Southern District of Florida

Michael Hegarty, 40, an Irish national, pled guilty today in U.S. District Court in Miami to fraudulently facilitating the transportation and concealment of a Libation Cup carved from an endangered Rhinoceros horn, that was smuggled from the United States to Great Britain contrary to the provisions of the Endangered Species Act, in violation of Title 18, United States Code, Sections 554 and 2.

 

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Acting Assistant Attorney General Jeffrey H. Wood of the Environment and Natural Resources Division of the Department of Justice, and Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service (FWS), made the announcement.  The prosecution of Hegarty is part of Operation Crash, a continuing effort by the Special Investigations Unit of the FWS Office of Law Enforcement in coordination with the Department of Justice to detect, deter, and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.

 

The Endangered Species Act (“ESA”), Title 16, United States Code, Sections 1531 et seq., was enacted by Congress to conserve endangered and threatened species and the ecosystems upon which they depend. The term “endangered species” means any species, or part thereof, which is in danger of extinction throughout all or a significant portion of its range.

 

All species determined to be endangered under the ESA are listed in Title 50, Code of Federal Regulations, Section 17.11. Various species of rhinoceros have been listed since as early as 1970, and at all relevant times, five of the six extant species were included within its protection, to include the Black, Great Indian, Javan, Northern White, and Sumatran rhinoceros.

 

The ESA makes it unlawful to knowingly deliver, receive, carry, transport, or ship in interstate or foreign commerce, by any means whatsoever and in the course of a commercial activity, endangered species, including rhinoceros; and to sell and offer to sell endangered species of wildlife, including rhinoceros, in interstate and foreign commerce, as set forth in Title 16, United States Code, Sections 1538(a)(1)(E) and (F) and 1540(b)(1). Federal regulations also require that, upon exportation of any wildlife, exporters or their agents must file with the FWS a completed declaration for Importation or Exportation of Fish and Wildlife (Form 3-177), and that all wildlife exports must be cleared by an FWS officer. 50 C.F.R. § 14.61.

 

According to the Plea Agreement, a Joint Factual Statement filed by the parties, other court records, and statements at the hearing, in mid-April 2012, Hegarty and his co-conspirator Richard Sheridan travelled to Miami, Florida from London, England. Later that month they joined a Miami resident to attend an auction in Rockingham, North Carolina. At the auction, Sheridan actually functioned as the bidder on behalf of the three individuals, and made the winning bid for a rhinoceros horn libation cup described as “Lot 463: Chinese Rhinoceros Horn Chilong Libation Cup,” for $57,500.

 

On May 3, 2012, the Miami resident, acting at the direction of Hegarty and Sheridan sent a wire transfer from a bank account in Miami to the auction house in North Carolina, as payment for the Rhino cup.  On May 4, 2012, Hegarty, who was then in Coconut Grove, called an employee of a Federal Express office in North Carolina and instructed the employee to pick up the rhinoceros horn libation cup from the auction house in Rockingham, and to ship the items to an address in Florida.

 

On May 7, 2012, Hegarty and his co-conspirator received the rhinoceros horn libation cup in Florida. They assured the Miami resident, who had funded the purchase of the cup, that it was an excellent investment and that they were experienced in such transactions. They further advised that a flaw in the cup could be repaired and that they were associated with individuals in the United Kingdom who could affect the repairs and enhance the value of the libation cup. Hegarty and Sheridan stated they would take the cup to the United Kingdom for that purpose. Hegarty further claimed that he would need to “make up documents” so that the rhinoceros cup would “make it through Customs and pay taxes.” By cutting and pasting from several sources, a false invoice was created.

 

On May 16, 2012, Sheridan smuggled the libation cup out of the United States in his luggage, as he traveled from Miami, via Atlanta, to London. He failed to declare the export of the rhino horn libation cup as required by law to the FWS and neither applied for nor obtained the permit required under the Endangered Species Act.

 

On July 19, 2012, Sheridan, along with two other Irish nationals, was arrested by Metropolitan Police in Wandsworth, London, while attempting to sell the same rhinoceros horn libation cup to a Hong Kong native. Sheridan, who claimed ownership of the item, had the Lot tag from the auction house identifying the libation cup, as well as wrappings and other material from the North Carolina sales transaction in his possession.

 

After the arrest of Sheridan in London, Hegarty, who had developed a personal relationship with the Miami resident, told the resident not to discuss him (Hegarty) with law enforcement authorities, to never make mention of the Irish group with which he was associated, and to protect him in the event law enforcement authorities inquired about their activities.

 

Scientific analysis conducted at the National Fish & Wildlife Service Forensics Laboratory in Ashland, Oregon determine that the Libation Cup was in fact fashioned from the horn of an ESA-protected Great Indian Rhinoceros.

 

Hegarty was arrested on the charges on an INTERPOL Red Notice and extradited to the United States from Belgium. Sheridan was convicted on unrelated charges in England and is currently incarcerated there; he is still wanted to face wildlife trafficking charges in the Southern District of Florida.

 

“Trafficking in endangered and threatened species is illegal” said Acting U.S. Attorney Greenberg. “Together with our law enforcement partners, we will strictly enforce the laws that protect our environment and our wildlife. The international community strongly supports these enforcement efforts and is capable of finding and holding accountable these criminals wherever they attempt to hide.”

 

“By trafficking in wildlife products, such as items made from a rhinoceros horn, smugglers are fueling the illegal trade in endangered wildlife, which may ultimately lead to the species extinction,” said Ed Grace, Acting Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service. “I am proud of our special agents who exposed this complex, international scheme that spanned many international borders.  This case showed the direct link between wildlife trafficking and transnational organized crime and reinforced our commitment to continue working with U.S. and international partners to pursue these criminals who profit from the illegal trade in wildlife.”

 

Hegarty will be sentenced by the Honorable Donald M. Middlebrooks, United States District Court Judge, who accepted the guilty plea. Sentencing will be held  November 14, 2017 at 2:00 p.m. Hegarty faces a maximum penalty of up to ten years in prison, followed by a term of supervised release of up to three years, and a maximum fine of $250,000, or up to twice the gross gain. 

 

Mr. Greenberg commended the investigative efforts of the FWS Office of Law Enforcement.  This case is being handled by Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Department of Justice’s Environmental Crimes Section of the Environment and Natural Resources Division.

 

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

Twelve retail store owners, operators, and clerks, have been charged in connection with schemes to illegally redeem food stamp benefits in exchange for cash.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), made the announcement. 

The indictments allege that the retailers received more than $20 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores and vendors allegedly took illicit profits from the fraudulent transactions with food stamp recipients.  This operation resulted in the largest combined financial fraud loss for a food stamp trafficking takedown in history.

“The Supplemental Nutrition Assistance Program offers nutrition assistance to millions of eligible, low-income individuals and families while providing economic benefits to communities,” stated Acting United States Attorney Benjamin G. Greenberg. “The exploitation of participants in the program by providing cash instead of nutrition for financial gain is criminal. The U.S. Attorney’s Office and our law enforcement partners are committed to investigating and bringing to justice those who engage in these fraudulent schemes.”

“The USDA-OIG conducts hundreds of criminal investigations relating to SNAP fraud across the nation each year.  In this instance, eight small convenience stores in south Florida committed a staggering amount of fraud in a relatively short amount of time.  These retailers created an illegal benefits exchange system that defrauded the American taxpayer and denied healthy foods to needy children and their families.  The storeowners who allegedly orchestrated this trafficking scheme pocketed millions in “fees” which they charged for converting food assistance benefits into cash.  Any retailer who chooses to defraud taxpayers through such schemes will continue to be aggressively investigated and prosecuted by USDA-OIG and its law enforcement partners,” stated Karen Citizen-Wilcox, Special Agent in Charge, USDA-OIG.

The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federally funded, national program established by the United States government to alleviate hunger and malnutrition among lower income families.  The United States Department of Agriculture (USDA) administers SNAP through its agency, the Food and Nutrition Service (FNS).  FNS is responsible for the authorization and disqualification of retail food establishments participating in the redemption of SNAP benefits. 

In Florida, SNAP is administered by the State of Florida Department of Children and Families (DCF).  DCF is responsible for overall program administration, as well as approving, denying or revoking assistance for recipients.  FNS and the State of Florida share jointly in the cost of administering the SNAP.  In 1998, DCF changed the format of SNAP benefits in Florida from a traditional paper coupon system to an Electronic Benefit Transfer (EBT) card system.  Recipients use the EBT card, which contains an embedded magnetic strip, to purchase approved food items from participating retailers.  Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale (POS) terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.

According to some of the indictments listed below, the defendants owned, operated, or worked at stores in the Southern District of Florida that were authorized to accept SNAP. In other indictments, the defendants owned, operated, or worked at stores in the Southern District of Florida who were not authorized to accept SNAP but instead unlawfully utilized the POS terminals of authorized retailers. The defendants received instruction regarding the requirements and regulations of the food stamp program. The defendants allegedly exchanged EBT benefits for cash, in violation of the food stamp program rules.  The defendants and/or their co-conspirators/employees swiped the recipient’s EBT card at a POS machine for an inflated amount, and paid the recipient, in cash, a reduced percentage of the value of food stamp benefits charged on the card. The defendants would realize a guaranteed, significant profit from each fraudulent transaction. In most situations, the recipient did not actually receive any food or eligible items in return for their food stamp benefits. As a result of the unlawful cash transactions, the defendants fraudulently obtained more than $20 million dollars in EBT deposits for transactions in which the stores did not provide food.

 

1.         United States v. Hasan Saleh, et al., Case No. 17-20653-CR-Moreno

According to the indictment, Hasan Saleh, 59, managed a convenience store, Four Corners, located at 821 Northwest 6th Street, Fort Lauderdale, Florida.  Despite not being authorized to participate in SNAP, Four Corners employees, including Saleh, were involved in a scheme in which they exchanged food stamp benefits for cash.  These transactions were carried out using equipment registered to the convenience store Sparkle, located at 6530 NW 18th Avenue, Miami, Florida. Defendant Mohammad Alobaisi, 37, was the sole officer, director, and registered agent of Sparkle. Additionally, employees of Sparkle participated in the scheme by exchanging food stamp benefits for cash.  Between April 2015 and August 2017, Saleh and Alobaisi, together with their employees, Reynold Francois, 38, Ihab Hassouna, 44, Mohammad Alteen, 33, Maria Jerdana, 36, and Joe Ann Baker, 56, redeemed and caused to be redeemed approximately $2 million in EBT food stamp benefits from the FNS.

 

2.         United States v. Yousef Homedan Zahran, Case No. 17-60241-CR-Ungaro

 

On September 20, 2017, Yousef Homedan Zahran, a/k/a “Yuousef Hussein,” a/k/a “Joe,” 60, of Pompano Beach, was charged by complaint in connection with a food stamp fraud scheme.  According to court documents, Zahran, worked as a clerk at a convenience store, Muna & Mona Inc., d/b/a Community Food Store #5, located at 401 NW 27th Avenue, in Pompano Beach, Florida.  On multiple occasions between November 3, 2016, and January 11, 2017, Zahran illegally sold food stamp benefits in exchange for cash.  

 

 

3.         United States v. Omar Hajje and Jalal Hajyousef, Case No. 17-20622-CR-Gayles

According to the indictment, Omar Hajje, 43, of Miami, and Jalal Hajyousef, 42, of Miami, owned and operated convenience and grocery stores in Miami known as Steve Market 2 and Yum-Yum’s Grocery, located at 6804 NW 15th Avenue and 6813 NW 15th Ave in Miami, respectively.  Omar Hajje applied for and obtained authorization for each of the two stores to participate in SNAP.  From July 2014 through the date of the indictment, September 2017, Omar Hajje and Jalal Hajyousef were involved in a fraud and money laundering conspiracy in which they exchanged food stamp benefits for cash and fraudulently redeemed approximately $4.2 million in EBT food stamp benefits.  Hajje and Hajyousef laundered the fraud proceeds through various accounts, by writing cashier’s checks, and by converting EBT funds to cash.

 

4.         United States v. Andy Javier Herrera and Javier Herrera, Case No.17-20663-CR-Moore

According to the indictment, Andy Javier Herrera, 24, of Little Havana, owned a small grocery store, Santa Ana Market II, located at 1832 NW 17th Ave., Miami, Florida. Herrera applied for, and obtained, authorization to participate in SNAP.  Javier Herrera, 49, of Coral Way, was a clerk that worked at both Santa Ana Market II, and a nearby convenience store named Santa Ana Market, located at 3000 NW 12th Avenue, Miami, Florida.  Between April 2012 and September 2017, Andy Herrera and Javier Herrera were involved in a scheme in which they exchanged food stamp benefits for cash. During that time, Andy Herrera and Javier Herrera fraudulently redeemed approximately $10,000,000 in EBT food stamp benefits.

 

If convicted of the charged conduct, a defendant faces a possible maximum statutory sentence of 20 years’ imprisonment for conspiracy to commit wire fraud; 20 years’ imprisonment for wire fraud; and 5 years’ imprisonment for food stamp/EBT fraud.

Acting U.S. Attorney Greenberg acknowledged the dedicated efforts of the Florida Department of Children and Families and the Florida Department of Financial Services to provide services to the community and identify for prosecution those individuals who compromise public benefits.  Mr. Greenberg also commended the investigative efforts of USDA-OIG, FBI and USSS, and expressed his gratitude to FLPD, DBPR-ABT, MPD and MDPD for their assistance with the investigation and law enforcement operation.  Mr. Greenberg recognized Assistant United States Attorneys Yeney Hernandez, Lisa Miller, Frederic Shadley, and Anne McNamara, who are prosecuting these cases.

A complaint or an indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.    

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

            The former Commercial Director of Essex Holdings, Inc., was charged in two separate fraud schemes totaling more than $33 million in fraudulently obtained funds.  The first scheme involved nearly 100 investors who purchased $30 million of promissory notes purportedly secured by interests in iron ore mining in Chile.  The second scheme involved unlawfully obtaining $1.2 million in economic development funds as well as valuable industrial property from the State of South Carolina.

 

        Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

 

            Anthony Joseph Baker, 37, formerly a resident of Miami-Dade County, Florida, was charged with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and six counts of wire fraud, in violation of Title 18, United States Code, Section 1343.  The case is assigned to United States District Judge Robert N. Scola in Miami.  In related cases, Navin Shankar Subramaniam Xavier, a/k/a "Navin Xavier," 44, formerly of Miramar, was convicted in Case No. 16-20685-CR-DPG of related charges and was sentenced on May 16, 2017 to 180 months imprisonment.  Charles E. Ashby, 46, of Pembroke Pines, was convicted in Case No. 17-20478 –CR-UU and is scheduled to be sentenced before U.S. District Judge Ursula Ungaro on October 17, 2017 in Miami.

