Southern District of Florida
Press releases recorded for this federal judicial district.
Boynton Beach Man Charged Federally for Sex Trafficking, Producing Child Pornography, and Enticing a MinorRead the Press Release
A Boynton Beach resident was detained today after being charged federally for sex trafficking, producing child pornography, and enticing a minor.
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 Jeffrey S. Katz, Chief of Police, Boynton Beach Police Department, (BBPD), made the announcement.
Marco Vinicio Orrego, 31, of Boynton Beach, Florida, was indicted on charges of sex trafficking a minor, in violation of Title 18, United States Code, Section 1591(a), production of child pornography, in violation of Title 18, United States Code, Section 2251(a), distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and enticing a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b) (Case No. 17-CR-XXX). If convicted, defendant Orrego faces a statutory maximum sentence of life in prison. Orrego is currently being detained pending trial.
According to court records, including the indictment, from May 2 through May 6, 2017, Orrego prostituted a sixteen-year-old girl using Backpage.com. He provided her transportation and a hotel for these illicit activities, taking all of the proceeds for himself. Additionally, Orrego, had sex with the minor during that same period created videos of the sexual abuse and texted the child pornography to another person.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigation efforts of ICE-HSI and the Boynton Beach Police Department. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
An indictment 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.
Mother and Daughter Co-Owners of Seven Miami, Florida-Area Home Health Agencies Each Sentenced to over 10 Years in Prison for Roles in $20 Million Home Health Care Fraud SchemesRead the Press Release
A mother and daughter who secretly co-owned and operated seven home health care agencies in the Miami, Florida area were each sentenced to over 10 years in prison today for their roles in a $20 million Medicare fraud conspiracy that involved paying illegal health care kickbacks to patient recruiters and medical professionals.
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 Brian Swain of the U.S. Secret Service’s Miami Regional Office and 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 made the announcement.
Mildrey Gonzalez, 61, and her daughter, Milka Alfaro, 39, both of Miami, were sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida to 135 and 151 months in prison, respectively, for their roles in the scheme. The defendants were further ordered to pay approximately $22,900,000 in joint and several restitution. Gonzalez and Alfaro each pleaded guilty on March 2, having been charged in a July 2016 superseding indictment. Gonzalez pleaded guilty to one count of conspiracy to commit health care fraud and one count of health care fraud, while Alfaro pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud.
Alfaro and Gonzalez previously admitted that they secretly co-owned and operated seven home health agencies in the Miami area, yet failed to disclose their ownership interests in any of these agencies to Medicare, as required by relevant rules and regulations. In addition, Alfaro and Gonzalez admitted to paying illegal health care kickbacks to a network of patient recruiters in order to bring Medicare beneficiaries into the scheme, to paying bribes and kickbacks to medical professionals in return for providing home health referrals, and to directing co-conspirators to open shell corporations, into which millions of dollars’ worth of fraud proceeds were funneled. Furthermore, Alfaro and Gonzalez each admitted to perjuring themselves at a hearing before U.S. Magistrate Judge Jonathan Goodman of the Southern District of Florida, to attempting to influence the testimony of potential trial witnesses, and to submitting false affidavits concerning their assets to the court.
This case was investigated by the FBI, the U.S. Secret Service and HHS-OIG. Former Fraud Section Trial Attorney and current Southern District of Florida Assistant U.S. Attorney Lisa H. Miller and Fraud Section Trial Attorney L. Rush Atkinson prosecuted the case. Assistant U.S. Attorneys Evelyn B. Sheehan and Alison W. Lehr also provided assistance regarding asset forfeiture issues in this case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former Miami-Dade Police Department Officer Pleads Guilty to Unlawfully Exporting FirearmsRead the Press Release
Former Miami-Dade Police Department Officer Michael Freshko has entered a guilty plea to a criminal information charging him with 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.
Freshko, 48, entered his guilty plea today before U.S. Magistrate Judge Alicia M. Otazo-Reyes.
As part of his guilty plea, Freshko admitted that after receiving firearms from a co-conspirator, he 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.
As a result of his guilty plea, Freshko faces a maximum potential term of imprisonment of five years.
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 is being 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.
Miami-Area Man Charged for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A Miami-area man was charged in an indictment unsealed today for his alleged participation in a $63 million health care fraud scheme involving a now-defunct community mental health center located in Miami.
Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Samuel Konell, 69, of Boca Raton, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit health care fraud and wire fraud, one count of conspiracy to defraud the United States and receive health care kickbacks, one count of receiving health care kickbacks and one count of conspiracy to commit money laundering. Konell was arrested this morning and appeared this afternoon before U.S. Magistrate Judge Patrick A. White of the Southern District of Florida.
The indictment alleges that from approximately January 2006 through June 2012, Konell accepted kickbacks in exchange for referring Medicare beneficiaries to Greater Miami Behavioral Healthcare Center, Inc. (Greater Miami) to serve as patients so that Greater Miami could bill Medicare for mental health treatment purportedly provided to those beneficiaries. The indictment further alleges that Konell knew that the beneficiaries he referred to Greater Miami did not need, qualify for nor receive such treatment. In addition, the indictment alleges that Konell and co-conspirators took steps to disguise the true nature of the bribes and kickbacks Greater Miami paid to Konell and other patient brokers.
According to the indictment and other court documents, Konell and his co-conspirators caused the submission of false and fraudulent claims to Medicare for mental health treatment purportedly provided by Greater Miami in an amount exceeding $63 million.
- date, 11 individuals have pleaded guilty for their role in the scheme, including the owner of Greater Miami, three administrators and seven patient brokers.
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.
This case was investigated by the FBI and HHS-OIG and 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. Fraud Section Trial Attorneys Elizabeth Young and Leslie Wright are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & 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.
Current and Former Boynton Beach Police Officers Indicted for Using Excessive Force Against an Arrestee, Filing False Reports, and Obstructing JusticeRead the Press Release
A federal grand jury in West Palm Beach, Florida, returned a six-count indictment yesterday charging Boynton Beach Police Officer Michael Brown and former Boynton Beach Police Officers Justin Harris and Ronald Ryan, Jr., with unlawfully assaulting an arrestee, J.B., during a traffic stop on August 20, 2014 and then filing false reports of the incident. Boynton Beach Police Sergeant Phillip Antico is charged in the indictment with filing a false report of the incident and obstructing justice during the incident.
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.
The indictment alleges that while serving as patrol officers and conducting a traffic stop of a vehicle, Brown, Harris and Ryan unlawfully assaulted one of that vehicle’s passengers, J.B. The indictment further alleges that Antico, as the patrolmen’s supervisor, and Harris aided and abetted one another in falsifying a report of the incident, and that Antico further intentionally misled federal agents who conducted an investigation of the incident. The indictment also alleges that Brown, Harris and Ryan made false entries in reports of the incident.
If convicted, Antico, Brown and Ryan each face a maximum punishment of 30 years in prison, and Harris faces a maximum punishment of 50 years in prison.
An indictment is merely an accusation and the defendants are presumed innocent unless and until proven guilty in a court of law.
- Greenberg commended the investigative assistance of the FBI and Palm Beach Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Susan Rhee Osborne of the Southern District of Florida and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.
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.
Tampa Area Resident Pleads Guilty and is Sentenced to Prison for Threatening a Sandy Hook ParentRead the Press Release
A Tampa resident pled guilty today before United States District Judge James I. Cohn and was sentenced to prison for threatening a Sandy Hook parent residing in the Southern District of Florida.
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.
Lucy Richards, 57, of Tampa, pled guilty in the Southern District of Florida (Case No. 16-CR-80206) to one count of transmitting threats in interstate commerce, in violation of Title 18, United States Code, Section 875(c). Judge Cohn sentenced Richards to 5 months’ imprisonment, to be followed by 5 months’ home confinement. In addition, Richards will be placed on 3 years of supervised release.
On December 14, 2012, the Sandy Hook School shooting occurred in Newtown, Connecticut, and resulted in the death of 20 children and 6 adults. According to the court record in this case, on or about January 10, 2016, Richards made a series of death threats to a parent of a child killed in the Sandy Hook School shooting. The parent resides in South Florida. Richards’ belief that the school shooting was a hoax and never happened motivated her to make the threats.
Mr. Greenberg commended the outstanding investigative efforts of the FBI. This case was prosecuted in the Southern District of Florida by Assistant United States Attorney Karen E. Gilbert.
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.
Shelter Worker Charged with Attempting to Coerce and Entice an Unaccompanied Alien MinorRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, announced the Indictment of Merice Perez Colon.
The Indictment charges Perez Colon, 35, of Homestead, Florida with attempted coercion and enticement of a minor to engage in illicit sexual activity and attempted production of child pornography, in violation of Title 18, United States Code, Sections 2422(b) and 2251(a) (Case No. 17-CR-20375). A criminal complaint was also filed against the defendant. At the time the charged offenses were allegedly committed, Perez Colon was employed as a youth care worker at an emergency influx shelter in Homestead that provides services to unaccompanied alien children present in the United States.
Acting U.S. Attorney Benjamin G. Greenberg said, “All shelters, including those that take in unaccompanied minors who arrive in the United States without adult supervision, should be safe havens. Youth workers have a duty to protect and serve the minors who reside at these shelters and are under their care. The U.S. Attorney’s Office and our law enforcement partners stand united against child exploitation and abuse that is carried out against minor residents, citizens, or refugees. Any individual who victimizes these children will face severe consequences within the federal criminal justice system. We implore anyone with information regarding these offenses to contact the police.”
HHS-OIG Special Agent in Shimon R. Richmond stated, “Our society expects youth workers and other caretakers to protect all children, including those under the U.S. government’s care,” said Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General. “Our agents, working closely with our partners, will continue to investigate those who violate their position of trust by sexually exploiting and abusing minors. Those who commit such horrible crimes will be brought to justice.”
“Children are some of the most vulnerable members of our society and there is no bigger betrayal than when those entrusted with their protection abuse that trust,” said Mark Selby, Special Agent in Charge, ICE-HSI. “The men and women of HSI are committed to bringing anyone who preys on our children to justice. We encourage anyone who may have additional information regarding this case to contact us by calling 866-DHS-2ICE (866-347-2423).”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
If convicted, the defendant faces a maximum term of life imprisonment.
A criminal complaint and Indictment merely contain accusations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Greenberg commends HHS-OIG and ICE-HSI for the investigative assistance provided in support of this matter. This case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.
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.
Security Guard to Face Federal Charges for Making Threatening Communications to Miami Gardens MosqueRead the Press Release
On June 6, 2017, a security guard at a local grocery store had his initial appearance on a federal indictment in Miami that charges him with making threatening communications to The Islamic Center of Greater Miami-Masjid Miami Gardens.
Benjamin G. Greenberg, Acting Unites 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.
Gerald Sloane Wallace, 35, of Miami, Florida, is charged by indictment with the interstate transmission of a threatening communication, in violation of Title 18, United States Code, Section 875(c) (Case No. 17-CR-20354). If convicted, Wallace faces a statutory maximum sentence of five years in prison, three years of supervised release, and up to a $250,000 fine. Wallace’s arraignment on the indictment and a hearing on the government’s motion for pretrial detention has been set for June 9, 2017 at 10 a.m.
According to the court record, including the allegations contained in the indictment, on February 19, 2017, a threatening message had been left on the mosque’s voicemail system. The voicemail stated, “F… you Muslims, f… Mohammed, f… the Koran and f… Islam. I hate you Muslims, you Muslims are terrible. I hate you people. I’m gonna go down to your center, I’m gonna shoot all ya’ll. F… you, I hate your Allah, I hate your Koran, I hate everything about Islam. You people are worthless s…. Go to hell. F… you.”
Mr. Greenberg commends the investigative efforts of the FBI Miami Area Corruption Task Force and the Miami Gardens Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr and Trial Attorney Samantha Trepel of the Civil Rights Division of the Department of Justice.
An indictment merely contains accusations. A defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New York Resident Charged with $3.5 Million Theft from City of Miami BeachRead the Press Release
A resident of Syracuse, New York was charged with stealing over $3.5 million from the City of Miami Beach’s bank account through unauthorized electronic transfers.
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 Daniel J. Oates, Chief, City of Miami Beach Police Department, made the announcement.
David J. Miller, 44, of Syracuse, New York, was charged by criminal complaint with bank fraud, in violation of Title 18, United States Code, Section 1344; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The bank fraud offense carries a maximum penalty of twenty years’ imprisonment and a $250,000 fine. The aggravated identity theft offense carries a mandatory, consecutive two-year term of imprisonment and a $250,000 fine.
According to the complaint, Miller was responsible for the theft of approximately $3.5 million from the City of Miami Beach’s general depository account at SunTrust Bank. The complaint alleges that Miller caused the electronic transfer of these stolen funds to an account opened in the name of “Company A.” According to the complaint, Company A provides a service that allows customers to purchase, sell, and transfer seat licenses and seat location rights at sporting venues around the United States, including National Football League (NFL) stadiums.
The complaint alleges that between July 2016 and October 2016, Miller used the identity of victim “R.W.” in connection with the bank fraud scheme. Specifically, Miller used R.W.’s identity to create an online profile on Company A’s website. Miller also supplied Company A with the bank account number and routing number for one of the City of Miami Beach’s SunTrust Bank accounts.
