Southern District of Florida
Press releases recorded for this federal judicial district.
Two Individuals and a Corporation Sentenced for Their Roles in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Alcohol and Drug Addiction Treatment Centers and Clinical LaboratoriesRead the Press Release
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.
North Lauderdale Resident Arrested and Charged with Being a Felon in Possession of a Firearm and Possession with Intent to Distribute CocaineRead the Press Release
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.
Former Executive Director at Venezuelan State-Owned Oil Company, Petroleos de Venezuela, S.A., Pleads Guilty to Role in Billion-Dollar Money Laundering ConspiracyRead the Press Release
A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Jan. 9 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.
As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA. Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA. Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.
Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments. Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund. Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.
Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section and Trial Attorney David Johnson of the Criminal Division’s Fraud Section. Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.
The Criminal Division’s Office of International Affairs provided substantial assistance in this matter. The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance.
The Fraud Section is responsible for investigating and prosecuting all Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Florida Man Sentenced to Prison for Exporting Crab-Eating Macaque Skulls, Other Wildlife Without PermitRead the Press Release
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.
Former Swiss Bank Executive Sentenced to Prison for Role in Billion-Dollar International Money Laundering Scheme Involving Funds Embezzled from Venezuelan State-Owned Oil CompanyRead the Press Release
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 Plead Guilty to Participating in Human Smuggling Event that Resulted in Rape and Murder of Cuban NationalsRead the Press Release
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.
Cuban National Pleads Guilty to Labor Trafficking and Alien SmugglingRead the Press Release
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.
Attorney General Jeff Sessions Hosts the 66th Annual Attorney General Awards Honoring Department Employees and Others for their ServiceRead the Press Release
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.
.
Criminal Complaint Charges Three City of Miami Police Department Officers with Federal Drug Trafficking ChargesRead the Press Release
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.
Four South Florida Residents Convicted and Sentenced for Roles in Narcotics Importation and Distribution RingRead the Press Release
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.
Former South Florida Attorney and Stock Promoter Charged with Conspiracy to Commit Securities Fraud in Relation to Pump and Dump Stock Manipulation SchemeRead the Press Release
A former South Florida attorney and a stock promoter 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.
Broward County Teacher Pleads Guilty to Possessing Child PornographyRead the Press Release
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.
Three Former Biscayne Park Patrol Officers Sentenced for Deprivation of Civil Rights by Intentionally Making False ArrestsRead the Press Release
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.
Medical Director of Substance Abuse Treatment Facility Pleads Guilty to Unlawfully Distributing Opioids, Barbiturates, and BenzodiazepinesRead the Press Release
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/.
Stuart Doctor Charged in Twenty-Six Count Federal Health Care Fraud IndictmentRead the Press Release
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.
Palm Beach County Resident Sentenced to Federal Prison for Falsely Impersonating a Deputy U.S. MarshalRead the Press Release
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.
Palm Beach County Resident Pleads Guilty to Falsely Impersonating a Federal AgentRead the Press Release
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.
Hialeah Check Casher Pleads Guilty to Laundering over $100 million in Healthcare, Mortgage and Identity Theft Tax Refund Fraud ProceedsRead the Press Release
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.
Fugitive Lawyer Pleads Guilty in Connection with $21 Million Fraud SchemeRead the Press Release
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.
Dark Web Administrator Sentenced to 20 Years in Prison for Narcotics Trafficking and Money LaunderingRead the Press Release
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.
City of Fort Lauderdale Department of Parks and Recreation Employee Arrested on Fraud ChargesRead the Press Release
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.
Miami Resident Convicted at Trial of Owning and Operating Fraudulent Community Retail PharmacyRead the Press Release
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.
U.S. Attorney Ariana Fajardo Orshan Announces Progress in Making our Communities Safer through Project Safe NeighborhoodsRead the Press Release
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.
Texas Resident Sentenced in South Florida to More Than 6 Years in Prison for Violations of the Cuban EmbargoRead the Press Release
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.
Former Miami-Dade County Resident Sentenced to over 12 Years in Prison for Attempted International Narcotics TraffickingRead the Press Release
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.
Boynton Beach Resident Sentenced to 27 Years in Prison for Producing and Possessing Child PornographyRead the Press Release
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
Bank Robber Sentenced to over 7.5 Years in PrisonRead the Press Release
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.
Former Miami-Dade County Resident Sentenced to More than 8 Years in Prison for Bank Fraud and Money Laundering SchemesRead the Press Release
A former Miami-Dade County resident was sentenced by U.S. District Court Judge Cecilia M. Altonaga to 97 months in prison, to be followed by five years of supervised release, and was ordered to pay $722,000 in restitution for his roles in bank fraud and money laundering schemes.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Katherine Fernandez Rundle, Miami-Dade State Attorney, Miami-Dade State Attorney’s Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division made the announcement.
Jose Orlando Sanchez Cristancho, a/k/a Orlando Sanchez, 57, a citizen of Colombia who formerly resided in Miami-Dade County, previously pled guilty to one count of conspiracy to commit wire and bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h).
According to court documents, from 2003 through 2011, Sanchez agreed with other co-defendants to purchase condominium apartments and other real estate in South Florida. Their intention was to obtain mortgage loans on the properties through schemes that would enable them to profit from the loans, or the sales of the property, without having to re-pay the loans.
One of the schemes included recruiting a straw buyer to purchase property (at an inflated price) that Sanchez already owned. Sanchez arranged for the straw buyer to submit a loan application to a bank which he knew was entirely false. Sanchez knew the bank, insured by the FDIC, would rely on it in extending the loan. Sanchez went forward with the sale, and signed a HUD-I form used at the closing which he knew contained false statements about the finances of the purchase. When the purchase closed, Sanchez netted more than $400,000 from the transaction, which he obtained from the loan proceeds the buyer had obtained through the fraudulent application. The straw buyer defaulted on the loan obtained at Sanchez's direction, but Sanchez was able to keep the money the straw buyer had paid him from the loan proceeds. When the property was eventually sold in a short sale, the bank had a loss of $404,000.
In a different scheme, Sanchez applied for a mortgage loan from an FDIC-insured financial institution for the purpose of buying an apartment in Aventura, Florida. He submitted a loan application and then a HUD-I closing form with false statements. Approximately 1 ½ years after the purchase, Sanchez stopped making payments on the loan and the bank began foreclosure proceedings. The property was subsequently sold in a short sale for a loss to the bank of approximately $106,000.
The frauds perpetrated by Sanchez and his co-conspirators resulted in Sanchez receiving in in excess of $1 million from FDIC-insured financial institutions. Losses to those institutions totaled approximately $722,000.
During a prior time period, Sanchez had acquired substantial real estate and money in Colombia from the trafficking of cocaine. Sanchez transferred approximately $1.3 million in drug-derived assets to the United States that he used for numerous real estate purchases and for living expenses. Sanchez laundered his drug proceeds by moving them through numerous bank accounts belonging to co-conspirators and accomplices, and by buying property through shell corporations, in order to disguise the nature and source of his money.
Co-defendants Andrea Marroquin and Luis Fernando Reyes were arrested in Colombia and are in the process of being extradited to the United States. Co-defendant Sergio Hernan Perdomo Lievano remains a fugitive. An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case 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.
Mrs. Fajardo Orshan commended the investigative efforts of IRS-CI, the Miami-Dade State Attorney’s Office, MDPD, and DEA. This case was prosecuted by Assistant U.S. Attorney Frank H. Tamen.
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.
Hospital Chain Will Pay over $260 Million to Resolve False Billing and Kickback Allegations; One Subsidiary Agrees to Plead GuiltyRead the Press Release
WASHINGTON – Health Management Associates, LLC (HMA), formerly a U.S. hospital chain headquartered in Naples, Florida, will pay over $260 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States. The government alleged that HMA knowingly billed government health care programs for inpatient services that should have been billed as outpatient or observation services, paid remuneration to physicians in return for patient referrals, and submitted inflated claims for emergency department facility fees.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Joseph H. Hunt of the Justice Department’s Civil Division, U.S. Attorney Maria Chapa Lopez for the Middle District of Florida, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, U.S. Attorney Charles E. Peeler for the Middle District of Georgia, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania, U.S. Attorney Sherri Lydon for the District of South Carolina, Assistant Director Robert Johnson of FBI’s Criminal Investigative Division, and Acting Assistant Inspector General for Investigations Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
HMA was acquired by Community Health Systems Inc. (CHS), a major U.S. hospital chain, in January 2014, after the alleged conduct at HMA occurred. Since July 2014, HMA has been operating under a Corporate Integrity Agreement (CIA) between CHS and the HHS-OIG.
