Southern District of Florida
Press releases recorded for this federal judicial district.
Vero Beach Couple Sentenced to Lengthy Federal Prison Terms for Importing Controlled Substances, “Molly,” from ChinaRead the Press Release
On February 28, 2017, in Fort Pierce, Florida, a Vero Beach husband and wife were sentenced to federal prison by United States District Court Judge Robin L. Rosenberg, for their involvement in a conspiracy to import controlled substances, commonly referred to as “Molly,” from China into the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Julius Andrew Reason, III, 32, was sentenced to 235 months’ imprisonment, to be followed by three years of supervised release, after previously pleading guilty to conspiracy to import a controlled substance, Dibutylone- HCI, in violation of Title 21, United States Code, Sections 952(a) and 963; and conspiracy to manufacture, distribute, and possess with intent to manufacture and distribute a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, Sections 846 and 841(a)(1).
Reason’s wife, Venteria Leanet Reason, 28, was sentenced to 135 months’ imprisonment, to be followed by three years of supervised release, after pleading guilty to conspiracy to import a controlled substance- Dibutylone HCI, in violation of Title 21, United States Code, Sections 952(a) and 963.
According to Court records, in January of 2016, U.S. Customs and Border Protection (CBP) officers conducted a border search of an international mail parcel shipped from Shanghai, China, destined for a U.S. Post Office (P.O.) Box located in Vero Beach, Florida, and found the parcel to contain approximately one kilogram of Dibutylone HCI, a synthetic cathinone, a/k/a “bath salts,” a schedule I controlled substance. The Reasons convinced a co-defendant to open a P.O Box. On January 14, 2016, Julius Reason contacted the Vero Beach Post Office, inquiring about the whereabouts of two parcels. On January 15, 2016, Julius Reason was notified that his packages were ready for pickup. A codefendant then visited the post office and picked up the packages, before meeting Julius Reason and turning over the parcels. When Julius Reason saw law enforcement he fled from the scene, throwing both parcels.
During the course of the investigation, law enforcement seized items including, a loaded 9mm firearm from Julius Reason’s vehicle and electronic devices, wire transfer records, Chinese chemical company business cards, and $10,168.00 in U.S. currency from his residences.
The investigation further revealed that between June 2014 and January 2016, Julius Reason and his wife Venteria Reason sent wire transfers to China exceeding $59,000. Julius and Venteria Reason, exchanged communications with two separate Chinese chemical company representatives discussing prices and ordering synthetic cathinones, including Dibutylone and Ethylone, Schedule I controlled substances. The defendants also communicated by text message regarding the local delivery and sales of another controlled substance, commonly referred to as “Molly.”
Between June 2014, and January 18, 2016, at least 20 parcels were shipped from China to U.S. P.O. Boxes and addresses linked to Julius and Venteria Reason, in the Southern District of Florida. Five of those parcels were seized by law enforcement and thirteen parcels were delivered. Ultimately, they were held responsible for over 10 kilograms of Ethylone and Dibuylone.
Mr. Ferrer commended the investigative efforts of ICE-HSI, the USPIS and DEA. Mr. Ferrer also thanked the Indian River Sheriff’s Office for their assistance with this matter. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Women Plead Guilty to Orchestrating $20 Million Medicare Fraud Scheme at Seven Miami Area Home Health AgenciesRead the Press Release
Two Miami residents pleaded guilty today to fraud charges stemming from their roles in a $20 million home health care fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS)’s Miami Field Office made the announcement.
Mildrey Gonzalez, 61, of Miami, pleaded guilty to one count of conspiracy to commit health care fraud and one count of health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Milka Alfaro, 40, also of Miami, pleaded guilty to one count of conspiracy to commit health care fraud and wire fraud before Judge Martinez. Sentencing for both defendants has been scheduled for May 11 before Judge Martinez.
As part of their guilty pleas, Gonzalez and Alfaro admitted that they were co-owners and operators of seven home health care agencies purported to do business in Miami-Dade County: Inar Home Care Service Corp., MA Home Health Inc., Golden Home Health Care Inc., Nova Home Health Care Inc., Finetech Home Health Inc., Homestead Home Health Care LLC and Metro Dade Home Health Inc. According to admissions made as part of their guilty pleas, Gonzalez and Alfaro recruited and paid nominees to falsely represent themselves as the owners of the home health care agencies, thereby concealing their ownership interests from Medicare and the general public. Gonzalez and Alfaro further admitted that they paid bribes and kickbacks to medical professionals, including doctors, in return for the provision of prescriptions for home health care services and referrals of Medicare beneficiaries to their home health care agencies; that they paid patient recruiters bribes and kickbacks in return for referrals of Medicare patients to the home health care agencies; and that in some cases, the Medicare beneficiaries did not need the home health care services for which Medicare paid.
Gonzalez and Alfaro admitted that as a result of the fraudulent scheme, Medicare paid approximately $20 million to the above-referenced home health care agencies.
Gonzalez and Alfaro were charged in a superseding indictment returned on July 20, 2016, along with Adriana Jalil, 66, of Miami, who served as a patient recruiter, and Luis Luzardo, 48, also of Miami, who utilized sham staffing companies to launder money. Jalil and Luzardo pleaded guilty and were sentenced by Judge Martinez earlier this year to 24 and 37 months in prison, respectively.
The USSS, FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney L. Rush Atkinson, former Fraud Section Attorney, current Assistant U.S. Attorney Lisa H. Miller and Assistant U.S. Attorneys Evelyn B. Sheehan and Alison W. Lehr of the Southern District of Florida 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 3,000 defendants who have collectively billed the Medicare program for more than $11 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.
U.S. Secret Service Officer Pleads Guilty to Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland resident pleaded guilty today in federal court to one count of enticement of a minor to engage in sexual activity and one count of attempting to transfer obscene materials to a minor, announced U.S. Attorney Wifredo A. Ferrer 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 today 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) are prosecuting the case.
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.
U.S. Secret Service Officer Pleads Guilty to Enticement of a Minor and Attempting to Send Obscene Images to a MinorRead the Press Release
A Church Hill, Maryland resident pleaded guilty today in federal court to one count of enticement of a minor to engage in sexual activity and one count of attempting to transfer obscene materials to a minor, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
Lee Robert Moore, 38, pleaded guilty today 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 are prosecuting the case.
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.
Three Individuals Indicted for Mortgage Fraud SchemeRead the Press Release
Today a federal grand jury sitting in West Palm Beach returned a nine-count Superseding Indictment charging three individuals with conspiracy to commit bank fraud and various substantive bank fraud offenses, in violation of Title 18, United States Code, Sections 1349 and 1344.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agent, Office of Inspector General (FHFA-OIG), Southeast Region, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Division, made the announcement.
George Heaton, 73, of West Palm Beach, Florida, Deborah Dentry Baggett, 54, of Greenville, Tennessee (formerly of Palm Beach County), and Eric Granitur, 59, of Vero Beach, Florida are charged in the Superseding Indictment. If convicted, the defendants face a statutory maximum term of 30 years’ imprisonment, a $1 million fine, and mandatory restitution, on each count in the indictment.
According to allegations contained in the Superseding Indictment:
From 2006 through 2009, defendants Heaton, Baggett, Granitur and others conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders by concealing incentives offered and paid to buyers of condominium units at the Vero Beach Hotel and Club in Vero Beach, a luxury ocean-front condo-tel developed by Palm Beach County based real estate developer George Heaton.
The defendants and their coconspirators concealed and misrepresented the amount of seller paid incentives, including cash-to-close, cash rebates, and seller-provided cash deposits, and transferred incentive money through a Palm Beach County law firm’s bank account in order to conceal the fact that the funds were coming from the seller, and not the buyer, as was required by the mortgage lenders.