Using funds from the City of Miami Beach’s account, Miller purchased approximately 157 seat licenses at NFL stadiums around the country. Miller also used stolen funds to purchase season and individual game tickets at NFL games and other sporting events. According to the complaint, Miller further used the City of Miami Beach’s money to pay his utilities bills. In one instance, Miller caused a counterfeit check, purportedly issued by the City of Miami Beach, to be deposited into a family member’s bank account.
According to court records, Miller is currently in custody in Onondaga County, New York, on state identity theft charges.
Mr. Greenberg commended the investigative efforts of the FBI and the City of Miami Beach Police Department. The case is being prosecuted by Assistant United States Attorneys Christopher B. Browne, Harold E. Schimkat, and Nalina Sombuntham.
A criminal complaint 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
Former Miami-Dade County Resident Who Engaged in “Sextortion” Sentenced to 225 Months in PrisonRead the Press Release
After pleading guilty to producing child pornography, a former Miami-Dade County resident was sentenced yesterday by U.S. District Court Judge Marcia G. Cooke to 225 months (19 years) in prison, to be followed by twenty-five years of supervised release.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Justin Shawn Smith, 35, formerly of Miami Beach, pled guilty on February 8, 2017, to two counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a).
The investigation began when ICE-HSI received a tip from the Cyber Crime Center, via INTERPOL London, that an 11-year-old girl in London reported that a 13-year-old boy named “Cody Mathews” convinced her to commit sexually provocative acts on the video-chat internet program Skype. The victim stated that she met “Cody” on the website kidschat.net. HSI identified Smith as the user of the “Cody Mathews” moniker.
Smith acknowledged that he pretended to be 13 years old while chatting on the website kidschat.net using various usernames. Forensic examination of Smith’s computer revealed an extensive chat history within the Skype program, showing that Smith engaged in hundreds of chats with different minor females using various aliases. HSI identified approximately 31 potential victims Smith chatted with in the United States and interviewed approximately 19, who were between the ages of 7 and 14 at the time they chatted with Smith. Generally, Smith would convince the minor girls to undress and to engage in sexually explicit conduct with a sibling or pet. Smith would often threaten the minor girls, stating that he would publish their nude photos or tell their parents if they did not do what he wanted.
Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. ICE-HSI aggressively investigates allegations of sextortion and other online offenses against children.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Greenberg commended the investigative efforts of ICE-HSI, the Florida Department of Law Enforcement, and INTERPOL. The case was prosecuted by Assistant U.S. Attorneys Elina A. Rubin-Smith and Ben Widlanski.
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 Resident Sentenced to 12 Years in Prison for Committing Armed Robbery of Jewelry Store in Downtown MiamiRead the Press Release
A South Florida resident was sentenced today, by U.S. District Court Donald L. Graham, to 12 years in prison for committing an armed robbery of a jewelry store in the Seybold Building in downtown Miami.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; George L. Piro, Special Agent in Charge (FBI), Miami Field Division; and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Jessie Wooden, 29, of Miami, pled guilty in May of 2017 to conspiring to commit an armed robbery, armed robbery, and possession of a firearm in furtherance of a crime of violence. Judge Graham sentenced Wooden to 154 months in prison, to be followed by 3 years of supervised release.
According to the court record, including the agreed upon factual proffer, on October 29, 2016, Wooden and his co-conspirator robbed a jewelry store located in the Seybold Building in downtown Miami. Once inside the jewelry store, Wooden brandished a firearm while the co-conspirator bound the victim’s hands and feet. The defendant and his co-conspirator stole approximately 35 watches and over $250,000 in U.S. currency.
On January 11, 2017, law enforcement officers attempted to conduct a traffic stop on the vehicle Wooden was driving. Wooden refused to stop and sideswiped an officer’s vehicle in an attempt to evade capture. Ultimately, Wooden crashed his vehicle and was taken into custody. A search of the vehicle revealed a loaded firearm. An additional search of Wooden’s residence revealed over 100 rounds of ammunition.
Mr. Greenberg commends the FBI and MPD for their collaborative work as part of the South Florida Violent Crime Task Force. Mr. Greenberg also thanked the U.S. Marshals Service for their assistance with this matter. This case was 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.
Florida Resident Pleads Guilty to Aggravated Identity Theft and Conspiring to File Fraudulent Tax ReturnsRead the Press Release
A Miami-Dade, Florida man pleaded guilty today to conspiring to use stolen IDs to file 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, 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 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.
Sentencing is scheduled for Aug. 14. Destine faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Greenberg and Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, 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 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 District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Resident Pleads Guilty to Aggravated Identity Theft and Conspiring to File Fraudulent Tax ReturnsRead the Press Release
A Miami-Dade, Florida man pleaded guilty today to conspiring to use stolen IDs to file 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, 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 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.
Sentencing is scheduled for Aug. 14. Destine faces a statutory maximum sentence of five years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge. He also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy 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 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 Individuals Sentenced Federally for Importing Counterfeit Microsoft Software into the United StatesRead the Press Release
Two conspirators were sentenced by Senior United States District Judge Daniel T.K. Hurley in South Florida for importing counterfeit Microsoft software into the United States.
Benjamin Greenberg, Acting United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), made the announcement.
Clifford Eric Lundgren, 33, of Reseda, California and Robert J. Wolff, 54, of Boca Raton, Florida, previously pled guilty to participating in a conspiracy to traffic in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1) and committing criminal copyright infringement, in violation of Title 17, United States Code, Section 506(a)(1)(A) and Title 18, United States Code, Section 2319(a) and (b)(1). Defendants Lundgren was sentenced to 15 months in prison and a $50,000 fine. Defendant Wolff was sentenced to 6 months house arrest and four years probation.
According to documents filed with the court, Lundgren and Wolf manufactured and imported 28,000 discs containing Microsoft Windows programming, specifically, 7 Dell reinstallation Edition and XP Service Pack 3 Dell reinstallation Edition. Lundgren and Wolff violated Microsoft’s intellectual property rights by illegally manufacturing the software in China and then importing the discs into the United States.
The production, importation and/or sale of counterfeit and pirated goods can have substantial consequences for: the manufacturing industry in the form of lost sales, lost brand value, and reduced incentives to innovate; consumers who use substandard counterfeit goods; governments which may lose tax revenue and face risks of counterfeits entering national security or critical infrastructure supply chains; and the nation’s economic growth which may be slowed by reduced innovation and lost trade revenue.
Anyone with information regarding the production or trafficking of counterfeit goods is encouraged to contact law enforcement at 866-DHS-2ICE (866-347-2423).
Mr. Greenberg commended the investigative efforts of ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
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.
United States Citizenship and Immigration Services Officer Charged with Accepting a BribeRead the Press Release
United States Citizenship and Immigration Services Officer Jovany Perez, 34, of Miami, Florida, was arrested on a criminal complaint charging him with receiving a bribe while a public official.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida and Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), made the announcement.
According to the allegations contained in the criminal complaint, on April 20, 2017, Perez interviewed a female alien beneficiary in his capacity as a United States Citizenship and Immigration Services (“USCIS”) officer. The interview related to the validity of the beneficiary’s marriage, which would have afforded her lawful permanent residency in the United States if found to be valid. During the interview, Officer Perez confronted the beneficiary with his belief that her marriage was fraudulent. Perez completed a written statement, purporting to be a confession by beneficiary that she had committed marriage fraud. He directed the beneficiary to sign the statement. The beneficiary signed the written statement and submitted it to Perez. At the conclusion of the interview, Perez provided the beneficiary with his contact information and told her that he could help her with her case, but that he could not do so at the USCIS office.
Later that same day, the beneficiary contacted Perez and they scheduled to meet later that day in the parking lot of a restaurant located in Miami-Dade County. During the meeting, while sitting with the beneficiary in his vehicle, Perez fondled the beneficiary’s breasts, asked her whether she was wearing a wire, and exposed his penis to her. Perez also explained to her that he was the ultimate decision maker in her case, and stated that the two could have a sexual encounter there in the vehicle. The beneficiary declined and the two agreed to meet on a later date.
On May 9, 2017, the beneficiary met with Perez and Perez informed her that he possessed her file, that he would remove her written statement from the file, and that he would replace it with another statement that he would help her draft. When the beneficiary asked Perez what she would have to do in exchange for his assistance, Perez stated that she could pay him money. The two agreed that the beneficiary would pay Perez $2,000.00 in exchange for his assistance.
May 17, 2017, Perez accepted $2,000.00 from the beneficiary, in return for his promise to remove the previously-written statement regarding the validity of her marriage and replace it with a statement to assist her permanent residency petition. Perez was arrested that same day.
Perez is scheduled to be arraigned on June 1, 2017 at 10:00 a.m. before the U.S. Magistrate Duty Judge in Miami.
Mr. Greenberg commends the investigative efforts of the DHS-OIG. This case is being prosecuted by Special Assistant United States Attorney Michele Vigilance and Assistant United States Attorney Jessica Kahn Obenauf.
A criminal complaint 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 atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Individuals Associated with Armed Robbery Conspiracy Sentenced to Prison Final Defendant Receives 138 Year Prison TermRead the Press Release
The last of seven individuals associated with a string of violent armed robberies in Miami-Dade County has been sentenced to over 138 years in prison.
Benjamin C. Greenberg, Acting United States Attorney for the Southern District of Florida, Pete J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), Daniel Junior, Interim Director, Miami-Dade Corrections and Rehabilitation Department (MDCR), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Seven defendants were charged and convicted for their roles in a violent armed robbery conspiracy that began operating in Miami-Dade County, as early as 2006. Andrew Nelson, 24, of Miami, was the final defendant to be sentenced, after having been convicted at trial, in January of 2017, of one count of participating in a Hobbs Act robbery conspiracy, six counts of Hobbs Act robbery, and six counts of brandishing a firearm during a crime of violence (Case No. 16-CR-20119). On May 16, 2017, United States District Court Judge Donald M. Middlebrooks sentenced Nelson to 1,662 months in prison.
According to evidence presented at trial, starting in 2006, members of the conspiracy began committing armed robberies of civilians, businesses, a bank, and illegal enterprises, including narcotics traffickers in Miami-Dade County. As part of the robbery conspiracy, Nelson and his co-conspirators would shoot at victims and sell the narcotics they stole from other drug dealers. After their arrest, members of the conspiracy used jailhouse telephone calls to communicate with their conspirators about planning crimes, collecting debts, and attempting to obstruct justice by planning to attack state prosecution witnesses.
Six co-conspirators were sentenced to varying prison terms following their guilty pleas to associated criminal offenses, including unlawful firearms possession. Steven Stafford, 18, of Miami, was sentenced to 20 years; Anthony Stuckey, 19, of Miami, was sentenced to 32 years; Jarvis Robinson, 25, of Miami, was sentenced to 32 years; Leon Pearson, 27, of Miami, was sentenced to 36 months, and Terril Kinchen, 25, of Miami, was sentenced to 35 years, in prison (Case No. 16-CR-20119). Torrence Lawton, 19, of Miami, was charged in a separate indictment (Case No. 15-CR-20783) and plead guilty to using a firearm in furtherance of two armed robberies, which he committed with members of the conspiracy. Lawton was sentenced to 35 years in prison.
Mr. Greenberg commended the collaborative investigative efforts of the ATF Miami Field Office/MDPD Street Terror Offender Program, FBI Miami Field Office, MDPD’s Robbery Bureau, MDCR’s Security Threat Group Unit, and the MPD Robbery Unit. These cases were prosecuted by Assistant United States Attorneys Ignacio J. Vazquez, Jr., Brian Dobbins and Cary Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Port St. Lucie Resident Sentenced to 30 Months in Prison for Running Fraudulent Tax Preparation BusinessRead the Press Release
A Port St. Lucie resident was sentenced to 30 months in prison, to be followed by one year of supervised release, after pleading guilty to assisting in the preparation of false tax returns and filing false tax returns, in violation of Title 26, United States Code, Sections 7206(2) and (1).
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 (IRS-CI), made the announcement.
Dianne Mowatt, 39, of Port St. Lucie, was charged in a fifty-two count indictment with running a fraudulent tax preparation business in order to file fraudulent tax returns on behalf of her clients and for filing false individual returns on her own behalf. She had pleaded guilty to five of the counts on March 6, 2017.
According to the indictment and factual proffer in support of the guilty plea, from tax years 2011 through 2014, Mowatt owned, operated, or otherwise provided services to Mowatt Financial Services and Proven Tax Services, both being tax return preparation businesses located in Port Saint Lucie and Miami, Florida. Mowatt prepared and submitted individual tax returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2011 through 2014. Mowatt also filed false individual returns for herself for the tax years 2010 and 2011 by falsely claiming five different people as her dependents.
Mr. Greenberg commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Marton Gyires.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indian River County Resident Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
Matthew Vaughn Hawks, 29, of Vero Beach, Florida, was sentenced on May 16, 2017, by United States District Judge Donald M. Middlebrooks to 360 months in prison, to be followed by a lifetime of supervised release, after previously pleading guilty to three counts of producing child pornography and one count of possessing child pornography.
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, Homeland Security Investigations (ICE-HSI), Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and James Stuart, Sheriff, Anoka County, Minnesota, Sheriff’s Office, made the announcement.
According to the court record, Hawks was on probation for making a false bomb threat in Indian River County, Florida, when he began communicating over the internet with multiple female children. Over a period of three months, Hawks cultivated an increasingly personal online relationship with the children. He began soliciting sexually explicit photographs from the minors and sent them sexually explicit images of himself. Hawks then requested increasingly explicit photographs. When some of the children resisted, Hawks threatened to post images of them on the internet if they did not comply with his demands. Hawks’ victims were located in Minnesota, Michigan, Massachusetts, Texas, and Florida.