 

            According to documents filed in court, from October 2012 through May 2014, Xavier, Baker, Ashby and others operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens.  Xavier was the Chief Executive Officer, Baker was the Commercial Director and second most senior employee, and Ashby was the head of IT operations.  Xavier, Baker and others raised more than $30 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile.  The conspirators used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings.  Most of the money was used for purposes other than what was promised, including to support lavish spending by the conspirators.  Eventually, Essex Holdings used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed.  Evidence filed in court in a related criminal case showed that actual investor losses from the scheme exceeded $29 million. 

 

            The second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (“SCCCED”), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility.  According to documents filed in court, Baker provided false financial documentation to SCCCED in order to obtain the contract.  In order to get paid under the contract, according to the Indictment, Baker and Ashby participated in the falsification of invoices and bank statements to make it appear that Essex Holdings had performed work at the site and paid a contractor for that work.  These false documents were then provided to South Carolina authorities so that the conspirators could get paid under the contract.  Funds from the South Carolina fraud were then diverted to the personal benefit of the conspirators, and were used to make payments in relation to the Essex Holdings iron-ore scheme.

 

            Mr. Greenberg commended the investigative efforts of the FBI, the Miami Regional Office of the U.S. Securities and Exchange Commission, and the South Carolina Office of Inspector General, for assisting with this matter.  The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison W. Lehr.

 

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

 

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

Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison. 

 

According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc.  From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents.  Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns.  The court found that Fertilien and Joseph caused a tax loss of more than $1 million.   

 

In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS.  Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns.  Petit-Dos is scheduled to be sentenced on Oct. 6.

 

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

Two Broward County, Florida tax return preparers were sentenced to prison today for conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

Luczor Fertilien, 39, was sentenced to 30 months in prison and David Joseph, 37, was sentenced to 24 months in prison.

 

According to documents and information provided to the court, Fertilien, Joseph and Frantz Petit-Dos owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc.  From approximately 2010 through 2016, Fertilien, Joseph and Petit-Dos filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals, whose identities were stolen, as dependents.  Fertilien, Joseph and Petit-Dos did not report the illegal proceeds they received from this scheme on their personal tax returns.  The court found that Fertilien and Joseph caused a tax loss of more than $1 million.

  

In addition to the term of prison imposed, U.S. District Judge William P. Dimitrouleas ordered Fertilien and Joseph to each serve three years of supervised release and ordered Fertilien to pay $$1,038,129 in restitution to the IRS and ordered Joseph to pay $1,289,351 in restitution to the IRS.  Fertilien, Joseph and Petit-Dos previously pleaded guilty to conspiring to defraud the United States and filing fraudulent tax returns.  Petit-Dos is scheduled to be sentenced on Oct. 6.

 

Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

 

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

Gerard Anthony Brady, a Fort Lauderdale Police Department employee has been charged in federal court with stealing from his employer. 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.

Brady, 34, appeared in federal court on September 20, 2017, after being charged by a criminal Information with theft concerning programs receiving federal funds, in violation of Title 18, United States Code, Section 666(a)(1)(A).  If convicted, Brady faces a statutory maximum sentence of ten years in prison.

According to court records, including the Information, Brady worked at the Fort Lauderdale Police Department as the Police Forfeiture Coordinator until his termination in March 2017.  As Police Forfeiture Coordinator, Brady’s duties at the Police Department included storing and caring for confiscated and seized property, coordinating the deposit of confiscated and seized monies, and overseeing vessels, planes, vehicles, and other property seized by the Fort Lauderdale Police Department.  According to the Information, in 2016, while working as an employee, Brady stole in excess of $5,000 from the Fort Lauderdale Police Department. 

Benjamin G. Greenberg commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department, in relation to this matter.  This case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane. 

An Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.

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

On September 18, 2017, Roosevelt Miller, 20, of Ft. Lauderdale, was sentenced to a total of 121 months in federal prison by United States District Judge William P. Dimitrouleas, after having previously pled guilty to attempting to entice a minor to engage in sexual activity, in violation of, Title 18, United States Code, Section 2422(b).

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement. 

 

According to court documents, in early 2017, numerous children ranging in age from 13 to 14 years old, who attend Plantation Middle School, alerted authorities that Miller had inappropriate sexual communications with them using various mobile telephone applications.  Specifically, Miller used various social media platforms, including Instagram and text messaging, to send seven minors messages asking them to perform sexual acts on the defendant.  Most of these minor victims were enrolled in an aftercare program at Plantation Middle School, where Miller was employed as a counselor.

 

Mr. Greenberg commended the investigative efforts of the FBI and the Plantation Police Department.  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.

 

     Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), 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 Juan J. Perez, Director, Miami-Dade Police Department (MDPD), announced the fifty-six month prison sentence imposed upon Magaly Del Rosario for managing a Miami spa which performed illicit silicone injections. 

 

     On July 6, 2017, Del Rosario previously pled guilty for her participation in a conspiracy and delivery for pay of an adulterated and misbranded device received in interstate commerce with the intent to defraud and mislead.  Yesterday, United States District Judge Kathleen M. Williams sentenced Del Rosario to 50 months in prison for the conspiracy, to be followed by 6 months in prison for the remaining count of conviction.  In addition, Del Rosario was sentenced to three years of supervised release. A restitution hearing has been scheduled for December 1, 2017.     

 

      According to the court record, including an agreed upon factual statement, Del Rosario and her co-defendant, Maribel Jimenez (who previously pled guilty and was sentenced on August 29, 2017, to 79 months in prison), conspired from 2008 through August 2015 to receive and deliver an adulterated and misbranded “medical device” for pay which consisted of silicone used illegally for body contouring injections.  Del Rosario further admitted to having assisted Jimenez, in unlawfully injecting this substance into hundreds of clients seeking buttocks augmentation at Bella Beauty Spa (“Bella Beauty”), a business owned by Jimenez and located at 8360 West Flagler Street in Miami.  The silicone was unlawfully smuggled into the United States from Colombia throughout the period of the criminal conspiracy by means of multiple DHL deliveries of bottles falsely labeled as containing depilatory wax.

 

     During the course of the criminal conduct, Del Rosario “repeatedly and consistently” informed Bella Beauty’s clients that they would be injected with a substance that was safe, non-permanent and capable of being absorbed by the body over time,” while she “knew this not to be the case.”  Del Rosario and Jimenez falsely claimed that the substance was hydrogel, hyaluronic acid, Juvederm, Restylane, or other such absorbable, time-limited substances.  They did not inform clients that the dermal filler material was in fact silicone, a permanent substance known to be harmful if injected into the human body.  The potentially dangerous and harmful health risks that could result from the injection of the illicit silicone include: the potential of injection into a blood vessel resulting in embolism, migration of injected silicone to other bodily regions, infection and infection-related disorders, silicone-filled scar tissue formations (“granulomas”) caused by the body’s attempt to encapsulate such a foreign substance, necrosis, skin discoloration, immune system hyperactivity and related adverse systemic conditions, disfigurement, discomfort, and pain.

 

     Mr. Greenberg commended the investigative efforts of FDA-OCI, ICE-HSI and MDPD.  Mr. Greenberg thanked U.S. Customs and Border Protection and the Colombian National Police for their assistance. This case is being handled by Assistant U.S. Attorneys Peter Outerbridge and Miesha Darrough.

 

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.

A Miami physician was sentenced today to 97 months in prison and three years of supervised release, for his role in a $4.8 million health care fraud scheme that involved the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone and hydrocodone.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Roberto A. Fernandez, M.D., 51, of Miami, was sentenced by U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida.  Judge Altonaga also ordered Fernandez to pay $4.8 million in restitution, jointly and severally with his co-conspirators.  Fernandez pleaded guilty on July 11,  to one count of conspiracy to commit health care fraud and wire fraud in connection with a scheme, that ran from April 2011 to February 2017, involving the submission of false and fraudulent claims to Medicare and the illegal prescribing of controlled substances, including oxycodone, hydrocodone and alprazolam.

As part of his guilty plea, Fernandez admitted that he referred Medicare beneficiaries to pharmacy owners in exchange for illegal health care kickbacks.  Fernandez admitted knowing that the pharmacy owners were billing and receiving reimbursements from Medicare for prescription drugs based upon the prescriptions he sold, and that many of his prescriptions were medically unnecessary.  For example, he admitted providing prescriptions for expensive, name brand drugs, including HIV/AIDS medications that conflicted with other HIV drugs already prescribed to the beneficiaries.

Fernandez also solicited referrals of Medicare beneficiaries to his own practices from his co-conspirators, he admitted, including submitting claims to Medicare under his Part B provider number for services he did not, in fact, render.  Additionally, Fernandez admitted to receiving kickbacks in return for signing plans of care and prescriptions for medically unnecessary home health services.

Fernandez further admitted that he prescribed controlled substances, including addictive opioids, to patients and patient recruiters in return for $100 to $200 cash per prescription.  Fernandez admitted that he knew these patients did not need the controlled substances he prescribed, and that he would sometimes write prescriptions for controlled substances for patients whom he did not even examine. 

The FBI, HHS-OIG and USSS investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  Assistant U.S. Attorney Lisa H. Miller of the Southern District of Florida and a former Fraud Section trial attorney, and Fraud Section Trial Attorney Adam G. Yoffie are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.

Miami, FL - The National Center for Disaster Fraud (NCDF) and the U.S. Attorney's Office for the Southern District of Florida, along with U.S. Attorney Offices in the District of Puerto Rico, Middle District of Florida, and Northern District of Florida announced the formation of task forces comprised of local, state and federal agencies in our respective areas to combat Hurricane Irma related illegal activity. The NCDF and U.S. Attorneys in these districts urge residents and businesses to immediately report suspected fraudulent activity relating to recovery and cleanup operations, fake charities claiming to be providing relief for victims, individuals submitting false claims for disaster relief and any other disaster fraud related activity.

The U.S. Department of Justice established the National Center for Disaster Fraud to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies participate in the National Center for Disaster Fraud, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. In the wake of Hurricanes Harvey and Irma, the NCDF has already received more than 400 complaints. Examples of illegal activity being reported to the NCDF and law enforcement include:

Impersonation of federal law enforcement officials;

Identity theft;

Fraudulent submission of claims to insurance companies and the federal government;

Fraudulent activity related to solicitations for donations and charitable giving;

Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;

Price gouging;

Theft, looting, and other violent crime

“Unfortunately, criminals can exploit disasters, such as Hurricanes Harvey and Irma, for their own gain by sending fraudulent communications through email or social media and by creating phony websites designed to solicit contributions,” said Acting Executive Director Corey R. Amundson of the National Center for Disaster Fraud. “Once the NCDF receives a complaint, it routes the complaints to the appropriate federal, state, or local law enforcement agency in the appropriate jurisdiction. In the process, we are able to de-conflict and identify trends, national schemes, and offenders operating in multi-jurisdictions. The Justice Department will aggressively pursue those who commit disaster fraud.”

“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” said Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”

“We will aggressively investigate and prosecute anyone who seeks to defraud or exploit the federal assistance programs established to help individuals, families, or businesses that have lost so much as a result of Hurricane Irma,” said Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida. “Our Office will continue to protect the rights of our honest citizens affected by this disaster and ensure that they receive the necessary public and charitable assistance they deserve. If you suspect any fraud, we urge you to call the NCDF Hotline. Our efforts to combat fraud associated with Hurricane Irma will supplement the outstanding and ongoing efforts by the State of Florida and Florida Attorney General Pam Bondi.”

“Our efforts are directed at enforcing a zero tolerance policy,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez for the District of Puerto Rico. “In the midst of the distress and losses caused by Hurricane Irma and the attending need for recovery and rebuilding, there can be no place for fraud and abuse.”

“We do not tolerate fraud,” said U.S. Attorney Christopher P. Canova for the Northern District of Florida. “Individuals, families, and businesses have suffered, and will continue to suffer, tremendous losses. Emergency funds are needed to help them get back on their feet. Dozens of agencies, investigators, and prosecutors are ready to respond to credible allegations of fraud and abuse. If you are aware of fraud, we urge you to call the National Disaster Fraud Hotline.”

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected] (link sends e-mail).

Members of the public are reminded to apply a critical eye and do their due diligence before giving contributions to anyone soliciting donations on behalf of disaster victims. Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods. Learn more about the NCDF at www.justice.gov/disaster-fraud. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Department of Defense Criminal Investigative Service (DCIS), Southeast Field Office; Maximo Eamiguel, Special Agent in Charge, United States Postal Service, Office of Inspector General (USPS-OIG), Southern Area Field Office; James T. Wallis, Special Agent in Charge, U.S. Army Criminal Investigation Command, Southeast Fraud Field Office; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office; and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), announced the conviction of Serge Francois and Patrick Tonge for their involvement in a conspiracy to commit health care fraud and pay kickbacks in connection with federal health care programs. The fraudulent scheme caused over $30 million in losses to the federal TRICARE program. TRICARE provides coverage for active duty military and their families, as well as retired veterans. In addition, the fraudulent scheme caused the Federal Employee Health Benefit Program (FEHBP) to sustain losses.

On September 5, 2017, after a one-month trial, a federal jury found Francois guilty of conspiracy to commit health care fraud, twelve counts of health care fraud, conspiracy to pay kickbacks in connection with a federal health care program, five counts of paying such kickbacks, and twelve counts of money laundering. In addition, Francois was found guilty of eight counts of introducing misbranded drugs into interstate commerce, four counts of making false statements related to health care matters, and one count of making a false statement on a DEA form. The jury found Tonge guilty of the same conspiracy charges, as well as eleven counts of health care fraud, three counts of paying kickbacks, and two counts of money laundering.

According to evidence presented at trial, Francois, a pharmacist, owned and operated Atlantic Pharmacy and Compounding, located in Pompano Beach, Florida. From there, Francois and his right-hand man at the pharmacy, Patrick Tonge, entered into a vast conspiracy with so-called marketers who paid physicians to write prescriptions for topical medications that cost up to $17,000 a bottle. As the pharmacist in charge, Francois was responsible for the compounded medications, which were made in-house by the pharmacy.

Francois, Tonge and their co-conspirators agreed to automatically refill the prescriptions, sending numerous refills to patients who did not request them or need them, while not charging a co-pay in hopes that the patients would not bother to return the medications. Francois and Tonge would pay the marketers out of the profit received for each prescription; and the marketers in turn would pay the physicians. Evidence further showed that a substantial portion of the scheme involved physicians never seeing or examining the purported patients. Rather, they used the patients’ personal identification information to write the prescriptions.