On several occasions, defendant Baggett took large sums of money, without permission, from the bank account of another client of her accounting business to use for deposit and down payment money for condo purchases. Defendant Baggett also forged client names on sale and purchase contracts, and provided the personal financial information of those other clients without their permission, all to give defendant Heaton’s commercial lender the false impression that he had obtained actual buyers for the units, in order to maintain construction financing.
The fraud scheme caused financial institutions to fund mortgage loans, totaling more than $20 million.
Mr. Ferrer commends the investigative efforts of the FHFA-OIG and FBI. The case is being prosecuted by Special Assistant United States Attorney Joseph A. Capone.
An Indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are 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.
Broward County School District Employee Charged with Obstructing Drug InvestigationRead the Press Release
A Broward County School District employee has been charged with obstructing a drug investigation.
Wifredo A. Ferrer, 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.
Porsha Session, 31, of Boynton Beach, Florida, was charged by Indictment with obstructing an official proceeding, in violation of Title 18, United States Code, Section 1512(c)(2). If convicted, Session faces a statutory maximum term of 20 years’ imprisonment of 20 and a fine up to $250,000.
According to the indictment, federal, state and local law enforcement agencies were investigating drug trafficking and other criminal offenses in Lauderhill, Florida. Session’s relative was one of the detectives from the Lauderhill Police Department assigned to the Lauderhill investigation. During the course of the Lauderhill investigation, law enforcement, including the defendant’s relative, received information, including details from a confidential informant, regarding individuals involved with drug trafficking, and vehicles used by and telephone numbers associated with, members of the criminal enterprise.
Session obtained information provided to her relative concerning the Lauderhill investigation. Session, while working as an employee of the Broward County School District, then made a series of telephone calls to a target of the drug trafficking investigation and warned the individual that he/she and other persons were being monitored by law enforcement. Session also warned the target that an inside source, an informant, was providing details of the criminal enterprise to law enforcement. As a result of Session’s disclosure, the target changed his/her telephone number in an attempt to avoid detection by law enforcement and the confidential informant was moved for his/her safety.
Mr. Ferrer commended the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Drug Enforcement Administration, Lauderhill Police Department, and Sunrise Police Department for their investigative assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arkansas Man Arrested on Child Sex Tourism ChargesRead the Press Release
An Ashdown, Arkansas, resident has been arrested and charged by criminal complaint with traveling in foreign commerce with the purpose of engaging in illicit sexual conduct with a minor, in violation of Title 18, United States Code, Section 2423(b).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to allegations made in the criminal complaint, Daniel John Pye, 35, originally of Bradenton, Florida, traveled from the Southern District of Florida to Haiti on multiple occasions from the years 2008 through 2011 for the purpose of sexually abusing minors. Pye, who ran a missionary orphanage in Jacmel, Haiti, is alleged to have engaged in illicit sexual conduct with minor female children who resided at his orphanage.
Since leaving Haiti, Pye is believed to have resided in the Liberty Hill, Texas, Texarkana, Texas, and Ashdown, Arkansas, areas.
Law enforcement encourages the public to report suspected child predators and any suspicious activity to Homeland Security Investigations (HSI) through the toll-free Tip Line at 1-866-DHS-2-ICE or by completing the online tip form at https://www.ice.gov/webform/hsi-tip-form.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer thanked the Florida Department of Law Enforcement for their assistance. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
A criminal complaint is only an accusation and a defendant is presumed innocent until proven guilty.
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 Tobacco Importer Sentenced to Seven Years in Prison for Violating Probation and Failing to Pay over $13 Million in Federal Excise TaxesRead the Press Release
Gitano Pierre Bryant, Jr., 56, of Palmetto Bay, was sentenced today to a consecutive term of 48 months’ imprisonment, by U.S. District Judge Cecilia M. Altonaga, for fraudulently evading $13 million in Federal taxes on imported cigars. Bryant, who was on probation at the time of the offense, was previously sentenced to 36 months’ imprisonment, by Chief U.S. District Judge K. Michael Moore, for violating the terms of his probation.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tom Crone, Assistant Administrator for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), and Thomas J. Holloman, Interim Special Agent in Charge, IRS Criminal Investigation (IRS-CI), Washington D.C. Field Office, made the announcement.
Bryant previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341. According to court documents, Bryant unlawfully enriched himself by evading Federal Tobacco Excise Tax properly due and owing on imported cigars. According to court documents, Bryant lied about the price he paid for the cigars and the price for which he sold them.
According to the court record, including the factual proffer supporting his guilty plea, Bryant was the owner of Havana ’59 Cigar Company (“Havana 59”). Between 2008 and 2014, Havana 59 was a licensed importer of tobacco products, including cigars. Bryant consistently underpaid the Federal Tobacco Excise Tax due on imported cigars and, in an attempt to cover up the scheme, altered documents to conceal the price he paid for foreign-made cigars. Bryant continued to underpay taxes on imported cigars after May of 2015, when he was convicted and placed on Federal probation for evading Federal Tobacco Excise Tax due on cigarettes. Between January of 2012 and June of 2016, Bryant evaded over $13 million in Federal Tobacco Excise Tax.
In addition to the imposed prison sentence, Bryant was also ordered to pay over $9 million in restitution to U.S. Customs and Border Protection—the agency tasked with collecting excise tax on imported tobacco products.
Mr. Ferrer commended the investigative efforts of the TTB and IRS-CI. The case was prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach Resident Sentenced to 51 Months in Prison for Her Participation in a Fraud Scheme that Targeted Nursing StudentsRead the Press Release
On February 24, 2017, Marie M. Jean-Francois, 31, of Boca Raton, was sentenced to 51 months in prison, to be followed by three years of supervised release, for her involvement in a scheme to obtain unauthorized loans for students in a licensed practical nurse (“LPN”) program by defrauding the Department of Education.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG), made the announcement.
Jean-Francois, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343 and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Jean-Francois engaged in a scheme to defraud the Department of Education by submitting fraudulent student loan applications on-line. Jean-Francois was an employee/director of the Coral Ridge Training School, an institution that offers a licensed practical nurse training program. Jean-Francois falsely told students that they would receive a grant that would cover the costs of the program. One evening, during a training class, Jean-Francois demanded that the students provide their personal identification numbers (PIN), identification information that is issued to students when they file a Free Application for Federal Student Aid form. Jean-Francois then used the students’ PINs and other personal information to electronically sign promissory loan notes without the students’ consent or authorization. Many students did not learn that the unauthorized loans had been taken out in their names until they began receiving letters from the loan servicing companies.
Mr. Ferrer commended the investigative efforts of the ED-OIG. The case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eleven Individuals and One Company Charged in Florida with Exporting Prohibited Articles to SyriaRead the Press Release
Ali Caby, a/k/a “Alex Caby,” 40, a U.S. permanent resident currently residing in Bulgaria; Arash Caby, a/k/a “Axel Caby,” 43, of Miami, Florida; and Marjan Caby, 34, of Miami, Florida, were arrested and charged with exporting prohibited articles to Syria, in violation of the Syria trade embargo, commerce regulations and a U.S. Department of Treasury designation based on an Indictment charging eleven individuals and one foreign company. The defendants were charged by indictment for their alleged participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR), and the Global Terrorism Sanctions Regulations by exporting dual-use goods, that is, articles that have both civilian and military application. The dual-use goods were exported to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by the U.S. Department of the Treasury’s Office of Foreign Assets Control for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). Also charged in the indictment were Adib Zeno, Rizk Ali, Ammar Al Mounajed, Zhelyaz Andreev, Mihaela Nenova, Lyubka Hristova, Iskren Georgiev, Ivan Sergiev, and Syrian Arab Airlines, a/k/a “Syrian Air.”