Mr. Greenberg commended the investigative efforts of ICE-HSI, the Indian River County Sheriff’s Office, and the Anoka County Sheriff’s Office. The case was prosecuted by Special Assistant U.S. Attorney Ryan Butler and Assistant U.S. Attorney Daniel Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Secret Service Officer Sentenced to 20 Years in Prison for Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland, resident was sentenced today to 20 years in prison to be followed by a lifetime term of supervised release for enticement of a minor to engage in sexual activity and attempting to transfer obscene materials to a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida.
Lee Robert Moore, 38, pleaded guilty March 1, 2017, before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Former U.S. Secret Service Officer Sentenced to 20 Years in Prison for Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland, resident was sentenced today to 20 years in prison to be followed by a lifetime term of supervised release for enticement of a minor to engage in sexual activity and attempting to transfer obscene materials to a minor, announced Acting U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Lee Robert Moore, 38, pleaded guilty March 1, 2017, before U.S. District Judge Daniel T. K. Hurley of the Southern District of Florida. Moore was employed by the U.S. Secret Service-Uniformed Division and was assigned to the White House at the time of his arrest on Nov. 9, 2015, and has remained in custody since that time. Moore has since been terminated from his Secret Service position.
According to admissions made in connection with his plea, Moore maintained a profile on the social media application “Meet24,” which provides a mobile-based platform for exchanging digital images, as well as voice and text messages. Delaware State Police Detectives with the Delaware Child Predator Task Force created a profile on this site, posing as a 14-year-old girl, with whom Moore engaged in a number of online chat sessions, via the “Meet24” and “Kik” mobile apps over a two-month period, including while Moore was at work. A number of the online chats between Moore and the undercover officers posing as a female minor were sexual in nature and, on several occasions, Moore sent pictures of himself, including one sexually explicit image.
According to the plea documents, after his arrest, law enforcement discovered that Moore had communicated with a minor in Florida. Moore admitted that in those communications, he sent sexually explicit images of himself and enticed the minor to send sexually explicit photos of herself as well. Moore engaged in the same type of behavior with a 14-year-old girl in Texas and another 17-year-old girl in Missouri. Moore requested that his federal charges in Delaware be transferred to the Southern District of Florida so that he could plead guilty to both charges at one time.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Delaware Child Predator Task Force investigated the case. Assistant U.S. Attorney Corey Steinberg of the Southern District of Florida and Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case, with assistance from the U.S. Attorney’s Office for the District of Delaware.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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.
CarMax Carjacker Sentenced to 108 Months in PrisonRead the Press Release
A Fort Lauderdale resident was sentenced yesterday to 108 months in prison by United States District Judge William Zloch for violently carjacking a CarMax employee.
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, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), Patrick Lynn, Chief, Davie Police Department, and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Defendant Joshua Maxwell 28, of Fort Lauderdale, Florida, previously pled guilty to one count of carjacking, in violation of, Title 18, United States Code, Section 2119(1).
According to the court record, on November 11, 2016, defendant Maxwell entered the CarMax dealership located in Davie, Florida pretending to be a bona fide customer, and inquired about a 2012 Dodge Charger that was on the lot. He thereafter provided a driver’s license in order to take a test drive. Upon checking Maxwell’s name in the CarMax database, the salesman learned that the defendant had previously been entered into their system and had, in fact, visited that same CarMax location one-day prior. Maxwell went on the test drive of the Charger with the salesman and as they were nearing the end of the test drive, the salesman asked the defendant to stop the car so that they could switch positions and drive the Charger back into the CarMax lot. Maxwell, while in the driver’s seat, then assaulted the salesman by repeatedly striking him on the head with a copper metal pipe that he had secreted in his pocket. The salesman attempted to escape, but Maxwell continued to beat him and ultimately stabbed him in the chest. Maxwell fled in the 2012 Dodge Charger, and left the wounded salesman in the roadway. The victim was subsequently transported to a medical trauma center with serious injuries. Ultimately, Maxwell was arrested by law enforcement and admitted to committing the carjacking.
Mr. Greenberg commended the investigative efforts of the FBI, BSO, Davie Police Department 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
Owner and Employee of Tax Preparation Business Charged with Filing Fraudulent Returns and Claiming over $3,000,000 in RefundsRead the Press Release
An owner of a tax preparation business and his employee are charged with filing hundreds of fraudulent returns and claiming over $3,000,000 in fraudulent refunds.
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 (IRS-CI), made the announcement.
In an indictment unsealed today, Corry E. Pearson, of Riviera Beach, and Stephane Cindy Anor, a/k/a “Stephanie Anor,” of West Palm Beach, are charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; wire fraud, in violation of Title 18, United States Code, Section 1343; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Pearson is also charged with money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1957.
According to allegations contained in the indictment, defendant Pearson owned Tax King, Inc., a tax preparation business, where defendant Anor was an employee. For tax years 2012 and 2013, Pearson and Anor electronically filed at least 862 fraudulent federal income tax returns. In some cases, the defendants stole other people’s identities and filed Federal income tax returns in the victims’ names, collecting the refunds for themselves. The defendants also filed returns that inflated the taxpayers’ refunds. In some cases, the filed returns falsely reported that money had been withheld from taxpayers’ wages and gambling winnings. In others, the defendants filed returns falsely claiming education credits to which the taxpayers were not entitled. In total, the returns filed by the defendants claimed at least $3,747,125 in fraudulent refunds. Pearson also engaged in financial transactions with the proceeds of the fraud, some of which were designed to disguise his control over the illicit refunds.
If convicted, the defendants face maximum possible statutory sentences of 20 years' incarceration for the conspiracy to commit wire fraud, 20 years' incarceration on each count of wire fraud, and a mandatory sentence of 2 years' incarceration on each count of aggravated identity theft. In addition, Pearson faces maximum possible statutory sentences of 20 years’ incarceration on each count of money laundering in violation of Section 1956 and 10 years’ incarceration on each count of Section 1957.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov at http://www.usdoj.gov/usao/fls
Owner Sentenced to More than 27 Years in Prison for Multi-Million Dollar Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Two owners of sober homes and alcohol and drug addiction treatment centers were sentenced to 27 and 3 years in prison, respectively, for their participation in a multi-million dollar health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
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, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, George L. Dorsett, Assistant Inspector General for Investigations, Amtrak Office of Inspector General, Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), and Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), made the announcement.
After hearing victim impact statements from a number of parents whose children suffered fatal and non-fatal overdoses, U.S. District Judge Donald M. Middlebrooks sentenced Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, to 330 months in prison, to be followed by 5 years of supervised release. Chatman was also ordered to register as a sex offender. He had previously pled guilty to conspiracy to commit health care fraud in violation of Title 18, United States Code, Section 1349; conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h); and conspiracy to commit sex trafficking, in violation of Title 18, United States Code, Section 1594(c). His wife, Laura Chatman, 44, of Boynton Beach, was sentenced by Judge Middlebrooks to 36 months in prison, to be followed by 3 years of supervised release, after having pled guilty to two counts of making a false statement related to a health care matter, in violation of Title18, United States Code, Section 1035(a)(1).
“Kenneth Chatman will spend the next 27 years in prison for orchestrating an egregious fraud scheme that denied addicts and their families the legitimate treatment and supportive services they desperately needed,” stated Acting U.S. Attorney Benjamin G. Greenberg. “Instead of helping his patients to achieve sobriety, Chatman exploited the vulnerable victims to satisfy his personal greed. He provided drugs to addicts, solicited and accepted kickbacks and bribes, and used his position of power to sexually exploit his patients. The U.S. Attorney’s Office and our law enforcement partners will continue to shut down and hold accountable the unscrupulous sober home owners, treatment facility providers and medical labs that carry out fraudulent and abusive treatment practices.”
“Kenneth Chatman took advantage of persons with serious addiction problems to satisfy his greed. He exploited people who were vulnerable and weak,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Instead of providing a safe and sober living environment, Chatman gave his patients illegal drugs, fraudulent insurance bills and demanded they engage in illegal prostitution under duress. The FBI and our partners are serving notice to sober home operators, treatment facility owners and medical professionals who choose to engage in these types of fraud schemes, you will be investigated and criminally prosecuted to the fullest extent of the law.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “This is an appalling case of pure greed where these defendants tore families apart and put patients’ health and safety at risk. As the Chatmans were living a lavish lifestyle funded by their fraud scheme, patients suffering from addiction were utilized as mere pawns in a master plan to defraud insurance companies. IRS-CI will continue to provide our expertise in conducting financial analysis in money laundering cases to combat the huge healthcare fraud compliance issue facing South Florida.”
“Sober homes are meant to be a place of refuge for those recovering from addiction, but some of these facilities are anything but a sanctuary,” said Chief Financial Officer Jeff Atwater. “Many do nothing more than siphon residents’ insurance benefits until there’s nothing left to be paid, only to return the newly-recovering back to the streets. I am proud of the collaborative state, local, and federal efforts to hold the line on this crime, and I hope this sentencing sends a shockwave to others who may be engaging in similar behavior.”
"It's shameful and disgusting that a treatment home, which should be a place of healing and recovery, could be so badly corrupted as a vehicle for fraud.” said Regional Director for the Department of Labor’s Employee Benefits Security Administration Isabel Colon. “We are gratified to be part of the effort of so many state and federal agencies to put a stop to this sort of criminal activity.”
"Our office, in partnership with our fellow investigative agencies, will continue to uncompromisingly investigate and bring to justice the people who perpetrate these criminal acts," said Amtrak Inspector General Tom Howard. "Their actions take advantage of a vulnerable population that is seeking treatment. Our office will remain vigilant in protecting Amtrak employees, retirees, and their dependents, and ensuring that our health care dollars are not wasted on these fraudulent providers."
According to court documents, defendant Kenneth Chatman established a series of sober homes, including Stay’n Alive, Inc., Total Recovery Sober Living LLC, and several other multi-bed residences operating as sober homes in Palm Beach and Broward Counties. These sober home facilities were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. Kenneth Chatman conspired with others to obtain patients who would receive ineffective and medically unnecessary substance abuse treatment and testing that could be billed to the patients’ insurance in order to enrich Chatman and the members of the conspiracy.
To achieve this goal, defendant Kenneth Chatman paid kickbacks and bribes to other sober home owners for referring their residents to Reflections Treatment Center LLC in Margate, Florida and Journey to Recovery LLC in Lake Worth, Florida for treatment, and disguised these kickbacks and bribes as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” The co-defendants met with Kenneth Chatman on a weekly basis to collect their kickbacks and bribes, which were based on the number of insured patients that received treatment each week.
To obtain residents for the sober homes, defendant Kenneth Chatman and others involved in the conspiracy provided kickbacks and bribes, including free or reduced rent, gift cards, and controlled substances to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, some of the defendants permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing, and Kenneth Chatman marketed his treatment facilities as places where patients could continue to use controlled substances while receiving “treatment.”
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities, thereby hiding the fact that Kenneth Chatman, a convicted felon who was prohibited from owning and operating treatment centers, managed all aspects of these facilities including the hiring and firing of personnel; admitting and discharging patients and making financial decisions.
Defendant Laura Chatman appeared at Reflections and Journey for audits and inspections by DCF and other accrediting agencies to make it seem that she was the sole owner and officer of the companies. Defendant Laura Chatman also filed corporate documents and opened bank accounts in the name of Reflections and Journey to allow co-defendant Kenneth Chatman access to deposit proceeds from the health care fraud scheme and to conduct transactions meant to promote the scheme. .
Defendant Kenneth Chatman dictated which patients were admitted and discharged and the type and frequency of different types of lab testing that would be performed based on the kickbacks and bribes that he was receiving from different clinical laboratories rather than based upon the individual patients’ needs. Kenneth Chatman dictated that confirmatory urine drug testing; duplicative saliva drug testing, DNA and allergy testing occur regardless of whether patients complained of allergies. These tests were medically unnecessary and not used to direct the treatment of patients. Many of the test results were never reviewed and new samples were submitted before older tests were received and reviewed. In some instances when a patient’s insurance benefits were about to run out, Kenneth Chatman would provide controlled substances to the patient so that the patient would have a positive drug test. Kenneth Chatman would then inform the patient’s insurance provider that the patient had “relapsed” so that additional treatment benefits would be approved and Chatman could continue billing services.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth Chatman and other co-conspirators recruited, enticed, harbored, transported, provided, obtained, and maintained some female patients into performing commercial sex acts. The defendant provided housing for the female patients, who would be made to perform sex acts in exchange for money that would then have to be paid to defendant Kenneth Chatman as “rent.” The commercial sex activity occurred at some of the sober homes controlled by the defendant or at hotels and motels. Kenneth Chatman provided condoms and advertised and caused the advertisement of the commercial sexual activity. Kenneth Chatman and other co-conspirators provided controlled substances to these addicted patients to induce them to perform sexual acts.
Kenneth Chatman also used intimidation tactics and threats of legal process, including evicting the patients from his sober homes to maintain their compliance. These patients were not required to attend treatment at Reflections or provide bodily fluid samples for testing but he submitted and caused the submission of claims to the patients’ Insurance Plans for substance abuse treatment and testing that they did not receive.