As part of the criminal resolution, HMA entered into a three-year Non-Prosecution Agreement (NPA) with the Criminal Division’s Fraud Section in connection with a corporate-driven scheme to defraud Federal health care programs by unlawfully pressuring and inducing physicians serving HMA hospitals to increase the number of emergency department patient admissions without regard to whether the admissions were medically necessary. The scheme involved HMA hospitals billing and obtaining reimbursement for higher-paying inpatient hospital care, as opposed to observation or outpatient care, from Federal health care programs, increasing HMA’s revenue. Under the terms of the NPA, HMA will pay a $35 million monetary penalty. Under the terms of the NPA, HMA and CHS, the current parent company, agreed to cooperate with the investigation, report allegations or evidence of violations of Federal health care offenses, and ensure that their compliance and ethics program satisfies the requirements of an amended and extended CIA between CHS and HHS-OIG.
In addition, an HMA subsidiary, Carlisle HMA, LLC, formerly doing business as Carlisle Regional Medical Center, has agreed to plead guilty to one count of conspiracy to commit health care fraud. The plea agreement remains subject to acceptance by the court. Up until 2017, Carlisle HMA, LLC owned and operated Carlisle Regional Medical Center, an acute care hospital located in Carlisle, Pennsylvania. Carlisle HMA, LLC was charged in a criminal information filed today in the District of Columbia with conspiracy to commit health care fraud.
According to admissions made in the resolution documents, HMA instituted a formal and aggressive plan to improperly increase overall emergency department inpatient admissions at all HMA hospitals, including at Carlisle Regional Medical Center. As part of the plan, HMA set mandatory company-wide admission rate benchmarks for patients presenting to HMA hospital emergency departments – a range of 15 to 20 percent for all patients presenting to the emergency department, depending on the HMA hospital, and 50 percent for patients 65 and older (i.e. Medicare beneficiaries) - solely to increase HMA revenue. HMA executives and HMA hospital administrators executed the scheme by pressuring, coercing and inducing physicians and medical directors to meet the mandatory admission rate benchmarks and admit patients who did not need impatient admission through a variety of means, including by threatening to fire physicians and medical directors if they did not increase the number of patients admitted.
“HMA pressured emergency room physicians, including through threats of termination, to increase the number of inpatient admissions from emergency departments—even when those admissions were medically unnecessary,” said Assistant Attorney General Benczkowski. “Hospital operators that improperly influence a physician’s medical decision-making in pursuit of profits do so at their own peril. Where we find such conduct, the Criminal Division’s Health Care Fraud Unit, together with our Civil Division and law enforcement colleagues, will aggressively prosecute those responsible to the fullest extent of the law.”
HMA also agreed to pay $216 million as part of a related civil settlement. The civil settlement resolves HMA’s liability for submitting false claims between 2008 and 2012 as part of its corporate-wide scheme to increase inpatient admissions of Medicare, Medicaid and the Department of Defense’s (DOD) TRICARE program beneficiaries over the age of 65. The government alleged that the inpatient admission of these beneficiaries was not medically necessary, and that the care needed by, and provided to, these beneficiaries should have been provided in a less costly outpatient or observation setting. HMA agreed to pay $62.5 million to resolve these allegations with $61,839,718 being paid to the United States and $706,084 being paid to participating States.
The civil settlement also resolves allegations that during the period from 2003 through 2011, two HMA hospitals in Florida, Charlotte Regional Medical Center and Peace River Medical Center, billed federal health care programs for services referred by physicians to whom HMA provided remuneration in return for patient referrals. To induce patient referrals, Charlotte Regional provided a local physician group with free office space and staff, as well as direct payments, which purportedly covered overhead and administrative costs incurred by the group for its management of a Charlotte Regional physician. HMA also provided another local physician with free rent and upgrades to his office space. HMA agreed to pay $93.5 million to resolve these civil allegations, with the United States receiving $87.96 million, and the State of Florida receiving $5.54 million.
Additional allegations that are resolved by the civil settlement are that between 2009 and 2012, two former HMA hospitals, Lancaster Regional Medical Center and Heart of Lancaster Medical Center in Pennsylvania, billed federal health care programs for services referred by physicians with whom the facilities had improper financial relationships. These relationships stemmed from HMA’s excessive payments to (1) a large physician group in return for two businesses owned by the group and for services allegedly performed by the group, and (2) a local surgeon that exceeded the value of the services provided. The government alleged that these arrangements were structured in this manner to disguise payments intended to induce the referral of patients. HMA agreed to pay $55 million to the United States to resolve these civil allegations.
Finally, the civil settlement will also resolve claims that Crossgates Hospital, an HMA facility in Brandon, Mississippi, leased space to a local physician from Jan. 15, 2005 through Jan. 14, 2007, but required the physician to pay rent for only half of the space he was actually occupying, in return for patient referrals to Crossgates Hospital. HMA agreed to pay $425,000 to the United States to resolve these civil allegations.
Federal law, including the Anti-Kickback Statute and the Stark Law, prohibits hospitals from providing financial inducements to physicians for referrals. These provisions are designed to ensure that physician decision-making is not compromised by improper financial incentives.
“Billing for unnecessary hospital stays wastes federal dollars,” said Assistant Attorney General Hunt. “In addition, offering financial incentives to physicians in return for patient referrals undermines the integrity of our health care system. Patients deserve the unfettered, independent judgment of their health care professionals.”
“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system,” said U.S. Attorney Chapa Lopez. “Today’s resolution should remind healthcare providers of their duty to comply with the law, and the heavy price to be paid for corrupt practices committed by their executives. Our Civil Division will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.”
“Our office will continue to enforce prohibitions on improper financial relationships between health care providers and their referral sources, as these relationships can serve to corrupt physician judgment about a patient’s true health needs,” said U.S. Attorney Fajardo Orshan. “We will devote all necessary resources to ensure that those rendering medical care do so for the sole benefit of the patient and in compliance with the law.”
“By manipulating patient status, HMA increased Medicare costs and pocketed taxpayer funds to which it was not entitled,” said U.S. Attorney Peeler. “Our Medicare patients and our taxpayers deserve better, and I am proud that justice has been done. Nonetheless, we will continue to pursue those hospitals in our district that would seek to take advantage of the Medicare Program.”
“Government healthcare programs are vital to the welfare of our communities,” said U.S. Attorney Murray for the Western District of North Carolina, where two HMA hospitals were located. “We will aggressively pursue providers that fraudulently inflate charges to government programs and divert scarce resources from those in need into their own pockets.”
“Our resolution of this matter and the significant recovery we have obtained show once again that no matter how complex the scheme is, we will find it, stop it, and punish it,” said U.S. Attorney McSwain. “HMA covered up kickbacks for patient referrals with sham joint venture agreements, lease payments, and management agreements. These sorts of improper physician inducements are a form of ‘pay to play’ business practices that will not be tolerated. Healthcare institutions cannot pad their bottom line at the expense of the American taxpayers. And most importantly, this conduct must be rooted out because it gets in the way of providing top-notch patient care to American citizens.”
“It is critically important to all of us that the patients’ interest drive the physicians’ decisions on care,” said U.S. Attorney Lydon. “Unnecessary hospital admissions not only drive up costs but can cause damage to patients and cannot be tolerated.”
The government further alleged that from September 2009 through December 2011, certain HMA hospitals submitted claims to Medicare and Medicaid seeking reimbursement for falsely inflated emergency department facility charges. HMA agreed to pay $12 million to resolve these civil allegations, with $11.028 million being paid to the United States and $972,000 being paid to participating States.