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Robert Luzzi of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
Specifically, the defendants are charged with: conspiracy to violate to IEEPA and to defraud the U.S. Government, in violation of Title 18, U.S. Code, Section 371; substantive violations of IEEPA and the EAR, specifically Title 15, Code of Federal Regulations, Part 746.9(a), regarding the Syrian Embargo; smuggling goods from the U.S., in violation of Title 18, United States Code, Section 554(a); submitting false or misleading export information, in violation of Title 13, U.S. Code, Section 305; conspiracy to commit money laundering, in violation of Title 18, U.S. Code, Section1956 (h); and false statements, in violation of Title 18, U.S. Code, Section 1001.
According to court documents, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami, Florida export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Marjan Caby, AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. All three defendants closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Arab Airlines, whose activities have assisted the Syrian government’s violent crackdown on its people.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the FBI, DOC, ICE-HSI, Defense Criminal Investigative Service and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Eleven Individuals Including Two Miami-Dade County Residents and One Company Charged with Exporting Prohibited Articles to SyriaRead the Press Release
Two Miami-Dade County residents and one foreign national were arrested and charged with exporting prohibited articles to Syria, in violation of the Syria trade embargo, commerce regulations and a U.S. Department of Treasury designation based on an Indictment charging eleven individuals and one foreign company.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mary B. McCord, Acting Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Robert Luzzi, Special Agent in Charge of the Department of Commerce’s Office of Export Enforcement (DOC) Miami Field Office, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Ali Caby, a/k/a “Alex Caby”, 40, Arash Caby, a/k/a “Axel Caby”, 43, and Marjan Caby, 34, are charged by indictment for their alleged participation in a conspiracy to violate the International Emergency Economic Powers Act (IEEPA), the Export Administration Regulations (EAR), and the Global Terrorism Sanctions Regulations by exporting dual-use goods, that is, articles that have both civilian and military application, to Syrian Arab Airlines, the Syrian government’s airline, which is an entity designated and blocked by the U.S. Department of the Treasury’s Office of Foreign Assets Control for transporting weapons and ammunition to Syria in conjunction with Hizballah, a terrorist organization, and the Iranian Revolutionary Guard Corps (IRGC). Also charged in the indictment were Adib Zeno, Rizk Ali, Ammar Al Mounajed, Zhelyaz Andreev, Mihaela Nenova, Lyubka Hristova, Iskren Georgiev, Ivan Sergiev, and Syrian Arab Airlines, a/k/a “Syrian Air.”
Specifically, the defendants are charged with: conspiracy to violate to IEEPA and to defraud the U.S. Government, in violation of Title 18, United States Code, Section 371; substantive violations of IEEPA and the EAR, specifically Title 15, Code of Federal Regulations, Part 746.9(a), regarding the Syrian Embargo; smuggling goods from the U.S., in violation of Title 18, United States Code, Section 554(a); submitting false or misleading export information, in violation of Title 13, United States Code, Section 305; conspiracy to commit money laundering, in violation of Title 18, United States Code, Section1956 (h); and false statements, in violation of Title 18, United States Code, Section 1001.
According to court documents, Ali Caby ran the Bulgaria office of AW-Tronics, a Miami export company that was managed by Arash Caby, and which shipped and exported various aircraft parts and equipment to Syrian Arab Airlines. Marjan Caby, as AW-Tronics’ export compliance officer and auditor, facilitated these exports by submitting false and misleading electronic export information to federal agencies. All three defendants closely supervised and encouraged subordinate employees of AW-Tronics in the willful exportation of the parts and equipment to Syrian Arab Airlines, whose activities have assisted the Syrian government’s violent crackdown on its people.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the FBI, DOC, ICE-HSI, Defense Criminal Investigative Service, and U.S. Customs and Border Protection. The case is being prosecuted by Assistant U.S. Attorney Ricardo Del Toro of the Southern District of Florida and Trial Attorney Matthew Walczewski of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov..
Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
U.S. Attorney Wifredo A. Ferrer 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 Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Administrator of Miami-Area Home Health Agency Sentenced to 126 Months in Prison for Involvement in $2.5 Million Medicare Fraud SchemeRead the Press Release
Today, the administrator of a Miami-area home health agency was sentenced to a 126 month prison term for his role in a $2.5 million Medicare fraud scheme.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was sentenced by U.S. District Judge William J. Zloch of the Southern District of Florida. In December 2016, he was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
According to evidence presented at trial, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided, and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. According to evidence presented at trial, Leon submitted claims to Medicare for beneficiaries who were admitted to Mercy and DDD only as a result of forged prescriptions and falsified medical documentation; backdated claims for services supposedly rendered years prior; and claims for beneficiaries who were coached to say they needed services, when in fact they were not homebound. Leon also destroyed evidence, including a kickback ledger, prior to his arrest.
The evidence introduced at trial further established that between Oct. 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
Ten of Leon’s co-conspirators previously pleaded guilty or were convicted at trial in this and other related cases filed in the Southern District of Florida.
The case was investigated by the FBI and the HHS-OIG and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys Lisa Miller and Angela Adams of the Criminal Division’s Fraud Section are prosecuting the case.
Miami-Dade County Man Sentenced to 100 Years in Prison for Child Pornography OffensesRead the Press Release
Manuel Perez Gonzalez, 39, of Miami, was sentenced yesterday to 100 years in prison, by U.S. District Judge Ursula Ungaro, after having been convicted at trial of distribution, receipt and possession of child pornography. Gonzalez was also sentenced to 25 years of supervised release and ordered to register as a sex offender upon his release from prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Juan J. Perez, Director, Miami-Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD), made the announcement.
According to court documents and evidence at trial, on October 22, 2015, law enforcement officers executed a search warrant at Gonzalez’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents found Gonzalez’s laptop and a backup disc from another computer. A forensic examination of the devices revealed photographs of Gonzalez and evidence of the defendant’s use of social media. In addition, the forensic examination revealed numerous videos and images of child pornography. Residents from the searched home testified that Gonzalez used the laptop that was found to contain pornographic images.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD. This case was prosecuted by Assistant U.S. Attorneys Jonathan Kobrinski, Benjamin Widlanski, and Ignacio Vazquez.
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.
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 Prevails in Civil Suit Against For-Profit College Chain and its President for False Claims Act ViolationsRead the Press Release
Court Awards Government Over $12 Million in damages and Imposes Additional $10 Million in Civil Penalties
On Feb. 15, U.S. District Judge Marcia G. Cooke entered a Final Judgment of more than $20 million in favor of the United States in a civil suit against FastTrain II Corp. d/b/a FastTrain College (FastTrain) and its President and owner, Alejandro Amor (Amor), for having defrauded the U.S. Department of Education (ED) by submitting falsified documents to obtain federal student aid funds in connection with ineligible students, announced U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida.
At its peak, FastTrain operated seven Florida campuses in Miami-Dade, Broward, Hillsborough, Pinellas and Duval counties. From at least January 2010 through June 2012, when FastTrain closed, FastTrain and Amor knowingly submitted fake high school diploma and GED information to receive improper federal Title IV funds – through the Federal Pell Grant Program, the Federal Direct Loan Program, the Federal Family Education Loan Program, and the Campus Based Programs that financially assist eligible students in obtaining a post-secondary education. Also, at Amor’s direction, FastTrain admissions employees instructed and counseled ineligible prospective students to lie on their federal student aid applications. As a result of Amor’s fraudulent scheme and false representations of eligibility, FastTrain received millions of dollars of unearned student financial aid.