Testimony and other evidence at trial revealed that Francois and Tonge specifically targeted the TRICARE program. Through the conspiracy, Atlantic Pharmacy billed over $37 million to TRICARE and FEHBP, with TRICARE paying out over $30 million in false and fraudulent claims.

Evidence at trial showed that Francois used the fraud proceeds to buy a $3.6 million mansion that once belonged to Dwayne “the Rock” Johnson, along with a Ferrari, two Rolls Royces, and over $1 million in luxury automobiles.

In addition, trial evidence revealed the kickback conspiracy component of the fraud scheme. For example, the marketers told Francois and Tonge that if they did not get paid they could not pay the physicians, and thus the physicians would stop writing the prescriptions. Francois and Tonge continued to make payments and bill TRICARE up until May 2016, when TRICARE stopped covering the medications due to growing knowledge of similar fraud involving other compounding pharmacies. In total, seventeen individuals pled guilty or were convicted for their involvement with the fraudulent scheme or receipt of kickbacks.

“Serge Francois and Patrick Tonge have been held responsible for an egregious fraud scheme that unlawfully diverted over $30 million in federal health care monies that were set aside for the men and women in uniform who serve and protect our country,” stated Acting United States Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office and our law enforcement partners will continue to work tirelessly to identify for prosecution individuals, including healthcare providers, who carry out fraudulent schemes against TRICARE or other federal health care programs for their own personal financial benefit at a loss to the deserving beneficiaries.”

“The Defense Criminal Investigative Service is committed to protecting the integrity of the U.S. military health care program to provide top quality medical care to America’s Warfighters and their families, while ensuring that health care providers and facilities comply with Federal laws,” said John F. Khin, Special Agent in Charge, DCIS - Southeast Field Office. “Through joint investigations with our law enforcement partners, DCIS aggressively pursues criminal prosecutions and all available remedies to bring violators to justice. These guilty verdicts demonstrate the effectiveness of our investigative efforts.”

“The verdict reached in this case should be an example to those healthcare providers engaging in illegal schemes that the government is vigilant and these crimes will not be tolerated," said Special Agent in Charge Maximo Eamiguel, of the U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners will continue to vigorously investigate these types of cases in order to protect federal benefit programs from fraud and abuse ensuring the safety of its beneficiaries.”

“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team,” said Special Agent in Charge James T. Wallis, of the U.S. Army Criminal Investigation Command’s Southeast Fraud Field Office. “We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”

“FDA is fully committed to the vigorous criminal investigation and prosecution of individuals who threaten the health and safety of American consumers by causing misbranded drugs to be distributed,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “Our office will continue to pursue and bring to justice those who place profits above the public health.”

“This conviction should act as a warning to those who believe they can defraud the government with impunity,” said Scott Rezendes, Special agent in Charge, OPM-OIG. “The OPM Office of the Inspector General is committed to holding such individuals accountable for their actions.”

Mr. Greenberg commended the investigative efforts of DCIS, USPIS-OIG, U.S. Army Criminal Investigation Command, FDA Office of Criminal Investigations and OPM-OIG. The case was prosecuted by Assistant United States Attorneys Daniel Bernstein and Franklin Monsour.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Miami, Florida – Acting United States Attorney Benjamin G. Greenberg has established a Disaster Fraud Task Force within the United States Attorney’s Office for the Southern District of Florida (SDFL) to help combat fraud schemes that develop following Hurricane Irma. The U.S. Attorney’s Office protects and serves the residents and visitors of Miami-Dade, Broward, Monroe, Palm Beach, Martin, St. Lucie, Indian River, Okeechobee and Highlands counties by enforcing federal laws. Acting U.S. Attorney Greenberg urges all Florida residents and businesses to immediately report suspected fraudulent activity related to recovery and cleanup operations, fraudulent charities that falsely claim to provide relief for victims, and individuals submitting false claims for disaster relief.

 

The newly created Task Force will be staffed by experienced prosecutors throughout the SDFL and will work closely with our federal, state, local, and tribal law enforcement partners to protect the benefits destined for citizens who are victims of this disaster.

 

The Task Force will also work closely with the U.S. Department of Justice’s National Center for Disaster Fraud (NCDF), which was established to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. The NCDF mission has expanded to include suspected fraud from any natural or manmade disaster. More than 30 federal, state, and local agencies have partnered with NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

 

“As our South Florida community recovers from Hurricane Irma, the U.S. Attorney’s Office for the Southern District of Florida and our law enforcement partners stand ready to investigate and prosecute in federal court anyone who seeks to re-victimize, defraud or exploit the individuals and businesses in need,” stated Acting U.S. Attorney Benjamin G. Greenberg. “Our united enforcement front will work hard to combat criminal activity, including fraud schemes associated with the hurricane’s devastation. Our mission is to ensure that federal, state and local programs, as well as reputable public and charitable assistance initiatives reach those struck by the impact of our recent natural disaster and are not fraudulently diverted to the criminals’ pockets.”

 

The public is reminded to be extremely cautious before providing personal identifying information or account data to anyone, especially those who may contact you. Residents should also remember to perform due diligence before giving contributions to anyone soliciting donations or individuals offering to provide assistance to those affected by the hurricane.

 

Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud (NCDF) Hotline toll free at (866) 720-5721. The telephone line is staffed by a live operator 24 hours a day, 7 days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected].

 

For more information regarding the U.S. Attorney’s Office for the Southern District of Florida, the Disaster Fraud Task Force and NCDF, please visit www.justice.gov/usao-sdfl.

 

On August 25, 2017, a Hollywood, Florida resident was convicted by a Southern District of Florida jury of access device fraud and aggravated identity theft.

 

Benjamin G. Greenberg, Acting 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), and Dexter M. Williams, Chief, Miramar Police Department, made the announcement.

 

Frantz Felix, Jr., 23, of Hollywood, was convicted at trial of one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). He faces a statutory maximum penalty of 12 years in prison. Sentencing is scheduled for November 14, 2017, before U.S. District Judge Kathleen M. Williams.

 

The evidence at trial established that between September 20, 2012 and September 24, 2012, Felix used a fraudulent credit card to obtain more than $5,000 in merchandise from vendors in Miami-Dade County.

 

Mr. Greenberg commended the investigative efforts of ICE-HSI and the Miramar Police Department. This case is being prosecuted by Assistant United States Attorneys Yeney Hernandez and Joshua Rothstein.

 

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.

Following a three-day trial before U.S. District Judge Federico A. Moreno, a jury convicted a former Broward County resident of access device fraud and identity theft.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), made the announcement.

Halima Ouedraogo, 36, most recently of Kirkland, Washington, was convicted of one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and ten counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Ouedraogo faces up to ten years in prison for each access device fraud charge, and a possible mandatory two year term in prison for each of the ten aggravated identity theft charges. Sentencing is scheduled for November 9, 2017, before U.S. District Judge Moreno.

The evidence at trial established that on August 4, 2015, the defendant Ouedraogo checked into a Fort Lauderdale hotel using the credit card account number and other personal information of someone who did not know the defendant, and did not authorize her to possess or use it. Ouedraogo stayed at the hotel for three weeks, where she ordered several meals, movies, and other incidentals, running up an overall tab of more than $5,000.

 

When management inquired into the bill after charges on the stolen card began to be declined, the defendant left without paying and checked in to another nearby hotel, again using another victim’s name, credit card account number, and other personal information. She was located and arrested later that morning. In her possession were several hundred names, dates of birth, social security numbers, bank account numbers, driver’s licenses, checkbooks, tax documents, bank cards, vehicle registrations, student identifications and additional personal information belonging to other people, none of whom authorized Ouedraogo to have or use it.

 

Mr. Greenberg commended the investigative efforts of IRS-CI, USSS and the Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Frederic Shadley

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.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD) announced that Edward Lee Williams, 30, Kenyada Pierce, 34, Martavious Randall, 38, and William Lovett, 36, all of Miami, Florida, have been charged by criminal complaint with possessing with intent to distribute controlled substances.

 

These charges arose from an investigation to address widespread drug dealing within the Cutler Manor Apartments, located at 10875 SW 216 Street, Miami, Florida. The Cutler Manor Apartments are a Section 8 public housing project located in unincorporated Miami-Dade County just north of Homestead, Florida. During the course of their investigation, law enforcement were able to purchase various controlled substances from subjects who resided in, or operated out of, the Cutler Manor Apartments. These criminal complaints are part of a multi-agency operation, including the FBI, DEA and MDPD, that seeks the arrest of 40 individuals.

 

In August 2016, after a similar law enforcement operation targeting drug sales in Cutler Manor, fourteen individuals associated with the Cutler Manor Apartments were indicted federally in the Southern District of Florida for possession with intent to distribute various narcotics, in violation of Title 21, United States Code, Section 841. Each of the defendants pled guilty for their respective participation in the criminal conduct and received sentences ranging from time served to 151 months in prison.

 

Following the 2016 indictments, law enforcement continued to investigate the sale of narcotics both at the Cutler Manor Apartments and out of single-family houses located nearby, including throughout the Perrine area, in the Southern District of Florida.

 

According to the criminal complaints, law enforcement purchased various narcotics, including methylone, known as “Molly,” cocaine, and heroin from individuals both within the Cutler Manor Apartments and at nearby residences located in Perrine, including from defendants Williams, Pierce, Randall, and Lovett. During the course of today’s operations, law enforcement recovered both narcotics and firearms.

 

If convicted of possessing with intent to distribute controlled substances, the defendants face up to 20 years in prison.

 

Mr. Greenberg commended the investigative efforts of the FBI, DEA, and MDPD. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.

 

A criminal complaint is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

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

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Justin D. Green, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA OCI), 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 Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO), announced that Abhishek Shukla and Harish Shabhai Panchal, both citizens of India, appeared in Federal District Court in Miami today to be formally arraigned on an indictment charging them and two companies, Jubilee Tobacco Industries Corp., and Pelican Tobacco (India) Private Limited, both incorporated under the laws of India, with conspiring to smuggle counterfeit cigarettes into the United States.

 

According to the indictment, the defendants are charged with conspiring with the intent to defraud and mislead, and selling and dispensing and causing the sale and dispensing of a counterfeit tobacco product, to wit cigarettes, the containers and labeling of which bore the trade name of Newport cigarettes, a tobacco product listed with the FDA pursuant to Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), and Title 18, United States Code, Section 2 (Counts 2 and 4); and that they intentionally trafficked in goods, that is approximately 68,600 cartons of cigarettes, while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which counterfeit marks was likely to cause confusion, to cause mistake, and to deceive. The counterfeit marks were spurious marks identical to and substantially indistinguishable from the marks of the United States domestic manufacturer of Newport brand cigarettes, which marks were then in use by and registered to that manufacturer on the principal register of the United States Patent and Trademark Office, in violation of Title 18, United States Code, Sections 2320(a) and 2 (Counts 3 and 5).

 

Shukla and Panchal each face the following potential prison sentences: up to five years on Count 1, up to three years on Counts 2 and 4, and ten years on each of Counts 3 and 5. Additionally, they face possible fines of up to $250,000 on each count, followed by supervised release of up to five years. Jubilee faces a fine of up to $500,000 on Count 1 and Pelican faces a possible fine of $500.000 per Count. This case is assigned to U.S. District Judge Kathleen M. Williams.

According to court records, including allegations contained in the indictment, beginning as early as March 2015 and continuing through August 16, 2017, the defendants initiated contact with an individual cooperating with FDA-OCI, offering counterfeit cigarettes for sale. Through internet negotiations, agreement was reached for a 20-foot container to be shipped from India to Miami, Florida, laden with counterfeit Newport brand cigarettes. Payment for the shipment was made in installments through international wire transfers to bank accounts in India and in Dubai, United Arab Emirates. On November 1, 2016, the container arrived in the USA and was seized with the assistance of United States Customs and Border Protection Officers at the Port of Miami. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $1.2 million. Analysis conducted by FDA’s Forensic Chemistry Center concluded that the cartons, packs, and cigarettes were all counterfeit.

Within two weeks of the arrival, the coconspirators sought out the undercover agents offering another shipment, twice as large. By April 2017, deposits totaling $55,000 had been made to accounts in the name of Pelican for counterfeit Newport cigarettes. On June 9, 2017, the container arrived at the Port of Miami and was seized with the assistance of United States Customs and Border Protection Officers, and turned over to FDA Special Agents. If distributed in the State of Florida, the un-taxed importation would have an approximate value of $3.2 million.

According to acts described in the conspiracy charge, Shukla and Panchal travelled to Miami in August 2017 to meet with the undercover agents in order to promote further business dealings. During the recorded meeting, they advised the agents that they had been partners for twelve years and personally oversaw the production of all the product being offered. They also assured the agents that they could counterfeit any American-made menthol cigarette with no problem, as well as other trademarked brands and that they could produce tobacco blends which would closely match the legitimate product.

An indictment merely contains accusations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

Mr. Greenberg commended the investigative efforts of FDA OCI, ICE-HSI and BSO, for their assistance with this long-term investigation. Mr. Greenberg also thanked U.S. Customs and Border Protection for their support. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.

 

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

Benjamin G. Greenberg, United States Attorney for the Southern District of Florida; Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), 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 Juan J. Perez, Director, Miami-Dade Police Department (MDPD), announced the six year sentence imposed upon Maribel Jimenez for operating a Miami spa which performed illicit silicone injections.

 

On June 16, 2017, Jimenez previously pled guilty for her participation in a conspiracy and delivery for pay of an adulterated and misbranded device received in interstate commerce with the intent to defraud and mislead. United States District Judge Kathleen M. Williams sentenced Jimenez to the maximum five year (60 month) sentence for the conspiracy, to be followed by a consecutive term of 19 months in prison for the remaining count of conviction. In addition, the Court sentenced Jimenez to three years of supervised release and ordered her to forfeit $1,168,353. A restitution hearing has been scheduled for December 1, 2017.

 

According to the court record, including an agreed upon factual statement, Jimenez and her co-defendant, Magaly del Rosario (who is scheduled for sentencing on September 19, 2017, following her previous guilty plea), conspired from 2008 through August 2015 to receive and deliver an adulterated and misbranded “medical device” for pay which consisted of silicone used illegally for body contouring injections. Jimenez further admitted to having unlawfully injected this substance into hundreds of clients seeking buttocks augmentation at Bella Beauty Spa (“Bella Beauty”), a business owned by Jimenez and located at 8360 West Flagler Street in Miami. The silicone was unlawfully smuggled into the United States from Colombia throughout the period of the criminal conspiracy by means of multiple DHL deliveries of bottles falsely labeled as containing depilatory wax.