Kenneth Chatman further maintained control over patients who attended Reflections and Journey by threats and confiscating their belongings, car keys, telephones, medications, and food stamps, in order to maintain the ability to continue billing their Insurance Plans.
The proceeds of the health care fraud scheme were deposited into bank accounts that Kenneth Chatman and co-defendant Laura Chatman opened at Wells Fargo Bank in the name of Reflections and Journey. Kenneth Chatman and the co-conspirators agreed to use the proceeds to promote the ongoing fraud scheme including the making of kickback and bribe payments in the form of checks to sober home owners. These checks were for the referral of insured clients to Reflections for treatment and often noted that they were for “case management.” Kenneth Chatman, Laura Chatman and their co-conspirators also made payments to the medical directors, clinical directors, employees and others to continue their involvement with the fraud. Monies from these accounts were also used to pay kickbacks and bribes to patients, including providing prescription and illicit drugs to patients and potential patients.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-Office of Inspector General, DOL-EBSA, NICB, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and Office of Personnel Management, Office of Inspector General. This case was prosecuted by Assistant United States Attorney A. Marie Villafaña.
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 at http://www.usdoj.gov/usao/fls
Former CEO of Essex Holdings Inc. Sentenced to 15 Years in Prison in Connection with $33 Million Ponzi SchemeRead the Press Release
The former Chief Executive Officer of Essex Holdings, Inc., was sentenced to 15 years in prison by United States District Judge Darrin P. Gayles in Miami, in connection with 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 purported 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.
Navin Shankar Subramaniam Xavier, a/k/a "Navin Xavier," a/k/a "Dr. Navin Xavier" (Xavier), 44, of Miramar, was convicted by guilty plea on January 13, 2017 of two counts of wire fraud, in violation of Title 18, United States Code, Section 1343. One wire fraud count pertained to the investment fraud scheme and the other count pertained to the South Carolina economic development scheme. A restitution hearing is scheduled for July 14, 2017 before Judge Gayles.
According to documents filed in court, from September 2010 through May 2014, Xavier operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens, and 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. Xavier 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 Xavier and his wife for expensive jewelry, luxury vehicles, wedding expenses, and cosmetic surgery. Eventually, Xavier used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed. Evidence filed in court 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, Xavier provided false financial documentation to SCCCED in order to obtain the contract, and later provided fake contractor invoices and fake bank statements in order to get paid under the contract. As with the investment fraud scheme, Xavier spent a significant portion of the development money for his personal living expenses, and wired some of it to the same overseas accounts used in the investment fraud.
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 Lehr.
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 South Florida Residents Charged with Shooting at a U.S. Postal Service Letter CarrierRead the Press Release
Two South Florida residents are charged with shooting at a U.S. Postal Service Letter Carrier during the performance of his official duties.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, Juan J. Perez, Director, Miami-Dade Police Department (MDPD) made the announcement.
Jacoby Myrick, 19, of Miami, and Marques Brown, 19, of Miami, are charged in a two count indictment with Assaulting a Federal Employee, in violation of Title 18, United States Code, Section 111(a)(1) and (b), and Discharging a Firearm in Furtherance of a Crime of Violence, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii). Brown was arraigned today before U.S. Magistrate Judge William C. Turnoff. Brown was ordered detained pending trial. Myrick is pending an appearance before a U.S. Magistrate Judge.
According to the court record, including the indictment, on March 2, 2017, a U.S. Postal Service Letter Carrier was delivering mail at a residence in Southwest Miami-Dade County, as the home was being burglarized. Defendants Myrick and Brown allegedly fled the scene of the burglary in a single vehicle. While driving from the crime scene, one of the defendants shot at the letter carrier. The letter carrier was unharmed.
Mr. Greenberg commended the investigative efforts of the USPIS and MDPD. This case is being prosecuted by Assistant United States Attorney Beranton J. Whisenant, Jr.
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 http://pacer.flsd.uscourts.gov.
Six People Sentenced in $172,000,000 Insurance Fraud Scheme Court Ordered a Total of over $130,000,000 in RestitutionRead the Press Release
Six defendants were recently sentenced to prison for their participation in a massive insurance fraud scheme that resulted in federal judicial orders for more than $130 million in restitution.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Michael J. Satz, Broward State Attorney, announced the sentencing of six of sixteen defendants who were previously charged in a five-count criminal Information.
A criminal Information charged sixteen defendants for their participation in a complex fraud scheme regarding the manufacture and distribution of compounded medications. The fraud involved material misrepresentations to health insurance providers and illegal payments to coconspirators and medical professionals, including physicians. The fraud generated in excess of $172,000,000 in criminal proceeds for the members of the criminal enterprise.
All sixteen defendants have pled guilty for their participation in the fraudulent scheme. Most recently, six defendants were sentenced to prison by United States District Judge Daniel T. K. Hurley, for their roles in the insurance fraud. The six defendants received the following sentences: Rhett Gordon, 36 months’ imprisonment; Brett Nadel, 36 months’ imprisonment; Lisa Goldberg, 46 months’ imprisonment; Dr. John Johnson, 60 months’ imprisonment; Frederick Thomas Giampa, 30 months’ imprisonment and Timothy Clinton, 60 months’ imprisonment. In relation to the fraudulent scheme, the Court has ordered restitution totaling in excess of $130 million dollars. In addition, the defendants have forfeited over $30 million in assets.
According to the court record, the defendants participated in a two-year conspiracy, which they used various business entities, including Numed Care, LLC, Clinical Corp, LLC, RX of Boca, and American Custom Compound Pharmacy, to perpetrate a complex fraud on numerous health care insurance providers. The defendants prepared medications in bulk quantities, which they alleged to be compounded medications for specific individualized patient needs. The defendants falsely represented to the health insurance providers that these medications were prepared in limited quantities for individual patients and were exempt from FDA inspection.
The health insurance providers compensated the defendants for the alleged costs of the ingredients for such medications. The defendants concealed from the health insurance providers that the defendants paid illegal kickbacks to physicians for the issuance of the compounded medications. The defendants unlawfully provided the physicians with pre-printed prescription pads. In order to facilitate the fraudulent scheme, the defendants used mass-marketing techniques and call centers, which made material misrepresentations in order to solicit potential patients. defendants induced owners of failing pharmacies throughout the United States to participate in the scheme in order to perpetuate the fraud.
Mr. Greenberg commended the investigative efforts of the DEA, IRS-CI, and the Broward State Attorney’s Office in connection with the investigation of this matter. This case is being prosecuted by Assistant U.S. Attorneys Paul F. Schwartz and Jeffrey N. Kaplan.
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-Dade Police Department Officer Charged with Unlawfully Exporting FirearmsRead the Press Release
Miami-Dade Police Department Officer Michael Freshko has been charged in a criminal information with 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.
Freshko, 48, had his initial appearance today before U.S. Magistrate Judge William C. Turnoff. The case is assigned to U.S. District Judge Darrin P. Gayles.
According to the allegations in the criminal information, 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. The criminal information further alleges that 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.
The criminal information states that one or more firearms were smuggled in this manner on October 5, 2012, and multiple firearms were smuggled on December 7, 2012. The information alleges that Freshko and the members of the conspiracy 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 is being prosecuted by Assistant U.S. Attorney Michael Davis.
A criminal information 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.
Miami Resident Sentenced to 6 Years in Prison for his Role in Cashing Fraudulently Obtained Large-Dollar Tax Refund ChecksRead the Press Release
A Miami resident was sentenced to 72 months in prison, to be followed by three years of supervised release for his involvement in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained large-dollar tax refund checks.
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), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Silvio Galvez, Jr., 30, of Miami, previously pled guilty to one count of conspiracy to commit theft of government money, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, from 2013 to 2014, co-conspirators of Galvez submitted hundreds of fraudulent tax returns with stolen personal identity information to the IRS requesting over $50 million in large-dollar tax refunds (each refund requested ranged in value from $130,000 to $170,000). As a result of these fraudulent filings, the IRS paid out approximately $4.3 million in tax refunds by mailing out tax refund checks to various Miami addresses connected to this scheme. Galvez knew these fraudulent returns were being filed and furthered the scheme by serving as the source to cash these fraudulently obtained large-dollar tax refund checks at check cashers and at various banks. The defendant also participated in the scheme by recruiting a bank employee to open up bank accounts using stolen personal identity information where these fraudulent checks could be deposited.
Mr. Greenberg commended the investigative efforts of IRS-CI, the FBI, and ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov .
Cuban National Pleads Guilty to Alien SmugglingRead the Press Release
A Cuban national pled guilty yesterday to charges based on a foiled alien smuggling venture from the Bahamas to the United States.
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), William Gibbon, Director of the Miami Air and Marine Branch, U.S. Customs and Border Protection (CBP), and Rear Admiral Scott A. Buschman, Commander, 7th Coast Guard District (USCG), made the announcement.
Carlos Garcia-Legon, 54, of Cuba, appeared before U.S. District Judge Jose E. Martinez of the Southern District of Florida, where he pled guilty to fourteen counts of encouraging and inducing an alien to come to the United States illegally, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(iv); one count of aiding and assisting the illegal entry of an aggravated felon, in violation of Title 8, United States Code Section 1327; one count of illegal re-entry into the United States, in violation of Title 8, United States Code, Section 1326(a) and (b)(1); and one count of failure to heave to, in violation of Title 18, United States Code, Section 2237(a)(1). Garcia-Legon faces a maximum statutory sentence of 30 years’ imprisonment. The defendant is scheduled to be sentenced before Judge Martinez in Miami on July 10, 2017 at 1:30 p.m.
According to court documents, CBP aircraft detected Garcia-Legon’s 25-foot cuddy cabin vessel near Bimini, Bahamas on February 7, 2017. CBP aircraft monitored Garcia-Legon’s vessel as it accepted the transfer of multiple passengers at sea from a second vessel. Garcia-Legon then piloted the vessel from the Bahamas to 10 miles east of Miami, Florida, a trip of approximately 35 nautical miles. When approached by CBP and USCG vessels, Garcia-Legon attempted to flee. After Garcia-Legon ignored commands to stop (or heave to) his vessel, CBP officers fired two warning shots forward of the vessel’s bow. After ignoring this warning, CBP ultimately stopped Garcia-Legon’s vessel by firing four shotgun rounds into the engines of the vessel.
With Garcia-Legon were fourteen passengers of various nationalities, including aliens from the People’s Republic of China, Jamaica, Sri Lanka, and Ecuador. One of the aliens aboard Garcia-Legon’s vessel was previously deported from the United States after a criminal conviction for an aggravated felony. A United States immigration judge had also previously ordered Garcia-Legon removed from the United States. The fourteen passengers and Garcia-Legon did not have authorization to enter the United States.
Mr. Greenberg commended the investigative efforts of ICE-HSI, CBP Office of Air and Marine Operations, and the USCG, and the assistance of CBP/U.S. Border Patrol and U.S. Citizenship and Immigration Services. This case is being prosecuted by Special Assistant U.S. Attorney Emily Rose and Assistant U.S. Attorney Daniel Cervantes.
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-Dade Resident Sentenced to 25 Years in Prison for Committing Six Armed RobberiesRead the Press Release
A Miami-Dade resident was sentenced to 25 years in federal prison for committing six armed robberies throughout Miami-Dade County.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Katherine Fernandez Rundle, Miami-Dade State Attorney; Peter J. Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Juan Perez, Director, Miami-Dade Police Department (MDPD); Daniel Oates, Chief, Miami Beach Police Department (MBPD); Rene Landa, Chief, South Miami Police Department; Edward Hudak Jr., Chief, Coral Gables Police Department; Samuel Ceballos, Jr., Chief, Pinecrest Police Department; and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Zeddrick Smith, 46, previously pled guilty to the armed robberies. Yesterday, U.S. Chief District Judge K. Michael Moore sentenced Smith to 25 years in prison, followed by five years of supervised release.
According to the court record, Smith committed six armed robberies. On November 24, 2016, November 27, 2016, November 29, 2016, December 6, 2016, December 8, 2016, and December 11, 2016, Smith robbed various victims at gunpoint at restaurants and food stores in South Florida. Pursuant to the investigation, officers recovered the loaded firearm Smith used in the robberies from Smith’s vehicle. At the time of the robberies, Smith was a convicted felon who was prohibited from possessing a firearm and ammunition.
Mr. Greenberg commends the investigative efforts of ATF, MDPD, Miami Beach Police Department, South Miami Police Department, Coral Gables Police Department, Pinecrest Police Department, and MPD in relation to this case. This case was 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.
Husband and Wife Charged with Conspiracy to Defraud the IRS and Filing False Claims with the IRSRead the Press Release
Weguel Legentus, 40, and Chantale Baptiste, 32, both formerly of Coral Springs, are charged in a thirteen count indictment with conspiracy to defraud the Internal Revenue Service (IRS) with respect to claims, in violation of Title 18, United States Code, Section 286, and filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. The defendants had their initial appearances today before United States Magistrate Judge Barry L. Garber.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dana Watson, Chief, Margate Police Department, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, made the announcement.