“Compliance with government healthcare rules requires that patients only receive treatment they actually need,” said HHS-OIG Acting Assistant Inspector General for Investigations Jackson. “Then government programs must be billed just for those services. No more, no less. Let there be no doubt, we will continue to protect federal healthcare programs and beneficiaries by holding provider organizations fully accountable.”
“This settlement is a result of the FBI’s hard work and dedication to hold companies accountable for their role in healthcare fraud and abuse,” said FBI Assistant Director Johnson. “The FBI will not stand by when there are allegations that a company operates a corporate wide scheme to increase their financial gain at the expense of the U.S. government. We appreciate those who come forward with allegations of criminal misconduct and recognize the importance of the public’s assistance in our work.”
The allegations resolved by the settlement were originally brought in eight lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The eight qui tam cases, which were filed in various districts and transferred to the U.S. District Court for the District of Columbia as part of a multi-district litigation presided over by the Honorable Reggie B. Walton, are captioned: United States ex rel. Brummer v. HMA, Inc., 3-09-cv-135 (CDL) (M.D. Ga.); United States ex rel. Williams v. HMA, Inc., 3:09-cv-130 (M.D. Ga.); United States ex rel. Plantz v. HMA, Inc., 13-CV-1212 (N.D. Ill.); United States ex rel. Miller v. HMA, Inc., 10-3007 (E.D. Pa.); United States ex rel. Mason & Folstad v. HMA, Inc., 3:10-CV-472-GCM (W.D.N.C.); United States ex rel. Nurkin v. HMA, Inc., 2:11-cv-14-FtM-29DNF (M.D. Fla.); United States ex rel. Jacqueline Meyer & Cowling v. HMA, Inc., 0:11-cv-01713-JFA (D.S.C.); and United States ex rel. Paul Meyer v. HMA, Inc., 11-62445 cv-Williams (S.D. Fla.).
The whistleblower in United States ex rel. Nurkin will receive approximately $15 million as a share of the recovery, and the whistleblowers in United States ex rel. Miller will receive approximately $12.4 million as their share of the recovery. The whistleblower shares to be awarded in the remaining cases have not yet been determined.
These matters were investigated by the Civil Division’s Commercial Litigation Branch; the Health Care Fraud Unit of the Criminal Division’s Fraud Section; the U.S. Attorneys’ Offices for the Middle District of Florida, Southern District of Florida, Middle District of Georgia, Northern District of Illinois, Western District of North Carolina, Eastern District of Pennsylvania and the District of South Carolina, the FBI Healthcare Fraud Unit Major Provider Response Team, HHS-OIG and Defense Health Agency Program Integrity. On behalf of the States, an investigative/settlement team with members from North Carolina, Massachusetts, Virginia, Washington, and Florida assisted with the investigation and resolution of these matters.
The government’s resolution of this matter illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud and Enforcement Action Team (HEAT) initiative, a partnership between the Department of Justice and the Department of Health and Human Services to focus efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Except for those facts admitted to in the guilty plea and in the Non-Prosecution Agreement, the claims resolved by the settlement are allegations only, and there has been no determination of liability.
If you believe you are a victim of this offense, please call (888) 549-3945.
Two Men Sentenced to 18 and 19 Year Prison Terms for Conspiracy to Commit Sex Trafficking of a MinorRead the Press Release
On September 20, 2018, Palm Beach County resident Charles Edward Smith, 63, was sentenced to 235 months in prison by United States District Judge Donald M. Middlebrooks following his jury trial conviction for participating in a conspiracy to commit sex trafficking of a minor (Case No. 18-CR-80062). Co-defendant Michael Joseph Clark, 44, was sentenced to 220 months in prison by Judge Middlebrooks, after he previously pled guilty to participating in the conspiracy and committing substantive sex trafficking of a minor offenses.
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, and Sarah J. Mooney, Chief of Police, West Palm Beach Police Department (WPBPD) made the announcement.
On or about March 13, 2018, members of the WPBPD discovered a 14-year old minor, identified as a missing person, in a West Palm Beach residence controlled by Smith. The defendant and other co-conspirators, including Michael Joseph Clark, operated a prostitution operation out of the residence. Smith had the minor work as a prostitute, setting up her sexual encounters, giving her drugs and requiring her to use her prostitution earnings to stay at the house.
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 United States 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.
Mrs. Fajardo Orshan commended the investigative efforts of the FBI and the WPBPD in this matter. The case was prosecuted by Assistant U.S. Attorneys Lothrop Morris and Ellen Cohen.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami Resident Convicted at Trial of Robbing Miami Shores TD Bank at Gunpoint and Brandishing and Discharging Firearm in Furtherance of the Armed RobberyRead the Press Release
Following a one-week jury trial, on September 21, 2018, Joudanorve Lafleur, of Miami, Florida, was convicted of armed bank robbery, and brandishing and discharging a firearm in furtherance of the armed robbery.
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.
According to evidence presented at trial, at approximately 9:20 a.m. on April 20, 2018 at a TD Bank in Miami Shores, Lafleur, wearing a black ski mask, black hoodie, and pants, robbed two bank tellers and one bank customer at gunpoint. After repeatedly demanding “all of the hundreds” from his victims, Lafleur fired a bullet into the ceiling of the bank. Then, he fled, with more than $2,000.
The FBI tracked Lafleur to his residence within an hour of the robbery, and after a search of Lafleur’s home, investigators recovered his disguise (mask and hoodie), the stolen money, and the firearm used in the robbery, among other items. Evidence at trial also showed that Lafleur robbed one of his elderly neighbors, stealing his clothes in the minutes before law enforcement arrived, in an attempt to distance himself from the crime and change his appearance. The trial evidence included witness testimony, bank surveillance video, DNA expert testimony, and cellular telephone analysis.
Sentencing is scheduled before U.S. District Judge Jose E. Martinez on December 5, 2018, at 2:00 p.m. Lafleur faces up to twenty five years in prison for the bank robbery and a consecutive mandatory minimum term of ten years to life in prison for brandishing and discharging the firearm offense of conviction.
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.
Mrs. Fajardo Orshan commended the investigative efforts of the FBI in this matter. This case is being prosecuted by Assistant U.S. Attorneys Lisa H. Miller and Jessica K. Obenauf.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lake Worth Resident Sentenced to 20 Years in Prison for Distributing Heroin, Carfentanyl and CocaineRead the Press Release
Roberto Paul Mendoza, 28, of Palm Beach County, was sentenced today by U.S. District Court Judge Donald M. Middlebrooks to 240 months in prison, to be followed by four years of supervised release, after previously pleading guilty to three counts of distribution of heroin, carfentanyl, and cocaine, one count of possession with intent to distribute heroin, and one count of knowingly possessing a firearm in furtherance of drug trafficking.
Ariana Fajardo Orshan, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA) and Ric Bradshaw, Sheriff of the Palm Beach County Sheriff’s Office (PBSO) made the announcement.
According to the court record, Mendoza distributed heroin mixed with carfentanyl and cocaine to an undercover police officer on three occasions. Thereafter, during the execution of a search warrant of Mendoza’s residence and vehicle distribution quantities of heroin and a firearm were discovered and seized by law enforcement. Further, court records also showed that Mendoza was responsible for distributing carfentanyl, which ultimately caused the death of a 40 year-old man.
Mrs. Fajardo Orshan commended the investigative efforts of the DEA and PBSO in this matter. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Chief Financial Officer of Bankrate Inc. Sentenced to 10 Years in Prison for Orchestrating a Complex Accounting and Securities Fraud SchemeRead the Press Release
The former chief financial officer of Bankrate Inc., a publicly traded financial services and marketing company formerly headquartered in North Palm Beach, Florida, was sentenced today to 10 years in prison for orchestrating an accounting and securities fraud scheme that caused more than $25 million in shareholder losses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
Edward J. DiMaria, 53, of Fairfield County, Connecticut, was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida, who also imposed three years of supervised release and ordered DiMaria to pay restitution in the amount of $21,234,214. On June 28, DiMaria pleaded guilty to one count of conspiracy to making false statements to a public company’s accountants, falsifying a public company’s books, records and accounts, and securities fraud; and one count of making materially false statements to the Securities and Exchange Commission (SEC).
