown’s baby lying face down on the bed.  Subsequently, a search warrant was executed in the hotel room and other items, including fentanyl and materials for drug distribution, were discovered.   Additionally, located in the desk near the sleeping baby was Brown’s semi-automatic pistol, containing six rounds of ammunition.  A hollow-point round was in the chamber of the firearm. 

Brown had previously been convicted of several felony offenses and was prohibited from possessing a firearm and ammunition. 

Brown is scheduled to be sentenced to by U.S. District Court Chief Judge Robin L. Rosenberg on January 31, 2019 at 10 a.m.   He faces a statutory maximum term of imprisonment of twenty years for the narcotics conviction.  Because Brown qualifies as an armed career criminal, he faces a mandatory minimum term of fifteen years in prison for being a felon in possession.  These sentences can be imposed consecutively.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises. This case is part of OCDETF’s strategic initiative to combat heroin and opioid related addiction and drug trafficking and results from the collective enforcement efforts of Operation Strike Out and Operation White Dragon. 

U.S. Attorney Fajardo Orshan commended the investigatory efforts of the DEA and PBSO in this matter.  This case was prosecuted by Assistant U.S. Attorney Alexandra Chase.

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

An Opa-Locka resident was sentenced yesterday to 63 months in federal prison, after having been convicted at trial of possession of an unregistered firearm.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Daniel Giustino, Chief, Pembroke Pines Police Department, made the announcement.

On February 9, 2017, Adrian Tremayne Wilson, 39, of Opa-Locka, was convicted at trial by a federal jury of possession of an unregistered firearm, commonly referred to as a sawed-off shotgun, in violation of Title 26, United States Code, Sections 5861(d) and 5871.  Yesterday, United States District Judge William J. Zloch sentenced Wilson to 63 months in prison followed by 3 years of supervised release.

According to court records, including evidence presented during the defendant’s trial, on June 12, 2016, an officer of the Pembroke Pines Police Department approached Wilson inside a Speedway gas station and convenience store intending to issue traffic citations to him.  Before Wilson pulled into the gas station, he had been observed speeding and committing other traffic infractions.  When the officer asked Wilson for his driver’s license, Wilson began cursing at the officer, calling him a racist, claiming he was being harassed, and he refused to provide his driver’s license, which at the time he had in his pocket. 

The officer told Wilson that if he refused to produce his driver’s license, he would be arrested.  Wilson replied, “Then arrest me.”  After Wilson was arrested, the officer impounded his vehicle.  During a routine inventory of the contents of Wilson’s vehicle, the officer discovered a firearm located next to the driver’s seat.  The firearm was loaded with four 12 gauge shotgun shells, one of which was in the firing chamber.  The firearm was not registered to Wilson in the National Firearms Registration and Transfer Record as required by law.

This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Pembroke Pines Police Department.  This case was prosecuted by Assistant U.S. Attorney William T. Shockley.

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

WASHINGTON – The Justice Department today announced its Election Day plans for the Nov. 6, 2018 general election. The Civil Rights Division will monitor compliance with the federal voting rights laws by deploying personnel to 35 jurisdictions in 19 states.

“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation.  This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America.  Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”

State and local governments have primary responsibility for administering elections in the United States. The Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act in 1965, the Division has regularly monitored all kinds of elections in the field around the country throughout every year to protect the rights of all voters, and not just in federal general elections. On Nov. 6, the Division again will be monitoring in the field around the country.

On Election Day, the Division staff members will be available all day by telephone to receive complaints from the public related to possible violations of the federal voting rights laws (1-800-253-3931 toll free or 202-307-2767 or TTY 202-305-0082).  In addition, individuals may also report complaints by fax to 202-307-3961, by email to [email protected], and by a complaint form on the Department’s website: www.justice.gov/crt/votercomplaint.

Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to the local U.S. Attorneys’ Office or local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and their telephone numbers can be found at www.fbi.gov/contact-us.

Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the Department after local authorities have been contacted.

On Election Day, the Civil Rights Division plans to deploy personnel to 35 jurisdictions in 19 states to monitor for compliance with the federal voting rights laws: 

• Bethel Census Area, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• Yukon-Koyukuk Census Area, Alaska;
• Apache County, Arizona;
• Cochise County, Arizona;
• Maricopa County, Arizona;
• Navajo County, Arizona;
• Sacramento County, California;
• San Mateo County, California;
• DeSoto County, Florida;
• Palm Beach County, Florida;
• Pinellas County, Florida;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Buena Vista County, Iowa;
• Ford County, Kansas;
• Lowell, Massachusetts;
• Malden, Massachusetts;
• Clark County, Nevada;
• Washoe County, Nevada;
• Middlesex County, New Jersey;
• Union County, New Jersey;
• Erie County, New York;
• Benson County, North Dakota;
• Rolette County, North Dakota;
• Texas County, Oklahoma;
• Lehigh County, Pennsylvania;
• Pawtucket, Rhode Island;
• Buffalo County, South Dakota;
• Harris County, Texas;
• Tarrant County, Texas;
• Waller County, Texas;
• San Juan County, Utah; and
• Fairfax County, Virginia.

The Civil Rights Division will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the language minority provisions of the Voting Rights Act; whether jurisdictions permit a voter to receive assistance by a person of his or her choice if the voter has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act.  Division personnel will also maintain contact with local election officials.

The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act to ensure that persons with disabilities have a full and equal opportunity to vote. Information about the Americans with Disabilities Act and about how to file a disability related complaint can be found at www.ada.gov. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.  

Last week, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.  More information about the federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.

An Opa-Locka resident was sentenced yesterday to 63 months in federal prison, after having been convicted at trial of possession of an unregistered firearm.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Daniel Giustino, Chief, Pembroke Pines Police Department, made the announcement.

On February 9, 2017, Adrian Tremayne Wilson, 39, of Opa-Locka, was convicted at trial by a federal jury of possession of an unregistered firearm, commonly referred to as a sawed-off shotgun, in violation of Title 26, United States Code, Sections 5861(d) and 5871.  Yesterday, United States District Judge William J. Zloch sentenced Wilson to 63 months in prison followed by 3 years of supervised release.

According to court records, including evidence presented during the defendant’s trial, on June 12, 2016, an officer of the Pembroke Pines Police Department approached Wilson inside a Speedway gas station and convenience store intending to issue traffic citations to him.  Before Wilson pulled into the gas station, he had been observed speeding and committing other traffic infractions.  When the officer asked Wilson for his driver’s license, Wilson began cursing at the officer, calling him a racist, claiming he was being harassed, and he refused to provide his driver’s license, which at the time he had in his pocket. 

The officer told Wilson that if he refused to produce his driver’s license, he would be arrested.  Wilson replied, “Then arrest me.”  After Wilson was arrested, the officer impounded his vehicle.  During a routine inventory of the contents of Wilson’s vehicle, the officer discovered a firearm located next to the driver’s seat.  The firearm was loaded with four 12 gauge shotgun shells, one of which was in the firing chamber.  The firearm was not registered to Wilson in the National Firearms Registration and Transfer Record as required by law.

This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and the Pembroke Pines Police Department.  This case was prosecuted by Assistant U.S. Attorney William T. Shockley.

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

A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.

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

Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.

As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA.  Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA.  Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.    

Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments.  Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund.  Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.  

Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case.  This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.   The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.      

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

U.S. Attorney Ariana Fajardo Orshan announced today that Assistant U.S. Attorney (AUSA) Harry Wallace will lead the efforts of U.S. Attorney’s Office for the Southern District of Florida in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general elections.  AUSA Wallace has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.

“Every citizen has the right to vote without interference or discrimination and to have that vote counted,” said U.S. Attorney Fajardo Oshan.  “The U.S. Attorney’s Office, Department of Justice and our FBI partners are committed to protecting the integrity of the election process.  Anyone with information regarding voter fraud or election abuses is encouraged to immediately contact our local FBI Elections Crime Coordinator or District Election Officer Harry Wallace.”

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to complete their own ballot or to be assisted by a person of their choice.

The right to vote is the cornerstone of American democracy.  We all must ensure that those who are entitled to vote exercise that right if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, an Election Crimes Coordinator (ECC) of the FBI’s Miami field office and Southern District of Florida District Election Officer AUSA Harry Wallace will be on duty while the polls are open on Election Day to receive allegations of election fraud and other election abuses.  If the public has any concerns regarding possible election fraud or voting rights abuses, they are encouraged to directly contact FBI ECC at (754) 703-2000 or AUSA/DEO Wallace at (305) 961-9401.

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day.  The local FBI field office can be reached by the public at (754) 703-2000.

Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1 (800) 253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

Smart Lab LLC, and the corporation’s Chief Executive and Chief Operating Officers were sentenced for their participation in a multi-million health care fraud scheme that involved the filing of fraudulent insurance claim forms and defrauding health care benefit programs.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida; Robert Lasky, 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.