 

During the course of the criminal conduct, Jimenez “repeatedly and consistently” informed Bella Beauty’s clients that they would be injected with a substance that was safe, non-permanent and capable of being absorbed by the body over time,” while she “knew this not to be the case.” Jimenez and her co-defendant falsely claimed that the substance was hydrogel, hyaluronic acid, Juvederm or Restylane, or other such substances. They did not inform clients that the dermal filler material was in fact silicone, a substance known to be harmful if injected into the human body. The potentially dangerous and harmful health risks that could result from the injection of the illicit silicone include: the potential of injection into a blood vessel resulting in embolism, migration of injected silicone to other bodily regions, infection and infection-related disorders, silicone-filled scar tissue formations (“granulomas”) caused by the body’s attempt to encapsulate such a foreign substance, necrosis, skin discoloration, immune system hyperactivity and related adverse systemic conditions, disfigurement, discomfort, and pain.

 

Mr. Greenberg commended the investigative efforts of FDA-OCI, ICE-HSI and MDPD. Mr. Greenberg also thanked U.S. Customs and Border Patrol and the Colombian National Police for their assistance. This case is being handled by Assistant U.S. Attorneys Peter Outerbridge and Miesha Darrough.

 

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.

Former Miami-Dade Police Department Officer Michael Freshko, 48, was sentenced to four years in prison today, by U.S. District Judge Darrin P. Gayles, after previously pleading guilty to conspiracy to unlawfully export firearms from the United States to the Dominican Republic, on flights from Miami International Airport.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.

According to the court record, after receiving firearms from a co-conspirator Freshko used his official position as a MDPD officer to transport the firearms past the passenger screening area and into the portion of Miami International Airport that housed the departure gates. Freshko thereafter would deliver the firearms to a co-conspirator, who in turn would store the firearms within carry-on baggage. Next, a co-conspirator would travel to the Dominican Republic aboard a commercial flight, with the firearms within carry-on baggage. After arriving in the Dominican Republic, a co-conspirator would deliver the firearms to an associate.

Freshko further admitted that one or more firearms were smuggled in this manner on October 5, 2012, and multiple firearms were smuggled on December 7, 2012. Freshko also admitted that he and his co-conspirators smuggled six firearms from Miami International Airport to the Dominican Republic. The smuggled firearms consisted of four Glock .9 mm pistols, one Sig Sauer .9 mm pistol, and one Sig Sauer 5.56 rifle.

The case was investigated by law enforcement officers in South Florida and New Jersey. Mr. Greenberg thanked the FBI Miami Area Corruption Task Force; the MDPD Professional Compliance Bureau; the FBI Newark Division-Franklin Township Resident Agency; the Drug Enforcement Administration Newark Division-Patterson Post of Duty; and the Internal Revenue Service, Criminal Investigation, Newark Field Office. This case was prosecuted by Assistant U.S. Attorney Michael Davis.

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

South Florida residents, including D’Angelo Figueroa, 21, of Port St. Lucie, Victoria Mia DeJesus, 20, of West Palm Beach, Jose Anibal Valentine, 22, of Latana, and Shay Jackson Flores, 26, of Orlando pleaded guilty in federal court for their involvement in a string of burglaries and robberies.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; John A. Bolduc, Chief, Port St. Lucie Police Department; Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO); and Jeffrey S. Katz, Chief, Boynton Beach Police Department, made the announcement.

 

On August 16, 2017, Figueroa pleaded guilty to: theft from a federal firearms licensee and receipt of stolen firearms, in violation of Title 18, United States Code, Sections 922(u) and 2; interference with commerce by threats or violence (robbery), in violation of Title 18, United States Code, Sections 1951(a) and 2; distribution of a controlled substance (heroin), in violation of Title 21, United States Code, Sections 841(a)(1) and 2; and brandishing a firearm furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(i) and 2.

 

On August 17, 2017, DeJesus pleaded guilty to receiving stolen firearms, in violation of Title 18, United States Code, Sections 922(j) and 2; and two counts of interference with commerce by threats or violence.

 

On August 1, 2017, Valentine pleaded guilty to receipt of stolen firearms; interference with commerce by threats or violence (robbery); and discharging of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2.

 

On July 20, 2017, Flores pleaded guilty to receipt of stolen firearms.

 

According to the court record:

 

On July 19, 2016, Figueroa struck a female victim in the face with a handgun and threatened to shoot her. Figueroa robbed the victim of her wallet and jewelry.

 

On July 20, 2016, Figueroa and DeJesus used a pickaxe to shatter the entrance door of a Dunkin Donuts in Boynton Beach. Inside the store, DeJesus and Figueroa broke into the office, where the manager was hiding and demanded money, while holding the pickaxe.

 

On July 23, 2016, Figueroa and another male used a concrete cinder block to break through the back door of Bayshore Pawn, a Federal Firearms Licensee (FFL) business that sold firearms in Port St Lucie. The males took 16 firearms, jewelry valued at $15,000, and approximately $1,400 in United States Currency.

 

On July 29, 2016, PBSO deputies arrested Figueroa in a hotel room registered to DeJesus and recovered a firearm.

 

On August 17, 2016, DeJesus and another female used a pickaxe to break open the front door of Jupiter Donuts in Boynton Beach. DeJesus carried the pickaxe and demanded money while the other female grabbed one of the workers and walked her around the business, attempting to locate a cash register or a business safe. Both fled the business after being told that there was no safe or money in the store.

 

On August 26, 2016, two victims were attacked outside of a residence in West Palm Beach, by Valentine and three other males armed with firearms demanding money and marijuana. After taking the victims’ belongings, the robbers forced their way into the house and continued to demand money and drugs, while pointing firearms at the victims. Valentine fired his weapon, after saying "do what I say or everyone will die."

 

During the course of the investigation law enforcement identified evidence, including photographs and recovered items that connected Flores, Valentine, Figueroa and DeJesus to the string of burglaries and robberies.

 

Flores is scheduled to be sentenced before United States District Court Judge Donald M. Middlebrooks in West Palm Beach on September 28, 2017, Valentine, Figueroa and DeJesus are scheduled to be sentenced on November 8, 2017.

 

The defendants’ respective charges of conviction are subject to statutory maximum terms of imprisonment to include: 10 years in prison for theft from a federal firearms licensee and receipt of stolen firearms; 20 years in prison for interference with commerce by threats or violence and distribution of a controlled substance, as well as a mandatory consecutive 7 years for brandishing a firearm in furtherance of a drug trafficking crime and 10 years consecutive for discharging of a firearm in furtherance of a crime of violence.

 

Mr. Greenberg commended the investigative efforts of the ATF, Port St. Lucie Police Department, PBSO, Boynton Beach Police Department, and the Indian River County Sheriff’s Office, for their work with this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

 

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

 

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, announce the filing of federal charges against Carmen Silvia Rodriguez in connection with a fraud scheme to steal over $2.6 million from her employer.

Rodriguez, 55, of Hialeah, was charged with two counts of wire fraud, in violation of Title 18, United States Code, Section 1343.

According to the information, from April 2010 through May 2016, Rodriguez worked for Starboard Cruise Services, Inc. (“SCS”), a Florida company that operates tax- and duty-free retail stores aboard cruise ships.

During the course of the alleged scheme, Rodriguez worked in SCS’s Finance and Administration Department. There, Rodriguez accessed company records related to two former SCS vendors (“SCS Vendor #1” and “SCS Vendor #2”) and added her own bank account information to the two vendors’ accounts. SCS Vendor #1 and SCS Vendor #2 did not do business with SCS after 2010.

The information further alleges that between April 1, 2010, and May 31, 2016, Rodriguez created false internal invoices that inflated the price of certain products purchased by SCS, often by overstating the shipping and handling costs associated with SCS’s purchase of the products. Rodriguez also created false internal invoices that purportedly reflected the purchase of certain products by SCS. For each of the inflated and/or false internal invoices, Rodriguez created a false purchase order, listing either SCS Vendor #1 or SCS Vendor #2 as the payee, for the difference between the money actually owed to the vendor, if any, and the inflated and/or false invoice price.

By creating the false purchase orders and making them payable to SCS Vendor #1 and/or SCS Vendor #2, Rodriguez caused approximately $2,669,372.30 in electronic Automated Clearinghouse payments to be transmitted from SCS’s bank account to Rodriguez’s personal bank accounts.

Each count of wire fraud carries a maximum term of twenty years in prison. Rodriguez made her initial appearance in Federal court on August 16, 2017 before U.S. Magistrate Judge Edwin G. Torres.

Mr. Greenberg commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Christopher Browne.

An Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.

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

WASHINGTON – James Gonzalo Medina pleaded guilty today to a federal hate crime for attempting to attack an Aventura, Florida synagogue, and to a charge of attempting to use a weapon of mass destruction, announced Attorney General Jeff Sessions and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

During the plea proceedings, Medina admitted that in March and April 2016, he planned to conduct a firearms or explosives attack on the Aventura Turnberry Jewish Center. Medina took steps to prepare for this attack including conducting surveillance of the Jewish Center. On April 29, 2016, Medina took possession of what he believed to be an explosive device, obtained from a Southern Florida Joint Terrorism Task Force agent, and approached the Jewish Center on foot with the device in hand, intending to commit the attack.

 

"Acts of bigotry and hatred are evil and have no place in our society," Attorney General Sessions said. "One of the top priorities of this Department of Justice is reducing violent crime, and you can be sure that this includes hate crime. We will not tolerate this repugnant lawlessness, and we will be vigilant in prosecuting hate crime offenders to the fullest extent of the law. I want to thank the Federal Bureau of Investigation, the Southern Florida Joint Terrorism Task Force, and all of the Department of Justice attorneys and staff who worked to bring this criminal to justice, and I assure every American that the Department of Justice is committed to protecting their rights."

 

“Today’s guilty plea demonstrates how hate often motivates acts of domestic terror,” stated Acting U.S. Attorney Greenberg for the Southern District of Florida. “Prosecuting terrorism and violent crimes inspired by a victim’s race, religion, ethnicity, sexual preference, or gender identity remains a top priority for the U.S. Attorney’s Office for the Southern District of Florida and our dedicated partners at the Federal Bureau of Investigation.”

 

A sentencing hearing has not yet been set.

 

This matter was investigated by the Federal Bureau of Investigation and Southern Florida Joint Terrorism Task Force. It is being prosecuted by Assistant U.S. Attorneys Marc Anton and Michael Thakur of the Southern District of Florida, with the assistance of the Civil Rights Division’s Special Litigation Counsel Steve Curran and National Security Division’s Trial Attorney Taryn Meeks.

A Miami resident was sentenced to 40 months in prison, to be followed by three years of supervised release for his role in defrauding victims in an Internal Revenue Service (IRS) impersonator scam.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Anandkumar Jayantila Nayee, previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, from January 2014 through early 2017, defendant Nayee conspired with others to defraud victims. Nayee’s co-conspirators contacted victims by telephone and made fraudulent representations to them, including that the victims owed income tax payments to the IRS, or owed fees for grants or loans that they had purportedly received. Nayee’s co-conspirators instructed the victims to deposit payments related to the taxes or fees that they purportedly owed onto debit cards and into bank accounts controlled by Nayee and his co-conspirators. Nayee and his co-conspirators then received and retained the victims’ payments.

From January 2014 through February 28, 2014, a co-conspirator purchased Green Dot prepaid debit cards and provided the full debit card numbers to Nayee, who resided in India at the time. Nayee then caused the prepaid debit cards to be registered in the names of real people, and notified his co-conspirator once the cards had been funded by victims of the telephone fraud scheme. The co-conspirator then used the prepaid debit cards to purchase money orders, and deposited the money orders into bank accounts specified by Nayee.

Nayee moved to the Southern District of Florida from India in 2015. He and his co-conspirators picked up funds that that had been sent via money transfer by victims of the telephone fraud scheme, and deposited those funds into accounts controlled by Nayee and his co-conspirators. Nayee was held responsible for at least $150,000 in victim losses during the telephone fraud scheme.

Mr. Greenberg commended the investigative efforts of TIGTA, ICE-HSI, and IRS-CI. This case was prosecuted by Assistant U.S. Attorney Daya Nathan.

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.

Used Stolen IDs to Seek More Than $2 Million in Fraudulent Refunds

 

A Miami-Dade County, Florida resident was sentenced to 70 months in prison for his role in a stolen identity refund fraud scheme, announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

According to documents and information provided to the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the Internal Revenue Service (IRS) approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.

 

In addition to the term of prison imposed, U.S. District Judge Federico A. Moreno ordered Destine to serve three years of supervised release and to pay $2,108,000.00 in restitution to the IRS. Destine pleaded guilty in May 2017 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft.

 

Acting U.S. Attorney Greenberg and Acting Assistant Attorney General Goldberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

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

A Miami-Dade County, Florida resident was sentenced to 70 months in prison for his role in a stolen identity refund fraud scheme, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

 

According to documents and information provided to the court, from approximately 2008 through January 2015, in Broward and Miami-Dade counties, Jean Leroy Destine, 36, and others, obtained stolen IDs, to include the personal identifying information of prisoners and deceased individuals. They used this information to prepare and file with the Internal Revenue Service (IRS) approximately 2,000 tax returns seeking more than $2 million in fraudulent refunds. Destine and his co-conspirators covered their tracks by recruiting individuals to obtain Electronic Filing Identification Numbers (EFINs) in their names from the IRS and then used these EFINs to electronically file the fraudulent returns. The conspirators directed the refunds to debit cards as well as treasury checks mailed to various addresses. The refund checks were cashed at different check cashing stores and funds were withdrawn from the debit cards at Western Union locations and ATMs.

 

In addition to the term of prison imposed, U.S. District Judge Federico A. Moreno ordered Destine to serve three years of supervised release and to pay $2,108,000.00 in restitution to the IRS. Destine pleaded guilty in May 2017 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft.

 

Acting Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

 

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

Two Riviera Beach men were arrested and charged with stealing sea turtle eggs from a St. Lucie County beach.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Andrew Aloise, Resident Agent in Charge Florida, U.S. Fish and Wildlife Service (USFWS); and Major Olin Rondeau, South A Regional Commander, Florida Fish and Wildlife Conservation Commission (FWC) made the announcement.

 

Carl Lawrence Cobb, 60, of Riviera Beach, is charged by indictment with two counts of transporting sea turtle eggs for the purpose of sale, in violation of the Lacey Act, Title 16, United States Code, Sections 3372(a)(1) and 3373(d)(1)(B), and two counts of violating the Endangered Species Act by possessing the eggs, in violation of Title 16, Sections 1538(a)(1)(G) and 1540(b)(1). Raymond Saunders, 50, also of Riviera Beach, is charged by indictment with one count of transporting sea turtle eggs for the purpose of sale and one count of violating the Endangered Species Act by possessing the eggs. If convicted of their respective charges, the defendants face up to five years in prison for each Lacey Act violation and up to twelve months in prison for the Endangered Species Act violations.