“While serving as Bankrate’s CFO, Edward DiMaria blatantly manipulated the company’s publicly reported financial statements by repeatedly lying and directing others to lie to auditors, regulators, and shareholders,” said Assistant Attorney General Benczkowski. “The significant sentence handed down today underscores the serious nature of corporate fraud and the damage it causes to shareholders and to the public’s trust in our financial markets. The sentence also demonstrates the Department’s commitment to prosecuting corporate misconduct to the fullest extent of the law.”
“The U.S. Postal Inspection Service has an extensive history of investigating complex financial fraud schemes in order to protect investors as well as the integrity of the financial marketplace from fraudulent activities by trusted insiders who abuse their positions,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in this type of financial fraud scheme should know they will be found and they will be held accountable.”
As part of his guilty plea, DiMaria admitted that between 2010 and 2014 he directed and conspired to commit a complex scheme to artificially inflate Bankrate’s earnings through so-called “cookie jar” or “cushion” accounting, whereby millions of dollars in unsupported expense accruals were purposefully left on Bankrate’s books and then selectively reversed in later quarters to boost earnings. In addition, DiMaria admitted that he conspired with other Bankrate employees to misrepresent certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics. DiMaria made materially false statements to Bankrate’s independent auditors to conceal the improper accounting entries, and he caused Bankrate’s financial statements filed with the SEC to be materially misstated, he admitted.
Hyunjin Lerner, Bankrate’s former vice president of finance, previously pleaded guilty for his role in the conspiracy. Lerner was sentenced by Judge Moore earlier this year to serve 60 months in prison.
The U.S. Postal Inspection Service’s National Headquarters Fraud Team investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Emily Scruggs and Jason Covert of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Southern District of Florida. The SEC also provided assistance in this matter.
Potential victims of the scheme can find information about their rights under relevant law at the following website: www.justice.gov/criminal-vns/case/edward-j-dimaria.
Former Chief Financial Officer of Bankrate Inc. Sentenced to 10 Years in Prison for Orchestrating a Complex Accounting and Securities Fraud SchemeRead the Press Release
WASHINGTON – The former chief financial officer of Bankrate Inc., a publicly traded financial services and marketing company formerly headquartered in North Palm Beach, Florida, was sentenced today to 10 years in prison for orchestrating an accounting and securities fraud scheme that caused more than $25 million in shareholder losses.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Inspector in Charge Delany DeLeon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
Edward J. DiMaria, 53, of Fairfield County, Connecticut, was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida, who also imposed three years of supervised release and ordered DiMaria to pay restitution in the amount of $21,234,214. On June 28, DiMaria pleaded guilty to one count of conspiracy to making false statements to a public company’s accountants, falsifying a public company’s books, records and accounts, and securities fraud; and one count of making materially false statements to the Securities and Exchange Commission (SEC).
“While serving as Bankrate’s CFO, Edward DiMaria blatantly manipulated the company’s publicly reported financial statements by repeatedly lying and directing others to lie to auditors, regulators, and shareholders,” said Assistant Attorney General Benczkowski. “The significant sentence handed down today underscores the serious nature of corporate fraud and the damage it causes to shareholders and to the public’s trust in our financial markets. The sentence also demonstrates the Department’s commitment to prosecuting corporate misconduct to the fullest extent of the law.”
“The U.S. Postal Inspection Service has an extensive history of investigating complex financial fraud schemes in order to protect investors as well as the integrity of the financial marketplace from fraudulent activities by trusted insiders who abuse their positions,” said Inspector in Charge Delany DeLeon-Colon. “Anyone who engages in this type of financial fraud scheme should know they will be found and they will be held accountable.”
As part of his guilty plea, DiMaria admitted that between 2010 and 2014 he directed and conspired to commit a complex scheme to artificially inflate Bankrate’s earnings through so-called “cookie jar” or “cushion” accounting, whereby millions of dollars in unsupported expense accruals were purposefully left on Bankrate’s books and then selectively reversed in later quarters to boost earnings. In addition, DiMaria admitted that he conspired with other Bankrate employees to misrepresent certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics. DiMaria made materially false statements to Bankrate’s independent auditors to conceal the improper accounting entries, and he caused Bankrate’s financial statements filed with the SEC to be materially misstated, he admitted.
Hyunjin Lerner, Bankrate’s former vice president of finance, previously pleaded guilty for his role in the conspiracy. Lerner was sentenced by Judge Moore earlier this year to serve 60 months in prison.
The U.S. Postal Inspection Service’s National Headquarters Fraud Team investigated the case. Assistant Chief Henry Van Dyck and Trial Attorneys Emily Scruggs and Jason Covert of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from the U.S Attorney’s Office for the Southern District of Florida. The SEC also provided assistance in this matter.
Potential victims of the scheme can find information about their rights under relevant law at the following website: www.justice.gov/criminal-vns/case/edward-j-dimaria.
Florida Man Pleads Guilty to Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with at Least 80Read the Press Release
A Homestead, Florida man who was charged with surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men, pleaded guilty today in federal court in Miami.
Bryan Deneumostier, 32, also known by the screen name “susanleon33326,” pleaded guilty to two counts of illegal interception of oral communications.
U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today. Judge Cecilia M. Altonaga scheduled the sentencing hearing for Nov. 29. Deneumostier was arrested in July 2018 and has been held in custody since then.
According to the indictment to which Deneumostier pleaded guilty and to other facts he admitted in his plea agreement, Deneumostier assisted in the operation of a subscription-based pornography website. The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men. The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent. He later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. The indictment and plea agreement refer to three known victims whose identities are being withheld to protect their privacy. Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men that were featured on his website and that approximately 80 of those did not know that he was recording them.
The investigation was conducted by HSI. Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and 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 on http://pacer.flsd.uscourts.gov.
Florida Man Pleads Guilty to Surreptitiously Producing and Distributing Pornographic Audio and Video Recordings of Himself Engaged in Sexual Activity with at Least 80 OthersRead the Press Release
A Homestead, Florida man who was charged with surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men, pleaded guilty today in federal court in Miami.
Bryan Deneumostier, 32, also known by the screen name “susanleon33326,” pleaded guilty to two counts of illegal interception of oral communications.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today. Judge Cecilia M. Altonaga scheduled the sentencing hearing for Nov. 29. Deneumostier was arrested in July 2018 and has been held in custody since then.
According to the indictment to which Deneumostier pleaded guilty and to other facts he admitted in his plea agreement, Deneumostier assisted in the operation of a subscription-based pornography website. The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men. The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent. He later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. The indictment and plea agreement refer to three known victims whose identities are being withheld to protect their privacy. Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men that were featured on his website and that approximately 80 of those did not know that he was recording them.
The investigation was conducted by HSI. Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida are prosecuting the case.
Ariana Fajardo Orshan Sworn in as United States Attorney for the Southern District of FloridaRead the Press Release
This morning, Ariana Fajardo Orshan addressed the Office after being sworn in as the United States Attorney for the Southern District of Florida. She succeeds Benjamin G. Greenberg, who has been serving as the chief federal law enforcement officer for the district since March 4, 2017.
On September 17, 2018, the Chief Judge of the United States District Court for the Southern District of Florida, K. Michael Moore, administered the oath of office to Mrs. Fajardo Orshan, who was nominated by President Trump to serve as U.S. Attorney for the Southern District of Florida on June 7, 2018. The U.S. Senate confirmed her nomination on August 28, 2018.
“I am honored to have been afforded the privilege to serve as the U.S. Attorney for the Southern District of Florida, in an Office that is committed to public service and the pursuit of justice.” said U.S. Attorney Fajardo Orshan. “I look forward to partnering with our dedicated federal, state and local law enforcement allies to ensure that our community is safe and the rule of law is closely guarded.”
Prior to her appointment, Mrs. Fajardo Orshan served as a Judge of the Eleventh Judicial Circuit Court of Florida and an adjunct professor at Florida International University College of Law. She was appointed to the bench in 2012 by Governor Rick Scott. Before becoming a judge, Mrs. Fajardo Orshan was a partner in a boutique law firm where she specialized in litigation. She began her legal career as an Assistant State Attorney in Miami-Dade County, where she prosecuted a wide variety of crimes, specializing in narcotics and organized crime. Mrs. Fajardo Orshan was born and raised in Miami. She earned her B.S. from Florida International University and her J.D. from Nova Southeastern University Shepard Broad Law Center.