H. Hamilton Wayne, a/k/a “Hawkeye,” 40, of Palm Beach Gardens, Justin Morgan Wayne, 39, of Boca Raton, and Smart Lab LLC, of Palm Beach Gardens, previously pled guilty to one count of conspiracy to commit health care fraud.  Today, U.S. District Judge Donald M. Middlebrooks sentenced Smart Lab Chief Executive Officer (CEO) H. Wayne to 63 months in prison, to be followed by 3 years of supervised release; Smart Lab Chief Operating Officer (COO) J. Wayne to 46 months in prison, to be followed by 3 years of supervised release; 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.

According to court documents, Smart Lab LLC was established by CEO H. Wayne, and COO J. 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.

H. Wayne and J. Wayne established employment agreements wherein H. Wayne and 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, Smart Lab, H. Wayne, J. Wayne, and co-conspirators developed form standing orders and drug testing protocols 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, H. Wayne, J. Wayne, and others could bill to the insurance plans.  Smart Lab, H. Wayne and J. Wayne 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.

In addition, Lanny 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.

Fried previously pled guilty to one count of conspiracy to commit money laundering and is scheduled to be sentenced by U.S. District Judge Robin I. Rosenberg on November 29, 2018.

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 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.

A North Lauderdale resident was arrested and charged with being a felon in possession of a firearm and possession with intent to distribute cocaine.

            Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward County Sheriff’s Office, made the announcement.

            Christopher Sergo Denis, 27, of North Lauderdale, was charged by indictment on October 30, 2018, with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) (Count 1); and possession with intent to distribute cocaine, in violation of Title 21, United States Code, Section 841(a)(1) (Count 2).  Denis had previously been charged, by criminal complaint, with being a felon in possession of a firearm.  If convicted of both counts of the indictment, Denis faces a statutory maximum sentence of 30 years in prison.

            According to the court record, including facts alleged in the criminal complaint and indictment, on September 15, 2018, Denis posted a video recording that he labeled “Wild Wild West” on Facebook that depicted him firing three firearms at a local gun range.  A BSO detective discovered the Facebook posting and brought it to the attention of ATF.  An ATF Special Agent viewed the Facebook posting, went to the gun range, and recovered evidence documenting Denis’s presence at the gun range, including a video recording of Denis firing the firearms. 

The court record further alleges that, on October 18, 2018, Denis was arrested at the Broward County Courthouse in Fort Lauderdale when he arrived to attend a hearing in a pending state criminal case.  In his pocket, Denis had a small container with fourteen plastic zip-lock bags, each containing cocaine.

            An indictment and criminal complaint contain formal charges against a defendant.  Under the law, the charges are allegations and the defendant is presumed innocent unless proven guilty in a court of law.

            This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ATF and BSO.  This case is being prosecuted by Assistant U.S. Attorney William T. Shockley.

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

A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.

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

Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.

As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA.  Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA.  Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.    

Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments.  Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund.  Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.  

Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case.  This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.   The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.      

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

Franz Karl Salon, 24, a resident of Miramar, Florida, was sentenced yesterday by U.S. District Judge Jose E. Martinez in Miami, Florida, to five months in prison, to be followed by a two year period of supervised release, for illegally exporting a crab-eating macaque skull to France after he sold the skull on an online e-commerce marketplace. Salon previously pleaded guilty on August 17, 2018.

Federal law requires that persons in the United States who import or export wildlife file a completed United States Fish and Wildlife Service Declaration (Form 3-177) prior to the importation or exportation. This requirement applies to wildlife or wildlife products purchased online which enters the United States from abroad, including shipments made via the United States Postal Service or courier companies such as Federal Express and United Parcel Service.       

Crab-eating macaques and additional macaque species are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international agreement signed by the United States and 182 other countries to ensure that international trade in more than 35,000 species of wild animals and plants does not threaten their survival. International trade in these species is controlled by permits and quotas, or for some species, is completely prohibited except in exceptional circumstances.

According to court documents, Salon failed to obtain the required CITES permits and did not file the required documentation for wildlife, which he imported and exported between September 2013 and August 2016. Salon illegally sold more than $21,000 of foreign wildlife to purchasers in states other than Florida and illegally exported more than $7,000 of wildlife to purchasers in foreign countries. Salon also unlawfully possessed more than $14,000 of wildlife.

“As Attorney General Sessions asserted at last week’s forum on combatting wildlife poaching and trafficking in Washington, U.S. law enforcement is committed to prosecuting participants in the illegal wildlife trade,” said U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida. “In a District that represents a hub for commerce and recreation in the Americas, we are especially sensitive to being used as a center for illegal trafficking activities for both our domestic species and wildlife sourced from our neighbors. We will continue to work with our international, state, and local partners to hold wildlife traffickers accountable for their illegal conduct.”

“Wildlife trafficking is a serious crime that impacts imperiled species across the world," said Edward Grace, Acting Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. "We would like to thank the U.S. Postal Inspection Service and the Department of Justice for their work on this case. We will continue to work with our partners to combat the illegal wildlife trade."  

“We will work together with our U.S. and International partners to save threatened and endangered species being illegally trafficked into our country,” said Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service, Miami Division.  “The use of the mail to further the illegal activity of the traffickers will not be tolerated.”

The investigation was handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement with assistance from the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Tom Watts-Fitzgerald of the U.S. Attorney’s Office for the Southern District of Florida and Senior Trial Attorney Georgiann Cerese of the Justice Department’s Environmental Crimes Section. 

Information concerning Federal wildlife laws and regulations is available at http://fws.gov/le and contact information for the U.S. Fish & Wildlife Service's Wildlife Inspection Offices may be found at https://www.fws.gov/le/inspection-offices.html. A list of the animal and plant species protected by CITES may be found at https://www.cites.org/eng/disc/species.php.

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.

The former managing director and vice chairman of a Swiss bank was sentenced to 10 years in prison today, after previously pleading guilty for his role in a billion-dollar international scheme to launder funds embezzled from Venezuelan state-owned oil company Petróleos de Venezuela, S.A. (PDVSA).

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

Matthias Krull, 44, a German national and Panamanian resident, pleaded guilty to one count of conspiracy to commit money laundering, on Aug. 22.  U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida sentenced Krull to serve 120 months in prison, to be followed by three years of supervised release.  Judge Altonaga also ordered Krull to pay a fine in the amount of $50,000 and a forfeiture money judgment of $600,000.

As part of his plea, Krull admitted that in his position with the Swiss bank, he attracted private clients, particularly clients from Venezuela, to the bank.  In this role, Krull’s clients included Francisco Convit Guruceaga, who was indicted on money laundering charges on Aug. 16.  Krull’s clients also included three unnamed conspirators described in the Aug. 16 indictment. 

Krull admitted that the conspiracy began in December 2014 with a currency exchange scheme that was designed to embezzle around $600 million from PDVSA, obtained through bribery and fraud and the conspirators’ efforts to launder a portion of the proceeds of that scheme.  By May 2015, the conspiracy had doubled in amount to $1.2 billion embezzled from PDVSA.  PDVSA is Venezuela’s primary source of income and foreign currency (namely, U.S. Dollars and Euros).  Krull joined the conspiracy in or around 2016, he admitted, when a co-conspirator contacted him to launder the proceeds of a PDVSA foreign-exchange embezzlement scheme. 

Ultimately, Krull joined the conspiracy to launder $1.2 billion worth of funds that were embezzled from PDVSA, he admitted.  Krull and members of the money laundering conspiracy used Miami, Florida real estate and sophisticated false-investment schemes to conceal that the $1.2 billion was in fact embezzled from PDVSA.  Krull also admitted that surrounding and supporting these false-investment laundering schemes are complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers. 

Krull’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

The investigation was conducted by HSI Miami, HSI London, HSI Rome and HSI Madrid.  This case is being prosecuted by Assistant U.S. Attorney Michael Nadler of the Economic and Environmental Crimes Section of the Southern District of Florida and Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture.

The Criminal Division’s Office of International Affairs provided substantial assistance in this matter; the National Crime Agency of the United Kingdom; and Italian, Spanish and Maltese law enforcement authorities provided assistance. 

The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.      

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

Three Colombian nationals have pleaded guilty to a four-count federal indictment in the Southern District of Florida stemming from 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 Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Carlos Emilio Ibarguen Palacios, 27, pleaded guilty today before the Honorable Darrin P. Gayles of the Southern District of Florida to one count of conspiracy to encourage and induce aliens to come to the United 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.  Fredis Valencia Palacios, 30, pleaded guilty on Sept. 25, 2018 and Jhoan Stiven Carreazo Asprilla, 23, pleaded guilty on Oct. 24, 2018 before the Honorable Jose E. Martinez of the Southern District of Florida to the same charges. 

The three defendants, all Colombian nationals, were previously extradited to the United States in 2017 and 2018 to face these charges. 

“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.”

“These defendants’ depraved acts—which included sexually assaulting and murdering one victim, cutting the throat of a second, and leaving a third for dead in the ocean—underscore the dangers inherent in alien smuggling,” said Assistant Attorney General Benczkowski.  “This prosecution of three smugglers from Colombia reflects our resolve to bring to justice those who exploit our immigration laws and prey upon aliens seeking to illegally enter the United States.”