According to court documents, Baptiste was the President, and her husband Legentus was the Registered Agent, of CMB Financial Group, Inc., a Florida corporation, located in Broward County. From at least as early as 2013 through 2016, Baptiste and Legentus prepared and filed false and fraudulent federal income tax returns on behalf of their clients. They did so by attaching false and fraudulent IRS Form 8962 that claimed that their clients were entitled to a Premium Tax Credit, and false and fraudulent IRS Schedule C Profit (Loss) from business activity that claimed gross receipts and sales or expenses. Baptiste and Legentus would provide their clients with a copy of their prepared federal income tax return and represent that the information contained in the copy would be filed with the IRS on their clients’ behalf. Baptiste and Legentus would then alter their clients’ federal income tax returns without their clients’ knowledge and inflate the refund amount requested. Baptiste and Legentus would then file the false and fraudulent federal income tax returns with the inflated refund amount with the IRS. The IRS would then disburse the falsely and fraudulently obtained tax refunds to bank accounts controlled by Baptiste and Legentus. Baptiste and Legentus would retain for their own use and benefit the amount of the inflated tax refund along with their fees.
Baptiste and Legentus filed false and fraudulent claims with the IRS on behalf of their clients fraudulently claiming tax refunds ranging from approximately $2,000 to $12,000.
In addition to filing false claims with the IRS on behalf of their clients, Baptiste is charged with filing false claims with the IRS in connection with her own and Legentus’ federal income tax return for 2012. Legentus is also charged with filing a false claim with the IRS in connection with Baptiste’s federal income tax return for 2013, which requested a refund of approximately $44,000.
If convicted, the defendants face up to ten years in prison.
Mr. Greenberg commended the investigative efforts of IRS-CI, the Margate Police Department, the Broward Sheriff’s Office, and the Florida Office of Financial Regulation. Mr. Greenberg also thanked the Ft. Lauderdale Police Department, the Coral Springs Police Department and the Greenacres Police Department. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
An indictment is merely an allegation, and every 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.
Fourth Defendant Charged with Selling Controlled Substances in Exchange for Virtual Currencies on the Dark WebRead the Press Release
Two defendants sentenced for their participation in the scheme
A fourth defendant has been charged with selling controlled substances in exchange for virtual currencies on the Dark Web.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI); George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division; and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Joshua J. Kelly, a/k/a “USTOUS,” 32, of Cape Girardeau, MO, was charged by criminal complaint with one count of conspiracy to distribute in narcotics, in violation of Title 21, United States Code, Section 846, and one count of conspiracy to launder money, in violation of Title 18, United States Code, Section 1956(h) (Case No. 17-MJ-02572-JG).
In separate but related cases, Robert Kenneth Decker, a/k/a “DIGITALPOSSI2014,” 50, of Detroit, MI, (Case No. 16-CR-20769-DMM), and Chrissano S. Leslie, a/k/a “OWLCITY,” 26, of Lauderhill, FL, (Case No. 16-CR-60206-DTKH) were sentenced to 140 months and 70 months in prison, respectively, to be followed by three years of supervised release. These defendants both previously pled guilty to one count of conspiracy to distribute controlled substances and one count of conspiracy to commit money laundering. Leslie also pled guilty to one count of access device fraud, 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.
In another separate but related case, Kevin C. Fusco, a/k/a “POLIRA,” 29, of New York, NY, was charged by indictment with one count of conspiracy to distribute a controlled substance and one count of conspiracy to commit money laundering (Case No. 17-CR-20275-UU).
These cases are part of a criminal investigation into drug dealers operating on online through "Dark Web" criminal marketplaces designed to promote the anonymous sale of illegal items, such as narcotics, in exchange for Bitcoin and other virtual currencies.
Specifically, since July of 2015, law enforcement identified a narcotics vendor known as OWLCITY (identified as defendant Leslie) appearing on several criminal Dark Web marketplaces. On several occasions, DEA agents made undercover online purchases of controlled substances from OWLCITY and received the purchased narcotics, to include fentanyl, heroin, and alpha-PVP, via U.S. Mail.
Since September of 2015, law enforcement identified a narcotics vendor known as POLIRA (identified as defendant Fusco) appearing on Dark Web marketplaces. POLIRA conducted at least 492 transactions on at least two of these marketplaces. On both marketplaces, POLIRA advertised MDMA. On several occasions, DEA agents made undercover online purchases of MDMA from POLIRA and received the MDMA via U.S. Mail.
Since October of 2015, law enforcement identified narcotics vendors known as USTOUS and DIGITALPOSSI2014 (identified as defendants Kelly and Decker, respectively) on numerous dark web marketplaces. USTOUS conducted thousands of transactions on numerous Dark Web marketplaces, and on all of these marketplaces, USTOUS advertised dangerous opioids, synthetic drugs and Schedule II controlled substances for sale, including: fentanyl, heroin, methamphetamine, alpha-PVP and oxycodone. On several occasions, DEA agents have made undercover online purchases of heroin, alpha-PVP ("Flakka") and MDMA from USTOUS and made undercover online purchases of hydrocodone from DIGITALPOSSI2014, and received the drugs via U.S. Mail.
These defendants conspired with the unknown administrators of criminal online marketplace websites to distribute controlled substances, and conspired with the unknown administrators of these websites to knowingly conduct financial transactions, in virtual currencies, involving the proceeds of unlawful narcotics trafficking activities, knowing that the transactions were designed to conceal and disguise the nature of the proceeds.
These matters are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Greenberg commended the investigative efforts of the DEA, IRS-CI, FBI, USPIS and ICE-HSI. The cases are being prosecuted by Assistant United States Attorney Frank Maderal.
A criminal complaint 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.
Miami-Based Violent Criminal Enterprise Members and Associates Indicted for Racketeering, Drug Distribution, Robbery, and Firearms Use in Furtherance of Violent Crimes and Drug TraffickingRead the Press Release
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Special Agent in Charge Peter J. Forcelli for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; Special Agent in Charge George L. Piro for the Federal Bureau of Investigation (FBI), Miami Field Office; Special Agent in Charge Adolphus P. Wright for the U.S. Drug Enforcement Administration (DEA), Miami Field Division; Chief Rodolfo Llanes of the City of Miami Police Department (MPD); and Director Juan J. Perez of the Miami-Dade Police Department (MDPD) announced the Indictment of fourteen members and associates of a violent criminal enterprise operating in Miami, Florida, as part of the Southern District of Florida Violence Reduction Partnership (VRP) initiative.
The Indictment resulted from the Operation Northern Light Organized Crime and Drug Enforcement Task Force that began in May of 2015. The Operation Northern Light Task Force is jointly-led by the Miami United States Attorney’s Office, FBI, ATF, and DEA, with participation from MPD, MDPD, and other state and local law enforcement agencies, and focuses on the investigation and reduction of violent crime in the north end of Miami-Dade County.
The Indictment charges the below-named defendants, variously, with racketeering conspiracy; conspiracy to possess with intent to distribute narcotics, including crack cocaine; commercial robberies; and the use of firearms in furtherance of robberies and narcotics trafficking.
Acting U.S. Attorney Benjamin Greenberg said, “Violent enterprises that choose to operate in our South Florida communities are being called to answer for their crimes with federal racketeering charges and a united partnership of law enforcement. Members and associates of criminal organizations that exploit our youth and threaten our citizens are facing stiff penalties. There is no doubt that the lure of gang culture and criminality does not pay.”
ATF Special Agent in Charge Peter J. Forcelli stated, “ATF Special Agents and Task Force Officers stand shoulder-to-shoulder with our federal, state and local partners in the fight against gun violence, which all too often plagues the communities of South Florida. This case is just one example of our collective efforts to take those neighborhoods back, block by block, and to make them safe places to live and raise a family.”
“As gangs have become more violent in our communities, the FBI and its partners will use every legal means available to include federal racketeering statutes to dismantle these criminal enterprises,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Today, the FBI and our partners are serving notice to gang members everywhere, these statutes hold serious consequences to include life in prison.”
“The dismantlement of this violent organization has allowed for a major criminal element to be removed from the community of Allapattah,” stated DEA Special Agent in Charge Adolphus Wright. “The efforts from those involved illustrates the devotion and success of the Violence Reduction Partnership which has allowed law enforcement partners at the federal and local levels to work together to rid communities of the criminal afflictions which has plagued them for far too long, and to continue efforts to keep these communities as safe as possible.”
MPD Chief Rodolfo Llanes stated, “The Miami Police Department would like to thank its partners in the US Attorney’s Office, FBI, ATF, DEA, and the Miami-Dade Police Department for their outstanding assistance in making this operation a success. By working together, we send a clear message to those individuals who blight our neighborhoods with violence that they will be brought to justice.”
“These indictments are a clear indication of the collaboration between federal and local law enforcement who are committed to stopping the senseless violence in our community,” said Juan J. Perez, MDPD Director. “If you are a criminal committing acts of violence, heed the warning because you will no longer terrorize our neighborhoods. The Miami-Dade Police is committed to this collaborative endeavor and will not stop working toward our goal of establishing a safe and secure environment, free from crime and the fear of crime.”
The following individuals are charged in the Indictment: Antonio Glass, a/k/a [email protected], a/k/a “Tone Bleedin Red (Tone Gone Bag’em),” a/k/a “Money Man Future @S16_Future,” a/k/a “smackvilletone,” a/k/a “Tone Glass,” a/k/a “@tone.glass,” Jermaine Bryant, a/k/a “RNS DSBF Capo,” a/k/a “@d5bf_mc,” a/k/a “Blood @_McMaine06,” a/k/a “Maine,” Curtis Bryant, a/k/a “Snow Luther King Jr.,” a/k/a “Snow Bryant,” a/k/a “Big Momma,” Quincy Bryant, a/k/a “Q,” Levi Bryant, a/k/a “Fish,” Michael Walker, a/k/a “Laid Back ManMan,” a/k/a “Baba,” Reginald Graham, a/k/a “The Real Rico,”a/k/a “To Cool Rico” a/k/a “G’Rico LongLive KingSqueezer,” a/k/a “Reggie,” Daniel Jones, a/k/a “Dodo,” Samuel Hayes, a/k/a “DSBF Jit,” a/k/a “Nba Flame,” a/k/a “Looney Hoe,” a/k/a “Sammy,” Torivis Reginal Ingram, a/k/a “DSBF Mullet,” Mario Rodriguez, a/k/a “Blood,” a/k/a “str8_crackk,” a/k/a “Tuti,” Latitia Houser, a/k/a “Angel G Berry,” a/k/a “BG,” a/k/a “layedback.bg,” a/k/a “Angel Bernadette Wilson,” Donzell Jones a/k/a “Zell,” and Vencess Toby, a/k/a “Vancess O’brien,” a/k/a “Red,” a/k/a “Ruby.”
Since in or around 2000, the Indictment alleges that the defendants based their operations primarily, out of the South Gwen Cherry Housing Complex, in the Allapattah area of Miami. The Indictment further alleges that defendants Glass, J. Bryant, C. Bryant, Q. Bryant, L. Bryant, Walker, Graham, Daniel Jones, Hayes, Ingram and Rodriguez conspired with each other and others to engage in a pattern of racketeering activity that involved murders, threats of murder, armed robberies, narcotics trafficking, and the use of firearms in furtherance of violent crimes and drug trafficking activity.
If convicted, the defendants may face mandatory statutory minimum terms from 10 years’ to life imprisonment, with statutory maximum terms of life imprisonment.
The investigation of this enterprise was jointly led by the ATF, FBI, DEA, MPD, and MDPD. Key participants in the investigation included the MPD’s Narcotics Unit, Gun Squad, Gang Intelligence Detail, Homicide Unit, and Robbery Unit; the MDPD’s Robbery Bureau, Narcotics Bureau, Homicide Bureau, and Street Violence Task Force. The investigation was also supported by the U.S. Marshals Service, U.S. Customs and Border Protection, Homestead Police Department the Miami-Dade Corrections and Rehabilitation Department’s Security Threat Group Unit, and the South Florida High Intensity Drug Trafficking Task Force to include the High Intensity Drug Trafficking Area-Miami-Dade State Attorney’s Gang Strike Force.
The Indictment is only an accusation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Through the collaborative Violence Reduction Partnership (VRP), the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities throughout the Southern District of Florida. The charges announced today are the result of the VRP’s law enforcement initiatives. Additional information regarding the VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
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 Hialeah Residents Convicted of Conspiracy to Commit Hobbs Act Robberies After Robbing Two Hialeah Jewelry Stores and Attempting to Rob a Third StoreRead the Press Release
Three Hialeah residents were convicted by a federal jury of conspiracy to commit Hobbs Act robberies, after 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 after a seven-day trial before U.S. District Judge Frederico A. Moreno 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.
Mustelier, Pineda Castro, and Diaz Bernal face up to 20 years’ imprisonment for conspiracy to commit Hobbs Act Robberies. Mustelier and Pineda Castro face up to 20 years’ imprisonment for the two robberies and the one attempted robbery. Mustelier and Pineda Castro also face consecutive statutory mandatory minimum sentences of 7 and 25 years’ imprisonment, as to the two counts of brandishing a firearm in furtherance of a violent crime. Mustelier faces up to 10 years’ imprisonment for the felon in possession of a firearm and ammunition charge. All three defendants are currently scheduled to be sentenced on July 19, 2017.
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.
Hialeah Police Department Officer Pleads Guilty to Corruption and Identity Fraud ChargesRead the Press Release
Hialeah Police Department Officer Raul Castellon pled guilty today to corruption and identify fraud charges.
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), and Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, made the announcement.