The Court’s ruling was clear: “The student victims in this case were especially vulnerable. They were young people who, for whatever reasons, had not graduated high school. Realizing there are few jobs one can obtain without a high-school diploma or equivalent degree, they turned to FastTrain, hoping to learn marketable skills to improve their chances of making a decent living. FastTrain aggressively recruited these students, and then used fraud to make the Government think they were eligible for federal aid and loans. FastTrain bilked the Government out of millions of dollars, most of which ended up in Amor’s pockets. As for the student victims, many now carry debt that will be enormously difficult to pay off with what they can earn working the low-level jobs for which they are qualified. The effects of Amor’s fraudulent acts are thus abhorrent and far-reaching.”
The Court awarded damages in favor of the United States in excess of $12 million. In addition, the Court imposed over $10 million in civil penalties against the defendants.
“Alejandro Amor and his co-conspirators preyed on vulnerable men and women who sought educational assistance to improve their quality of life,” said U.S. Attorney Ferrer. “As a result, Fast Train defrauded the students out of a legitimate education and the U.S. government out of federal funds that were intended to help those in need of support. The multi-million dollar penalties and damages in this civil suit, in addition to the lengthy prison term imposed against Mr. Amor in the criminal proceedings should serve as a strong warning that fraud schemes do not pay. The U.S. Attorney’s Office and our partners will continue to use both civil enforcement and criminal laws – to protect our taxpayer dollars and ensure that individuals who seek to enhance their lives through a quality education are able to do so without falling victim to devastating schemes.”
“Mr. Amor knowingly and willfully took advantage of innocent students and defrauded America’s taxpayers in a deliberate and methodical way. With his prison sentence and this judgment, he is being held accountable for his criminal actions,” said Special Agent in Charge Yessyka Santana of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “I’m proud of the work of the Office of Inspector General and our law enforcement partners in this matter and continuing our work to protect Federal student aid from this type of calculated plunder.”
The United States pursued this civil case alongside criminal proceedings filed by the U.S. Attorney’s Office for the Southern District of Florida against Amor and other defendants. In November 2015, after a 23-day trial in United States of America v. Alejandro Amor, Case No. 1:14-cr-20750-JAL(s)-1 (S.D. Fla.), a jury convicted Amor of one count of conspiracy to steal Government funds and 12 counts of theft of Government funds. On May 2, 2016, Amor was sentenced to 97 months in prison by U.S. District Court Judge Joan A. Lenard.
The civil case is captioned United States of America, Plaintiff vs. FastTrain II Corp. d/b/a FastTrain College, and Alejandro Amor, Defendants, Case No.: 1:12-cv-21431-COOKE/TORRES, United States District Court, Southern District of Florida. The criminal investigation was underway when a lawsuit was filed by a FastTrain admissions officer, under the whistleblower provision of the False Claims Act. The admissions officer was later convicted of offenses related to FastTrain’s misconduct and subsequently was dismissed from the civil suit.
Assistant U.S. Attorney James A. Weinkle litigated the civil case. U.S. Attorney Ferrer commended the contributions of U.S. Department of Education Office of General Counsel attorneys Russell Wolff and Christina Bixby and investigative efforts of Special Agent Jason Williams and former Assistant Special Agent in Charge Kristen Frias, and Special Agent Joel Veiguela and Nicole Eisenzopf of the Office of Inspector General of the U.S. Department of Education and Special Agent Mary Wilson of the Federal Bureau of Investigation (FBI).
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 Prevails in Civil Suit Against For-Profit College Chain and its President for False Claims Act ViolationsRead the Press Release
Court Awards Government Over $12 Million in damages and Imposes Additional $10 Million in Civil Penalties
On Feb. 15, U.S. District Judge Marcia G. Cooke entered a Final Judgment of more than $20 million in favor of the United States in a civil suit against FastTrain II Corp. d/b/a FastTrain College (FastTrain) and its President and owner, Alejandro Amor (Amor), for having defrauded the U.S. Department of Education (ED) by submitting falsified documents to obtain federal student aid funds in connection with ineligible students, announced U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida.
At its peak, FastTrain operated seven Florida campuses in Miami-Dade, Broward, Hillsborough, Pinellas and Duval counties. From at least January 2010 through June 2012, when FastTrain closed, FastTrain and Amor knowingly submitted fake high school diploma and GED information to receive improper federal Title IV funds – through the Federal Pell Grant Program, the Federal Direct Loan Program, the Federal Family Education Loan Program, and the Campus Based Programs that financially assist eligible students in obtaining a post-secondary education. Also, at Amor’s direction, FastTrain admissions employees instructed and counseled ineligible prospective students to lie on their federal student aid applications. As a result of Amor’s fraudulent scheme and false representations of eligibility, FastTrain received millions of dollars of unearned student financial aid.
The Court’s ruling was clear: “The student victims in this case were especially vulnerable. They were young people who, for whatever reasons, had not graduated high school. Realizing there are few jobs one can obtain without a high-school diploma or equivalent degree, they turned to FastTrain, hoping to learn marketable skills to improve their chances of making a decent living. FastTrain aggressively recruited these students, and then used fraud to make the Government think they were eligible for federal aid and loans. FastTrain bilked the Government out of millions of dollars, most of which ended up in Amor’s pockets. As for the student victims, many now carry debt that will be enormously difficult to pay off with what they can earn working the low-level jobs for which they are qualified. The effects of Amor’s fraudulent acts are thus abhorrent and far-reaching.”
The Court awarded damages in favor of the United States in excess of $12 million. In addition, the Court imposed over $10 million in civil penalties against the defendants.
“Alejandro Amor and his co-conspirators preyed on vulnerable men and women who sought educational assistance to improve their quality of life,” said U.S. Attorney Ferrer. “As a result, Fast Train defrauded the students out of a legitimate education and the U.S. government out of federal funds that were intended to help those in need of support. The multi-million dollar penalties and damages in this civil suit, in addition to the lengthy prison term imposed against Mr. Amor in the criminal proceedings should serve as a strong warning that fraud schemes do not pay. The U.S. Attorney’s Office and our partners will continue to use both civil enforcement and criminal laws – to protect our taxpayer dollars and ensure that individuals who seek to enhance their lives through a quality education are able to do so without falling victim to devastating schemes.”
“Mr. Amor knowingly and willfully took advantage of innocent students and defrauded America’s taxpayers in a deliberate and methodical way. With his prison sentence and this judgment, he is being held accountable for his criminal actions,” said Special Agent in Charge Yessyka Santana of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “I’m proud of the work of the Office of Inspector General and our law enforcement partners in this matter and continuing our work to protect Federal student aid from this type of calculated plunder.”
The United States pursued this civil case alongside criminal proceedings filed by the U.S. Attorney’s Office for the Southern District of Florida against Amor and other defendants. In November 2015, after a 23-day trial in United States of America v. Alejandro Amor, Case No. 1:14-cr-20750-JAL(s)-1 (S.D. Fla.), a jury convicted Amor of one count of conspiracy to steal Government funds and 12 counts of theft of Government funds. On May 2, 2016, Amor was sentenced to 97 months in prison by U.S. District Court Judge Joan A. Lenard.
The civil case is captioned United States of America, Plaintiff vs. FastTrain II Corp. d/b/a FastTrain College, and Alejandro Amor, Defendants, Case No.: 1:12-cv-21431-COOKE/TORRES, United States District Court, Southern District of Florida. The criminal investigation was underway when a lawsuit was filed by a FastTrain admissions officer, under the whistleblower provision of the False Claims Act. The admissions officer was later convicted of offenses related to FastTrain’s misconduct and subsequently was dismissed from the civil suit.