 

According to the court record, on May 5, 2017, a concerned citizen reported to the Florida Fish and Wildlife Conservation Commission that a man was disturbing sea turtle nests on North Hutchinson Island. A law enforcement investigation revealed that Cobb had removed over 200 eggs from two sea turtle nests. On May 24, 2017, law enforcement officials observed Cobb and Saunders remove approximately 469 sea turtle eggs from nests on North Hutchinson Island. Cobb and Saunders were arrested as they were transporting the eggs to Palm Beach County. The recovered eggs were relocated by marine biologists in the hope that some of them will yield hatchlings.

 

Mr. Greenberg commended the investigative efforts of USFWS and the Fish and Wildlife Conservation Commission. This case is being prosecuted by Special Assistant United States Attorney Ryan Butler and Assistant United States Attorney Daniel E. Funk.

 

An indictment is only an accusation. A defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.

 

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

A former employee of Miami-Dade County Public Schools has been charged with accepting bribery payments.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

Andres Barroso, 52, of Hialeah, Florida, a former electrical foreman for Miami-Dade County Public Schools, was charged in by criminal information with conspiracy to commit bribery in programs receiving federal funds, in violation of Title 18, United States Code, Sections 666 and 371.

As set forth in the charging document, as an electrical foreman for Miami-Dade County Public Schools, Barroso had the authority to order lighting products, including lamps and ballasts, on behalf of the school system. If the order exceeded $1,000, it was required to be a competitive bid and was awarded to the winning vendor. A co-conspirator owned a company that provided, among other items, lighting products, including lamps and ballasts.

Beginning in or about 2013, Barroso authorized the purchase of lighting products, including lamps and ballasts, on behalf of Miami-Dade County Public Schools, from the co-conspirator. If the order exceeded $1,000 and the order was required to be competitively bid, Barroso informed the co-conspirator of the amounts of the bids submitted by other vendors so that the co-conspirator could be able to submit the lowest bid.

The co-conspirator was awarded over 70 contracts to provide lighting products to Miami-Dade Public Schools. The co-conspirator provided some, but not all, of the ordered lighting products to the school system. Barroso falsely confirmed that all lighting products were received and submitted the invoice for payment to Miami-Dade Public Schools. As a result, Miami-Dade Public Schools paid the co-conspirator for products that were not actually provided.

Barroso and the co-conspirator split the money received from Miami-Dade Public Schools. From in or about 2013 and continuing through in or about 2015, Barroso accepted approximately $66,166 in U.S. currency intending to be influenced and rewarded for utilizing his official position.

Andres Barroso faces a statutory maximum term of 5 years in prison and a fine of $250,000.

Mr. Greenberg commended the investigative efforts of the FBI in connection with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

A criminal information or complaint merely contain accusations and a defendant is presumed innocent unless and until proven guilty in a court of law.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at. 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.

PHH Corp. PHH Mortgage Corp. and PHH Home Loans (collectively, PHH) have agreed to pay the United States $74,453,802 to resolve allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veterans Affairs (VA), and purchased by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) that did not meet applicable requirements, the Justice Department announced today. PHH is headquartered in Mount Laurel, New Jersey, and PHH Home Loans operates in Edina, Minnesota. PHH has agreed to pay $65 million to resolve the FHA allegations and $9.45 million to resolve the VA and FHFA allegations.

 

“Government mortgage programs designed to assist homeowners — including programs offered by the FHA, VA, Fannie Mae and Freddie Mac — depend on lenders to approve only eligible loans,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department has and will continue to hold accountable lenders that knowingly cause the government to guarantee, insure, or purchase loans that are materially deficient and put both the homeowner and the taxpayers at risk.”

 

“PHH submitted defective loans for government insurance, and homeowners and taxpayers paid the price. This significant resolution helps rectify the misconduct by returning more than $74 million in wrongfully claimed funds to the government,” said Acting U.S. Attorney for the District of Minnesota Gregory Brooker. “I commend the efforts of this Office’s Civil Division in reaching a successful resolution.”

 

“This settlement requires PHH to pay back to the taxpayers of the United States millions of dollars in loans that never should have been made,” Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey said. “By failing to ensure the creditworthiness of borrowers and otherwise failing to make sure the loans met HUD underwriting requirements, loans were insured by FHA that should not have been.”

 

“By failing to comply with FHA regulations, PHH put taxpayers and borrowers at risk of sustaining significant financial losses,” stated Acting U.S. Attorney Benjamin G. Greenberg. “This case and the resulting $75 million dollar settlement demonstrate that U.S. Attorney’s Offices and our investigative partners across the country are committed to holding lenders accountable who knowingly submit unqualified loans and compromise needed governmental programs.”

 

“For government mortgage programs to assist homeowners but not take on ill-advised risk, all participants in the mortgage lending process must provide true and complete information,” stated Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York. “Today’s settlement with PHH demonstrates our continuing commitment to requiring such integrity in the process.”

 

The settlements announced today resolve allegations that PHH failed to comply with certain FHA, VA, Fannie Mae and Freddie Mac origination, underwriting, and quality control requirements.

 

Since at least January 2006, PHH has participated as a Direct Endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.

 

As part of the settlement, PHH admitted to the following facts concerning the FHA loans:

 

Between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s self-reporting requirements. Examples of loan defects that PHH admitted resulted in loans being ineligible for FHA mortgage insurance included:

 

• Failing to document the borrowers’ creditworthiness, including paystubs, verification of employment, proper credit reports, and verification of the borrowers’ earnest money deposit and funds to close.
• Failing to document the borrower’s claimed net equity in a prior residence or obtain documentation showing that the borrower had paid off significant debts. Including these debts in the borrower’s liabilities resulted in the borrower exceeding HUD’s debt-to-income ratio requirements for FHA-insured loans.
• Insuring a loan for FHA mortgage insurance even though the borrower did not meet HUD’s minimum statutory investment for the loan.

 

In 2007, PHH audited a targeted sample of government loans for closing or pre-insuring requirements and found that its “percent accurate” did not exceed 50 percent during 2007. Since at least 2006, HUD has required self-reporting of material violations of FHA requirements. However, between Jan. 1, 2006, and Dec. 31, 2011, PHH Home Loans did not self-report any loans to HUD; rather, PHH Home Loans did not self-report any loans to HUD until 2013, after the United States commenced its investigation resulting in this settlement.

 

As a result of PHH’s conduct and omissions, PHH admitted, HUD insured loans endorsed by PHH that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. It admitted that HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

 

In addition, from at least 2005 to 2012, PHH was a VA approved lender, originating and underwriting mortgage loans and obtaining VA loan guarantees. The VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners by guaranteeing a portion of home loans. VA home loans are provided by certain pre-approved private lenders, including banks and mortgage companies. By guaranteeing a portion of the loan, the VA enables the lender to provide Servicemembers, Veterans, and eligible surviving spouses with loan terms that are more favorable than would otherwise be available in the marketplace. In order to qualify for a VA guarantee, borrowers must comply with VA loan requirements. The settlement resolves the United States’ claims and potential claims that PHH originated loans that it submitted for guarantee by the VA that did not meet the VA’s requirements.

 

Also from at least 2009 to 2013, PHH sold mortgage loans to Fannie Mae and Freddie Mac. Congress created the two entities to provide stability and liquidity in the secondary housing market and established the Federal Housing Finance Agency (“FHFA”) to supervise, regulate, and oversee Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank System. Since 2008, in response to the substantial deterioration in the housing markets that severely damaged Fannie Mae and Freddie Mac’s financial condition, Fannie Mae and Freddie Mac have been operating under a government conservatorship. The settlement resolves the United States’ contentions that PHH originated and sold loans to the Freddie Mac and Fannie Mae that did not meet their requirements.

 

“This case demonstrates HUD’s resolve in protecting the integrity of its mortgage insurance programs for the benefit of all Americans, and in particular, first time homebuyers,” said Dane Narode, HUD’s Associate General Counsel for Program Enforcement. “We are gratified that PHH has accepted responsibility for its actions.”

 

“This settlement resolves allegations of reckless origination and underwriting of VA guaranteed mortgage loans,” said Michael J. Missal, Inspector General, for the Office of Inspector General for the Department of Veterans Affairs (VA OIG). “It sends a clear message that the VA OIG will aggressively protect the integrity of this crucial program which helps so many of our veterans buy, build, or repair their homes. I would also like to thank the U.S. Attorney's Offices for partnering with us to achieve this significant result.”

 

Some of the allegations resolved by these settlements included in a whistleblower lawsuit filed under the False Claims Act by a former employee of PHH, Mary Bozzelli against PHH Corp. and PHH Mortgage Corp. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Bozzelli will receive $9,067,377.33 from the settlements.

 

The settlements were the result of joint investigations conducted by HUD, the HUD Office of Inspector General, the Veterans Administration’s Office of Inspector General, the FHFA Office of Inspector General, the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the District of Minnesota, District of New Jersey, Southern District of Florida, and Eastern District of New York. The qui tam action is captioned United States ex rel. Mary Bozzelli v. PHH Mortgage Corporation and PHH Corporation, 13-cv-3084 (E.D.N.Y.). The claims asserted against PHH are allegations only, and there has been no determination of liability.

PHH Corp. PHH Mortgage Corp. and PHH Home Loans (collectively, PHH) have agreed to pay the United States $74,453,802 to resolve allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veterans Affairs (VA), and purchased by the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) that did not meet applicable requirements, the Justice Department announced today. PHH is headquartered in Mount Laurel, New Jersey, and PHH Home Loans operates in Edina, Minnesota. PHH has agreed to pay $65 million to resolve the FHA allegations and $9.45 million to resolve the VA and FHFA allegations.

“Government mortgage programs designed to assist homeowners — including programs offered by the FHA, VA, Fannie Mae and Freddie Mac — depend on lenders to approve only eligible loans,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department has and will continue to hold accountable lenders that knowingly cause the government to guarantee, insure, or purchase loans that are materially deficient and put both the homeowner and the taxpayers at risk.”

“PHH submitted defective loans for government insurance, and homeowners and taxpayers paid the price. This significant resolution helps rectify the misconduct by returning more than $74 million in wrongfully claimed funds to the government,” said Acting U.S. Attorney for the District of Minnesota Gregory Brooker. “I commend the efforts of this Office’s Civil Division in reaching a successful resolution.”

“This settlement requires PHH to pay back to the taxpayers of the United States millions of dollars in loans that never should have been made,” Acting U.S. Attorney William E. Fitzpatrick for the District of New Jersey said. “By failing to ensure the creditworthiness of borrowers and otherwise failing to make sure the loans met HUD underwriting requirements, loans were insured by FHA that should not have been.”

“By failing to comply with FHA regulations, PHH put taxpayers and borrowers at risk of sustaining significant financial losses,” stated Acting U.S. Attorney Benjamin G. Greenberg. “This case and the resulting $75 million dollar settlement demonstrate that U.S. Attorney’s Offices and our investigative partners across the country are committed to holding lenders accountable who knowingly submit unqualified loans and compromise needed governmental programs.”

“For government mortgage programs to assist homeowners but not take on ill-advised risk, all participants in the mortgage lending process must provide true and complete information,” stated Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York. “Today’s settlement with PHH demonstrates our continuing commitment to requiring such integrity in the process.”

The settlements announced today resolve allegations that PHH failed to comply with certain FHA, VA, Fannie Mae and Freddie Mac origination, underwriting, and quality control requirements.

Since at least January 2006, PHH has participated as a Direct Endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.

As part of the settlement, PHH admitted to the following facts concerning the FHA loans:

Between Jan. 1, 2006, and Dec. 31, 2011, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s self-reporting requirements. Examples of loan defects that PHH admitted resulted in loans being ineligible for FHA mortgage insurance included:

• Failing to document the borrowers’ creditworthiness, including paystubs, verification of employment, proper credit reports, and verification of the borrowers’ earnest money deposit and funds to close.
• Failing to document the borrower’s claimed net equity in a prior residence or obtain documentation showing that the borrower had paid off significant debts. Including these debts in the borrower’s liabilities resulted in the borrower exceeding HUD’s debt-to-income ratio requirements for FHA-insured loans.
• Insuring a loan for FHA mortgage insurance even though the borrower did not meet HUD’s minimum statutory investment for the loan.

 

In 2007, PHH audited a targeted sample of government loans for closing or pre-insuring requirements and found that its “percent accurate” did not exceed 50 percent during 2007. Since at least 2006, HUD has required self-reporting of material violations of FHA requirements. However, between Jan. 1, 2006, and Dec. 31, 2011, PHH Home Loans did not self-report any loans to HUD; rather, PHH Home Loans did not self-report any loans to HUD until 2013, after the United States commenced its investigation resulting in this settlement.

As a result of PHH’s conduct and omissions, PHH admitted, HUD insured loans endorsed by PHH that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. It admitted that HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

In addition, from at least 2005 to 2012, PHH was a VA approved lender, originating and underwriting mortgage loans and obtaining VA loan guarantees. The VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners by guaranteeing a portion of home loans. VA home loans are provided by certain pre-approved private lenders, including banks and mortgage companies. By guaranteeing a portion of the loan, the VA enables the lender to provide Servicemembers, Veterans, and eligible surviving spouses with loan terms that are more favorable than would otherwise be available in the marketplace. In order to qualify for a VA guarantee, borrowers must comply with VA loan requirements. The settlement resolves the United States’ claims and potential claims that PHH originated loans that it submitted for guarantee by the VA that did not meet the VA’s requirements.

Also from at least 2009 to 2013, PHH sold mortgage loans to Fannie Mae and Freddie Mac. Congress created the two entities to provide stability and liquidity in the secondary housing market and established the Federal Housing Finance Agency (“FHFA”) to supervise, regulate, and oversee Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank System. Since 2008, in response to the substantial deterioration in the housing markets that severely damaged Fannie Mae and Freddie Mac’s financial condition, Fannie Mae and Freddie Mac have been operating under a government conservatorship. The settlement resolves the United States’ contentions that PHH originated and sold loans to the Freddie Mac and Fannie Mae that did not meet their requirements.

“This case demonstrates HUD’s resolve in protecting the integrity of its mortgage insurance programs for the benefit of all Americans, and in particular, first time homebuyers,” said Dane Narode, HUD’s Associate General Counsel for Program Enforcement. “We are gratified that PHH has accepted responsibility for its actions.”

“This settlement resolves allegations of reckless origination and underwriting of VA guaranteed mortgage loans,” said Michael J. Missal, Inspector General, for the Office of Inspector General for the Department of Veterans Affairs (VA OIG). “It sends a clear message that the VA OIG will aggressively protect the integrity of this crucial program which helps so many of our veterans buy, build, or repair their homes. I would also like to thank the U.S. Attorney's Offices for partnering with us to achieve this significant result.”