“Today’s guilty plea by Ibarguen Palacios brings to justice another defendant in one of the most horrific cases investigated by HSI Miami,” said HSI Special Agent in Charge Selby.  “This is exactly what we are constantly warning the public of when it comes to the dangers of human smuggling.  Although these pleas 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, Valencia Palacios, Carreazo Asprilla, and Ibarguen Palacios, and their co-defendant 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 Ibarguen Palacios, and Carreazo Asprilla, to begin their journey to Panama.  During the boat trip, Ibarguen Palacios and Carreazo Asprilla pulled a knife and a 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 that was happening, 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.  The co-defendants were subsequently located and arrested.

Sentencing is scheduled for Valencia Palacios on Nov. 28, and for Carreazo Asprilla and Ibarguen Palacios on Jan, 4, 2019, all 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. 

This case is being prosecuted by 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.

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 October 22, 2018, a Cuban national pled guilty to smuggling three women into the United States and requiring them to pay off an imposed debt through forced labor.

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), and Rick Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO), made the announcement.

Ivan Madrigal Zamora, 46, of Cuba, who was living in Palm Beach County, plead guilty to two counts of forced labor trafficking, in violation of Title 18, United States Code, Section 1589(a), and two counts of encouraging and inducing an alien to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv) & (B)(i).  At sentencing before U.S. District Judge Robin L. Rosenberg, on January 11, 2019, the defendant faces a combined statutory maximum sentence of 60 years in prison.

According to court records, including an agreed upon factual proffer, Zamora entered the United States through Mexico, by claiming asylum in May 2016.  He entered with a female, who was a Cuban National, having traveled with her from Cuba beginning in February 2016.  Upon arriving in Florida, Zamora had this woman work in Palm Beach County strip clubs to pay him a smuggling debt of over $10,000.  Zamora smuggled a second female from Cuba to Florida, via Mexico, after providing her with fake identification information.  Like the first victim, Zamora forced the second victim to work in strip clubs to pay him a $26,000 smuggling debt.  Then, in early 2017, Zamora had a third female victim smuggled from Cuba, by wiring money to smugglers throughout Central America.  Upon arriving through the Mexico-Texas border, the third victim was arrested and detained for more than two months.  After posting her bond, Zamora flew the third victim to Florida in July 2017.  Zamora then ordered the woman to work in strip clubs to pay back him a $26,000 smuggling debt.  Within three weeks, the third victim escaped Zamora and called 911.

The court record further indicated that during the course of the alien smuggling and forced labor trafficking, Zamora beat the three women and verbally threatened them and their families.

U.S. Attorney Fajardo Orshan commended the investigation efforts of ICE-HSI and PBSO in this matter.  She thanked the Palm Beach County Human Trafficking Task Force for their assistance.  This case is being prosecuted by Assistant U.S. Attorney Gregory Schiller.

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

 

WASHINGTON – Attorney General Jeff Sessions recognized 244 Department of Justice employees for their distinguished public service today at the 66th Annual Attorney General’s Awards Ceremony.  Thirty-six other individuals, outside of the Department of Justice, were also honored for their work.  This annual ceremony recognizes employees and other individuals who have demonstrated exceptional achievements, leadership, and service to the Department of Justice and the American people.  This year’s award includes an award for exceptional heroism to U.S. Marshal Senior Inspector Basilio S. Perez, Jr., for his courageous actions to protect and aid victims of the October 1, 2017, mass shooting in Las Vegas, Nevada.                                                

“Service in the Department of Justice is more than a normal job; it is a calling to the highest standards of professionalism,” Attorney General Jeff Sessions said. “That is true for all of the 115,000 Department of Justice employees.  But it is especially true for these award winners. And so I want to thank them and their families for their exemplary service to this Department and to the American people. They have made this Department proud.”

“The extraordinary team that handled the prosecution of a man who violated the Espionage Act and sexually exploited minors is most-deserving of the Department’s highest honors,” stated U.S. Attorney Ariana Fajardo Orshan.  “These individuals, including five representatives of the U.S. Attorney’s Office for the Southern District of Florida, worked tirelessly to obtain justice for the defendant’s victims and protect our nation’s security.  The domestic and international impact of their dedicated efforts epitomizes the Department’s public service mission.”

This year’s program honors individuals across the Department and our federal, state, local, and tribal partners for their self-less efforts, protecting our national security and our civil rights, addressing rising violent crime in our communities, going after gangs and those trafficking in dangerous narcotics and human beings.  The awards also honor the work of civil and environmental litigation, which enforces the rule of law and upholds our Constitution.  They also recognize employees whose ideas and efforts save taxpayer dollars and help our government operate more effectively and efficiently, among other contributions to public safety and good governance.

The awards ceremony included the Attorney General’s Award for Distinguished Service.  This is the Department’s second highest award for employee performance.  Fourteen Distinguished Service Awards were presented this year.  Six employees of the U.S. Attorney’s Office for the Southern District of Florida were honored, along with other team members, with this award.  The South Florida honorees are Assistant U.S. Attorney Ricardo A. Del Toro, Assistant U.S. Attorney Barbara A. Martinez, Assistant U.S. Attorney Vanessa S. Johannes, Supervisory Intelligence Research Specialist Angel L. Martinez, Intelligence Research Specialist Erik M. Tisthammer, and Paralegal Specialist Lilian Cruz.

This team received the award for its successful prosecution of Christopher Glenn who committed cyber-espionage, theft of classified materials, sex trafficking, and sexually assaulted minors. Glenn’s arrest in 2014 was the culmination of outstanding investigative work revealing that Glenn, a computer systems administrator for the U.S. Army at the Joint Task Force Bravo-Soto Cano Air Base in Honduras, had obtained unauthorized access to the base commander’s classified email system and disabled the system’s security restrictions. He copied highly-sensitive classified military plans and intelligence reports onto a disk that he removed from the base, and then downloaded the information onto an encrypted, Internet-accessible computer storage device at his Honduran residence. Furthermore, it was discovered that, for years, Glenn had been obtaining young girls between the ages of 12 and 16 from poor, remote villages in Honduras, taking them to his home, and sexually assaulting them, sometimes using date rape drugs.

Glenn was indicted in two separate cases. In 2015, he pled guilty in the counterintelligence case and was sentenced to the statutory maximum of 10 years in prison for the willful retention of classified national defense information under the Espionage Act and for computer intrusion under the Computer Fraud and Abuse Act.  In March 2017, Glenn was convicted in the child exploitation case following a six-week jury trial. He was sentenced to life in prison on July 21, 2017.  This child exploitation case is one of the first in the U.S. to rely on extraterritorial jurisdiction under the Trafficking Victims Protection Act for conduct that occurred entirely abroad.

The success of these two related cases was due to the collaborative teamwork of the award recipients and their law enforcement partners.  Together, they brought Glenn to justice while protecting U.S. national security interests and preventing any further sexual abuse of children.

.

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Robert F. Lasky, 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 unsealing of a criminal complaint charging 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 with conspiracy to possess cocaine with the intent to distribute, in violation of Title 21, United States Code, Section 846; attempting to possess cocaine with the intent to distribute, in violation of Title 21, United States Code, Section 846 and Title 18, United states Code, Section 2; and using and carrying a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c) and 2.  If convicted of the conspiracy and attempted narcotics possession with intent to distribute charges, the defendants each face life in prison and a mandatory-minimum sentence of 10 years in prison.  If convicted of the armed drug trafficking offense, each defendant faces a mandatory consecutive sentence of 5 years in prison.

The criminal complaint alleges that Officers Schonton Harris, Kelvin Harris and Archibald collectively provided protection to the transportation and distribution of purported cocaine, opioids and drug proceeds, in exchange for cash (bribe) payments.  The Officers believed that they were protecting the activities of money launders and narcotics traffickers, when in fact they were engaged in a criminal enterprise with undercover federal officers. 

The complaint alleges Officer Schonton Harris initially provided protection for a courier who was purportedly collecting drug proceeds from pharmacies and clinics engaged in the illegal sale of opioids and then depositing the money into a bank.  She also allegedly acted as a police protection escort for a purported shipment of 2,000 prescription opioid pills and multiple kilograms of cocaine, that were transported to a Miami-area hotel.  The complaint further alleges that Officer Kelvin Harris later joined the protection scheme.  Together, Officers Schonton Harris and Kelvin Harris provided police protection for a purported money launderer.  They then allegedly escorted a multi-kilogram shipment of sham cocaine. The complaint alleges, in September 2018, Officer Archibald actively joined the drug trafficking conspiracy.  Believing they were working with a high-level narcotics trafficker, the three officers allegedly provided police protection for a 40-kilogram delivery of sham cocaine.  On a later date, the three officers allegedly transported 30-kilograms of sham cocaine from a Miami-area marina to Miami-area hotels.  Rather than protecting the couriers, the officers are alleged to have personally taken possession of the sham cocaine.

The complaint also alleges that Officer Schonton Harris sold a City of Miami Police Department uniform and badge to an undercover officer, for $1,500.

At times during the protection details, the officers were armed and/or in uniform.