As U.S. Attorney, Mrs. Fajardo Orshan will lead the nation’s third largest U.S. Attorney’s Office to enforce and defend the laws of the United States of America through the prosecution of diverse federal criminal cases; pursue civil cases in which the United States is a party; and collect debts owed to the Federal government that are administratively uncollectible. The Southern District of Florida encompasses a geographical area of more than 15,000 square miles extending south to Key West, north to Sebastian and west to Sebring. The Southern District includes the counties of Miami-Dade, Broward, Monroe, Palm Beach, Martin, St. Lucie, Indian River, Okeechobee and Highlands. Mrs. Fajardo Orshan will supervise a staff of approximately 220 Assistant U.S. Attorneys and a similar number of support personnel, in the district’s offices in Miami, Fort Lauderdale, West Palm Beach, and Fort Pierce.
As she accepted the honor bestowed upon her, U.S. Attorney Fajardo Orshan thanked Mr. Greenberg for his dedicated service to the U.S. Attorney’s Office and the South Florida community. Mr. Greenberg will remain with the Office as the First Assistant to the U.S. Attorney.
Miami-Based Violent Criminal Enterprise Members and Associates Convicted at TrialRead the Press Release
Charges of Conviction Included Racketeering, Drug Trafficking, Armed Robberies, and Firearms Used in Furtherance of Drug Trafficking and Violent CrimesBenjamin G. Greenberg, United States Attorney for the Southern District of Florida; Special Agent in Charge Ari C. Shapira for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Special Agent in Charge Robert Lasky for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Chief Jorge R. Colina of the City of Miami Police Department (MPD); and Director Juan J. Perez of the Miami-Dade Police Department (MDPD) announced the trial convictions of ten members and associates of a violent criminal enterprise operating in Miami, Florida, as part of the Southern District of Florida Violence Reduction Partnership (VRP) initiative.
This prosecution resulted from the Operation Northern Light Organized Crime and Drug Enforcement Task Force (OCDETF) that began in May of 2015. The Operation Northern Light Task Force is jointly-led by the United States Attorney’s Office in Miami, the FBI, ATF, and DEA, with participation from MPD, MDPD, and other state and local law enforcement agencies, and focuses on the investigation and reduction of organized violent crime in the north end of Miami-Dade County.
In 2017, fourteen individuals were charged by indictment with various criminal acts, including participating in a racketeering conspiracy; facilitating a conspiracy to possess with intent to distribute narcotics, including crack cocaine; commercial armed robberies; and the use of firearms in furtherance of robberies and narcotics trafficking.
Ten of the charged individuals, all of Miami, proceeded to trial and were convicted on September 14, 2018, of the following offenses:
Antonio Glass was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Glass faces a mandatory minimum term of 10 years and up to life in prison.
Jerimaine Bryant was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and three counts of Possession of a Controlled Substance with Intent to Distribute. Jerimaine Bryant faces a mandatory minimum term of 20 years and up to life in prison.
Samuel Hayes was convicted of one count of Racketeering Conspiracy, two counts of Robbery, and one count of Possession of a Firearm in Furtherance of a Crime of Violence. Hayes faces a mandatory minimum term of 5 years and up to life in prison.
Curtis Bryant was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Curtis Bryant faces a mandatory minimum term of 10 years and up to life in prison.
Levi Bryant was convicted of one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Levi Bryant faces a mandatory minimum term of life in prison.
Michael Walker was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count Possession of a Controlled Substance with Intent to Distribute. Walker faces a mandatory minimum term of 10 years and up to life in prison.
Reginald Graham was convicted of one count of Racketeering Conspiracy, one count of Drug Distribution Conspiracy, and one count of Attempted Possession of a Controlled Substance with Intent to Distribute. Graham faces a mandatory minimum term of 10 years and up to life in prison.
Daniel Jones was convicted of one count of Drug Distribution Conspiracy. Daniel Jones faces a mandatory minimum term of 10 years and up to life in prison.
Torivis Ingram was convicted of one count of Drug Distribution Conspiracy, and one count of Possession of a Controlled Substance with Intent to Distribute. Ingram faces a mandatory minimum term of life in prison.
Mario Rodriguez was convicted of one count of Drug Distribution Conspiracy, one count of Possession of a Controlled Substance with Intent to Distribute, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Rodriguez faces a mandatory minimum term of 15 years and up to life in prison.
U.S. District Judge Jose E. Martinez has scheduled the sentencing hearings of the defendants, who were convicted at trial, on various dates throughout December 2018.
Prior to the trial, co-defendants Vencess Toby, Donzell Jones, and Latitia Houser pled guilty to one count of Conspiracy to Possess a Controlled Substance with Intent to Distribute. Toby was sentenced to 60 months in prison. Donzell Jones was sentenced to 188 months in prison. Houser is scheduled to be sentenced on September 18, 2018.
Quincy Bryant, the last remaining defendant charged under the indictment, is scheduled to proceed to trial on October 29, 2018, before Judge Martinez. An indictment is merely an accusation. A defendant is presumed innocent until proven guilty in a court of law.
During the trial, evidence was presented, including civilian and law enforcement witness testimony, that proved how the charged racketeering enterprise, which used names such as the Dub Side Blood Family (DSBF), conducted its unlawful business practices and controlled the South Gwen Cherry Housing Complex in the Allapattah neighborhood of Miami for over seventeen years. Witness testimony established how the DSBF members routinely robbed victims at gunpoint and sold narcotics. The enterprise’s criminal spree included five commercial businesses, including MetroPCS locations, a Food Plus store, and the armed robberies of drug dealers.
The evidence at trial showed that the DSBF became so emboldened that they told a future homicide victim’s own mother that her son would be killed. The DBSF followed through on that promise with his subsequent murder. Similarly, trial evidence showed members of the group celebrated after killing another victim by posting images of the deceased’s body in a casket. The trial evidence also included jailhouse phone calls and private messages which captured DSBF members discussing the operation of their organization and proposed responses to circumvent law enforcement’s investigation into the criminal enterprise. Trial evidence from the defendants’ social media and cellular phone records demonstrated the group’s ability to continue criminal activity despite periods of time when members were incarcerated.
U.S. Attorney Benjamin Greenberg said, "Justice has been served for the residents of Allapattah, with the convictions of members and associates of a violent criminal enterprise that threatened the public’s safety". Today’s announcement leaves no doubt that the lure of gang culture and criminality does not pay. The U.S. Attorney’s Office and our Violence Reduction Partners stand ready to continue our enforcement efforts, in order to protect our South Florida communities and combat violent crime.
ATF Special Agent in Charge Ari C. Shapira stated, “I am pleased by the results of this outstanding investigation worked jointly with our federal, state and local partners. It highlights the value of our collaborative effort to reduce violent crime in our community. Dedicated ATF Special Agents, Task Force Officers and their partners will relentlessly continue to help improve those vulnerable neighborhoods plagued by gun violence.”
“Drugs and the violent gangs that profit from them have a devastating effect on our communities and we will continue to work with our law enforcement partners to make South Florida a safer place,” said Scott A. Rottman, acting Special Agent in Charge, FBI Miami. “The FBI is committed to using every legal means available, including federal racketeering statutes, to dismantle these criminal enterprises who plague our society.”
“The dismantlement of this violent organization has allowed for a major criminal element to be removed from the community of Allapattah,” stated DEA Special Agent in Charge Adolphus Wright. “The efforts from those involved illustrates the devotion and success of the Violence Reduction Partnership which has allowed law enforcement partners at the federal and local levels to work together to rid communities of the criminal afflictions which have plagued them for far too long, and to continue efforts to keep these communities as safe as possible.”
MPD Chief Colina stated, “We are pleased with the outcome of this joint investigation, and are always available to work with our local and federal partners to make the City of Miami and Miami-Dade County the safest community in the nation.”