Some of the allegations resolved by these settlements included in a whistleblower lawsuit filed under the False Claims Act by a former employee of PHH, Mary Bozzelli against PHH Corp. and PHH Mortgage Corp. Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. Ms. Bozzelli will receive $9,067,377.33 from the settlements.

The settlements were the result of joint investigations conducted by HUD, the HUD Office of Inspector General, the Veterans Administration’s Office of Inspector General, the FHFA Office of Inspector General, the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the District of Minnesota, District of New Jersey, Southern District of Florida, and Eastern District of New York. The qui tam action is captioned United States ex rel. Mary Bozzelli v. PHH Mortgage Corporation and PHH Corporation, 13-cv-3084 (E.D.N.Y.). The claims asserted against PHH are allegations only, and there has been no determination of liability. The FHA investigation was led by AUSA Ann Bildtsen (USAO-MN) who was joined on the team by AUSAs Anthony LaBruna and Mark Orlowski (USAO-NJ) and James A. Weinkle (USAO-SDFL).

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

PHH Corp., PHH Mortgage Corp. and PHH Home Loans (collectively, PHH) have agreed to pay the United States $74,453,802 to resolve allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), guaranteed by the United States Department of Veteran Affairs (VA), and purchased by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) that did not meet applicable requirements, the Justice Department announced today.  PHH Corp. and PHH Mortgage Corp. are headquartered in Mount Laurel, New Jersey, while PHH Home Loans is headquartered in Edina, Minnesota.

“For government mortgage programs to assist homeowners but not take on ill-advised risk, all participants in the mortgage lending process must provide true and complete information,” stated Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York.  “Today’s settlement with PHH demonstrates our continuing commitment to requiring such integrity in the process.”

“Government mortgage programs designed to assist homeowners — including programs offered by the FHA, VA, Fannie Mae and Freddie Mac — depend on lenders to approve only eligible loans,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department has and will continue to hold accountable lenders that knowingly cause the government to guarantee, insure, or purchase loans that are materially deficient and put both the homeowner and the taxpayers at risk.”

The settlements announced today resolve allegations that PHH failed to comply with certain Fannie Mae and Freddie Mac, VA, and FHA origination, underwriting, and quality control requirements. 

From at least 2009 to 2013, PHH sold mortgage loans to Fannie Mae and Freddie Mac.  Congress created the two entities to provide stability and liquidity in the secondary housing market and established the Federal Housing Finance Agency (FHFA) to supervise, regulate, and oversee Fannie Mae and Freddie Mac, as well as the Federal Home Loan Bank System. Since 2008, in response to the substantial deterioration in the housing markets that severely damaged Fannie Mae and Freddie Mac’s financial condition, Fannie Mae and Freddie Mac have been operating under a government conservatorship. The settlement resolves the United States’ contentions that PHH originated and sold loans to Freddie Mac and Fannie Mae that did not meet their requirements. 

In addition, from at least 2005 to 2012, PHH was a VA approved lender, originating and underwriting mortgage loans and obtaining VA loan guarantees.  The VA helps Servicemembers, Veterans, and eligible surviving spouses become homeowners by guaranteeing a portion of home loans.  VA home loans are provided by certain pre-approved private lenders, including banks and mortgage companies.  By guaranteeing a portion of the loan, the VA enables the lender to provide Servicemembers, Veterans, and eligible surviving spouses with loan terms that are more favorable than would otherwise be available in the marketplace.  In order to qualify for a VA guarantee, borrowers must comply with VA loan requirements.  The settlement resolves the United States’ claims and potential claims that PHH originated loans that it submitted for guarantee by the VA that did not meet the VA’s requirements. 

Also, since at least January 2006, PHH has participated as a Direct Endorsement lender (DEL) in the FHA insurance program.  A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance.  If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan.  Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance.  DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.

Between January 1, 2006, and December 31, 2011, PHH certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s self-reporting requirements. 

As a result of PHH’s conduct and omissions, PHH admitted, HUD insured loans endorsed by PHH that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured.  It admitted that HUD subsequently incurred substantial losses when it paid insurance claims on those loans.

“This case demonstrates HUD’s resolve in protecting the integrity of its mortgage insurance programs for the benefit of all Americans, and in particular, first time homebuyers,” said Dane Narode, HUD’s Associate General Counsel for Program Enforcement. “We are gratified that PHH has accepted responsibility for its actions.”

“This settlement resolves allegations of reckless origination and underwriting of VA guaranteed mortgage loans,” said Michael J. Missal, Inspector General, for the Office of Inspector General for the Department of Veteran Affairs (VA OIG).  “It sends a clear message that the VA OIG will aggressively protect the integrity of this crucial program which helps so many of our veterans buy, build, or repair their homes.  I would also like to thank the U.S. Attorney's Offices for partnering with us to achieve this significant result.”

Some of the allegations resolved by these settlements were made in a whistleblower lawsuit filed under the False Claims Act by a former employee of PHH, Mary Bozzelli against PHH Corp. and PHH Mortgage Corp.  Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery.  Ms. Bozzelli will receive $9,067,377.33 from the settlements.

The settlements were the result of joint investigations conducted by HUD, the HUD Office of Inspector General, the U.S. Department of Veteran Affairs' Office of Inspector General, the FHFA Office of Inspector General, the Department of Justice’s Civil Division, and the U.S. Attorney’s Offices for the Eastern District of New York, District of Minnesota, District of New Jersey, and Southern District of Florida.  The qui tam action is captioned United States ex rel. Mary Bozzelli v. PHH Mortgage Corporation and PHH Corporation, 13-cv-3084 (E.D.N.Y.).  The claims asserted against PHH are allegations only, and there has been no determination of liability.

The Eastern District of New York’s portion of the case was handled by Assistant United States Attorneys Matthew J. Mailloux, John Vagelatos and Orelia E. Merchant, and Affirmative Civil Enforcement Auditor Emily Rosenthal.   

 

E.D.N.Y. Docket No. 13-CV-3084 (JFB)(GB)

 

Attachment(s): 

Download Settlement Agreement EDNY

Download Settlement Agreement MN

A Miami resident was sentenced to 48 months in prison, to be followed by three years of supervised release for possessing personal identifying information (PII) of other individuals and using the PII to file false tax returns.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, made the announcement.

Gregory Clermont, 25, of Miami, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to court documents, on May 7, 2013, Clermont was in possession of official tax documents and handwritten lists of names, dates of birth, and social security numbers belonging to other individuals, as well as other handwritten notes relating to the filing of tax returns. Clermont was also in possession of a composition book containing the names, dates of birth, and social security numbers of approximately 140 individuals, three H&R Block debit cards in other people’s names, and a laptop that contained approximately 185 user identification numbers associated with the filing and attempted filing of tax returns through TurboTax online. Clermont admitted that he tried to file tax returns with almost all of the names in the composition book, but was notified that half of the people were deceased when he filed the returns.

Mr. Greenberg commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.

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

Two Miami-Dade brothers pled guilty in federal court, on July 28, 2017, for their involvement in a drug trafficking scheme.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.

Michael Palermo, 29, pled guilty to maintaining a drug-involved premises, possessing with the intent to deliver controlled substances, possessing a firearm while a convicted felon, and possessing of a firearm in furtherance of a drug trafficking crime. He faces a maximum statutory sentence of life in prison.

According to the court record, including the agreed upon factual proffer, between February 25, 2017 and April 13, 2017, Michael Palermo used his residence to manufacture and sell controlled substances. On April 13, 2017, law enforcement executed a search warrant at his residence and recovered narcotics, United States currency, and multiple loaded firearms. Michael Palermo, a convicted felon, is prohibited from possessing a firearm.

Michael Palermo’s brother, Anthony Palermo, 27, pled guilty to tampering with documents or proceedings. Prior to law enforcement’s execution of the search warrant at Michael Palermo’s residence, video surveillance captured Anthony Palermo attempting to destroy evidence by flushing narcotics down the toilet. Anthony Palermo faces a maximum statutory sentence of twenty years in prison.

The defendants are scheduled to be sentenced before U.S. District Court Judge Ursula Ungaro on October 13, 2017.

Mr. Greenberg commends the investigative efforts of ATF and MDPD in relation to this matter. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.

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

The defendant discarded the firearm on school grounds

A Miami resident pled guilty in federal court on July 28, 2017, for being a felon in possession of a firearm.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Rodolfo Llanes, Chief, City of Miami Police Department (MPD); and Ian A. Moffett, Chief, Miami-Dade Schools Police Department, made the announcement.

Frederick Frazier, 22, pled guilty to being in possession of a firearm while a convicted felon. Frazier faces a maximum statutory sentence of ten years in prison. He is scheduled to be sentenced before U.S. District Court Judge Ursula Ungaro on October 13, 2017.

According to the court record, including the agreed upon factual proffer, on April 20, 2017, Frazier fled from law enforcement officers and discarded a loaded firearm on the property of Holmes Elementary School. The firearm was recovered by law enforcement. The defendant was a convicted felon and as such was legally prohibited from being in possession of the firearm.

Mr. Greenberg commends the investigative efforts of the MPD and Miami-Dade Schools Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.

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

On August 3, 2017, a Martin County resident was sentenced to 27 years in prison for producing child pornography.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.

On May 22, 2017, Darrell Mark Babcock, 33, of Stuart, Florida pleaded guilty to two counts of production of child pornography, in violation of Title 18, United States Code, Sections 2251(a) & (e). United States District Court Judge Kenneth A. Marra sentenced Babcock to a total of 27 years in prison, to be followed by a lifetime of supervised release and ordered the defendant to register as a sex offender.

According to the court record, following an investigation into an alleged domestic disturbance incident a federal search warrant was executed on Babcock’s cellular telephone. A forensic analysis of the telephone revealed numerous videos, created between August 19 and October 30, 2016, of Babcock and a 16-year-old minor female engaging in sexually explicit conduct.

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.

Mr. Greenberg commended the investigative efforts of the FBI and Martin County Sheriff’s Office for their work with this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

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

On July 28, 2017, a convicted felon from Miami-Dade pled guilty to selling firearms and narcotics.

Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, State Attorney, Miami-Dade State Attorney’s Office; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.

Maxo Ducler, 34, of Miami, pled guilty to participating in a conspiracy to possess with the intent to deliver controlled substances, possession with the intent to deliver controlled substances, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Dulcer faces maximum statutory sentences of up to life in prison for the charges of conviction. Ducler is scheduled to be sentenced before U.S. District Court Judge Donald M. Middlebrooks on October 13, 2017.

According to the court record, including the agreed upon factual proffer, on February 28, 2017, Ducler sold cocaine; on March 8, 2017, he sold a loaded firearm and additional ammunition; and on March 22, 2017, he sold cocaine and a firearm. Widner Gabriel, 37, of Miami, was present for the March 22, 2017 firearm sale and helped Ducler to unload the firearm before the transaction was complete. On May 3, 2017, law enforcement executed a search warrant on the “stash house” used to facilitate the drug and firearm sales. Gabriel was found inside the stash house with the keys to the residence and approximately $3,000. Law enforcement seized four firearms, approximately two hundred rounds of ammunition and narcotics such as cocaine, fentanyl, MDMA, and Oxycodone from the stash house.

Gabriel pled guilty on July 12, 2017, to possession with the intent to deliver controlled substances, possession of a firearm by a convicted felon, and possession of a firearm in furtherance of a drug trafficking crime. Gabriel faces maximum statutory sentences of up to life in prison for the charges of conviction. He is scheduled to be sentenced before Judge Middlebrooks on September 12, 2017.

Mr. Greenberg commends the investigative efforts of the ATF and MDPD. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office.

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

A Palm Beach County Sheriff’s deputy was sentenced today to a total of 60 months in prison by United States District Judge Donald M. Middlebrooks after previously admitting to the Court that he had provided personally identifying information to another individual who used that information in an identity theft scheme.

Benjamin G. Greenberg, Acting 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), Sean Scheller, Chief, Town of Lantana Police Department, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.

On March 23, 2017, Frantz Felisma, 42, of Boynton Beach, a deputy with the Palm Beach County Sheriff’s Office, initially pled guilty to access device fraud in connection with the identity theft scheme, in violation of Title 18, United States Code, Section 1029(a)(2) and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) (Case No. 17-CR-80008). However, following his plea hearing Felisma moved to withdraw his guilty plea and the matter was set for trial. On June 29, 2017, in advance of the trial date, Felisma re-affirmed his guilt by pleading to the initial charges of conviction. Judge Middlebrooks sentenced Felisma to 36 months in prison for access device fraud and a consecutive term of 24 months in prison for aggravated identity theft. Following his release from incarceration, Felisma will be on supervised release for three years. Felisma was also ordered to pay $175,000 in restitution.

According to the court record, over the span of approximately eighteen months, Deputy Felisma used his police department issued laptop computer to access a law enforcement database in order to obtain personally identifying information (PII) belonging to numerous individuals. Felisma sold this information to his co-conspirator, who then used the identities of at least 15 of these victims to set up credit card and bank accounts, stealing tens of thousands of dollars in the names of the victims. Felisma’s criminal conduct caused between $150,000 and $250,000 in financial losses.

Mr. Greenberg commended the investigative efforts of ICE-HSI, the Lantana Police Department, IRS-CI and Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Lauren Jorgensen and Rinku Tribuiani.

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

On July 26, 2017, Craig Sizer, 49, of Miami, Florida, was sentenced by United States District Judge Marcia G. Cooke to 180 months in prison for orchestrating two investment fraud schemes that targeted elderly and unsophisticated investors throughout the nation and defrauded over 700 victims out of $23 million. Sizer previously pled guilty to one count of conspiracy to commit wire and mail fraud.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida and Special Agent in Charge George L. Piro for the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

From April 2009 to August 2015, Sizer and his co-conspirators Keith Houlihan, 49, of Boca Raton, Miguel (“Mike”) Mesa, 57, of Miami Lakes, Charles K. Topping, 40, of North Bay Village, Anita Sgarro, 54, of Marina Del Ray, California, Charles David Smigrod, 69, of Coconut Grove, Matthew William Wheeler, 33, of Miami, James Wayne Long, 60, of Miramar, Jack Willard Sini, 58, of Pembroke Pines, Juan M. Perez Ortega 47, of Miami Lakes, Martin Miller, 75, of New Haven, Connecticut, Jason David Hershberger, 40, of Fort Lauderdale, and Shawna Leigh Lynch, 44, of Fort Lauderdale, used false and fraudulent claims to solicit investors throughout the United States to buy shares of stock in Sanomedics International Holdings, Inc. (“Sanomedics”), a company that sold non-contact infrared thermometers for home healthcare and for dogs.