Raul Castellon, 38, of the Hialeah Police Department, pled guilty to affecting commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a), punishable by up to twenty years in prison. He also pled guilty to conspiracy to commit access device fraud, in violation of Title 18, United States Code, Section 1029(b)(2), aggravated identity theft, in violation of Title 18, United States Code, Section 1028A, and possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Castellon is scheduled to be sentenced before U.S. District Judge Moreno on July 18, at 10:45 a.m. in Miami.
According to the court record, including the agreed upon factual proffer, as an officer for the Hialeah Police Department and as part of his regular duties, Castellon had access to Florida’s Driver and Vehicle Information Database (“DAVID”). DAVID is a confidential database that provides law enforcement officers with the driver and motor vehicle information of other persons, including personal identifying information, such as drivers’ license numbers, social security numbers, and dates of birth.
From on or about June 1, 2016, and continuing through on or about October 19, 2016, Castellon used his law enforcement access to DAVID to log into the system, search for other persons, and take screen shots of other persons’ personal identifying information. Castellon sent over 25 of these DAVID screen shots to his codefendant Neilin Gonzalez Diaz in exchange for gifts.
Mr. Greenberg commended the investigative efforts of the FBI, including the Miami Area Corruption Task Force, ATF, Miami-Dade Police Department, and Hialeah Police Department. This case is being prosecuted by Assistant U.S. Attorneys Daniel Cervantes and Elina Rubin-Smith.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida atwww.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Cay Clubs Chief Financial Officer Sentenced to 40 Years in Prison for Conspiracy, Bank Fraud and Tax OffensesRead the Press Release
The former Chief Financial Officer of Cay Clubs Resorts and Marinas (Cay Clubs) was sentenced to 40 years in prison, after having been previously convicted by a federal jury of conspiracy, bank fraud, and tax offenses.
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 Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
David W. Schwarz, 60, of Orlando, was convicted at trial on March 3, 2017 of conspiracy to commit bank fraud, in violation of Title18 ,United States Code, Section 1349, two counts of bank fraud, in violation of Title 18, United States Code, Section1344, and one count of interference with the administration of the IRS, in violation of Title 26, United States Code, Section 7212(a). Chief U.S. District Judge K. Michael Moore, sitting in Key West, sentenced Schwarz to 40 years in prison. Judge Moore found that the criminal conduct resulted in $303 million in fraudulent proceeds and approximately $170 million in victim losses. A restitution hearing has been set for July 10, 2017, in Key West.
According to evidence at trial, Schwarz was the Vice President and Chief Financial Officer (CFO) of Cay Clubs, which operated purported luxury resorts in the Florida Keys, Clearwater, Orlando, Las Vegas, and elsewhere. Between 2004 and 2008, Cay Clubs grew to more than 1,000 employees and became one of the largest employers in the Florida Keys. Schwarz, who was the one-third owner, and Fred Davis Clark, Jr., a/k/a Dave Clark, who was the two-thirds owner, began Cay Clubs in 2004 with fraudulent sales of Cay Clubs units to insiders, using money from Cay Clubs bank accounts to fund the cash to close for purchases, while obtaining mortgage financing from lending institutions. These fraudulent sales were used in marketing materials to falsely show demand for Cay Clubs units and to inflate prices, as Cay Clubs was in reality purchasing units from itself. Proceeds of these sales were diverted to Schwarz and Clark.
Trial evidence established that Cay Clubs raised more than $300 million from approximately 1,400 investors, who purchased units in Cay Clubs developments. Schwarz and Clark failed to remodel the dilapidated properties as they promised investors, while taking millions of dollars out of the company for their own benefit. During the operation of Cay Clubs from 2004 through 2008, Schwarz and Clark diverted more than $30 million in proceeds for themselves, including millions of dollars in cash transfers that were used to purchase property and other businesses, including a gold mine, a rum distillery, aircraft, and a coal reclamation business.
Trial evidence further showed that as Cay Clubs faced dwindling sales due to its failure to upgrade the dilapidated properties in 2006, Schwarz, Clark, and others engaged in additional fraudulent sales of Cay Clubs units to insiders, including Clark’s family members. These mortgage loans were used to prevent Cay Clubs from defaulting on commercial debts. The documents used to obtain these mortgages included falsified signatures and notary attestations, and had Cay Clubs acting as the seller while Schwarz provided the cash to close so that mortgage loans could be obtained to fund the sales.
During the course of this scheme, Schwarz and Clark did not file any corporate tax return for $74 million in income generated by the Cay Clubs entities. Furthermore, neither Schwarz or Clark filed any individual tax return for these years until after an investigation of Cay Clubs by the U.S. Securities and Exchange Commission (SEC). In 2010 and 2011, Schwarz filed false individual tax returns for tax years 2004, 2005 and 2006, respectively, in which he substantially underreported his income for these tax years and concealed his receipt of millions of dollars in proceeds.
On December 11, 2015, Dave Clark, 59, formerly a resident of Tavernier, was convicted by a federal jury in connection with related bank fraud charges and obstruction of the SEC. He was sentenced on February 21, 2016, to 40 years in prison by U.S. District Judge Jose E. Martinez. Former Cay Clubs sales executives Barry Graham, 59, and Ricky Lynn Stokes, 54, both formerly of Ft. Myers, previously pled guilty to conspiracy to commit bank fraud in related cases and were sentenced to 60 months, and 30 months, respectively.
Mr. Greenberg commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. This matter was prosecuted by Assistant U.S. Attorneys Jerrob Duffy, James V. Hayes, and Alison Lehr.
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.
Eight Residents of Florida and Missouri Charged in $1.67 Million Fraud SchemeRead the Press Release
Eight defendants have been charged in a multi-count indictment, for their participation in an elaborate automobile fraud scheme that netted over $1.67 million.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Division; and Rick Maglione, Chief, Fort Lauderdale Police Department, made the announcement.
Mark David Johnson, 41, of Fort Lauderdale, Florida, David William Wheat, 66, of Fort Pierce, Florida, Michael Kennedy Brown, 53, of Delray Beach, Florida, James Carrington, 37, of Aurora, Missouri, Jana Kabelova, 41, of Fort Lauderdale, Florida, Michael Munday, a/k/a “Mickey,” 71, of North Miami, Florida, Juan Ottavianelli, 71, of North Miami, Florida, and Edwin Fernandes, 50, of North Miami, Florida are charged in a fourteen count indictment with conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1349, and mail fraud, in violation of Title 18, United States Code, Section 1341. If convicted, the defendants face up to twenty years in prison, three years of supervised release, a $250,000 fine, and restitution, as to each count.
The initial hearings are scheduled for May 5, 2017 before U.S. Magistrate Judge Judge Alicia Otazo-Reyes.
According to the indictment, between September 2008 and February 2015, defendants Johnson, Wheat, Brown, Carrington, Kabelova, Munday, Ottavianelli and Fernandes engaged in a scheme to unjustly enrich themselves by, among other things, (1) obtaining mortgaged automobiles through various fraudulent methods, including, among other things, the use of straw buyers; (2) preparing and mailing, via U.S. mail, false and fraudulent lien notices to all interested parties, including the lender, as required by Florida law; (3) hiding the automobiles at various locations in Miami-Dade and Broward Counties, in Florida, to avoid repossession by the rightful lienholders; (4) falsely and fraudulently removing the automobile’s lawful owner from its title; and (5) selling the automobiles to co-conspirators at prices below market value, so that the co-conspirators could re-sell the automobiles at a profit.
The indictment alleges that Johnson, Kabelova, and their co-conspirators fraudulently obtained automobiles by (1) recruiting straw buyers to purchase automobiles from dealerships in Miami-Dade and Broward Counties; (2) identifying distressed automobiles loans in Miami-Dade and Broward Counties and offering to buy those automobiles at a discounted rate; and (3) enlisting Carrington to steal automobiles. Munday, Fernandes, and other co-conspirators transported automobiles, provided by Carrington, from Missouri to Florida. Brown, Johnson, Munday, Ottavianelli, and other co-conspirators stored the fraudulently obtained automobiles at various locations in Miami-Dade and Broward Counties. Wheat prepared and mailed false and fraudulent documents falsely claiming that the lienholders incurred costs to tow and store the automobiles. Johnson sold the fraudulently obtained automobiles to Brown, among others. Wheat prepared and filed applications for a Certificate of New Title from the Florida Department of Motor Vehicles.
Mr. Greenberg commended the investigative efforts of the USSS and Fort Lauderdale Police Department in this matter. This case is being prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Nalina Sombuntham.
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.
District Court Enters Permanent Injunction Against Florida Company and Senior Managers to Stop the Distribution of Misbranded and Adulterated Medicated Animal FeedsRead the Press Release
The U.S. District Court for the Southern District of Florida entered a consent decree of permanent injunction against Syfrett Feed Company Inc. of Okeechobee, Florida, its owner and President Charles B. Syfrett I, its Vice President Melissa S. Montes De Oca and its Operations Manager Charles B. Syfrett II, the Department of Justice announced today. injunction permanently enjoins the defendants from distributing misbranded and adulterated medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act, and requires the defendants to cease manufacturing medicated animal feed until remedial steps are taken.
The Department filed a complaint in the U.S. District Court for the Southern District of Florida on Feb. 1, at the request of the U.S. Food and Drug Administration (FDA). According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients and to include adequate instruction for use on the labels of the medicated feeds. As noted in the complaint, the label of the medicated feeds did not include dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs.
The complaint also alleged that the medicated feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. For example, the complaint alleged that the defendants failed to establish and maintain adequate procedures for the identification, storage, and inventory control of drugs intended for use in their medicated feeds, and failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of animal feeds.
“Animal feed manufacturers that fail to comply with labeling and good manufacturing requirements for medicated animal feeds jeopardize the health of animals,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice and FDA will continue to work together to ensure that animal feed manufacturers produce safe medicated animal feed products.”
The complaint further alleged that Syfrett Feed conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill after consuming Syfrett Feed’s horse pellet food. The complaint stated that 15 horses had to be euthanized, and in September 2014, two more horses had to be euthanized after consuming Syfrett Feed’s horse pellet food. According to the complaint, following these events, Syfrett Feed discontinued manufacturing medicated and non-medicated feeds for horses.
The consent decree entered today resolves the litigation. The decree requires that the defendants adhere to the law’s labeling requirements and current good manufacturing practices for medicated animal feeds. The decree also directs Syfrett Feed to cease manufacturing medical animal feed until the company implements specified remedial measures. The measures include, among other things, retaining an expert to conduct an inspection of Syfrett Feed and certifying that the company’s manufacturing methods, facilities and controls are in conformity with current good manufacturing practices for medicated feeds.
This matter was handled by Trial Attorney Jocelyn Hines of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Christopher Cheek of the U.S. Attorney’s Office for the Southern District of Florida, with the assistance of Associate Chief Counsel for Enforcement Tara Boland of the FDA’s Office of General Counsel, Department of Health and Human Services.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division prosecuted the case.
Former Miami-Dade Police Detective Sentenced to Prison for Stealing Money from Migrant Workers and Obstructing JusticeRead the Press Release
U.S. District Court Judge Marcia G. Cooke sentenced former Miami-Dade Police Detective William Kostopoulos, 49, today to 36 months in prison. Kostopoulos was convicted in February 2017 for using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, and Special Agent in Charge George L. Piro of the Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented during the two-week trial, in 2013, Kostopoulos stopped two separate motorists, both undocumented migrant workers, in order to steal their money, in violation of their rights under the Fourth Amendment of the U.S. Constitution to be free from unreasonable seizures of their property. Kostopoulos subsequently obstructed justice by making misleading statements in order to prevent the communication of information about his crimes to federal law enforcement officers.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. Assistant U.S. Attorneys Edward N. Stamm and Tonya R. Long of the Southern District of Florida and Samantha Trepel of the Civil Rights Division prosecuted the case.
The U.S. Attorney’s Office, Department of Justice Civil Rights Division and our FBI partners encourage members of the community who have information regarding potential civil rights violations to contact the FBI Citizen Complaint Bureau at (754) 703-2000 or file a report at https://tips.fbi.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Highlands County Residents Sentenced to Prison for Tax Refund Fraud ConspiracyRead the Press Release
On April 27, 2017, Charlton Tierry Blain, 30, and Clifford Raoul Blain, 29, both of Highlands County, Florida, were sentenced to federal prison for participating in a conspiracy to defraud the Treasury Department through the filing of fraudulent federal income tax returns; conspiracy to commit access device fraud; and unlawful transfer, possession or use of a means of identification.
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 (IRS-CI), made the announcement.
According to the court record, between January of 2012 and December of 2013, defendants Charlton and Clifford Blain conspired to unjustly enrich themselves by using unlawfully obtained personally identifiable information to file false and fraudulent income tax returns. The fraudulently obtained tax refunds were then deposited into bank accounts controlled by the defendants, and the illicit proceeds were withdrawn from those accounts. In total, 679 fraudulent tax returns were filed, claiming $986,978.00 in total refunds. Based upon these fraudulent filings, the IRS issued approximately $560,000 in refunds.
United States District Judge Donald M. Middlebrooks sentenced the defendants. Clifford R. Blain was sentenced to sixty months’ imprisonment, to be followed by three years of supervised release, and was ordered to pay $124,712 in restitution. Charlton T. Blain was sentenced to forty-eight months’ imprisonment, to be followed by three years of supervised release, and was ordered to pay $520,094 restitution.