“The professionalism exhibited during this investigation and the commitment to work together, solidifies the collaboration between federal and local law enforcement. The dedication and efforts of United States Attorney’s Office for the Southern District of Florida are to be commended.” said Juan J. Perez, MDPD Director. “The Miami-Dade Police Department is committed to this collaborative endeavor and will not stop working toward our goal of establishing a safe and secure environment, free from crime and the fear of crime.”
The investigation of this enterprise was jointly led by the ATF, FBI, DEA, MPD, and MDPD. Key participants in the investigation included the MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; the MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. The investigation was also supported by the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force.
Through the collaborative Violence Reduction Partnership (VRP), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
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 being prosecuted by Assistant U.S. Attorneys Ignacio J. Vazquez and Ilham Hosseini.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Biscayne Park Chief of Police Pleads Guilty to Conspiring with Other Officers to Violate Victims’ Civil Rights by Making False ArrestsRead the Press Release
Former Village of Biscayne Park Chief of Police, Raimundo Atesiano, pleaded guilty in federal court to conspiring with subordinate officers to violate individuals’ civil rights by making false arrests, announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE).
According to documents filed in connection with the plea entered today, Atesiano was acting under color of law as chief of police when on three separate occasions he ordered officers under his command to falsely arrest and charge individuals with unsolved burglaries. In court filings related to the plea, Atesiano admitted that on one occasion he instructed an officer to falsely arrest and charge an individual for several vehicle burglaries based upon what Atesiano knew were false confessions. According to the documents, 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.
Guillermo Ravelo, a former Biscayne Park Officer who is named in the superseding indictment, previously entered a guilty plea for his role in the conspiracy with Atesiano to violate individuals’ civil rights. Charlie Dayoub and Raul Fernandez, former Biscayne Park officers who also are named in the superseding indictment, previously entered guilty pleas for their roles in effecting false arrests.
The Court set the sentencing date for Atesiano on Nov. 27. Guillermo Ravelo is scheduled to be sentenced on Oct. 4, and Charlie Dayoub and Raul Fernandez are scheduled to be sentenced on Oct. 16.
“The vast majority of law enforcement officers across the nation serve our communities with honor and integrity,” stated U.S. Attorney Benjamin G. Greenberg. “We will not allow the minority of officers who cast aside their oaths to tarnish the reputation of those who protect us all. Instead, as evidenced today with former Chief Raimundo Atesiano’s guilty plea, we will continue to hold them accountable in federal court for criminal acts that threaten our constitutional guarantees.”
“The right to be free from false arrests is fundamental to our Constitution and system of justice,” said Acting Assistant Attorney General John Gore. “Law enforcement officers who abuse their authority and deny any individual this right will be held accountable. As the Chief of Police, Defendant Atesiano was trusted by his community to lead their police officers by example; he has failed his community and the officers of Biscayne Park.”
“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard. Raimundo Atesiano failed to meet this standard by abusing his authority and breaking laws,” said Scott A. Rottman, Acting Special Agent in Charge, FBI Miami. "Unfortunately, the actions of a very few dishonest officers, such as Atesiano and his co-conspirators, undercut the public’s trust and they must be rooted out. His actions do not represent the overwhelming majority law enforcement officers who are diligent, honorable professionals who are worthy of that trust."
“It is a deliberate injustice to intentionally charge and arrest an innocent man. Police Chief Raimundo Atesiano’s actions were intended to give his community a false sense of security and were a betrayal of his oath to protect the residents of Biscayne Park and all the people of Miami-Dade County,” commented State Attorney Katherine Fernandez Rundle. “I applaud the combined efforts of our law enforcement partnership to end this calculated abuse of power.”
“Law enforcement officers must be held to the highest moral standards and when that trust is broken, FDLE will work aggressively to investigate and find the truth ensuring all citizens are treated justly,” said FDLE Miami Special Agent in Charge Troy Walker.
The case was investigated by the FBI, the FBI Miami Area Corruption Task Force and the FDLE, with assistance from the Miami-Dade State Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Tamarac Resident Sentenced to over 12 Years in Prison for Being a Felon Unlawfully in Possession of a Loaded FirearmRead the Press Release
Yesterday, a Tamarac resident was sentenced to over 12 years in prison by United States District Senior Judge James I. Cohn, for being a felon unlawfully in possession of a loaded firearm while being the subject of a Domestic Violence Protection Order.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Terry Cadet, 34, of Tamarac, Florida, previously pled guilty to being a felon in possession of a firearm and ammunition, while also being the subject of a Domestic Violence Protection Order that prohibited the defendant from possessing any firearm or ammunition. The defendant was sentenced to a total of 151 months in prison, to be followed by 3 years of supervised release.
According to the court record, on February 18, 2018, BSO Deputies responded to a domestic violence call in Hallandale Beach, Florida. During the course of Cadet’s arrest for domestic violence, BSO deputies discovered a 9mm pistol, with an obliterated serial number, secreted on Cadet’s person. The firearm was loaded with ten rounds of ammunition. At the time of his arrest, Cadet was a convicted felon and thereby prohibited from being in possession of a firearm or ammunition. In addition, a pending Domestic Violence Protection Order required Cadet to have previously surrendered any firearms and ammunition in his possession to the Broward County Sheriff’s Office.
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.
Mr. Greenberg commended the investigative efforts of the ATF and BSO in this matter. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Fort Lauderdale Resident Sentenced to 92 Years in Prison for Armed Robberies and CarjackingRead the Press Release
Today, a Fort Lauderdale resident was sentenced to over 92 years in prison by United States District Senior Judge James I. Cohn, after having been convicted at trial of three armed robberies, a carjacking, and brandishing a firearm during the commission of each violent act.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD), and Keith Dunn, Chief, Davie Police Department, made the announcement.
De Andre Smith, 23, of Fort Lauderdale, Florida, was convicted by a trial jury on July 2, 2018, on all eight federal charges. Smith was sentenced to a total of 1,105 months in prison, to be followed by 5 years of supervised release.
According to the court record, on December 12, 2017, Smith brandished a firearm at an IT Tech in Fort Lauderdale, demanding software be placed on his computer. When the tech refused, Smith proceeded to beat the tech in the face with the firearm and then steal computer software. As a result of this beating, the tech eventually had to have one eye amputated.
On December 20, 2017, Smith carjacked a victim at gunpoint in Fort Lauderdale. Smith then immediately went to a Dunkin Donuts in Davie, jumped the counter and held the clerk at gunpoint, while demanding money. After obtaining money, Smith then left and went to a third location in South Florida, a Subway restaurant in Davie. There, at gunpoint, Smith again jumped the counter, demanded and stole money from the employees.
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.
Mr. Greenberg commended the investigative efforts of the ATF, FLPD and Davie Police Department in this matter. The case was prosecuted by Assistant U.S. Attorneys Jodi L. Anton and Francis Viamontes.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Serial Robber Sentenced to 32 Years in PrisonRead the Press Release
A Miami resident was sentenced, on September 7, 2018, to 32 years in prison by United States District Judge William P. Dimitrouleas for committing a string of armed robberies.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Sergio Velazquez, Chief, Hialeah Police Department, made the announcement.
Damon Woodard, 27, of Miami, Florida, previously pled guilty to two counts of brandishing a firearm in furtherance of a crime of violence, in violation of, Title 18, United States Code, Section 924(c)(A)(1)(ii). Woodard was sentenced to a total of 384 months in prison, to be followed by 5 years of supervised release.
According to the court record, on December 9, 2017, Woodard robbed Murphy Gas Station in Miami Gardens, Florida, at gunpoint. On December 13, 2017, Woodard robbed a BP Gas Station in Dania Beach, Florida, at gunpoint. Woodard subsequently robbed numerous other businesses, including two check-cashing stores in Hialeah, Florida with codefendant Suwayne Hylton. In total, Woodard admitted his involvement in approximately 20 additional armed robberies in Broward and Miami-Dade Counties.
Hylton previously pled guilty to two counts of Hobbs Act Robbery. On July 9, 2018, Hylton was sentenced by Judge Dimitrouleas to 84 months in prison, to be followed by 3 years of supervised release, and was ordered to pay $16,392 in restitution.
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.