Sales agents used sales pitches that included several materially false statements, including that: stock sales did not include commissions or fees; sales agents were compensated with stock or paid by the hour; the stock could be sold after six months; the sales agents worked directly for Sanomedics; stock purchases were safe and secure; and famous and wealthy individuals, such as former CEOs of Apple Inc., PepsiCo, and IVAX Corp., and the “Dog Whisperer,” were either heavily invested in the company or were company representatives. In truth, the co-conspirator sales agents worked for Mesa and Sgarro in two boiler rooms, not for Sanomedics. Investors were never able to sell their stock. Approximately 90% of investor proceeds were misappropriated by the co-conspirators to cover commissions and fees. The co-conspirator sales agents were not paid by the hour and did not receive stock options, but were in fact paid hefty commissions. Additionally, there were no actual endorsements by celebrities or wealthy individuals. The investors relied on the fraudulent statements. As a result of the scheme, the co-conspirators defrauded over 700 people out of approximately $21 million.

Also, from approximately August 2014 to August 2015, Sizer, Mesa, Topping, Smigrod, Wheeler, Long, Sini, Perez, and Miller used a fraud scheme, similar to the one described above, to sell shares of stock in Fun Cool Free (“FCF”), a company that claimed to own a smartphone gaming portfolio with over 500 gaming applications. Mesa oversaw the boiler room that was utilized to facilitate the fraudulent scheme. The co-conspirators used false claims, including assertions that they worked directly for the company and that FCF was partners with Apple Computers, to defraud over 70 other investors out of $1.5 million.

Seven of Sizer’s co-conspirators previously pled guilty and were sentenced for their role with the fraudulent schemes, including the former CEO of Sanomedics, Keith Houlihan, who was sentenced to 111 months in prison and the manager of the Miami boiler room, Mike Mesa, who was sentenced to 100 months in prison. Co-conspirators Topping, Sgarro, Smigrod, Wheeler, and Long were previously convicted at trial by a Miami federal jury and are awaiting sentencing.

Mr. Greenberg commends the investigative efforts of the FBI in this matter. Mr. Greenberg also thanked the Florida Office of Financial Regulation (OFR) for their assistance. This case was prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorneys Ryan D. Tansey and Kevin B. Hart from the Antitrust Division of the U.S. Department of Justice.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. 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.

Three Florida residents were found guilty by a Miami jury on July 26, 2017, for participating in a sweepstakes mail fraud scheme.

 

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.

 

Matthew Pisoni, 44, of Fort Lauderdale, Marcus Pradel, 41, of Boca Raton, and Victor Ramirez, 37, of Aventura, were found guilty of conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 1349, after a five-week trial. Pisoni, Pradel and Ramirez face a maximum statutory penalty of twenty years in prison at their sentencing on October 13, 2017, at 9:30 a.m., before U.S. District Judge Gayles. John Leon, 49, of Wilton Manors, previously pleaded guilty to conspiring to commit mail fraud, in violation of Title 18, United States Code, Section 371, and is scheduled to be sentenced on October 13, 2017.

 

The trial evidence established that the four defendants, Pisoni, Pradel, Ramirez and Leon, falsely notified individuals by mail that they had won a substantial prize. The letters the defendants sent fraudulently represented that the recipients needed to pay the defendants a fee ranging from $20 to $50 to redeem their purported winnings. During the course of the mail fraud conspiracy, more than one hundred thousand victims in the United States and abroad were fraudulently induced to pay the fees by the defendants’ misleading claims that they had won a prize. The fraudulent letters directed victims to pay the fees in cash or by check or money order payable to fictitious companies. The defendants then either processed the victims’ payments through independent payment processors or deposited them into shell bank accounts controlled directly and indirectly by the defendants and their co-conspirators. In total, over $25 million in victim payments went into the defendants’ and co-conspirators’ bank accounts.

 

Mr. Greenberg commended the investigative efforts of the IRS-CI, USPIS, Federal Trade Commission, the Aventura Police Department, and other local and international law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorneys Elijah Levitt, and H. Ron Davidson.

 

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

A Broward County, Florida tax return preparer pleaded guilty today to conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida.

According to documents filed with the court, Frantz Petit-Dos, 41, owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc., with Luczor Fertilien, 39, and David Joseph, 37. From approximately 2010 through 2016, Petit-Dos, Fertilien and Joseph filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals as dependents. They also filed returns in the names of individuals whose identities had been stolen. Petit-Dos did not report the illegal proceeds he received from this scheme on his personal tax returns and admitted to causing a tax loss of more than $550,000. On July 14, Fertilien and Joseph pleaded guilty to their involvement in this scheme.

Petit-Dos is scheduled to be sentenced on Oct. 6 before U.S. District Court Judge William P. Dimitrouleas. He faces a statutory maximum sentence of five years in prison on the conspiracy count and a maximum sentence of three years in prison on the false return count. He also faces a period of supervised release, restitution and monetary penalties. Fertilien and Joseph are scheduled to be sentenced on Sept. 22.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Greenberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.

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

A Broward County, Florida tax return preparer pleaded guilty today to conspiring to file and filing fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

 

According to documents filed with the court, Frantz Petit-Dos, 41, owned two tax preparation businesses in Lauderhill, Florida: Imperial Taxation and Multi-Services Corp. and Aleluya Universal Accounting Services Inc., with Luczor Fertilien, 39, and David Joseph, 37. From approximately 2010 through 2016, Petit-Dos, Fertilien and Joseph filed fraudulent returns for their clients seeking refunds to which the clients were not entitled, by reporting fictitious business income, fraudulent education and fuel tax credits and claiming deceased individuals as dependents. They also filed returns in the names of individuals whose identities had been stolen. Petit-Dos did not report the illegal proceeds he received from this scheme on his personal tax returns and admitted to causing a tax loss of more than $550,000. On July 14, Fertilien and Joseph pleaded guilty to their involvement in this scheme.

 

Petit-Dos is scheduled to be sentenced on Oct. 6 before U.S. District Court Judge William P. Dimitrouleas. He faces a statutory maximum sentence of five years in prison on the conspiracy count and a maximum sentence of three years in prison on the false return count. He also faces a period of supervised release, restitution and monetary penalties. Fertilien and Joseph are scheduled to be sentenced on Sept. 22.

 

Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, who conducted the investigation, and Assistant U.S. Attorney Neil Karadbil and Assistant Chief Greg Tortella of the Tax Division, who are prosecuting the case.

 

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

 

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.

Phyllistone Termine, 19, of Miami, was sentenced today by U.S. District Judge Joan Lenard of the Southern District of Florida, to 54 months in prison, to be followed by 3 years of supervised release, for his role in a scheme that used stolen identities to commit more than one million dollars of unemployment fraud.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG), made the announcement.

Termine previously pled guilty to one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).

According to the court documents, law enforcement identified an IP address connected to Termine’s residence that was used to access and file fraudulent unemployment benefit claims for more than 800 individuals, totaling $1,019,859, on the Florida Department of Employment and Opportunity’s online database between March 23, 2015, and March 7, 2016.

part of the investigation that followed, law enforcement executed a search warrant at Termine’s residence. Upon entering the home, law enforcement discovered Termine in his bedroom, wearing earbuds and writing his Summer 2016 fraud goals on a small notepad. The first line read “Buy 3 Phones, 1 clean 2 dirty’s” and “Buy online – Merrick BNK & CCVs.” CCVs are numeric fraud-prevention codes on credit cards that are used to help verify possession of your credit card. They can also be purchased from nefarious internet sources, in order for people to obtain stolen credit card data. On the bed next to Termine were three cellular phones and a laptop computer. Hidden between Termine’s mattress and box spring was a black case containing several debit and credit cards belonging to individuals who did not reside at Termine’s residence. Inside the black case were several white blank plastic cards with magnetic stripes that are used to make debit and credit cards. On the floor next to Termine’s bed was hardware used to encode the magnetic stripe on credit/debit cards.

Several victims whose credit or debit cards were found during the search also had their identities used to file for unemployment benefits using the IP Address at Termine’s home. Law enforcement spoke with many of these victims, all of whom confirmed that they had not filed unemployment claims within the last 5 years, did not authorize anyone else to, and did not know Termine nor authorize him to be in possession of their credit cards, debit cards, or other personal identifying information.

Mr. Greenberg commended the investigative efforts of DOL-OIG and the Social Security Administration, Office of Inspector General (SSA-OIG), who provided significant support to this investigation. This case was prosecuted by Assistant United States Attorney Anne P. McNamara.

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

A former Coral Springs resident was sentenced to 87 months in prison for possession of fifteen or more unauthorized access devices, possession of device-making equipment, and aggravated identity theft.

Benjamin G. Greenberg, Acting United Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.

In January 2017, Terrance Beron Sills, 28, pled guilty to one count of possession of fifteen or more unauthorized access devices, one count of possession of device-making equipment, and one count of aggravated identity theft. U.S. District Judge William P. Dimitrouleas sentenced Sills to a total of 87 months in prison. The sentence consisted of 63 months in prison for possession of fifteen or more unauthorized access devices and possession of device-making equipment, followed by a consecutive sentence of 24 months in prison for aggravated identity theft. This sentence will run consecutive to a sentence of 18 months in prison, previously imposed on Sills by Senior U.S. District Judge James I. Cohn for violating the conditions of his supervised release.

According to court documents, members of the Coral Springs Police Department discovered hundreds of printed pages containing personally identifiable information (PII) of other people, including driver’s license information, hospital records, and credit reports, in Sills’ apartment while responding to a reported domestic disturbance. When detectives subsequently executed a search warrant on the apartment, they discovered PII for more than 600 individuals. Additionally, detectives found a printer, embosser, and magnetic stripe writer/reader used to make counterfeit credit cards or identifications. Several weeks later, Sills was stopped by Ft. Lauderdale Police Department officers driving a car the trunk of which contained additional PII, blank plastic cards, and counterfeit driver’s licenses.

Mr. Greenberg commended the investigative efforts of the USSS and Coral Springs Police Department, including the work of the Task Force Officers. This case was prosecuted by Assistant U.S. Attorney Jared M. Strauss.

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.

Today, a federal jury convicted a West Palm Beach resident of conspiring with his brother, a United States Postal Service Letter Carrier, to commit access device fraud and aggravated identity theft.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Maximo Eamiguel, 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 Cissy Proctor, Executive Director, Florida Department of Economic Opportunity (DEO), made the announcement.

Mikel Clotaire was convicted following a three-day trial in West Palm Beach, Florida of conspiring to commit access device fraud, access device fraud, and five counts of aggravated identity theft. Sentencing is scheduled for October 12, 2017, before United States District Court Donald M. Middlebrooks.

According to the court record, including evidence introduced at trial, Clotaire engaged in a scheme to obtain fraudulent re-employment benefits from DEO. Clotaire’s brother was working at the time as a letter carrier for the United States Postal Service in Palm Beach Gardens, Florida. At least eight fraudulent unemployment applications, using stolen identities, were then submitted to DEO and resulted in the issuance of Florida Visa debit cards. The debit cards were mailed through interstate commerce to the residential addresses on the postal route. The cards were ultimately transferred to Clotaire and at least two other co-conspirators and used to make withdrawals from ATMs. As a result of the fraudulent scheme, the State of Florida sustained approximately $25,000 in financial losses.

Mr. Greenberg commended the investigative efforts of the DOL-OIG, USPS-OIG, USPIS and DEO. This case is being prosecuted by Assistant U.S. Attorney Adam McMichael.

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.

Two Broward County residents have been charged federally with being felons in possession of firearms.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) announced that the federal arrests of the three individuals stem from a large-scale investigation into narcotics and illicit firearms sales in Broward County.

Marc Randall, 37, and Jonathan Newman, 27, both of Deerfield Beach, were each charged in separate criminal complaints with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) (Case Nos. 17-6287-Valle and 17-6288, respectively). If convicted, the defendants each face a statutory maximum sentence of ten years in prison. Newman was also charged with possession of a controlled substance with intent to distribute, in violation of Title 21, United States Code, Section 841(a)(1). If convicted of the drug offense, Newman faces a maximum statutory maximum sentence of twenty years in prison.

According to court documents, including the criminal complaints, ATF engaged in a series of recorded firearms purchases from defendants Randall and Newman. On March 27, 2017, Randall sold a 9mm pistol to a confidential informant. Randall has three Broward County convictions for possession of cocaine with intent to distribute.

 

On February 27, 2017, Newman sold a .38 caliber revolver and crack cocaine to a confidential informant. On June 8, 2017, Newman sold the same informant a .45 caliber, semi-automatic pistol. Newman has been convicted of several felonies, including delivery of cocaine.

Mr. Greenberg commended the investigative efforts of ATF and BSO. These cases are being prosecuted by Assistant U.S. Attorney Anita White.

A criminal complaint is a formal charging document notifying the defendant of the charges. All persons charged by complaint are presumed innocent unless and until proven guilty in a court of law.

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

Today, U.S. District Judge Robert N. Scola Jr., sentenced Christopher Rennie Glenn, a former government contractor with ties to West Palm Beach, Florida, to life in prison, after a federal jury convicted of him of sexually exploiting and trafficking in minors, while working overseas.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

“Christopher Glenn’s life sentence sends a clear message about our unwavering commitment to prosecute those who sexually exploit minors and prey on their vulnerability,” stated Acting U.S. Attorney Benjamin G. Greenberg. “International borders do not protect United States citizens who commit these crimes and victimize others. The tenacious work of our prosecutors and agents demonstrates that we will use the long-arm of our justice system to reach offenders abroad and hold them accountable in our courts.”

"The evil carried out by Christopher Glenn clearly justifies this sentence," said SAC George L. Piro. "So let the record show, those who prey on children and are within the grasp of US laws, we will look for you, investigate you and ultimately bring you to justice." ​​

Glenn was previously convicted of eight out of ten charges submitted to the federal jury: one count of conspiracy to commit sex trafficking by fraud and of a minor in violation of Title 18, United States Code, Section 1594(c); one count of sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1591(a)(1); four counts of attempting to engage in sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1594(a); one count of traveling overseas with the intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b); one count of sexually assaulting a minor, in violation of Title 18, United States Code, Section 2243(a); and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(A) (Case No. 15-CR-20632). Glenn was acquitted on the two remaining charges of conspiracy and sex trafficking. All of the charged conduct occurred outside of the United States, in either Iraq or Honduras, and largely while Glenn, a United States citizen, was working as a network system administrator contracted by the United States Department of Defense. Title 18, United States Code, Sections 1596, 3261, and 3271, provide for extraterritorial jurisdiction in the sex trafficking and child exploitation offenses charged.