Assistant U.S. Attorney James A. Weinkle litigated the civil case. U.S. Attorney Ferrer commended the contributions of U.S. Department of Education Office of General Counsel attorneys Russell Wolff and Christina Bixby and investigative efforts of Special Agent Jason Williams and former Assistant Special Agent in Charge Kristen Frias, and Special Agent Joel Veiguela of Nicole Eisenzopf of the Office of Inspector General of the U.S. Department of Education and Special Agent Mary Wilson of the FBI.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Defendants Plead Guilty in Multi-Million Health Care Fraud and Money Laundering 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 laboratories pled guilty last week for their participation in a health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Wifredo A. Ferrer, 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.
Michael Bonds, 45, of Delray Beach, Stefan Gatt, 27, of Deerfield Beach, and Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, 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 for the purpose of the unlawful distribution and use of controlled substances, in violation of Title 21, United States Code, Section 856(a). Sentencing hearings are scheduled for April 24, 2017.
Trial is scheduled for March 20, 2017 for co-defendants Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, Joaquin Mendez, 52, of Miramar, Laura Chatman, 44, of Boynton Beach, and Donald Willems, 40, of Weston. The co-defendants are are charged by criminal complaint, a formal charging document notifying the defendants of the charges. All persons charged by criminal complaint are presumed innocent until proven guilty in a court of law.
In a separate but related case, Licensed Mental Health Counselor Dr. Barry Gregory (case no. 9:17-cr-80033-DMM), 62, of Wellington, 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, Section 1035(a)(1) and 2. Sentencing for Gregory is scheduled for April 26, 2017.
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.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Mr. Ferrer 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.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Stuart Resident Sentenced to 794 Months in Prison for His Involvement in Armed Robberies in Florida and KentuckyRead the Press Release
Todd Erling Becker, 46, of Stuart, Florida, was sentenced today to 794 months in prison, by U.S. District Judge Donald L. Graham, after having been convicted at trial for committing and conspiring to commit fives robberies with a firearm at business located in Stuart, Vero Beach, and Orlando, Florida and Lexington, Kentucky.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge for the Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff’s Office, William Snyder, Sheriff, Martin County Sheriff’s Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Jerry Demings, Sheriff, Orange County Sheriff’s Office, and Mark Barnard, Police Chief, Lexington Police Department, Kentucky, made the announcement.
On November 21, 2016, a federal jury in the Southern District of Florida convicted Becker of one count of conspiracy to commit robbery affecting interstate and foreign commerce, three counts of robbery affecting interstate commerce, and three counts of using a firearm in the furtherance of a crime of violence.
According to the court record, including evidence presented at trial, between August 13, 2013 and August 21, 2014, Becker and various accomplices robbed four convenience stores catering to Latin communities in Stuart and Vero Beach, Florida and Lexington, Kentucky. Additionally, Becker and an accomplice robbed a cash exchange business in Orlando, Florida. On all five occasions, a disguised gunman entered the stores with a semi-automatic handgun and demanded money from the store clerks. For four of the five robberies, Becker served as the lookout and the driver of the vehicle used to flee from the crime scenes. During the robbery in Vero Beach, Florida Becker entered the store with the gunman and bound the store clerk before fleeing.
During the robbery in Lexington, Kentucky, during business hours, the gunman entered the Latin market and demanded money while pointing his semi-automatic handgun at multiple customers, including young children. The gunman fired two shots at employees. Shortly after the shots were fired, Becker drove to the location, picked up the gunman, and fled back to Florida.
Mr. Ferrer commended the investigative efforts of the FBI, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Indian River County Sheriff’s Office, Orange County Sheriff’s Office, and Lexington Police Department in Kentucky. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk and Special Assistant U.S. Attorney Ryan Butler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida Announces ResignationRead the Press Release
MIAMI – Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that that he will step down from his post on March 3, 2017. Mr. Ferrer tendered his resignation to President Donald J. Trump and Attorney General Jeff Sessions.
“There has been no greater honor than to serve and protect the same community that opened its arms to my parents when they immigrated to this country,” stated U.S. Attorney Ferrer. “For almost seven years, I have been blessed to work alongside the remarkable men and women in the U.S. Attorney’s Office, community leaders, and our federal, state and local law enforcement partners who strive tirelessly to combat crime and promote a safer, stronger and more united District. I am incredibly proud of all that we have been able to accomplish together, in and out of the courtroom, including building meaningful bonds of trust with the diverse community we serve.”
Ferrer was nominated by President Barack Obama and unanimously confirmed by the U.S. Senate in 2010 to serve as the chief federal law enforcement officer for the Southern District of Florida. In 2014, Ferrer was appointed by Attorney General Eric Holder to serve a two-year term on the Attorney General’s Advisory Committee (AGAC). In January 2016, Ferrer was reappointed to serve on the AGAC by Attorney General Loretta Lynch. Since his appointment as U.S. Attorney, Mr. Ferrer has led the nation’s third largest U.S. Attorney’s Office as a dedicated public servant.
During Mr. Ferrer’s tenure, the U.S. Attorney’s Office has indicted over 11,000 cases and charged more than 18,000 defendants for their participation in criminal activity impacting the Southern District of Florida and beyond. With some of the busiest litigators in the country, the Office consistently handles more trials than almost every other office. Since 2010, the Office has conducted almost 1,000 trials. In addition, the Office has seized, forfeited, and collected millions of dollars as part of its efforts to recover money and assets and seek restitution for crime victims. Between 2010-2016, the Office collected approximately $591 million in criminal and civil actions. During this same time period, the Office, working with partner agencies, has collected over $384 million in criminal and civil forfeitures. This is remarkable considering the Office’s annual budget is approximately $43 million.
Protecting Our Nation’s Security
From the outset of his appointment as the District’s U.S. Attorney, Mr. Ferrer’s top priority has been prosecuting and deterring acts of terrorism.
- Since his creation of the Office’s National Security Section in 2013, there has been a threefold increase in the number of active national security cases prosecuted by the Office.
- In support of the National Security mission, Mr. Ferrer created the Department’s First National Security Intelligence Unit at a District level to provide crucial, real time support to time sensitive national security, transnational organized crime and international narcotics matters.
In addition, National Security prosecutors:
- Convicted a man who conspired to raise funds and send them abroad in support of the Pakistani Taliban;
- Convicted a South Florida resident who attempted to use a weapon of mass destruction on a public beach and provide material support to a terrorist organization;
- Obtained lengthy prison sentences against two terror group operatives who conspired and attempted to raise funds and recruits for the al-Qaeda group in Somalia and an affiliate in Syria;
- Secured the maximum statutory sentences for two South Florida brothers who were working to stage a terrorist attack in New York;
- Disrupted a significant number of home grown violent extremists inspired by terror groups to try to carry out terror attacks; and
- Charged the individual alleged to have killed five people and wounded others at Fort Lauderdale-Hollywood International Airport with federal offenses that authorize penalties up to and including the death penalty.
Combatting Fraud
Throughout Mr. Ferrer’s tenure, he focused on the broad range of evolving financial crimes that plague the district, including health care fraud, identity theft, complex investment and securities frauds, Ponzi schemes, boiler room operations, bank fraud, corporate fraud, broad-scale mortgage fraud, computer fraud, tax fraud, unemployment insurance fraud, and bankruptcy fraud.
Health Care Fraud – Since 2010, the Office has been a nationwide leader in health care fraud prosecutions, charging 658 health care fraud cases and 1,230 defendants. In 2016, the Office was part of a multi-district team that charged the largest single criminal health care fraud case ever brought against individuals by the Department of Justice (DOJ).