U.S. Attorney Fajardo Orshan said, “The charges announced today represent a united commitment, amongst federal and state partners, to combat corruption.  No one wants corrupt officers in our police departments or on our streets.  We will not allow those who abuse their positions of power, to tarnish the reputation of the City of Miami Police Department and the dedicated officers who proudly serve and protect our South Florida communities.  The U.S. Attorney’s Office commends City of Miami Police Chief Jorge Colina for leading by example and encourages anyone with information regarding corruption to contact the FBI.”

“This investigation was initiated by the City of Miami Internal Affairs, then developed with the leadership of the FBI’s Miami Area Corruption Task Force,” said Denise Stemen, Assistant Special Agent in Charge, FBI Miami.  “Chief Jorge Colina took decisive action to preserve the integrity of his department and the fine officers who serve Miami every day.  I commend his actions and discretion throughout this investigation.” 

“We are committed to protecting our communities and eliminating corruption,” stated MPD Chief Jorge Colina.  “Once the City of Miami Police Department was made aware of the suspected criminal conduct, we immediately reached out to our federal partners to ensure that any officer who breaks the law faces appropriate consequences.  We commend the concerned citizen who made the initial report to law enforcement and initiated this important investigation.  We encourage anyone with information regarding suspected corruption to report their concerns directly to our police department or the FBI.”

A criminal complaint contains allegations and 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. Attorney Harry Wallace. 

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.

On Friday, October 19, 2018, the last of four defendants was sentenced for his role in a narcotics importation and distribution ring, operating in Miami-Dade and Osceola Counties, involving an analogue of the powerful opioid fentanyl, as well as n-ethylpentalone.

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), Christopher Cave, Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP), Miami Field Office, made the announcement.

According to court records, Johan Stephen Paniagua, 26, of Miami-Dade County, Saul Rivera, a U.S. Postal Service employee, 33, of Miami-Dade County, Ernest Lee Warren, 40, of Osceola County, and Jacqueline Santiago, a U.S. Postal Service employee, 30, of Miami-Dade County, pled guilty for their involvement with a drug trafficking organization that used the United States mail system to import controlled substance analogues into south Florida.

Over the course of the year-long investigation, law enforcement determined that Paniagua ordered multiple kilograms of fentanyl (methoxyacetylfentanyl) and Pentylone (n-ethylpentalone) analogues using the dark web.  These substances were shipped to the United States from China.  Paniagua then enlisted Rivera, a mail carrier, to divert the parcels from the mail stream and distribute them to Paniagua and other members of the drug trafficking organization, including Warren, who served as a drug mule.  Santiago, also a mail carrier, assisted by diverting parcels on days that Rivera was not at work.

“The opioid epidemic is a national health emergency that will not be ignored,” said U.S. Attorney Fajardo Orshan.  “The U.S. Attorney’s Office and our law enforcement partners remain committed to the prosecution of individuals who illegally import and distribute prescription painkillers, including synthetic opioids such as fentanyl, into our local South Florida communities.  The systemic abuse of opioids poses a grave danger to the public’s safety.  Concerned citizens are encouraged to report suspected traffickers of controlled substances (including heroin, fentanyl and other opioids) directly to law enforcement.”

"This case signifies the importance of our efforts to combat the importation and distribution of fentanyl within our communities who are being negatively influenced by a steady influx of this illegal and deadly narcotic," said Special Agent in Charge for HSI Miami Mark Selby.  "HSI and its law enforcement partners are committed to increasing our enforcement by targeting dark web sales of opioids, following money trails and leveraging our international, federal, state and local law enforcement partnerships to dismantle the opioid smuggling rings and stop this endemic crisis from spreading any further."

“These federal convictions and sentences reflect the hard work of our special agents who vigorously investigated this narcotics scheme,” said USPS-OIG Special Agent in Charge Christopher Cave. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively pursue these investigations. These crimes will not be tolerated and our agency will remain vigilant.”

“The Postal Inspection Service will continue to work with our partners, to stop the flow of dangerous drugs onto the streets of our community,” said Miami Division Postal Inspector in Charge Antonio J. Gomez. “Enforcing the laws that defend the nation's mail system from illegal use, are at the core of our mission.”

"Fentanyl, originally prescribed to combat extreme pain associated with cancer and end-of-life palliative care, has become one of the deadliest drugs on the street,” stated CBP Port Director Christopher D. Maston, Miami International Airport. “It is estimated by the Centers for Disease Control (CDC) that fentanyl overdoses are on the rise and its victims know no age, demographic, or geographical region. The men and women of CBP are steadfast in their commitment to keeping these opioids out of our communities and out of the hands of our children".

Paniagua, the final defendant, was sentenced on October 19, 2018.  He pled guilty to conspiracy to import a controlled substance analogue on April 16, 2018 (Case No. 17cr20880).  Judge Scola sentenced Paniagua to 80 months in prison.

Rivera and Warren pled guilty to conspiracy to possess with intent to distribute a controlled substance analogue on January 19, 2018 (Case No. 17cr20637).  On April 30, 2018, U.S. District Judge Robert N. Scola sentenced Rivera and Warren to 48 months and 24 months in prison, respectively. 

Santiago pled guilty to mail theft by a postal employee on December 28, 2017 (17cr20791).  On February 28, 2018, U.S. District Judge Jose E. Martinez sentenced Santiago to probation.

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 commended the investigative efforts of HSI, USPS-OIG, USPIS, and CBP.  This case was 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 on http://pacer.flsd.uscourts.gov.

A former South Florida attorney and a stock promoter have been charged in connection with a $1 million pump and dump securities fraud scheme involving the shares of Valentine Beauty, Inc. (“VLBI”). 

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge of the FBI’s Miami Field Office, made the announcement.  

Mark E. Fisher, 53, of Boca Raton, Florida, and Joseph F. Capuozzo, 57, of Davie, Florida, were charged by a criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 371 (Case No. 18-120823-CR-KMW).   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 is scheduled to be sentenced tomorrow by U.S. District Judge Ursala Ungaro.

According to court documents, including allegations contained in the criminal information, 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 lawer 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 fraudlent 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 relatiy 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 Exeuctive 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). 

Today, a parallel civil enforcement action was filed by the SEC in the Southern District of Florida against Fisher and Capuozzo in connection with the VLBI pump and dump manipulation scheme.  Prevoiusly, the SEC filed parallel civil enforcement actions against Marin and Spierdowis.

A criminal information 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. 

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.

A Broward county teacher pled guilty yesterday to possessing child pornography.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

Gregg Donshik, 47, of Hollywood, Florida, pled guilty to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).  Sentencing is scheduled for December 21, 2018, before U.S. District Judge Beth Bloom.  Donshik is facing a maximum statutory sentence of 20 years in prison.

According to court documents, in March 2018, HSI Miami received information from Interpol regarding internet users in the U.S. who had created accounts and purchased child pornography on the dark web.  In relation to this investigation, federal law enforcement executed a search warrant at Donshik’s residence and recovered several computers and other electronic media, containing images and videos of children being sexually abused. At the time of his arrest, Donshik was employed as a teacher.  However, evidence indicated he accessed and possessed the child pornography from his home. 

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI in this matter and thanked the South Florida Internet Crimes Against Children Task Force for their assistance.  The case is being prosecuted by Assistant U.S. Attorney Francis Viamontes.

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

U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, Katherine Fernandez Rundle, Miami-Dade State Attorney, Robert F. Lasky, 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 Officer Guillermo Ravelo was sentenced to 27 months incarceration for conspiracy to deprive a person of his civil rights and deprivation of civil rights under color of law.

“Officers who use excessive force and make false arrests maliciously cause harm to their victims and scourge our justice system,” said U.S. Attorney Ariana Fajardo Orshan. “With great power, comes great responsibility. Through aggressive federal prosecutions, the U.S. Attorney’s Office for the Southern District of Florida will continue to guard the invaluable civil rights of every member of our community and hold those accountable who violate our constitutional protections.”

“These officers conspired to falsely arrest individuals in the name of providing deceptive clearance statistics for the benefit of Chief Atesiano,” said Acting Assistant Attorney General John Gore. “Chief Atesiano and these officers abused their authority and the Department will continue to ensure officers such as these are held accountable.”

“These three police officers from Biscayne Park disgraced themselves and damaged the public’s trust in law enforcement. Their actions are inexcusable and are not representative of the law enforcement professionals who serve us selflessly,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “The citizens of South Florida can take comfort in the fact that the vast majority of police officers are honest, forthright individuals who are committed to doing the job right. To those officers who aren’t, the FBI’s Miami Area Corruption Task Force was assembled and designed to root them out.”

“Honesty and integrity are the core values of every effective police officer,” said State Attorney Katherine Fernandez Rundle. “Former Biscayne Park Police Officers Guillermo Ravelo, Charlie Dayoub and Raul Fernandez undermined their essential task of protecting the community, in some instances by using excessive force and in others, by conspiring to deprive suspects of their civil rights so as to produce bogus arrests. This absolute abuse of power by all three officers violated every aspect of the oath Ravelo, Dayoub, and Fernandez took the day they became police officers.”