Glenn engaged in an elaborate scheme to sexually exploit young girls between the ages of 13 and 16 years of age in 2010 and from 2012 through 2014 in Honduras, where he had moved to work at the U.S. Army Southern Command’s Joint Task Force Bravo, in Soto Cano Air Base. Evidence at trial revealed that Glenn, with the aid of coconspirators, fraudulently recruited young girls living in very poor rural villages to work as housekeepers at his home. In exchange, Glenn promised to pay a significant amount of money to the families. Shortly after the girls’ arrival to Glenn’s home in Honduras, he sexually assaulted the girls, or sought to “marry” the minors to engage in sexual acts with them. Some victims testified that Glenn gave them pills that made them sleepy and dizzy before engaging in sexual acts with them. A government expert witness testified that some pills seized by law enforcement from Glenn’s Honduras residence in March of 2014 were determined to be drugs that can be used as sedatives and date rape drugs. At trial, the Government also introduced evidence that Glenn had engaged in sexual acts with a minor female from Mexico beginning in 2002, when the minor was only 13-years-old. The minor resided with the defendant in California until 2006. In 2005, Glenn possessed electronic images of this sexual abuse in Iraq while working as a government contract worker. These images of child pornography were also recovered from Glenn’s residence in Honduras in 2014 and were the subject of the possession of child pornography charge.

Glenn was initially arrested in February 2014, and charged in the Southern District of Florida with national-security and espionage related violations (Case No. 14-CR-80031-Marra). In 2015, Glenn pled guilty to charges in that case and was sentenced to a ten-year term of imprisonment.

The child exploitation charges are the culmination of a three-year long investigation led by the FBI Miami Field Office’s Violent Crimes Against Children Squad. This case was prosecuted by Special Prosecutions Assistant United States Attorneys Barbara A. Martinez and Vanessa Singh Johannes from the United States Attorney’s Office for the Southern District of Florida and Trial Attorney Christian Ford from the Department of Justice’s Counterintelligence and Export Control Section.

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

The former general manager of a Miami-based telecommunications company pleaded guilty today for his role in a scheme to pay $3 million in bribes to various Haitian officials to secure a lucrative contract with Telecommunications D’Haiti (Haiti Teleco), the state-owned and state-controlled telecommunications company in Haiti.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Kelly R. Jackson of Internal Revenue Service-Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.

Amadeus Richers, 66, of Brazil, pleaded guilty in federal court in Miami to count one of a second superseding indictment charging him with conspiracy to violate the Foreign Corrupt Practices Act (FCPA).  According to admissions in the plea documents, beginning in 2001 and lasting until 2004, Richers and his co-conspirators paid roughly $3 million in bribes directly and indirectly to foreign officials employed by Haiti Teleco and to a foreign official in the executive branch of the Haitian government in order to secure a favorable contract and favorable treatment in connection with that contract from Haiti Teleco.  The co-conspirators funneled some of the money through third-party intermediaries and paid other money directly to officials or relatives of officials, Richers admitted.    

Richers is the ninth defendant to have pled guilty or to have been convicted at trial in this case.  On April 27, 2009, Antonio Perez, a former controller at one of the Miami-based telecommunications companies, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.  On May 15, 2009, Juan Diaz, the president of J.D. Locator Services, pleaded guilty to one count of conspiracy to violate the FCPA and money laundering.  On Feb. 19, 2010, Jean Fourcand, the president and director of Fourcand Enterprises Inc., pleaded guilty to one count of money laundering for receiving and transmitting bribe monies in the scheme.  On March 12, 2010, Robert Antoine, a former director of international affairs for Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering.  On Aug. 4, 2011, Joel Esquenazi and Carlos Rodriguez, who were the former president and vice-president, respectively, of one of the telecommunications companies, were convicted by a federal jury of one count of conspiracy to violate the FCPA and wire fraud, seven counts of FCPA violations, one count of money laundering conspiracy and 12 counts of money laundering.  On Feb. 8, 2012, Patrick Joseph, a former executive director of Haiti Teleco, pleaded guilty to one count of conspiracy to commit money laundering.  On March 12, 2012, Jean Rene Duperval, a former director of international relations for Haiti Teleco, was convicted by a federal jury of two counts of conspiracy to commit money laundering and 19 counts of money laundering.

Richers was indicted on July 12, 2011, but remained a fugitive until his arrest and ultimately his extradition from Panama on February 23. Richers will be sentenced on September 20.

The Department of Justice is grateful to the government of Haiti for continuing to provide substantial assistance in gathering evidence during this investigation.  In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers (UCREF), the Bureau des Affaires Financières et Economiques (BAFE), which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in this ongoing investigation.  

The Department of Justice also thanks Panama for its significant assistance in this matter.

IRS-CI is conducting the investigation.  Senior Litigation Counsel Nicola Mrazek and Trial Attorney Vanessa Snyder of the Criminal Division’s Fraud Section are prosecuting the case.  The Criminal Division’s Office of International Affairs provided assistance.

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/foreign-corrupt-practices-act.

Miami-Dade County assisted living facility owners, Marlene Marrero, 60, of Miami, Norma Casanova, 67, of Miami Lakes, Yeny De Erbiti, 51, of Miami, Rene Vega, 57, of Miami, Maribel Galvan, 43, of Miami Lakes, Dianelys Perez, 34, of Miami Gardens, Osniel Vera, 47, of Hialeah, Alicia Almeida, 56, of Miami Lakes, and Jorge Rodriguez, 57, of Hialeah, were sentenced to prison for receiving health care kickbacks. United States District Judge Marcia G. Cooke imposed sentences upon the nine defendants ranging from eight months to one year and one day, in prison. One assisted living facility owner, Blanca Orozco, 69, of Miramar, was sentenced to home confinement. In addition to their federal convictions, all ten defendants were also ordered to serve three years of supervised release, pay restitution and are subject to forfeiture judgments.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

All ten defendants previously pled guilty to receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(1)(A). According to court documents, these assisted living facility owners conspired with the former owner of Florida Pharmacy to receive kickbacks and bribes in exchange for referring beneficiaries living in their facilities for prescription medication and durable medical equipment paid for by Medicare and Medicaid. The assisted living facility owners participated in the fraudulent scheme, in violation of their Medicaid provider agreement as well as federal and state anti-kickback rules and regulations.

Mr. Greenberg commended the investigative efforts of the Medicare Fraud Strike Force participating partners, including HHS-OIG, the State of Florida’s Medicaid Fraud Control Unit, and the FBI. The case was prosecution by Special Assistant United States Attorney Hagerenesh Simmons.

The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.

In addition, HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

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.

New York attorney was charged with conspiracy to unlawfully sell unregistered securities in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit. To date, seven defendants have been charged in connection with the ongoing prosecution of this scheme.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

David Lubin, 52, of West Hempstead, New York, was charged by criminal information with one count of conspiracy to unlawfully sell unregistered securities, in violation of Title 15, United States Code, Sections 77e(a)(1), 77e(a)(2), and 77x, and Title 17, Code of Federal Regulations, Section 230.144, all in violation of in violation of Title 18, United States Code, Section 371. Lubin faces a maximum statutory sentence of five years in prison and a fine up to $250,000 or double the proceeds of the offense. This matter is assigned to U.S. District Judge Marcia G. Cooke in Miami, Case No. 17-20508-CR-MGC.

Previously in related cases, Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, of El Dorado Hills, California, were charged in Case No. 16-20546-CR-RNS; Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged in Case No. 16-20572-CR-CMA; and, Sheldon Rose, 77, of Sarasota, and Ian Kass, 45, of Ft. Lauderdale, were charged in Case No. 16-20707-CR-JEM. All six of these defendants were convicted and sentenced to prison terms.

According to court documents, from early 2007 through at least 2014, Sanders, McKelvey, Mirman, and Rose would fraudulently create shell companies by filing documents with the SEC indicating that the companies were controlled by a nominee chief executive officer (CEO). The straw CEO would be listed as the owner of the control block of shares but in reality the companies were controlled by the principals. The control block of shares listed in the name of the officer were deemed restricted and could not be sold to the public. The principals would also list in SEC filings the names of various shareholders for each company to make it appear that these shares were owned by persons unaffiliated with the company. These shares would later become “free trading” and secretly sold to shell buyers. Using false and fraudulent documentation describing the companies’ business purpose and share ownership, the principals would then obtain approval for the shares of the companies to be sold publicly over the counter. Thereafter, the principals would sell the companies to shell buyers who would secretly obtain both the control shares and the purported “free trading” shares without disclosure of this common control and simultaneous sale to the SEC or the investing public. This would allow the shell buyers to engage in stock manipulation or pump and dump schemes using the “free trading” shares.

According to the charging information, Lubin was an attorney licensed to practice in New York and acted as a shell buyer, broker, and attorney for various shell companies involved in the scheme. In certain instances, Lubin also provided false and fraudulent opinion letters to make it appear that shares that were actually controlled by the principals were not owned by “affiliates,” and thus could be deemed unrestricted and available for sale to the investing public. In the case of one fraudulent shell entity, Entertainment Art, Inc. (EERT), in early 2009, Lubin participated in the sale of that entity to a co-conspirator, Conspirator A, but executed fraudulent documents to make it appear that only the restricted shares were sold to Conspirator A. Lubin also drafted and filed with the SEC various documents that falsely represented the nature and control of EERT’s shares, as well as the terms of the sale.

Conspirator A was sentenced to federal prison in approximately November 2010 in connection with a separate securities fraud scheme. Lubin, along with Sanders and McKelvey, assisted with the fraudulent re-sale of EERT on behalf of Conspirator A, including by causing false filings with the SEC. In approximately October 2012, EERT was sold to certain criminal actors and the entity name was later changed to Biozoom, Inc. (BIZM). The EERT purchasers and others used the fraudulently created “free trading” shares of BIZM to engaged in a pump and dump stock manipulation scheme, using the EERT shares that had previously been falsely and fraudulently sold by Lubin to Conspirator A and his co-conspirators.

The SEC today announced a parallel civil enforcement action against Lubin.

Mr. Greenberg commended the investigative efforts of the FBI’s Miami Field Office and Washington Field Office. Mr. Greenberg also thanked the SEC’s Washington Home Office and Miami Regional Office for their assistance. The SEC previously filed civil enforcement actions against McKelvey, Sanders, Mirman, Rose, Kass, and Lamson. This matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison W. Lehr.

A criminal information merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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

Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida; John Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS); and Thomas Robarge, Special Agent in Charge, Coast Guard Investigative Service (CGIS), made the announcement.

George I. Lopez, a/k/a “Ray Lo, Master Lo, and Israel Lo,” 46, of Bay Harbor, was indicted on July 13, 2017, with two counts of impersonation of an officer and employee of the United States, in violation of Title 18, United States Code, Section 912. According to the indictment, Lopez falsely represented himself to be a Master Sergeant in the U.S. Marine Corps and a Lieutenant in the U.S. Coast Guard in order to obtain things of value from a person who thought Lopez was helping her to join the military.

Mr. Greenburg commended the investigative efforts of DCIS and CGIS. The case is being prosecuted by Assistant U.S. Attorney Greg Schiller.

An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A former United States postal worker has pled guilty to theft of mail she obtained from her delivery route in Hillsboro Beach, Florida.

Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Special Agent in Charge Maximo Eamiguel, United States Postal Service Office of Inspector General (USPS-OIG), Southern Area Field Office, made the announcement.

Charlene Joseph, 24, of Miami Gardens, pled guilty to one count of theft of mail by a postal employee. Sentencing is scheduled for September 26, 2017, before United States District Court Judge Beth Bloom. At sentencing, Joseph faces a statutory maximum of five years in prison.

According to court documents, including the agreed upon factual proffer, Joseph delivered and picked up mail on a route in Hillsboro Beach, beginning in 2015. In December 2015, Joseph stole four envelopes that had been placed in the outgoing mail slot of one of the condominium buildings along her route. The four envelopes contained Christmas cards with Walmart gift cards inside. Joseph unlawfully used three of the four Walmart gift cards at a Walmart store in Miramar. In addition, Joseph admitted to stealing approximately five credit cards from her delivery route to give another individual in exchange for payment. She personally used some of the stolen cards.

Mr. Greenberg commended the investigative efforts of the USPS-OIG in this matter. Assistant U.S. Attorney Jared M. Strauss is prosecuting this case.

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

A third defendant was sentenced to 4 years in prison

Three Hialeah residents were sentenced to prison terms after having been convicted by a federal jury of robbing two Hialeah jewelry stores and attempting to rob a third store.

Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Sergio Velasquez, Chief, Hialeah Police Department (HPD), made the announcement.

Anibal Mustelier, 67, Jose Pineda Castro, 28, and Yamile Diaz Bernal, 29, all of Hialeah, were convicted of conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro were also convicted of two counts of Hobbs Act Robbery, one count of attempted Hobbs Act Robbery, and two counts of brandishing a firearm in furtherance of a violent crime. Mustelier, a convicted felon and formerly one of FBI’s most wanted individuals, with prior pending federal indictments from 1996, was also convicted of felon in possession of a firearm and ammunition.

U.S. District Judge Frederico A. Moreno sentenced Mustelier to a total of 624 months’ imprisonment; Castro to a total of 572 month’s imprisonment; and Bernal to a total of 51 months’ imprisonment.

According to the court record, including evidence presented at trial, between May 30, 2015 and August 8, 2016, Mustelier, Pineda Castro and his wife Diaz Bernal conspired to and robbed two jewelry stores in Hialeah, Florida. A third robbery attempt failed when Pineda Castro accidently cut the electricity to the shopping center.

The defendants would monitor the jewelry stores for months, including surveilling the store security features, in order to plan the robberies. Once they were ready to carry out the robbery, they would break into the adjacent business the night before the planned robbery. They would then carve out a hole from the adjacent business wall and prepare to enter the jewelry store once the employees arrived the following morning. At that time, they would bust through the drywall wearing ski masks and wielding guns. They would handcuff the employees and place all of the jewelry in large duffle bags. Just before they left the store with the jewelry, they would take the video recordings and exit through the same adjacent business wall. A confidential informant broke the case by recording Pineda Castro and Diaz Bernal discussing their participation in the prior jewelry store robberies. In these conversations, they implicated Mustelier as Pineda Castro’s mentor in committing robberies.

Law enforcement was able to independently corroborate Pineda Castro and Diaz Bernal’s admissions. In addition, unbeknownst to Pineda Castro, he also led law enforcement to the doorsteps of his mentor, Mustelier. There, law enforcement found, among other things, ski masks, guns, handcuffs and the jewelry belonging to two jewelry stores that had been robbed as part of this ongoing conspiracy.

Mr. Greenberg commended the investigative efforts of ATF and HPD. This case was prosecuted by Assistant U.S. Attorneys Rilwan Adeduntan and Miesha Shonta Darrough.

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.