Identity Theft Schemes - In 2012, Mr. Ferrer created the South Florida Identity Theft Strike Force to aggressively attack rampant identity tax refund fraud in the district. This collective law enforcement initiative evolved into a permanent Stolen Fraud (SIF) Strike Force to combat the multi-faceted criminal enterprises that use stolen personal identifying information to commit other crimes. Since the inception of the Strike Force, the U.S. Attorney’s Office has charged more than 600 defendants responsible for over $400 million in intended losses.
Diverse Financial Fraud Schemes – The Office has also been a leader in financial fraud prosecutions. The Office’s prosecutions and recoveries included:
- Full restitution to the defrauded investors of a $1.2 billion Ponzi scheme led by defendant and former high profile civil attorney Scott Rothstein;
- A 40-year prison sentence and over $300 million forfeiture judgment against the orchestrator of a $300 million-dollar fraud scheme involving the sales of vacation rental units;
- The conviction of the owner of a for profit college that orchestrated a scheme to defraud federal loan programs of $25 million;
- A sentence of more than 5 years in prison for the former mayor of North Miami following her conviction at trial for orchestrating an $8 million mortgage fraud scheme; and
- The first extradition of a Jamaican national for his role in a lottery scam targeting senior citizens in the U.S.
In addition, the Southern District is the only Office with an Environmental Crimes Unit outside of Main Justice that investigates and prosecutes criminal violations of environmental and wildlife protection laws. During Mr. Ferrer’s tenure, the Unit has:
- Obtained the largest-ever criminal penalty against a company for deliberate pollution by a seagoing vessel;
- Prosecuted corporations and individuals that violated hazardous material guidelines and illegally applied pesticides resulting in injuries to a child; and
- Convicted individuals who filed approximately $1.5 million in fraudulent reimbursement claims related to the Deepwater Horizon explosion.
Fighting Public Corruption and Civil Rights Violations
Mr. Ferrer’s commitment to holding those accountable who fail to uphold their duties and betray the public trust and deprive our citizens of the equal protections they deserve is unwavering. A few noteworthy examples of the Office’s support of this commitment include:
- Criminal convictions related to the Opa-Locka corruption investigation;
- Over 160 individuals were convicted in corruption cases, including 33 federal officials, 22 state officials, 66 local officials, and 39 private citizens;
- The conviction of local officials included more than 30 police officers on corruption and/or civil rights charges;
- The criminal conviction of the former Mayor of the City of Sweetwater for using his elected position to facilitate a fraud scheme;
- Settlements and consent decrees with the Davie Fire Department and Palm Beach County School Board to resolve allegations of employment discrimination due to pregnancy; and
- In 2016, the Office, in conjunction with the Department of Justice, negotiated a comprehensive settlement agreement with the City of Miami and the Miami Police Department (MPD) following findings of excessive use of force through officer involved shootings. Under the terms of the settlement, MPD committed to comprehensive reforms to ensure constitutional policing and support public trust.
Thwarting Narcotics Trafficking
Mr. Ferrer increased the Office’s commitment to the prosecution of international drug traffickers and money launderers. In support of this mission, the Office:
- Created the first-in-the-nation BACRIM prosecution unit to combat the leaders and associates of Colombia’s largest and most influential criminal drug trafficking group. Since the unit’s inception, the Office has filed charges against hundreds of defendants associated with the BACRIMs. In addition, Mr. Ferrer became the first U.S. Attorney in history to travel to Colombia, where he met on two occasions with the nation’s president to support and encourage our collective enforcement efforts;
- Created the nation’s first Caribbean Basin initiative to tackle maritime narco-trafficking into the U.S., from that region. The Office has charged hundreds of defendants under this initiative. Between June and November of 2016, the Office, working with its federal law enforcement partners, brought criminal prosecutions based on the interception of over 20 metric tons of cocaine on the high seas;
- Obtained a 150-year prison sentence and $14 million forfeiture judgment against the head of an international narcotics trafficking and money laundering syndicate out of Madrid, Spain; and
- Continues to participate in the extradition and prosecution of alleged international drug traffickers and money launders, including the first extradition from Honduras, Joaquin Guzman Loera (“El Chapo”) from Mexico, and Guy Philippe from Haiti.
The Office also waged a battle against the scourges of pill mills, synthetic drugs, heroin, opiates, and performance enhancing drugs. As a result, the Office:
- Obtained the district’s first federal conviction for unlawful distribution of a controlled substance, Fentanyl, which resulted in death;
- Exposed the illegal pipeline of black market suppliers of performance enhancing drugs to professional athletes during the Biogenesis investigation;
- Thwarted the oxycodone crisis with the crack-down on “pill mills;” and
- Convened a Town Hall, with more than 100 concerned community attendees, to confront the heroin crisis.
Protecting Vulnerable Victims - Human Tracking and Child Exploitation
During Mr. Ferrer’s tenure, the Office continued its dedication to the protection of the most vulnerable members of society. As part of that commitment, the Office:
- Prosecuted over 84 offenders in 50 human trafficking cases;
- Obtained life sentences for two defendants convicted in the district’s first sex trafficking by fraud prosecution and successfully prosecuted the first sex trafficking case in the country based on extraterritorial jurisdiction; and
- Convicted traffickers and abusers who used deception to lure unsuspecting foreign university students into prostitution, preyed on minors in shelters and orphanages, used “sextortion” to induce teenage boys to send sexually explicit photographs and videos, and employed forced labor practices against farm workers.
A Commitment to Violence Reduction
Concerned with the rising tide of violence in our communities, particularly youth gun violence, in 2011, Mr. Ferrer created the Violence Reduction Partnership (VRP), a community-based, holistic, approach to violence reduction that focuses on enforcement, prevention, and the successful reentry of returning citizens into South Florida neighborhoods. The blueprint for the VRP consists of the simultaneous, vigorous pursuit of three prongs:
First Prong-Enforcement: Prosecutors are assigned to specific “hot spot” communities plagued by violence. Between 2011 and 2016, AUSAs filed more than 1,500 cases, involving firearms and violent crime, against more than 1,400 defendants. In addition, the Office:
- Convicted eight defendants charged for their participation in a large-scale armed drug trafficking operation that resulted in the seizure of body armor and assault rifles;
- Convicted the killers of a U.S. Postal Service letter carrier; and
- Prosecuted countless members and associates of the Latin Kings and other neighborhood violent-crime squads.
Second Prong – Prevention: U.S. Attorney Ferrer implemented an array of VRP initiatives that strive to prevent crime in violence plagued communities through mentorship, exposure to positive role models and early literacy development.
- Through the Pre-K Reading Program, Office staff partner with City Year Miami, local attorneys, law enforcement officers/agents, judges, and community volunteers to read to more than 1,200 students a month, in 23 district schools. Each child is given a free book at the end of the program. For many, this is the first book they have ever owned. In total, more than 11,000 books have been distributed to area students.
- Since 2013, the U.S. Attorney’s Office has also invited more than 2,500 students from 45 local schools to meet with prosecutors, inmates and courthouse staff to learn about the importance of making smarter choices in their lives.
Third Prong – Successful Reentry: The Office is committed to reducing recidivism by helping formerly incarcerated individuals successfully reintegrate and contribute to their communities. Reentry initiatives include:
- The Southern District of Florida’s first ever federal Reentry Court, the Court-Assisted Re-Entry (CARE) Initiative, a product of extensive collaboration between the U.S. Attorney’s Office, our U.S. District Court, U.S. Probation, the Federal Public Defender’s Office and others; and
- Reentry and Resource (“in-reach”) Meetings at the local and federal penal institutions that are led by Office representatives and have connected more than 2,000 inmates with much needed social services.