“The officers’ actions are everything we guard against in law enforcement and violated our most important principals,” said FDLE Miami Special Agent in Charge Troy Walker.  “When an officer abuses the public’s trust, there must be severe consequences.  I thank the U.S. Attorney’s Office for their work on this case.”

According to court filings, on Jan. 23, 2013 and Feb. 26, 2014, at the direction of then Biscayne Park Police Department Chief Raimundo Atesiano, 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 a separate incident, on April 7, 2013, Ravelo responded to a request for assistance from another Biscayne Park police officer who had conducted a traffic stop.  During the arrest of the driver, Ravelo used unreasonable force by striking the handcuffed driver with his fists.

Former Chief Atesiano previously pleaded guilty to acting under color of law as chief of police when on three separate occasions he ordered officers Ravelo, Charlie Dayoub and Raul Fernandez to falsely arrest and charge individuals with unsolved burglaries.  In court filings related to the 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.  Former Chief Atesiano is scheduled to be sentenced on Nov. 27, 2018.

Former officers Charlie Dayoub and Raul Fernandez were each sentenced to 12 months in prison for their role in falsely arresting a 16-year old juvenile, “T.D.,” for four unsolved burglaries.   Dayoub and Fernandez were the first officers to cooperate with the government and accept responsibility for their criminal acts.  Their cooperation directly implicated Atesiano and resulted in an indictment being returned against the former chief charging civil rights violations. 

As noted at the hearing and in court filings, on June 13, 2013, Chief Atesiano instructed the officers 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.

According to court filings, Chief Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.

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 on http://pacer.flsd.uscourts.gov.

The Medical Director of a substance abuse treatment center in Wellington, Florida, pled guilty today to unlawfully distributing controlled substances (opioids, barbiturates, and benzodiazepines). 

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

Kenneth Rivera-Kolb, M.D., 65, of Largo, pled guilty to one count of conspiracy to unlawfully dispense and distribute controlled substances (Case No. 18cr80121).  The defendant faces a maximum of 20 years in prison.  Sentencing is scheduled for January 8, 2019, at 9:00 a.m. before Senior U.S. District Court Judge James I. Cohn.

According to court documents, in 2013, Rivera-Kolb was hired to serve as the Medical Director of Angel’s House LLC (“Angel’s Recovery”), a substance abuse treatment facility located in Wellington, Florida.  Angel’s Recovery was owned and operated by Tovah Lynn Jasperson and her father, Alan Martin Bostom (Case No. 17cr80194).  In addition to the treatment facility, Angel’s Recovery also operated sober homes that were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction.

As the medical director, Dr. Rivera-Kolb was purportedly responsible for evaluating patients and prescribing medically necessary treatment and testing.  In February 2015, Rivera-Kolb had his medical license suspended by the State of Florida for a period of four years.  Despite the absence of a medical license, the defendant continued to serve as the medical director of Angel’s Recovery, and knowingly prescribed controlled substances at the facility.  Jasperson and Bostom were aware of Rivera-Kolb’s license suspension, having hired chauffeurs to transport him to hearings before the Board of Medicine of the State of Florida, but continued to employ him as a treating physician and allowed him to write prescriptions for patients. The defendant continued to serve in this capacity until at least September 2015.

Jasperson previously pled guilty to conspiracy to commit health care fraud and was sentenced to 78 months in prison.  Bostom previously pled guilty to knowingly and willfully falsifying, concealing, and covering up by a trick, scheme, and device a material fact in a matter involving health care benefit programs and was sentenced to 30 months in prison.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Florida Division of Investigative and Forensic Services, Amtrak-OIG, DOL-EBSA, and NICB.  This matter was prosecuted by Assistant United States Attorneys A. Marie Villafaña and Alexandra Chase.

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

A doctor has been charged with committing health care fraud out of her practice in Stuart, Florida.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Pam Bondi, Florida Attorney General (Florida Medicaid Fraud Control Unit), made the announcement.

Sheetal Kanar Kumar, M.D., 48, of Stuart, appeared in federal court and was arraigned on twenty-six counts of health care fraud (Case No. 18-14063-CR-Marra).   The trial is currently set to begin in Fort Pierce on November 13, 2018, before U.S. District Judge Kenneth A. Marra.

According to the indictment, Dr. Kumar owned and operated the medical practice Advanced Healthcare for Women in Stuart, Florida.  She was an obstetrician and gynecologist licensed to practice medicine.  She also provided medical services treating incontinence.   From at least as early as January 2014, until July 2017, Dr. Kumar submitted or caused the fraudulent submission of claims to Medicare, Medicaid and private insurance companies.  The fraudulent claims sought money for specific health care benefits, items, and services that were not provided as billed.  As a result of such false and fraudulent claims, Medicare, Medicaid and private insurance companies, made payments in the approximate amount of $926,802.

An indictment is a formal accusation of criminal conduct, not evidence of guilt.  The defendant is presumed innocent unless and until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of HHS-OIG, FBI and Florida Medicaid Fraud Control Unit in this matter.  The case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk.

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

John Joseph O’Grady, 61, of Boynton Beach, was sentenced today to 4 months in prison and one year of supervised release, by U.S. District Judge Robin L. Rosenberg, after previously pleading guilty to falsely impersonating a Deputy U.S. Marshal.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Gadyaces S. Serralta, U.S. Marshal, United States Marshals Service (USMS), Miami Field Office, and Michael Gregory, Chief, Boynton Beach Police Department (BBPD), made the announcement.

On March 21, 2018, BBPD officers responded to a call from an employee of Best Buy in Boynton Beach, requesting that a man in a dark business suit, later identified as Defendant O’Grady, be issued a trespass warning because he had returned to the store after previously shoplifting an iPhone.  As captured on police body camera footage, when BBPD officers responded and made contact with O’Grady, they observed him dressed in a suit jacket that displayed a USMS lapel pin (that is, a miniature replica of the USMS star within a circle badge).   For officer safety, O’Grady was asked if he had any weapons on his person and responded in the affirmative.   Officers discovered O’Grady to be in possession of a highly realistic replica of a semi-automatic pistol in a holster.   O’Grady was also wearing an unauthorized U.S. Marshal badge on his belt.  O’Grady falsely identified himself to law enforcement as “a Federal Marshal,” when in fact he was a limo driver.

            U.S. Attorney Fajardo Orshan commended the investigative efforts of the USMS and BBPD in this matter.  This case was prosecuted by Assistant U.S. Attorney John C. McMillan.

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

Gopaul Parmanand, 41, of Palm Beach Gardens, pled guilty today to falsely impersonating a Special Agent of U.S. Immigration and Customs Enforcement.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael T. Moreland, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility (ICE-OPR), Miami Field Office and Diane J. Sabatino, Director, Field Operations, Customs and Border Protection (CBP), Miami Field Office, made the announcement.

Parmanand is scheduled to be sentenced by U.S. District Judge Robin R. Rosenberg on December 20, 2018, in West Palm Beach.  The defendant faces a maximum statutory sentence of up to three years in prison.

On July 31, 2018, Special Agents assigned to ICE-OPR responded to the Port of Palm Beach after receiving a call from CBP regarding a cruise ship passenger, Gopaul Parmanand, who was returning from a two-day voyage that originated at the Port of Palm Beach, with a stop in Freeport, Bahamas.  Information had been received by CBP from cruise ship staff that Parmanand had been impersonating a federal agent during the voyage and to Bahamian Border Officials.

On July 29, 2018, while on the cruise ship Grand Celebration, Parmanand cut in front of other passengers to approach the shore excursion desk and asked how he could connect to the internet because he had to check his work emails.  He then displayed a silver in color badge and stated that he was “Police ICE.”  During the course of an examination of Parmanand’s luggage, pursuant to an inbound Custom’s inspection at the U.S. Point of Entry, law enforcement discovered a silver in color money clip in the shape of a badge that bore the exact likeness of an ICE Special Agent’s badge with the seal of the Department of Homeland Security at its center. 

Parmanand has never been employed by the Department of Homeland Security in general, or ICE in particular, in any capacity.

U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-OPR and CBP in this matter.  This case is being prosecuted by Assistant U.S. Attorney John C. McMillan.

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

A Hialeah check casher pled guilty yesterday to laundering over $100 million in proceeds of healthcare, mortgage and identity theft tax refund fraud.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Evelio Suarez, 53, of Miramar, pled guilty before U.S. District Judge Robert N. Scola, Jr. to one count of money laundering.  Surarez is scheduled to be sentenced by Judge Scola on December 18, 2018, at 8:30 a.m.

According to the agreed upon factual proffer and court documents, from 2013 through 2015 (the “relevant period”), Suarez controlled a number of check-cashing stores located in Hialeah, Florida (the “Suarez Stores”). During this period, the defendant caused the cashing of checks at the Suarez Stores that were the proceeds of fraudulent activity, including identity-theft tax refund fraud, health care fraud, and mortgage fraud.  On numerous occasions, Suarez cashed individual fraudulent Medicare checks exceeding $200,000 and individual U.S. Treasury tax refund checks exceeding $150,000.  Suarez knew that the checks had been obtained from fraudulent activity and, on occasion, knowingly accepted fake identification documents. 