Mr. Greenberg commended the investigative efforts of the IRS-CI. The case was prosecuted by Assistant U.S. Attorneys Daniel E. Funk and Adam C. 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.
South Florida Doctor Convicted of Sixty-Seven Criminal Counts Related to Medicare Fraud SchemeRead the Press Release
Today, a federal jury in South Florida convicted Dr. Salomon Melgen of sixty-seven criminal counts related to his participation in a health care fraud scheme involving the filing of false claims and the inclusion of false entries into patients’ medical charts.
Benjamin 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, Shimon Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), and Patrick Fletcher, Special Agent in Charge, United States Railroad Retirement Board, Office of Inspector General (RRB-OIG), made the announcement.
Dr. Melgen is scheduled to be sentenced on July 14, 2017, before U.S. District Court Judge Kenneth A. Marra, in West Palm Beach, Florida. The defendant faces a maximum sentence of 10 years’ imprisonment for each of the thirty-seven health care fraud counts and 5 years’ imprisonment for each of the thirty false claims and false entry counts of conviction.
Dr. Meglen, an ophthalmologist and retina specialist who had practiced in Palm Beach and St. Lucie Counties with “Vitreo Retinal Consultants” and “The Melgen Retina Eye Center,” engaged in a scheme to defraud the Medicare program and other health care benefit programs, by, among other things, falsely diagnosing Medicare patients with macular degeneration and then performing and billing for medically unnecessary tests and procedures. As a result of these unnecessary practices the defendant received more than $90 million from the Medicare program, alone, during the six year period between January 2008 through December 2013. Melgen’s medical practice was closed following his arrest in April 2015.
“For years, Dr. Melgen knowingly made false diagnoses and submitted fraudulent bills in order to illegally line his pockets with millions of dollars intended for the legitimate diagnosis and treatment of Medicare patients,” stated Acting U.S. Attorney Benjamin G. Greenberg. “Today’s 67 count guilty verdict speaks volumes about the extent of this fraud. Dr. Melgen will now be held accountable for perpetuating a massive fraud scheme that caused millions of dollars in losses. The U.S. Attorney’s Office reminds the community that those who commit fraud, regardless of their professional position in South Florida, will be called to answer for their crimes.”
"Dr. Salomon E. Melgen, guilty on 67 counts of health care fraud, can no longer bilk Medicare out of millions of dollars," said George L. Piro, Special Agent in Charge, FBI Miami. "No matter what the scheme or how elaborately it is disguised, the FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law."
“Physicians who exploit Medicare patients through intentional misdiagnosis and medically unnecessary services just to boost their own profits have no place in our health care system,” said Special Agent in Charge Shimon R. Richmond of HHS Office of Inspector General. “Our agents will continue to pursue corrupt health professionals to protect patients and U.S. taxpayers.”
"Corrupt health care providers who defraud Federal health care systems divert precious tax dollars from where they are needed most," stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "The DCIS is committed, in joint investigations with our law enforcement partners, to bring those to justice who undermine the integrity of DoD's TRICARE program intended to serve military members and their families."
“Individuals that commit fraud against U.S. Government programs will continue to be investigated and prosecuted by us and our law enforcement partners,” said Patrick Fletcher, Special Agent in Charge, Office of Inspector General, Office of Investigations, for the U.S. RRB.
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, DCIS and RRB-OIG. This case is being prosecuted by Assistant United States Attorneys Roger H. Stefin, Carolyn Bell, and Alexandra Chase of the West Palm Beach Office.
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.
U.S. Attorney’s Office for the Southern District of Florida Reinforces its Commitment to Reducing RecidivismRead the Press Release
The United States Attorney’s Office for the Southern District of Florida and our partners continue to take significant steps to reduce recidivism and help formerly incarcerated individuals successfully contribute to their communities.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, recognizes the collective efforts of the South Florida Reentry Task Force, including the U.S. Attorney’s Office, U.S. District Court, U.S. Probation, Federal Public Defenders Office, law enforcement and diverse community stakeholders, to implement local reentry initiatives and support returning citizens.
“It is incumbent upon us all to support our returning citizens, because their success means a stronger, safer community for everyone,” stated Acting U.S. Attorney Benjamin Greenberg. “We cannot overstate the invaluable impact of programs and initiatives that offer services to our returning citizens. Having paid their debt to society, formerly incarcerated individuals should have the tools they need to gain lawful employment, obtain stable housing and support their families. South Florida reentry initiatives are designed to tear down the barriers and promote reintegration.”
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida comprehensive reentry initiatives have been implemented to promote the successful reintegration of returning citizens and reduce recidivism. These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Last year, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Re-Entry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through weekly court sessions, the CARE Team assesses each participants’ progress, addresses any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions. Earlier this year, the CARE Team celebrated the first graduate of the Reentry Court initiative.
In 2011, The United States Attorney’s Office established the Violence Reduction Partnership (VRP) to address violent crime, gang activity and firearms offenses that plague communities in the Southern District. The VRP employs a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
As part of the reentry prong of the VRP, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at both the Federal Detention Center and the Federal Correctional Institution located in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful reentry into society and reduce their risk of recidivism. Since 2013, more than 965 individuals have attended the meetings and received a Reentry Resource Guide. Acting U.S. Attorney Greenberg joined the most recent in-reach meeting on April 25, 2017 at the Federal Detention Center. Additionally, since 2012, the U.S. Attorney’s Office has been actively involved with Reentry Fairs at state correctional institutions and has connected with more than 3,261 inmates before their release.
The U.S. Attorney’s Office and our community partners also continue to support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 856 returning citizens and their families.
Additionally, the U.S. Attorney’s Office and the Florida Department of Corrections continue to host Job Preparedness Workshops for returning citizens. The workshops provide individuals with the information they need to seek, gain and maintain lawful employment. The curriculum focuses on a variety of areas, including the development of resume writing, application and interview skills. Since 2013, the workshops have offered services to 58 returning citizens.
Tomorrow, the U.S. Attorney’s Office will host a Re-Entry Simulation to offer more than 60 members of the community an opportunity to experience the challenges that returning citizens experience, while reintegrating into society while on probation and supervised release. Last fall, the Office hosted two successful Re-Entry Simulation events.
The goal of the Office’s reentry initiatives is to build a fair, safe and more inclusive local community.
Additional information regarding the CARE and VRP initiatives is available at [email protected] (link sends e-mail) or by calling (305) 961-9134.
The U.S. Attorney’s Office Supports DEA’s Prescription Drug Take-Back DayRead the Press Release
The U.S. Attorney’s Office for the Southern District of Florida encourages the public to participate in the Drug Enforcement Administration’s (DEA) National Prescription Drug Take-Back Day this Saturday, April 29, 2017.
“The collective goal of the U.S. Attorney’s Office, DEA and concerned South Florida residents is to prevent potentially dangerous controlled substances from falling into the wrong hands,” stated Acting U.S. Attorney Benjamin G. Greenberg. “The rate of prescription drug abuse is staggering. We are now confronted with a horrific reality – that overdoses from all drugs are the leading cause of injury-related deaths, eclipsing the tragic loss of life from motor vehicle crashes or firearms. Turning in your outdated or unused prescription drugs is one step forward, in a united front to combat the epidemic of addiction, overdoses and death.”
On October 22, 2016, the public turned in 731,269 pounds—almost 366 tons—of medication to DEA and more than 4,000 of its community partners at almost 5,200 collection sites nationwide. Over the life of the program, 7.1 million pounds (more than 3,500 tons) of prescription drugs have been removed from medicine cabinets, kitchen drawers, and nightstands by citizens around the country.
Unused medicines in the home are a problem because the majority of the 6.4 million Americans who abused controlled prescription drugs (CPDs) in 2015, including the almost 4 million who abused prescription painkillers, say they obtained those drugs from friends and family, including from a home medicine cabinet, according to the National Survey on Drug Use and Health released last month. Tragically, some painkiller abusers move on to heroin: four out of five new heroin users started with painkillers. Almost 30,000 people —78 a day—died from overdosing on these painkillers or heroin in 2014, according to the Centers for Disease Control and Prevention.
The Prescription Drug Take-Back initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In addition, Americans are now advised that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—both pose potential safety and health hazards.
On Saturday, collection sites will be set up throughout communities nationwide – including in the Southern District of Florida. To locate a collection site near you, go to the DEA Office of Diversion Control web site at https://www.deadiversion.usdoj.gov/drug_disposal/takeback where you can search by zip code, city, or state. The service is free and anonymous.
Four Defendants Sentenced to Prison in Multi-Million Dollar Health Care Fraud Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Four defendants, including two sober home owners, the clinical director of a substance abuse treatment center, and a sales representative for multiple diagnostic laboratories were sentenced to prison for their participation in a health care fraud scheme that involved the filing of fraudulent insurance claim forms and licensing documentation.
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, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Dave Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Jeff Atwater, Florida Chief Financial Officer, William D. Snyder, Sheriff Martin County Sheriff's Office, Robert Koons, Special Agent in Charge, Amtrak Office of Inspector General, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Isabel Colon, Regional Director, United States Department of Labor, Employee Benefits Security Administration (DOL-EBSA), Dennis Russo, Director of Operations, National Insurance Crime Bureau (NICB), Ric Bradshaw, Sheriff, Palm Beach County Sheriff's Office (PBSO), Bryan Kummerlen, Chief, West Palm Beach Police Department, Jeffrey S. Goldman, Chief, Delray Beach Police Department, Pam Bondi, Florida Attorney General, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, was sentenced to 84 months in prison, to be followed by one year of supervised release. Michael Bonds, 45, of Delray Beach, was sentenced to 48 months incarceration, to be followed by three years of supervised release. Stefan Gatt, 27, of Deerfield Beach, was sentenced to 18 months in prison, to be followed by three years of supervised release. The defendants previously pled guilty to one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Davis also pled guilty to one count of managing, leasing, profiting from, and making available a place (one of her sober homes) for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a).
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, was sentenced to 57 months in prison, to be followed by 3 years of supervised release. Gregory previously pled guilty to one count of conspiracy to commit health care fraud and one count of knowingly falsifying a matter involving health care benefit programs, in violation of Title 18, United States Code, Sections 1035(a)(1) and 2.
Sentencing is scheduled for May 17, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, and Laura Chatman, 44, of Boynton Beach. Sentencing is scheduled for June 7, 2017 for Donald Willems, 40, of Weston. A hearing regarding restitution for all defendants will occur on July 7, 2017. Trial is scheduled for September 5, 2017 for defendant Joaquin Mendez, 52, of Miramar.
According to court documents, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., Total Recovery Sober Living LLC, and other sober homes, which were purportedly in the business of providing safe and drug-free residences for individuals suffering from drug and alcohol addiction. To obtain residents for the sober homes, members of the conspiracy provided kickbacks and bribes, in the form of free or reduced rent and other benefits, to individuals with insurance who agreed to reside at the sober homes, attend drug treatment, and submit to regular drug testing that members of the conspiracy could bill to the residents’ insurance plans. Although the sober homes were purportedly drug-free residences, Chatman, Davis, and Bonds permitted the residents to continue using drugs as long as they attended treatment and submitted to drug testing.
Defendants Kenneth Chatman, Bonds, and Davis referred the sober homes’ residents who had insurance to treatment centers owned by Kenneth Chatman but titled in the name of Laura Chatman. These treatment centers purportedly offered clinical treatment services for persons suffering from alcohol and drug addiction. In most instances, defendant Kenneth Chatman knew that the sober home residents referred to the treatment centers, Journey to Recovery LLC, in Lake Worth, Florida, and Reflections Treatment Center, LLC, in Margate, Florida, were using drugs. Defendant Gregory was the Clinical Director of Reflections Treatment Center and Journey to Recovery, and was responsible for supervising clinical services, including regularly reviewing the work performed by subordinate employees. Gregory was aware that Kenneth Chatman was the true owner of some of these sober homes, but they were placed in other people’s names in an attempt to hide Chatman’s true ownership and control over the businesses. Gregory also knew that Chatman was paying kickbacks and bribes to sober home owners for referring their residents to Reflections and Journey for treatment, and that these kickbacks and bribes were disguised as “case management fees,” “consulting fees,” “marketing fees,” and “commissions.” Bonds, Davis, and Gregory further admitted that bribes and kickbacks were paid to insured patients who attended treatment, in the forms of free or reduced rent and other items. Bonds and Davis also admitted that residents of their sober homes were continuing to use controlled substances and that their sober homes were not, in fact, places where persons abstained from the use of drugs and alcohol. Rather, the defendants allowed their sober homes to be used by residents to continue abusing drugs and alcohol while attending ineffective and improperly licensed treatment centers in exchange for free rent.
Defendant Kenneth Chatman hired doctors, including defendants Mendez and Willems, to serve as medical directors of his treatment centers. The doctors ordered drug treatment and drug testing for the sober home residents, specifically expensive urine and saliva drug screens and allergy testing, regardless of whether such treatment and testing were medically necessary. The defendants provided services meant solely to maximize insurance reimbursements. In some instances, defendants Kenneth Chatman and Davis submitted urine and saliva samples from employees instead of urine and saliva from patients. In other instances, defendant Kenneth Chatman caused confirmatory testing to be performed and billed for residents who left the sober homes and were no longer receiving treatment at the treatment centers. Defendants Mendez and Willems also falsely documented patient files to make it appear as though they reviewed the test results. Defendant Gatt admitted that he knew the bodily fluid samples that he collected from Reflections came from employees and that he paid kickbacks to Chatman for Chatman to continue referring lucrative lab testing to him. Defendant Gregory admitted that the drug testing was “useless” because it was not used to direct the patients’ treatment and that as many as 90% of patients were testing positive for the continued use of controlled substances while purportedly obtaining treatment. Gregory knew that Kenneth Chatman was advising patients that they were allowed to continue using controlled substances. On some occasions when Gregory recommended referring relapsed patients to detox or other facilities, Chatman, who had no medical or clinical training, would overrule Gregory’s recommendations because discharging the patients would end Chatman’s ability to bill the patients’ insurance plans.