Community Outreach and Policing
Mr. Ferrer has also been an invaluable partner in the district’s efforts to improve relationships between law enforcement and the people they serve. As part of that effort:
- In 2016, during her Community Policing Tour, Attorney General Lynch attended a youth town hall in Miami-Dade and met with officers and students selected for the Peace Ambassadors’ Leadership Program, a pilot program supported by the U.S. Attorney’s Office that encourages students in high-crime communities to be "change agents" - to speak out against violence to their family and peers;
- Since 2015, the U.S. Attorney’s Office has partnered with the Miami-Dade Police Department (MDPD) to support monthly community resource fairs and food distribution events that have provided over 156 tons of free food and reached over 10,500 area residents; and
- Mr. Ferrer has also met directly with leaders and concerned members of the district’s diverse civic, faith-based, academic and law enforcement communities at mosques, temples, churches, schools, police departments and community centers to open channels of communication.
Civil Division
Under Mr. Ferrer’s leadership, Civil Division AUSAs worked on massive civil fraud investigations involving egregious false claims and novel issues. Civil Division attorneys reached countless multi-million dollar settlements, including:
- A record settlement of more than $250 million with more than 500 hospitals to resolve False Claims Act allegations related to the implantation of cardiac devices;
- The largest settlement ever against skilled nursing facilities nationally, $17 million, to resolve kickback allegations; and
- Walgreens agreed to pay a record settlement of $80 million for civil penalties under the Controlled Substances Act.
Appellate Division
The Office has one of the premier Appellate Divisions in the Department of Justice. During Mr. Ferrer’s tenure, the Appellate Division has won significant cases (in published and unpublished decisions), including several that decided issues of first impression. The Division has:
- Successfully argued before the Eleventh Circuit that the statute giving extraterritorial effect to the crime of sex trafficking by force, fraud, or coercion was a constitutional exercise of Congress's authority under the Foreign Commerce Clause; and
- Obtained en banc review of, and the overturning of an adverse panel decision that rendered unconstitutional subsection (d) of the Stored Communications Act, 18 U.S.C. § 2703(d), which permits a federal of state governmental entity to obtain historical cell site information from a telephone service provider without a warrant, in certain circumstances. After full en banc briefing and argument, Appellate Division AUSAs convinced the Eleventh Circuit that the Act did not violate the Fourth Amendment.
Two Miami-Dade Women Charged in Connection with Their Operation of a Spa Performing Illicit Silicone InjectionsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Justin Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), announced the arrest today of Maribel Jimenez and Magaly Del Rosario, both Miami-Dade residents, on charges contained in a twenty-count federal indictment.
According to allegations contained in the indictment:
Jimenez and Del Rosario are charged with conspiring, from 2008 through August 2015, to receive and deliver an adulterated and misbranded medical device in connection with their unlawful receipt and use of silicone smuggled into the U.S. from Colombia and eventually injected into hundreds of clients seeking augmentation of their buttocks, as well as their administration of injections of misbranded prescription drugs, including lidocaine and Botox, at Bella Beauty Spa (“Bella Beauty”), a business owned by Jimenez, located at 8360 West Flagler Street, Miami, Florida (Count 1). The defendants are also charged with conspiring to commit wire and mail fraud arising from their fraudulent misrepresentations to these same clients regarding the true nature of the substance which would be utilized in the clients’ buttocks injections and concealing the fact that the injected substance was, in fact, health-threatening silicone (Count 2). In addition, the defendants are charged with delivery for pay of a misbranded and adulterated medical device with intent to defraud and mislead (Counts 3-9). Jimenez is also charged with smuggling offenses (Counts 10-14) and false statement offenses (Counts 15-20).
Jimenez, with assistance from Del Rosario, a manager of Bella Beauty, administered deep tissue buttock injections of substantial quantities of silicone, an adulterated medical device when used and intended to be used in this manner, to hundreds of Bella Beauty clients.
The silicone which was unlawfully injected into Bella Beauty clients was clandestinely smuggled into the United States by Jimenez and co-conspirators by means of approximately 170 separate DHL air carrier shipments. To avoid the scrutiny of Customs and Border Protection, upon importation into the United States, each bottle contained false labelling stating in Spanish that the contents consisted of “Depilatory Wax” and alleged instructions on how to apply this purported rosin-based substance in a manner consistent with hair removal.
After the injections, Jimenez had been informed by a number of Bella Beauty Spa clients that they were experiencing adverse health related symptoms. Jimenez and Del Rosario failed to advise the clients that silicone had been injected into their bodies. The defendants also intentionally concealed the potential health consequences arising from the injection of silicone into their clients’ bodies.
Attorney Ferrer stated, “Criminal conduct that poses a significant health risk to the general public is of grave concern to the U.S. Attorney’s Office. Federal prosecutors and our law enforcement allies are committed to disrupting illicit operations that hold themselves out to be legitimate medical facilities while endangering lives for profit. To best protect yourself, individuals who are considering body augmentation should do their due diligence to ensure that the procedures are performed by reputable persons and do not contain hazardous materials.”
“Serious harm, including death, can occur when individuals have liquid silicone or other substances injected into their buttocks to increase their size. The FDA has not approved liquid silicone or other injectable substances to increase the size of the buttocks,” said Justin D. Green, Special Agent in Charge, FDA-OCI Miami. “Our office will continue to pursue and bring to justice those who offer this hazardous procedure to the public.”
“The suspects in this investigation put their own financial enrichment well above the health and safety of the hundreds of people who trusted them,” said Mark Selby, Special Agent in Charge of HSI Miami. "At HSI we will continue to work with our federal, international and local law enforcement partners to put an end to this dangerous practice."
Defendants Jimenez and Del Rosario appeared in court today for their initial hearings. Jimenez is scheduled for a pre-trial detention hearing on Friday, February 17, 2017.
Individual clients of Bella Beauty Spa who have undergone buttocks injection procedures, regardless of how far in the past, are urged to contact [email protected] in order to receive additional information, address individual concerns, and to receive information concerning their status and rights as potential victims.
An indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are presumed innocent until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of each of FDA, MDPD and ICE-HSI. Mr. Ferrer thanked Christopher D. Maston, Port Director for Miami International Airport, U.S. Customs and Border Protection (CBP), Luis Sierra, Country Attaché HSI Andean Region, HSI International Operations, and the Colombian National Police for their assistance with the investigation. This case is being handled by Assistant U.S. Attorneys Peter Outerbridge and Brooke Watson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident is Sentenced to Prison in Connection with Jamaica Based Lottery ScamRead the Press Release
Julius Lorenzo George Jackson, 32, of Palm Beach County, was sentenced to eighteen months’ imprisonment by U.S. District Judge William J. Zloch for his role in a Jamaica-based fraudulent lottery scheme. Jackson previously pleaded guilty to one count of conspiracy to commit mail and wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Antonio J. Gomez, Postal Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
According to court documents, including the criminal information and factual proffer, individuals throughout the United States were contacted and falsely informed that they had won millions of dollars in a lottery. The victims were persuaded to pay bogus fees of several hundred to several thousand dollars in order to collect their purported lottery winnings. During the course of the lottery scheme, Jackson would receive money from the victims, either directly into his bank account or through a wire transfer of funds. Jackson would keep a portion of the victims’ money and would wire transfer the remaining portion to a co-conspirator in Jamaica.
Mr. Ferrer commended the investigative efforts of USPIS and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani
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 Convicted for Being a Felon in Possession of a Firearm After Shooting A Man Outside A Miami Gardens’ Convenience StoreRead the Press Release
Following a three-day jury trial, a Miami-Dade resident pled guilty in federal court to being a felon in possession of a firearm after shooting a man in front of a convenience store in Miami Gardens.