According to the factual proffer, because Suarez knew the funds came from illegal sources, the defendant charged an additional fee on top of the standard fee charged by the check-cashing stores.  Suarez charged this as a personal fee that he took in cash from the stores.  Suarez also often withheld money from the checks and falsely claimed to the scammers that the money from their checks had been frozen by the banks or the authorities. 

According to the factual proffer, during the relevant period, Suarez knowingly cashed at least $100 million in checks that came from either identity-theft tax refund fraud, healthcare fraud or mortgage fraud. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of IRS-CI and FBI in this matter.  The case is being prosecuted by Assistant U.S. Attorneys Michael N. Berger and Yisel Valdes.

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

Michael R. Casey, 71, a fugitive for over four years, pled guilty today for his participation in a $21 million investment fraud scheme.

Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Gadyaces S. Serralta, U.S. Marshal, U.S. Marshals Service (USMS), Miami Field Office, made the announcement.

Casey pled guilty before U.S. Magistrate Judge Andrea M. Simonton, to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 12-20630-Cr-Lenard).  Casey previously pled guilty to failing to appear in court in 2014 (Case No. 14-20619-Cr-Moreno).  Casey is scheduled to be sentenced for both offenses of conviction on November 27, 2018, by Chief U.S. District Judge K. Michael Moore.

According to the court record, Casey, originally of Fort Lauderdale, and co-defendants James C. Howard, III, of Parkland, Patricia S. Saa, of Tampa, and Louis N. Gallo, III, of Parkland, defrauded individuals who invested in Commodities Online LLC (COL).  From approximately January 2010 through April 2011, Casey and his co-conspirators used material false and fraudulent representations and material omissions to obtain over $21 million from over 770 investors.

Casey and his co-conspirators used COL to sell: shares of ownership in COL; subscriptions to access the COL website and COL’s investment opportunities; and investments in purported transactions to buy and sell commodities, such as fish, iron ore and sugar.  After receiving $2.2 million for the COL ownership shares in early 2010, Howard and Saa diverted $1.3 million of those funds for other purposes.  By the summer of 2010, Casey learned that the funds had been diverted for other purposes, and did not disclose it to investors. 

In addition to selling COL ownership units, Casey and his co-conspirators offered investors the opportunity to fund purported contracts to buy and sell commodities.  Casey and his co-conspirators offered a stated percentage return on investment, such as 10% within 30 days or 20% within 70 days.  However, the specific purported contracts – for which investors sent COL money – did not exist as represented to investors.  Also, Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts.  However, Casey and his co-conspirators knew that COL did not have profits. 

Casey and his co-conspirators also made material misrepresentations and omissions about the leaders of COL.  Howard, who was initially the President of COL, was arrested for a state fraud offense in March of 2010.  As a result, Howard stepped down.  Casey, who was initially outside counsel to COL, became the President of COL in May of 2010.  From May 2010 to March 2011, Casey and his co-conspirators represented to investors that Howard was no longer managing COL, when in fact, Howard remained the top person in charge.   Also, Casey and his co-conspirators did not disclose to investors that both Howard and Gallo had previously been convicted of felonies.

During the time COL was operating, COL paid about $3 million to investors using funds paid by later investors.  The investors lost approximately $18,919,995.

On August 30, 2012, Casey was charged by indictment, along with Howard, Saa, and Gallo, with one count of conspiracy to commit mail and wire fraud, and several counts of mail and wire fraud.  Howard, Saa, Gallo, and another defendant, Rita Balbirer, were also charged with conspiracy to commit money laundering and various counts of money laundering. 

In April of 2014, Casey failed to appear at a status hearing while pending trial.  In August of 2014, Casey was indicted for bond jumping.

In September 2013, Howard pled guilty to one count of conspiracy to commit mail and wire fraud.  In December 2013, Howard was sentenced to 189 months in prison. 

In August of 2014, Gallo pled guilty to one count of conspiracy to commit mail and wire fraud.  In October of 2014, Gallo was sentenced to 168 months in prison.

In July of 2014, Balbirer pled guilty to two counts of money laundering.  In September of 2015, Balbirer was sentenced to 17 months in prison.

In addition, other co-conspirators in the COL fraud scheme were charged separately with conspiracy to commit mail and wire fraud.  In November 2013, three defendants pled guilty for their involvement in the scheme.  In February 2015, Timothy Josselson was sentenced to 38 months in prison, in Case No. 13-20730-Cr-Altonaga.  In February 2015, Kathryn Josselson was sentenced to 36 months in prison, in Case No. 13-20731-Cr-Moore.   In March 2015, Robert Lananna was sentenced to 40 months in prison, in Case No. 13-20732-Cr-Ungaro. 

            U.S. Attorney Fajardo Orshan commends the investigative efforts of the FBI and USMS in this matter.  This case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John Gonsoulin.

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 French national who was serving at times as an administrator and senior moderator on one of the largest dark web criminal marketplaces was sentenced to 20 years in prison today, after previously pleading guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to launder money.

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, Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Office, Special Agent in Charge Robert F. Lasky of FBI Miami Field Office, and Special Agent in Charge Michael J. De Palma of IRS Criminal Investigation (IRS-CI), made the announcement. 

Gal Vallerius, aka “Oxymonster,” 36, pleaded guilty before U.S. District Court Judge Robert N. Scola Jr. in the Southern District of Florida on Aug. 28.  Judge Scola sentenced Vallerius to serve 240 months in prison.  Vallierius forfeited 99.98947177 bitcoin and 121.94805811 bitcoin cash.

According to the court record, including the agreed upon factual proffer, beginning in or around November 2013 a criminal online marketplace known as Dream Market began operating on the Tor “dark web” network.  Dream Market was designed to promote and facilitate the anonymous sale of illegal items.  In time, the Dream Market website became one of the largest dark web criminal marketplaces.  All of the items and services on Dream Market were offered for sale in exchange for Bitcoin and other peer-to-peer crypto-currencies. 

According to the agreed upon factual proffer, Vallerius first participated in the conspiracy by becoming a vendor on Dream Market.  As a vendor, he sold Oxycodone and Ritalin under the moniker “Oxymonster.”  Shortly thereafter, Dream Market employed the defendant who acted at times as an administrator and senior moderator.  In these positions, he played a role supporting the daily illicit transactions between buyers and vendors on Dream Market, such as trafficking in narcotics, and the laundering of illicit proceeds using virtual currencies, Dream Market’s tumblers and the dark web. 

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 that, 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 combatting the nation’s illicit drug trafficking threats.

The 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.  

The investigation was conducted by DEA Miami Field Office and Paris Country Office, FBI Miami’s Cyber Task Force, IRS-CI Miami Field Office, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Miami and Atlanta Field Offices, U.S. Customs and Border Protection’s Field Operations Atlanta, U.S. Postal Inspection Service’s Miami Field Office, the Department of Justice’s Office of International Affairs, Europol, Special Operations Division (SOD), Finnish National Police, Finnish International Judicial Administration of the Ministry of Justice, Dutch National Police, French Ministry of Justice and the Direction Interregionale de la Police Judiciaire as well as the U.S. Attorney’s Office for the Northern District of Georgia.  The case was prosecuted by Assistant U.S. Attorney Juan A. Gonzalez of the Southern District of Florida, former Assistant U.S. Attorney Frank R. Maderal of the Southern District of Florida, and Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).

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, are charged with participating in a fraud conspiracy.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert Lasky, 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, was charged in a 50-count indictment with theft concerning programs receiving federal funds, wire fraud and conspiracy, in violation of Title 18, United States Code, Sections 666, 1343 and 1349.  Peterson.   Gino Joseph Ferraro, age 49, of Fort Lauderdale, Florida, was also charged in four counts in the indictment, with participating in the conspiracy and substantive counts of wire fraud. An arraignment hearing is scheduled for Peterson on October 12, 2018 at 1:00 p.m. and Ferraro on October 17, 2018 at 11:00 a.m., before the U.S. Magistrate Judge in Fort Lauderdale.

The indictment alleges that between 2013 and 2017, Peterson, as a City of Fort Lauderdale Parks and Recreation Department employee used a credit card issued by the City of Fort Lauderdale to purchase various items from different merchants.  Peterson had been issued the card in connection with his employment to allow him to make job related purchases, on behalf of the Department of Parks and Recreation.  Peterson would purchase items using his City of Fort Lauderdale credit card, and then sell the items to a local pawn store.  Each year between 2013 and 2017, Peterson allegedly stole more than $5,000 worth of merchandise in this manner. 

The indictment further alleges that Peterson conspired with Ferraro to unjustly enrich 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.

An indictment is a formal accusation of criminal conduct, not evidence of guilt.  The defendant is presumed innocent unless and until proven guilty.

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.

Following a two-week jury trial, on October 1, 2018, Nieves Suarez, 48, of Miami, Florida, was convicted of conspiracy to commit health care fraud and four substantive counts of health care fraud.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.