Defendants Kenneth Chatman and Davis engaged in various tactics to keep patients from being able to leave Reflections and Journey, including threatening violence, and confiscating their belongings, such as car keys, telephones, medications, and food stamps, in order to maintain the ability to continue fraudulently billing their insurance companies.
Defendant Kenneth Chatman also recruited and coerced female patients and residents into prostitution, telling them that they would not have to pay rent or participate in treatment or testing so long as they would allow him to continue to bill their insurance companies for substance abuse treatment and testing that the patients did not receive.
Defendants Kenneth and Laura Chatman submitted to the Florida Department of Children and Families fraudulent applications for licensure for Journey to Recovery and Reflections Treatment Center, stating that Laura Chatman was the sole owner of those entities and hiding the fact that Kenneth Chatman owned and operated the treatment centers. Gregory, who also owned a consulting firm that assisted substance abuse treatment facilities in obtaining licensure, filed documents with the Florida Department of Children and Families and assisted with audits to help Chatman receive permanent DCF licenses for Reflections and Journey.
Mr. Greenberg commended the investigative efforts of the Greater Palm Beach Health Care Fraud Task Force. Agencies of the task force include the FBI, IRS-CI, the Palm Beach County State Attorney's Office Sober Homes Task Force, Florida Division of Investigative and Forensic Services, Martin County Sheriff's Office, Amtrak OIG, DOL-OIG, DOL-EBSA, National Insurance Crime Bureau, Palm Beach County Sheriff's Office, West Palm Beach Police Department, Delray Beach Police Department, Florida Attorney General Office of Statewide Prosecution, and OPM-OIG. The cases are being prosecuted by Assistant United States Attorney A. Marie Villafaña.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former State Representative Erik Fresen Pleads Guilty for Failing to File Tax ReturnRead the Press Release
Former State Representative Erik Fresen pled guilty today, before U.S. District Judge Robert N. Scola, for failing to file a federally required tax return.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Erik Fresen, 40, of Miami-Dade County, pled guilty to one count of failing to file a tax return, in violation of Title 26, United States Code, Section 7203. He faces a maximum sentence of one year in prison.
According to the court record, Fresen and his wife were required to file a tax return with the Internal Revenue Service (“IRS”) by April 15, 2012, because they had total gross income in 2011 of $270,236. This included Fresen’s income from a private company ($150,000), where Fresen was employed as a zoning consultant, and from the State of Florida ($28,891), where Fresen was employed as a legislative representative. Both of these entities reported Fresen’s income to the IRS on Form W-2 and withheld from Fresen’s wages federal income tax due and owing on the defendant’s earnings. Fresen also received non-Form W-2 income for consulting services he provided through a company named Neighborhood Strategies LLC and he failed to pay taxes on this unreported portion of his 2011 income, in the amount of $30,324. Despite knowing that he was required to file a tax return with the IRS based on these various sources of income, Fresen failed to timely file a tax return for the 2011 tax year.
Mr. Greenberg commended the investigative efforts of IRS-CI for their work on this case. This case is being prosecuted by Assistant U.S. Attorneys Harold E. Schimkat and Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.uscourts.gov or on http://pacer.flsd.uscourts.gov.
After Twenty-Six Years Drug Trafficking Fugitive Appears for Initial Hearing in MiamiRead the Press Release
A fugitive, who had been wanted on federal drug trafficking charges for 26 years, had his initial appearance in U.S. Magistrate Court today in Miami, Florida.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; and Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Gustavo Falcon, a/k/a “Taby,” 56, of Miami, had his initial appearance today in the Southern District of Florida before United States Magistrate Judge Jonathan Goodman, following his arrest on a federal warrant for a 1991 drug trafficking indictment. The parties stipulated to the defendant’s detention pending trial, with the right to revisit the ruling. The defendant’s next hearing is scheduled for May 11, 2007 in U.S. Magistrate Court.
“The passage of time does not lessen the government’s commitment to justice,” stated Acting U.S. Attorney Benjamin Greenberg. “Those who are charged federally cannot evade the law. Today, after 26 years in hiding, Gustavo Falcon was brought forward to be held accountable in U.S. District Court for his criminal acts. The U.S. Attorney’s Office is grateful for the dedicated search efforts of the U.S. Marshals Service that led to the defendant’s apprehension.”
Adolphus P. Wright, DEA Special Agent in Charge of the Miami Field Division, said, “Even after 26 years of evading capture and prosecution, the DEA, along with our law enforcement partners, remain committed to following thru until justice is fully served on Falcon and others who violate the drug laws of the United States.”
On April 10, 1991, a federal grand jury sitting in Ft. Lauderdale, Florida returned a multi-count indictment charging Gustavo Falcon, together with lead defendants Augusto Falcon, also known as “Willie Falcon”, and Salvador Magluta, with participation in a conspiracy to possess with the intent to distribute cocaine valued at over $2.3 billion. An arrest warrant was issued for defendant Gustavo Falcon’s arrest at the time of the return of the indictment in 1991. Falcon had remained a fugitive until April 12, 2017, when members of the U.S. Marshals Service arrested him in Kissimmee, Florida. Gustavo Falcon is the last of the ten defendants named in the indictment to be arrested and prosecuted in federal court in Miami. The indictment charges Gustavo Falcon with conspiracy to possess cocaine with the intent to distribute.
Mr. Greenberg commended the investigative assistance of the DEA. Greenberg thanked the U.S. Marhals Service and the Miami-Dade Police Department for their assistance with the apprehension of Gustavo Falcon. The case is being prosecuted by Assistant U.S. Attorneys Christopher J. Clark and Michael Patrick Sullivan.
An indictment is only an accusation and a defendant is presumed innocent 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.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
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 Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA), Miami Field Division, Special Agent in Charge Matthew G. Donahue of the DEA, Caribbean Division, and Special Agent in Charge Kelly R. Jackson Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti, appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida, and elsewhere in the United States in the late 1990s and early 2000s. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017.
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system.”
“After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting U.S. Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Special Agent in Charge Wright. “With the increased strength of our law enforcement partners, both in the United States and abroad. DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
“This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” said Special Agent in Charge Donahue. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
“Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami,” said Special Agent in Charge Jackson. “IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations.”
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Haitian National Pleads Guilty to Conspiring to Launder Money Derived from Drug TraffickingRead the Press Release
A former high-ranking Haitian National Police officer pleaded guilty today in the United States to a money laundering charge in connection with an international narcotics scheme.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division; Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division; and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
Guy Philippe, 49, of Haiti appeared before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida, where he pleaded guilty to one count of conspiracy to commit money laundering stemming from his receipt of cash payments derived from the proceeds of narcotics sales that occurred in Miami, Florida and elsewhere in the United States in the late 1990s and early 2000s. Philippe faces a maximum statutory sentence of 20 years’ imprisonment. The defendant is scheduled to be sentenced by Judge Altonaga in Miami on July 5, 2017 at 9:30 a.m.
"After evading law enforcement for over a decade, Guy Philippe's guilty plea demonstrates the unrelenting commitment of the U.S. government and our foreign counterparts to disrupt and dismantle transnational narco-trafficking and money laundering organizations,” said Acting United States Attorney Greenberg. “Philippe cast aside his duty to protect and serve the people of Haiti. Instead, he abused his position of authority as a high-ranking Haitian National Police Officer to safeguard drug shipments and launder illicit trafficking proceeds. The prosecution of those who abuse the public’s trust to facilitate criminal conduct remains a top priority for the U.S. and our Haitian law enforcement allies.”
“In addition to its other pernicious effects, drug trafficking corrupts public officials and important government institutions that form the foundation of every democracy. Philippe – a former high-ranking official in the Haitian National Police – was on the payroll of the drug traffickers for years, receiving more than $1.5 million in bribe payments for protecting drug shipments,” said Acting Assistant Attorney General Blanco. “The department’s investigation and prosecution of this case for more than a decade demonstrates its commitment to prosecuting all of those who facilitate the international drug trade, including the corrupt officials on the take, and that there is no place to hide from the U.S. justice system."
“It is important that Philippe accepted responsibility for his criminal offenses against the United States and the people of Haiti for his involvement in criminal activities associated with drug trafficking,” said Adolphus P. Wright, Special Agent in Charge of the DEA Miami Field Division, also adding “With the increased strength of our law enforcement partners, both in the United States and abroad, DEA will never abandon nor ever give up on seeking and bringing to justice those responsible for drug trafficking and the laundering of drug money, no matter how many years they attempt to evade capture.”
This international investigation demonstrates the possibilities of success in identifying and producing significant prosecutorial evidence against members of drug trafficking organizations, money laundering organizations and corrupt public figures,” stated Matthew G. Donahue, Special Agent in Charge, DEA, Caribbean Division. “Guy Philippe violated public trust and the confidence of the Haitian people and others throughout the Caribbean Region and the United States, by supporting and benefiting from drug trafficking organizations. The arrest of Guy Philippe is a testament to the collective mission of our federal agencies and exceptional Foreign Police Units. The Haitian Police, La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), is commended for their continued hard work, dedication and assistance provided to the international law enforcement community. This investigation sends a strong message to criminal organizations globally, that the law enforcement partners throughout the Eastern Caribbean Region will not rest until these violators are brought to justice.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), said, "Today Mr. Philippe admitted to accepting bribes while employed as a high-ranking Haitian National Police Officer and to assisting a drug operation that brought cocaine into Miami. IRS-CI is pleased this longtime fugitive has admitted his role in the money laundering conspiracy and will now face the consequences of his actions. IRS-CI will continue to work alongside our global law enforcement partners and provide our financial investigative expertise to dismantle these international drug and money laundering organizations."
According to admissions made in connection with the plea, beginning in the late 1990s, Philippe knowingly using his position as a high-ranking Haitian National Police Officer to provide protection for the shipments of drugs and drug proceeds arriving into Haiti in exchange for cash payments. Philippe admitted that from approximately June 1999 to April 2003, he received between $1.5 and $3.5 million in bribes from drug traffickers, knowing that the payments he received constituted proceeds of cocaine sales that occurred in Miami, Florida, and elsewhere in the United States. Philippe also admitted that he shared a portion of these payments with Haitian National Police officials and other security personnel to ensure their continued support for future drug shipments arriving into Haiti. Philippe used these payments to purchase a residence in Broward County, Florida; and to support himself and to support his family in the United States.
In addition, Philippe wired proceeds derived from the sale of cocaine, in the amount of $376,000, from banks in Haiti and Ecuador to a joint bank account in Miami. To avoid detection, Philippe used the names of others to wire the funds to his account. Philippe further admitted that he arranged for over $70,000 in drug proceeds to be deposited into his account that were conducted in a series of deposits each less than $10,000 to avoid the U.S. federal reporting requirements.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, Bureau of Diplomatic Security, DEA Port-au-Prince Country Office, Caribbean Field Division, U.S. Marshals Service Fugitive Task Force, Federal Bureau of Investigation, Immigration and Customs Enforcement, Homeland Security Investigations and Enforcement and Removal Operations, and the U.S. Customs and Border Protection’s Miami Office of Field Operations provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The U.S. Attorney’s Office and our federal partners commend the Government of Haiti, including the Ministry of Justice, Haitian National Police, and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS) for upholding the rule of law and assisting U.S. counterparts.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
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-Dade Resident Sentenced to 22 Years in Prison for Being a Felon in Possession of a Firearm After Shooting a Man in Miami GardensRead the Press Release
A Miami-Dade resident was sentenced to 22 years in federal prison for being a felon in possession of a firearm, after he shot a man in front of a convenience store in Miami Gardens.
Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, Peter Forcelli, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Cynthia Dawson Machanic, Acting Chief, Miami Gardens Police Department, made the announcement.
James Benjamin Bell, 52, previously pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Yesterday, U.S. District Judge Graham sentenced Bell to 264 months in prison, to be followed by 5 years of supervised release.
According to the court record, including evidence presented during the defendant’s trial, prior to his guilty plea, on May 31, 2016, Bell argued with another man outside of a Miami Gardens convenience store before shooting him in the face. A bystander called 911 and provided a description of the shooter and the getaway car. Police officers quickly found the car and Bell exited the passenger side of the vehicle wearing clothing that matched the description of the shooter. Bell’s girlfriend was the driver. Officers located a firearm in Bell’s girlfriend’s purse. A ballistics test linked the firearm found in Bell’s girlfriend’s purse to the casing left on scene. At the time of the shooting, Bell was a convicted felon who was prohibited from possessing a firearm.
Mr. Greenberg thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Greenberg commended the investigative efforts of ATF and the Miami Gardens Police Department. This case was prosecuted by Special Assistant U.S. Attorney Marianne Curtis from the Miami-Dade State Attorney’s Office and Assistant U.S. Attorney Breezye Telfair.
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.