Mr. Greenberg commended the investigative efforts of the ATF, BSO and Hialeah Police Department in this matter. He also thanked the Davie Police Department, Hollywood Police Department, Hallandale Beach Police Department, Miami-Dade Police Department, Virginia Gardens Police Department, North Miami Beach Police Department, Miami Gardens Police Department, Fort Lauderdale Police Department, Pembroke Pines Police Department, and Miramar Police Department for their assistance. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced to 22 Years in Prison for Multiple Robberies of Commercial EstablishmentsRead the Press Release
On August 28, 2018, Alfredo Garcia, 35, of Miami-Dade County, was sentenced to a total of 264 months in prison by U.S. District Court Judge Federico A. Moreno, after previously pleading guilty to three counts of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Jorge R. Colina, Chief, City of Miami Police Department (MPD), made the announcement.
According to court records, between February 11, 2016, and February 14, 2016, Garcia robbed a Stop & Shop convenience store, a Valero Gas Station, and a Westar Gas Station, all in Miami-Dade County. In each robbery, Garcia approached the cashier, stated that he had a firearm, and demanded money from the cash register. During the robbery of the Stop & Shop convenience store, Garcia displayed the butt of a firearm that was in his jacket pocket.
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.
Mr. Greenberg commended the investigatory efforts of the ATF and MPD in this matter. This case was prosecuted by Assistant United States Attorney David Turken.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
IPhone Robber Sentenced to 27 Years in PrisonRead the Press Release
A Fort Lauderdale resident was sentenced, on September 7, 2018, to 27 years in prison by United States Chief District Judge Michael K. Moore for committing two armed robberies.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Ari C. Shapira, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Rick Maglione, Chief, Fort Lauderdale Police Department (FLPD), made the announcement.
Jermar Jerome Roberson, 25, of Fort Lauderdale, Florida, previously pled guilty to two counts of Hobbs Act Robbery and discharging a firearm in furtherance of a crime of violence, in violation of, Title 18, United States Code, Sections 1951(a) and 924(c)(A)(1)(iii). Roberson was sentenced to a total of 324 months in prison, to be followed by 5 years of supervised release.
According to the court record, in October of 2017, Roberson negotiated the sale of two cellular phones (iPhones) over the internet and robbed both victims at gunpoint when they arrived at the meeting place. During the second robbery, Roberson discharged the firearm and struck the victim.
Roberson’s co-defendant Shyann Lee Williams previously pled guilty to a single Hobbs Act Robbery and was sentenced by Judge Moore on September 7, 2018 to 63 months in prison, to be followed by 3 years of supervised release.
A restitution hearing has been scheduled for both defendants on November 29, 2018 at 11 a.m. before Judge Moore.
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.
Mr. Greenberg commended the investigative efforts of the ATF, BSO and FLPD in this matter. The case was prosecuted by Assistant U.S. Attorney Jodi L. Anton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Financial Advisor Pleads Guilty to Money Laundering Charge in Connection with Bribery Scheme Involving Ecuadorian OfficialsRead the Press Release
A U.S.-based financial advisor pleaded guilty today for his role in an international money laundering conspiracy involving the proceeds of a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled energy company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).
U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Acting Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.
Jose Larrea, 40, a U.S. citizen who lives in Miami, Florida, pleaded guilty in Miami before U.S. District Judge Marcia G. Cooke of the Southern District of Florida to one count of conspiracy to commit money laundering. He is scheduled to be sentenced on Nov. 14, by Judge Cooke.
According to his admissions at the plea hearing, Larrea conspired with his co-defendant, Frank Roberto Chatburn Ripalda (Chatburn), 40, a dual U.S. and Ecuadorian citizen who also lives in Miami, and others to conceal the proceeds of an unlawful scheme, namely to pay bribes to PetroEcuador officials. Larrea admitted to participating in the money laundering scheme by wiring more than $1 million from his own U.S.-based bank account to several U.S.-based bank accounts. Those wire transfers were made to conceal a bribery scheme involving an oil services contractor who made payments to PetroEcuador officials in an effort to retain existing contracts and win new business with PetroEcuador. Larrea further admitted that he created false and back-dated documents on behalf of the oil services contractor.
Larrea is the fourth individual to plead guilty in this case. In addition to Larrea, two former officials of PetroEcuador who received bribe payments and the contractor described above have previously pleaded guilty to date in connection with the government’s ongoing investigations into the PetroEcuador bribery and money laundering schemes.
Chatburn was charged in the same indictment on April 19, with one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, one count of conspiring to commit money laundering and two counts of money laundering. Chatburn has pleaded not guilty, and his trial is currently set for Oct. 15.
All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s International Corruption Squad in Miami and IRS-CI are investigating the case. Assistant Chief Lorinda Laryea and Trial Attorneys David Fuhr and Katherine Raut of the Criminal Division’s Fraud Section, Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Karen Rochlin and Nalina Sombuntham of the Southern District of Florida are prosecuting the case.
The U.S. Marshals Service and the Criminal Division’s Office of International Affairs has provided significant assistance by obtaining key evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
Two Miami Residents Sentenced to Prison for $7 Million Identity Theft Tax Refund ScamRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Gabriel Grchan, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), St. Paul Field Office, Michael J. De Palma, Acting Special Agent in Charge, IRS-CI, Miami Field Office, and Dexter M. Williams, Chief, Miramar Police Department, announced that Frantz Silvene, 34, of Miami, was sentenced to 87 months after pleading guilty to one count of conspiracy to defraud the government with respect to claims in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Section 1028A, for a tax refund scheme that resulted in the filing of approximately $7 million in fraudulent tax refund claims. Also connected to this scheme, Myriam Gisme, 38 of Miami, was sentenced to 53 months after pleading guilty to one count of conspiracy to defraud the government with respect to claims. At sentencing, on August 28, 2018, the defendants were also ordered to pay approximately $1.5 million in restitution.
According to the plea documents, from January 2010 to October 2013, the defendants agreed on a scheme to file fraudulent tax returns seeking refunds with the IRS using stolen personal identity information. Silvene knowingly provided stolen personal identity information for the preparation of fraudulent tax returns and assisted in opening bank accounts in Minnesota to receive fraudulently obtained tax refunds. Gisme, and others, knowingly caused the filing of false tax returns from South Florida using stolen identity information for the payment of refunds to accounts in Minnesota and elsewhere.
During the course of the conspiracy, the defendants caused the filing of approximately 1,000 tax returns seeking approximately $7 million in fraudulent tax refunds claims. The IRS paid out approximately $1.5 million in refunds to accounts controlled by Silvene, Gisme, and other co-conspirators.
Mr. Greenberg commended the investigative efforts of IRS-CI in Minnesota and Miami and the Miramar Police Department. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
A Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Hialeah Man Pleads Guilty in $8 Million Laundering Scheme Involving Proceeds of Mortgage Fraud and Tax Refund FraudRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) announced that on September 5, 2018, Yant Garcia, 38 of Hialeah, pled guilty to one count of conspiracy to commit an offense against the United States.
According to the plea document, beginning around 2012, and continuing through around 2015, Garcia agreed with others to launder the proceeds of an identity theft tax refund scheme and mortgage fraud scheme by cashing checks in names of persons who were not present at check-cashing stores in Miami.
In or around 2013, Garcia’s co-conspirators submitted fraudulent tax returns to the Internal Revenue Service (IRS) using stolen personal identity information seeking refunds ranging in value from $130,000 to $170,000. In total, the Department of Treasury paid out approximately $4.3 million in fraudulent refund claims by mailing out tax refund checks. The defendant and a co-conspirator met with the owner of a check-cashing store in Hialeah and the true owner of the store agreed to cash these checks for a thirty percent fee.
In or around 2015, Garcia and his co-conspirators engaged in a mortgage fraud scheme on a property in Miami Beach. Garcia and his coconspirators submitted fraudulent loan applications and received approximately $3.7 million in proceeds from this mortgage fraud via interstate wire to the account of the fake title company in Miami. Garcia then provided checks to co-conspirators who cashed these checks at check-cashing stores in South Florida in the names of payees who were not present.
Garcia is scheduled to be sentenced on November 14, 2018 at 10:30 a.m. before U.S. District Judge Marcia G. Cooke.