According to evidence presented at trial, Suarez owned and operated a fraudulent community retail pharmacy.  Suarez was the president, director, and registered agent of Golden Owl Pharmacy & Discount Corp., located at 1874 SW 57th Ave, Miami, Florida, from January 3, 2011, through November 30, 2012, and secretary from November 30, 2012 through March 10, 2015.  From November 2011 through August 2014, the Medicare Part D program reimbursed Golden Owl Pharmacy & Discount Corp approximately $1.6 million.  Although Golden Owl Pharmacy & Discount Corp did make some drug purchases, audits revealed shortages totaling $915,784.

Sentencing is scheduled for December 12, 2018, 10:00 a.m., before U.S. District Judge Marcia G. Cooke (Case No. 18-20175-CR).  Suarez faces up to twenty years in prison for the conspiracy charge and ten years in prison for each substantive health care fraud count of conviction.  

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and HHS-OIG in this matter.  This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark. 

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.

One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made 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 a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs.  I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face.  Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”  

Throughout the past year, the U.S. Attorney’s Office for the Southern District of Florida has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.

“We cannot prosecute an end to violent crime in our South Florida communities,” stated U.S. Attorney Ariana Fajardo Orshan.  “Only by reinforcing and amplifying our law enforcement and public partnerships can we collectively combat the violent threats to our safety, security and well-being.  The Project Safe Neighborhoods program exemplifies the collective strategies that are needed in order to target the most egregious offenders, reinvigorate our neighborhoods and support our returning citizens.  The U.S. Attorney’s Office for the Southern District of Florida remains entrenched in our collaborative efforts to protect, educate and connect with our local residents.”

In order to amplify the enforcement and community impact of Project Safe Neighborhoods, the U.S. Attorney’s Office for the Southern District of Florida spearheaded, and has continued to support, the Violence Reduction Partnership (VRP).  Through the VRP, the U.S. Attorney’s Office and our federal, state and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida using a three-prong, holistic approach.  First, in order to advance our enforcement efforts, Assistant United States Attorneys (AUSAs) are specially assigned to handle matters within designated “hot spot” areas. Working with their law enforcement partners, the AUSAs facilitate community relations, gather intelligence, and identify the most prolific, violent offenders for prosecution. The collective mission is to ensure the safety of our community. Second, the VRP supports community based programs and initiatives designed to educate the public and prevent participation in criminal activity.  Third, the VRP provides services to inmates scheduled to return to the community (returning citizens) so that they have the resources, support and skills needed for a successful reintegration.

The Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies, provides additional crime-fighting support in South Florida.  The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

As we celebrate the one-year anniversary of the revitalized PSN program, let us highlight some of the recent local enforcement actions and community impact initiatives:

Enforcement Actions

Last month, a federal jury returned convictions against ten members and associates of a violent criminal enterprise that was the focus of VRP and OCDETF enforcement initiatives (U.S. v. Glass, et al, Case. No. 17cr20307). According to evidence introduced at trial, the racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), conducted unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami for over seventeen years.  The criminal enterprise members routinely robbed victims at gunpoint and sold narcotics.  The enterprise’s criminal spree included armed robberies of drug dealers and five commercial robberies. https://www.justice.gov/usao-sdfl/pr/miami-based-violent-criminal-enterprise-members-and-associates-convicted-trial.

The following are examples of PSN sentencings during September 2018:

• A Fort Lauderdale resident was sentenced to over 92 years in prison, after having been convicted at trial of three armed robberies, a carjacking and brandishing a firearm during the commission of a violent act. https://www.justice.gov/usao-sdfl/pr/fort-lauderdale-resident-sentenced-92-years-prison-armed-robberies-and-carjacking
• A Miami resident was sentenced to 32 years in prison for committing a string of armed robberies.  https://www.justice.gov/usao-sdfl/pr/serial-robber-sentenced-32-years-prison
• A Fort Lauderdale resident was sentenced to 27 years in prison for committing two armed iPhone robberies. During the second robbery, the defendant discharged the firearm and struck the victim in the face. https://www.justice.gov/usao-sdfl/pr/iphone-robber-sentenced-27-years-prison-0
• A Miami-Dade resident was sentenced to 22 years in prison for robbing a convenience store and two gas stations.  In each robbery, the defendant approached the cashier, stated that he had a firearm, and demanded money from the cash register.  During the convenience store robbery the defendant displayed part of a firearm that was in his jacket pocket. https://www.justice.gov/usao-sdfl/pr/miami-dade-county-resident-sentenced-22-years-prison-multiple-robberies-commercial
• A Tamarac resident was sentenced to over 12 years in prison for being a felon unlawfully in possession of a loaded firearm, while being the subject of a Domestic Violence Protection Order.  https://www.justice.gov/usao-sdfl/pr/tamarac-resident-sentenced-over-12-years-prison-being-felon-unlawfully-possession

In July, the U.S. Attorney’s Office announced that since April of 2017, sixteen Saint Lucie County Residents had been sentenced to federal prison on firearms and drug trafficking charges as part of the Project Safe Neighborhoods initiative to combat violent crime in the northern area of the federal district. https://www.justice.gov/usao-sdfl/pr/sixteen-saint-lucie-county-residents-sentenced-federal-prison-firearms-and-drug

Community Partnerships

Simultaneously, and equally as important as the VRP’s law enforcement efforts are the U.S. Attorney’s Office community outreach and crime prevention initiatives.

Project Sentry and Project Safe Childhood: During interactive programs, volunteers teach students to avoid violence by recognizing dangers in the community, reporting problems and peacefully resolving issues.  The Project Sentry program focuses on guns, gangs, and violence deterrence, while Project Safe Childhood educates the youth regarding bullying, cyberbullying, and internet safety.  The programs are approved in Miami-Dade, Broward and Palm Beach County schools.

Making Smarter Choices Fieldtrips: Volunteers speak to middle school students, who visit the U.S. Attorney’s Office and Miami federal courthouses, about the importance of “Making Smarter Choices.”   During the program, students participate in mock trial exercises.

Drug Education For Youth (DEFY) Summer Camp: This overnight camp provides at-risk youth, ages 9-12 years, with the self-esteem, leadership and teamwork skills needed to resist drugs, gangs, violent behavior, bullying, and cyberbullying.

Pre-K Reading Program: During monthly reading sessions, governmental, law enforcement and public sector volunteers engage with 3 to 5 year olds in disadvantaged communities. At the end of every reading session, each child is given a book to take home.  More than 11,000 books have been shared with our local children.

Peace Ambassadors Leadership Program: The Peace Ambassadors Leadership Program empowers high school juniors to be "change agents" in their family, school, and community.  Academic excellence, courage, character, compassion, self-esteem, and personal responsibility are championed.

Big Brothers Big Sisters of America (BBBS): Volunteers mentor and provide educational assistance to students at local schools through BBBS.

United Way Reading Pals Program: During the academic year, volunteers read to and mentor Pre-K students at the Culmer Head Start Preschool in Overtown.

Monthly Community Resource Fairs and Food Distribution Programs:  The programs provide free food and essential services to local residents.

Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.

Improvements to Community Safety

• The FBI’s official crime data for 2017 reflects that, after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline.  The nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.
• The preliminary information we have for 2018 gives us reason for optimism that our efforts are continuing to pay off. Public data from 60 major cities show that violent crime was down by nearly five percent in those cities in the first six months of 2018 compared to the same period a year ago.
• Attorney General Sessions announced today that the Southern District of Florida has been allocated $733,871 in PSN funding.
• Yesterday, the Department of Justice announced grants that will directly impact our local schools. 
  • The Community Oriented Policing Services (COPS Office) School Violence Prevention Program (SVPP) awarded grants to implement school safety measures including coordination with law enforcement, training for law enforcement to prevent student violence against others and self, target hardening measures, and technology for expedited notification of law enforcement during an emergency.  The grant recipients included: the Village of Miami Shores; the City of Pembroke Pines; City of Homestead and Broward County.
  • The School Board of Broward County, Florida received two grants from the Office of Justice Program’s (OJP) Bureau of Justice Assistance (BJA):
    • A $379,346 grant under the Threat Assessment and Technology Reporting Program will support training to create and operate threat assessment and crisis intervention teams and to develop technology for local or regional anonymous reporting systems. This technology may be in the form of a mobile phone application, hotline, or website.
    • A $500,000 grant under the Prevention and Mental Health Training Program will provide training and education on preventing violence and effectively responding to related mental health crises.
• OJP BJA also announced yesterday that the Florida Department of Law Enforcement was awarded a $733,871 grant under PSN to create and foster safer neighborhoods through a sustained reduction in violent crime, including, but not limited to, addressing criminal gangs and the felonious possession and use of firearms and projects that support  innovative cooperative efforts and partnerships between federal, state, and local law enforcement engaged in a unified approach led by the U.S. Attorney to identify and prevent violent crime.
• On October 1, 2018, the Department of Justice announced grant awards under BJA’s Comprehensive Opioid Abuse Site-based Program, which provides financial and technical assistance to state, local and tribal jurisdictions to develop and implement efforts to identify, respond to, treat, and support those impacted by the opioid epidemic.
  • A number of awards were given to our South Florida partners, including: the City of Miami ($883,586 to provide staffing and treatment resources within our nation’s jails and upon reentry into the community, as well as funding to support opioid courts which connect new arrestees to treatment services immediately upon arrest and $750,000 under the Justice and Mental Health Collaboration Program), Miami-Dade County ($1,000,999 under the Opioid Affected Youth Initiative) and Big Brothers Big Sisters of America ($1,250,000 to provide mentoring services to children impacted by the opioid epidemic).
• On September 25, 2018, OJP BJA announced that the Palm Beach County Sheriff’s Office was awarded a $1,000,000 grant under the PSN Innovations in Community-Based Crime Reduction Program (CBCR).  The CBCR program supports local and tribal communities to effectively target and address violent crime issues in distressed, high-crime neighborhoods through coordinated cross-sector approaches that are linked with broader neighborhood revitalization efforts.  The goal of CBCR is to reduce crime, increase trust, and improve community safety as part of a comprehensive strategy to rebuild and revitalize neighborhoods. Through a broad cross-sector partnership team, including neighborhood residents, CBCR grantees target neighborhoods with hot spots of violent and serious crime and employ data-driven, cross-sector strategies to accomplish this goal.
• In addition, the City of Miami was recently chosen to be a National Public Safety Partnership (PSP) city, one of 31 cities chosen to participate in a coordinated effort to reduce violent crime.  The PSP was established in June 2017 under the direction of Attorney General Jeff Sessions in response to President Trump’s Executive Order on a Task Force on Crime Reduction and Public Safety, which emphasizes the role of the Department of Justice in combating violent crime.

Many of these enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods visit https://www.justice.gov/opa/pr/attorney-general-sessions-announces-reinvigoration-project-safe-neighborhoods-and-other and https://www.justice.gov/opa/pr/attorney-general-sessions-announces-reinvigoration-project-safe-neighborhoods-and-other.

On September 27, 2018, a Texas resident was sentenced in the Southern District of Florida to 6.5 years in prison for unlawfully exporting to Cuba electronic devices that require a license to export due to national security controls.

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Robert J. Luzzi, Special Agent in Charge, U.S. Department of Commerce Office of Export Enforcement (OEE), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office made the announcement. 

Bryan Evan Singer, 46, of Bryan, Texas was convicted at trial for attempting to illegally smuggle electronics to Cuba in violation of the Cuban Embargo, in violation of Title 18, United States Code, Section 554, and for making false statements to federal law enforcement, in violation of Title 18, United States Code, Section 1001(a)(2).  On September 27, 2018, U.S. District Court Chief Judge K. Michael Moore sentenced Singer to 78 months in prison, to be followed by supervised release. 

            On May 2, 2017, Singer intended to travel from Stock Island, Florida to Havana, Cuba aboard his vessel “La Mala.”  Prior to Singer’s departure, law enforcement conducted an outbound inspection of the boat. During the inspection, Singer declared that he was only bringing to Cuba those items observable on the deck, and that the value of those items was less than $2,500. However, law enforcement conducting the search discovered a hidden compartment under a bolted down bed in the cabin of Singer’s boat.  In the hidden compartment, law enforcement discovered hundreds of electronic devices, valued at over $30,000.  Included in those devices were over 300 Ubiquiti Nanostation Network devices, which are designed to provide highly encrypted connections between computer networks over long distances.  These devices require a license for export to Cuba, under United States law, because their capabilities threaten national security.   Singer never sought or obtained a license to export to Cuba, prior to his offenses of conviction.

U.S. Attorney Fajardo Orshan commended the investigative efforts of OEE, ICE-HSI, and CBP in this matter.  Mrs. Fajardo Orshan thanked the U.S. Coast Guard for the agency’s assistance.  This case was prosecuted by Assistant U.S. Attorney Brian J. Shack. 

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

On September 28, 2018, a former Miami-Dade County resident was sentenced to 12.5 years in prison for attempted international narcotics trafficking.

Ariana Fajardo Orshan, United States 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; Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office; and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), made the announcement.

Richard Senese, 39, formerly of Hialeah, previously pled guilty to attempting to import cocaine into the United States.  U.S. District Court Judge Beth Bloom sentenced Senese to 151 months in prison, to be followed by 5 years of supervised release.

According to the court docket, including the agreed upon factual proffer, on March 18, 2018, Senese attempted to smuggle 95 kilograms of cocaine, by boat, from the Bahamas.  Senese concealed the narcotics in the fuel tank of his vessel.  As Senese was traveling from the Bahamas to the United States, as the sole occupant of his vessel, the boat became disabled.  Air Marine units from the U.S. Customs and Border Protection intercepted Senese approximately 10 nautical miles east of Port Everglades and conducted an in-bound customs border search of the vessel. 

Agents spoke with Senese, who claimed that he was returning from an overnight stay in the Bahamas.  However, Senese could not remember the name of the hotel where he stayed.  He also was unable to produce any documentation related to his stay or show that he had cleared Bahamian Customs.  Senese claimed that during his trip he fished offshore of Bimini in the area of Great Isaac Light.  Fish were present on board the vessel.  During other portions of the interview, Senese provided evasive and inconsistent answers.  As a result, agents referred the vessel to Port Everglades for a dockside secondary inspection.

Upon arrival at Port Everglades, Customs and Border Protection agents and members of the Broward County Sheriff’s Office conducted a secondary inspection of the vessel.  During the inspection, a narcotics detection canine alerted to the odor of drugs.  Law enforcement also noticed the fasteners holding the deck cover were loose and showed signs of recent tampering.  Members of law enforcement removed the deck cover over the fuel tank area in the cockpit and discovered packages containing 95 kilograms of cocaine. 

U.S. Attorney Fajardo Orshan commended the investigative efforts of ICE-HSI, DEA, and BSO in this matter.  Mrs. Fajardo Orshan thanked U.S. Customs and Border Protection for the agency’s assistance.  This case was prosecuted by Assistant U.S. Attorney Mark Dispoto.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 September 28, 2018, a Boynton Beach resident was sentenced to 27 years in prison after having been convicted at trial of producing and possessing child pornography.

           Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, David Aronberg, State Attorney for Palm Beach County, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation, (FBI), Miami Field Office, and Michael Gregory, Chief, Boynton Beach Police Department, made the announcement.

           Tommy R. Findley, 56, of Boynton Beach, Florida, was convicted by a trial jury in July of one count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a) and (e) and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B).  U.S. District Court Judge Robin L. Rosenberg sentenced Findley to 324 months in prison, to be followed by a lifetime of supervised release.  Judge Rosenberg also ordered Findley to register as a sex offender.  

            According to evidence and testimony presented at trial, while executing a search warrant at Findley’s residence, the Boynton Beach Police Department uncovered images and videos of child pornography.  Located under Findley’s waterbed mattress and in a compartment of the trunk of his SUV, were concealed digital devices.  These devices contained sexually explicit images and videos that Findley produced of a 16 year old.

            U.S. Attorney Fajardo Orshan commended the investigation efforts of the FBI and the Boynton Beach Police Department 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.  This case was prosecuted by Special Assistant United States Attorney Justin Hoover and Assistant United States Attorney Gregory Schiller.

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

On September 28, 2018, U.S. District Court Judge Donald M. Middlebrooks sentenced Matthew Geoffrey Larson, 26, of West Palm Beach, to over 7.5 years in prison following his bank robbery and Hobbs Act robbery convictions.  

Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida and Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

On July 25, 2018, Larson pled guilty to both counts of the Superseding Information charging him with bank robbery and Hobbs Act robbery, in violation of Title 18, United States Code, Sections 2113(a) and 1951(a) (Case No. 18-80107-CR-Middlebrooks).  Judge Middlebrooks sentenced Larson to a total of 92 months in prison, to be followed by three years of supervised release.  Larson was also ordered to pay $5,199 in restitution.

According to court documents, including an agreed upon factual proffer entered into by the defendant, on Friday, April 27, 2018, at approximately 5:15 p.m., Larson and a female companion, later determined to be 18 years old, entered the JP Morgan Chase Bank located at 1480 Greenview Shores Boulevard, Wellington, Florida.  Larson and the female approached the teller station where the female robber held up in front of the teller a hand-written note while Larson stood behind her.  The note read “No sudden movement, no alarm, no dye pack, if you do you’ll die.” After reading the note, the teller complied with the robbers’ demand and handed over the money from her counter drawer, a total of $4,420.00.  Larson and the female then fled the bank.

Nine days later, on May 8, 2018, at approximately 3:35 p.m., Larson and the same female entered the Chic Boutique in Jupiter, Florida, and robbed the store clerk utilizing a note very similar to the one used in the Chase robbery, demanding money and directing the clerk not to activate a panic button or call the police.  Again, the female robber handed the clerk the note while Larson stood behind her.  Larson and the female robber fled the store with $152.00. 

The female robber is currently facing state charges for the Jupiter robbery.  A charging instrument contains accusations.  A defendant is presumed innocent until proven guilty in a court of law.

U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI in this matter.  Mrs. Fajardo Orshan thanked the Palm Beach County Sheriff’s Office and Jupiter Police Department.  This case was prosecuted by Assistant U.S. Attorney Lauren Jorgensen.

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