Mr. Greenberg commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fort Lauderdale Broker Pleads Guilty for Involvement in $16 Million Precious Metals and SecuritiesRead the Press Release
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) announced that on August 31, 2018, Salvatore Colonna, 69, of Fort Lauderdale, pled guilty to one count of conspiracy to commit wire fraud.
According to the plea documents, from January 2010, through October 2013, Colonna worked as a broker for Liberty International Financial Services and related entities (together, “Liberty”) in Fort Lauderdale, Florida. During that period, Colonna agreed on a scheme with other co-conspirators to obtain money from investors by means of materially false and fraudulent pretenses, including (a) that investors’ money would be used to buy precious metals; (b) that investors would receive substantial dividends on Liberty investments; and (c) that the defendant would only take a five to fifteen percent commission on investments. In truth and in fact, as Colonna knew, Liberty was not using investor money to buy precious metals, Liberty investments would not pay substantial dividends, and the defendant knowingly took commissions on investors’ monies as high as forty percent.
According to the plea documents, from January 2010, through October 2013, investors sent over $16 million in funds to Liberty. Liberty returned only around $3 million to investors. A substantial percentage of the money was used to pay the founders of Liberty and the defendant, who received over $2 million in commissions.
Colonna is scheduled to be sentenced on November 16, 2018 at 1:30 p.m. before U.S. District Judge Beth F. Bloom.
Mr. Greenberg commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
Related court documents and information can be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
South Florida Doctor Sentenced to 78 Months in Prison for Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was sentenced today to 78 months in prison, after having been convicted by a federal jury in South Florida, of participating in a conspiracy to distribute a controlled substance.
U.S. Attorney Benjamin G. Greenberg 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 Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
“Dr. Mencia has been held accountable in a court of law for casting aside his medical ethics to illegally distribute controlled substances and fuel the opioid epidemic,” said U.S. Attorney Greenberg. “The U.S. Attorney’s Office and our law enforcement partners remain committed to do everything possible to protect the community from the dangers of opioid abuse and addiction.”
“The opioid epidemic is ravaging communities across the country,” said Assistant Attorney General Benczkowski. “It is especially disturbing when doctors — like Andres Mencia — disregard their oaths to ‘do no harm’ in exchange for lining their pockets with illicit profits. The Criminal Division is dedicated to fighting the opioid epidemic by aggressively investigating and prosecuting those healthcare providers who, rather than help those in need, contribute to the opioid epidemic by writing medically unnecessary prescriptions for highly addictive and harmful painkillers. Thanks to the hard work of our dedicated prosecutors and law enforcement partners, Mencia now faces serious consequences for his crimes.”
“Today’s sentencing of Dr. Mencia serves as evidence that medical professionals who unethically and illegally dispense highly addictive opioid medication unnecessarily will be subject to prosecution.” said DEA Special Agent in Charge Wright. “Together with our law enforcement partners, the DEA Miami Field Division continues its commitment to protecting our communities from all forms of illegal practices that result in drug addiction.”
“Dr. Mencia violated the law and his Hippocratic oath to do no harm,” said HHS-OIG Special Agent in Charge Richmond. “Health professionals who profit by prescribing poisonous opioids can expect to face the law’s full weight.”
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AGI Medical & Dental (AGI), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale; Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. U.S. District Judge William P. Dimitrouleas sentenced the conspirators as follows:
Dr. Mencia was sentenced to 78 months in prison, to be followed by three years of supervised release, along with a $4,800 forfeiture and $250,000 fine. Ventura-Rodriguez was sentenced to serve 24 months in prison, to be followed by three years of supervised release and ordered to pay $396,428.18 in restitution, jointly and severally. Sampath-Grant was sentenced to serve 18 months in prison, to be followed by three years of supervised release, and ordered to pay $396,428 in restitution. Mensah was sentenced to time-served, three years of supervised release and ordered to pay $132,142 in restitution.
The investigation was conducted by DEA, HHS-OIG and HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov/ or on http://pacer.flsd.uscourts.gov/.
South Florida Doctor Sentenced to 78 Months in Prison for Participating in a Conspiracy to Illegally Dispense Opioids and Other DrugsRead the Press Release
Dr. Andres Mencia, 64, of Fort Lauderdale, Florida was sentenced today to 78 months in prison, after having been convicted by a federal jury in South Florida, of participating in a conspiracy to distribute a controlled substance.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Special Agent in Charge Shimon R. Richmond of U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
“The opioid epidemic is ravaging communities across the country,” said Assistant Attorney General Benczkowski. “It is especially disturbing when doctors — like Andres Mencia — disregard their oaths to ‘do no harm’ in exchange for lining their pockets with illicit profits. The Criminal Division is dedicated to fighting the opioid epidemic by aggressively investigating and prosecuting those healthcare providers who, rather than help those in need, contribute to the opioid epidemic by writing medically unnecessary prescriptions for highly addictive and harmful painkillers. Thanks to the hard work of our dedicated prosecutors and law enforcement partners, Mencia now faces serious consequences for his crimes.”
“Dr. Mencia has been held accountable in a court of law for casting aside his medical ethics to illegally distribute controlled substances and fuel the opioid epidemic,” said U.S. Attorney Greenberg. “The U.S. Attorney’s Office and our law enforcement partners remain committed to do everything possible to protect the community from the dangers of opioid abuse and addiction.”
“Today’s sentencing of Dr. Mencia serves as evidence that medical professionals who unethically and illegally dispense highly addictive opioid medication unnecessarily will be subject to prosecution.” said DEA Special Agent in Charge Wright. “Together with our law enforcement partners, the DEA Miami Field Division continues its commitment to protecting our communities from all forms of illegal practices that result in drug addiction.”
“Dr. Mencia violated the law and his Hippocratic oath to do no harm,” said HHS-OIG Special Agent in Charge Richmond. “Health professionals who profit by prescribing poisonous opioids can expect to face the law’s full weight.”
According to evidence admitted at trial, Dr. Mencia ran Adult & Geriatric Institute of Florida lnc, d/b/a AGI Medical & Dental (AGI), in Oakland Park, Florida. Beginning in or around January 2014 and continuing through October 2017, Dr. Mencia, and office personnel Oscar Luis Ventura-Rodriguez, 41, of Ft. Lauderdale; Nadira Sampath-Grant, 51, of Margate, and John Mensah, 50, of Miami, conspired to perform sham consultations with cash-paying patients. The evidence showed that the true and intended purpose of the consultations was to improperly issue the patients’ prescriptions for opioids and narcotics, such as Oxycodone, OxyContin and Percocet, in exchange for cash payments. Pursuant to Dr. Mencia’s instructions, co-conspirators kept track of the drug-seeking patients by identifying them as “CS” (controlled substance) “patients.” On occasion, Dr. Mencia provided his co-conspirators pre-signed prescriptions to issue the “CS” patients prescriptions for controlled substances in his name. During the course of the conspiracy, Dr. Mencia was not providing a medically meaningful consultation but was in fact acting outside the scope of his professional practice and without legitimate medical purpose.
Ventura-Rodriguez, Sampath-Grant and Mensah previously pleaded guilty to conspiracy to defraud the United States by unlawfully distributing controlled substances. U.S. District Judge William P. Dimitrouleas sentenced the conspirators as follows:
Dr. Mencia was sentenced to 78 months in prison, to be followed by three years of supervised release, along with a $4,800 forfeiture and $250,000 fine. Ventura-Rodriguez was sentenced to serve 24 months in prison, to be followed by three years of supervised release and ordered to pay $396,428.18 in restitution, jointly and severally. Sampath-Grant was sentenced to serve 18 months in prison, to be followed by three years of supervised release, and ordered to pay $396,428 in restitution. Mensah was sentenced to time-served, three years of supervised release and ordered to pay $132,142 in restitution.
The investigation was conducted by DEA, HHS-OIG and HSI. The Aventura Police Department, City of Miami Police Department, Miami-Dade Police Department, and Miami Gardens Police Department assisted in the investigation. This case was prosecuted by Assistant U.S. Attorney Michael Gilfarb of the Southern District of Florida and Trial Attorney Adam G. Yoffie of the Criminal Division’s Fraud Section.