Wifredo A. Ferrer, 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, pled guilty before U.S. District Judge Donald L. Graham for being a felon in possession of a firearm. Bell faces a statutory mandatory minimum sentence of fifteen years in prison if determined to be an armed career criminal. Sentencing is scheduled for April 20, 2017 at 10:30 a.m. before U.S. District Judge Donald L. Graham.
According to the court record, including evidence presented during the trial, 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. Ferrer thanked the Miami-Dade State Attorney’s Office for their assistance. Mr. Ferrer 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.
Plantation Physician and Physician Practice to Pay $750,000 to Resolve False Claims Act Allegations Involving Medically Unnecessary Sinus and Throat ProceduresRead the Press Release
Dr. Paul B. Tartell, an ENT physician practicing in Plantation, Florida and his practice Paul B. Tartell, M.D., P.L., have agreed to pay $750,000 to resolve allegations that he violated the False Claims Act by billing for surgical endoscopies with debridement and laryngeal stroboscopies that were not provided or not medically necessary.
Wifredo A. Ferrer, 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), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Scott Rezendes, Special Agent in Charge, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement today.
“We remain deeply committed to holding individual health care providers accountable for exploiting federal health care programs,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “Physicians who bill for unnecessary services and services that were never provided put their own desire for personal profit ahead of their oath to provide safe and essential patient care. Doctors engaged in this conduct violate their patients’ trust and deprive federal health care programs of resources intended to provide care for the elderly, sick, and impoverished.”
The settlement announced today resolves allegations originally brought by Theodore Duay, a former patient of Dr. Tartell. Mr. Duay filed a complaint under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government and receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigation. Mr. Duay will receive $135,000.
Mr. Duay alleged that Dr. Tartell routinely performs diagnostic endoscopies on patients but bills these diagnostic procedures as more expensive and intrusive surgical debridements. Surgical debridements are a specialized procedure frequently performed following sinus surgery involving the transnasal insertion of an endoscope and parallel insertion of various instruments to remove postsurgical crusting, bone or tissue deposits. It may also be used to remove crusts and debris in patients with longstanding chronic sinusitis who have undergone surgery in the past.
In addition to the allegations regarding surgical debridements, the settlement also resolves the United States’ allegations that Dr. Tartell systematically billed federal health benefit programs, in particular, Medicare and the Federal Employment Health Benefits Program, for claims arising from laryngeal video stroboscopies that were not performed or were not medically necessary.
“When physicians and their practices bill for services not provided or not medically necessary it undermines the public’s trust in medical institutions and the financial integrity of federal health care programs,” said Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services Office of Inspector General. “Our agents and lawyers will aggressively pursue those who exploit taxpayers, patients, and government health programs.”
“This case demonstrates the FBI’s commitment to use all legal means available, including the False Claims Act, to pursue individuals who compromise the federal health care system for their own profit,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and our law enforcement partners are committed to investigating fraud schemes that divert taxpayer dollars away from those in need of care.”
“Today’s settlement is a reminder that fraud against the Federal Employees Health Benefits Program will not be tolerated,” said OPM Special Agent in Charge Rezendes. “I would like to thank the OPM OIG criminal investigators and our law enforcement partners for their fine work in protecting not only the health and wellbeing of FEHBP enrollees, but also the financial integrity of the program.”
The investigation of Dr. Tartell reflects a coordinated effort among the U.S. Attorney’s Office for the Southern District of Florida, the Department of Health and Human Services’ Office of Inspector General, the Federal Bureau of Investigation, and the United States Office of Personnel Management Office of the Inspector General along with the Florida Blue Special Investigative Unit. The investigation and settlement were handled by Assistant United States Attorney Jessica E. Elliott.
The case is captioned United States ex rel. Duay v. Paul B. Tartell, M.D. et al., No. 14-23954-Civ-Altonaga (S.D. Fla.). The claims settled by the lawsuit are allegations only and there has been no determination of liability.
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.
Seventeen Individuals Indicted for Mortgage Fraud SchemeRead the Press Release
Seventeen individuals have been charged in a 17-count indictment with conspiracy to commit bank fraud and various substantive bank fraud offenses, in violation of Title 18, United States Code, Sections 1349 and 1344.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agent, Office of Inspector General (FHFA-OIG), Southeast Region, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Division, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
The following defendants are charged in the indictment:
- Miguel Soto, Jr., 46, of Miami, Florida;
- Hector Raul Santana, 38, of Miami Lakes, Florida;
- Miguel Faraldo, 52, of Miami, Florida;
- Barbara E. Zas, 46, of Miami, Florida;
- Maria Rosa Diaz, 45, of Miami Springs, Florida;
- Heberto Elias Gamboa, 31, of Miami, Florida;
- Michael Jose Gonzalez, 31, of Miami, Florida;
- Jenny Nillo, 50, of Miami, Florida;
- Jaime Jesus Sola Avila, 59, of Miami, Florida;
- Jorge Angel Sola, 31, of Miami, Florida;
- Emily Marie Echavarria, 50, of Miami, Florida;
- Eduardo Cruz Toledo, 50, of Miami, Florida;
- Yanet Huet, 44, of Miami, Florida;
- Carlos Mesa, Jr., 36, of St. Petersburg, Florida;
- Yipsy Rabelo Clavelo, 45, of Pompano Beach, Florida;
- Jose Salazar, 49, of Miami, Florida; and
- Cynthia Velasquez, 39, of Miami, Florida.
According to allegations contained in the indictment:
During 2007 and 2008, the defendants conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders.
The defendants conspired to fraudulently obtain mortgage loans for unqualified buyers of units in two condominium projects on the west coast of Florida: Portofino at Largo, also known as Indian Palms, in Largo, Florida; and Bayshore Landing, in Tampa, Florida.
Miguel Soto, Jr. was the acting manager of two Florida companies that sold the condominium units to the unqualified buyers: Indian Palms Holdings, LLC, and 5221 Bayshore, LLC. Hector Raul Santana served as the Director of Sales for Indian Palms Holdings, LLC.
Maria Rosa Diaz was the president of Crisvan Investment Group, Inc., a Miami-based mortgage broker business that prepared and submitted the unqualified buyers’ fraudulent loan applications and supporting documents to the lenders.
Miguel Faraldo, Jenny Nillo, Jorge Angel Sola, and Heberto Elias Gamboa operated “marketing companies” that were used to launder the fraudulently obtained loan proceeds and perpetuate the fraud scheme. In particular, Faraldo operated All Florida Marketing, Inc., Nillo and Jorge Sola operated One Stop Consulting Solutions, Inc., and Gamboa operated HHWC Management Group, Inc.
Soto, Santana, Faraldo, Zas, Diaz, Nillo, Jaime Sola, Emily Echavarria, Eduardo Cruz Toledo, and other co-conspirators recruited unqualified buyers to purchase units in Portofino at Largo and Bayshore Landing. These unqualified buyers included Michael Gonzalez, Yanet Huet, Carlos Mesa, Jr., Yipsy Rabelo Clavelo, Jose Salazar, Jorge Sola, and Cynthia Velasquez.
Soto, Santana, Faraldo, Zas, Diaz, Nillo, Jaime Sola, Echavarria, Cruz, and other co-conspirators, made fraudulent statements to unqualified buyers to induce their purchases.
The defendants submitted fraudulent loan applications to induce the lenders to make mortgage loans to the unqualified buyers. The submitted loan applications contained false and fraudulent statements relating to: the borrower’s occupation of, or intent to occupy, the mortgaged property as a residence; the borrower’s employment, income, and assets; the borrower’s liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; the sellers’ payment of kick-backs to the borrowers; and other information that was material to the borrower’s qualifications to borrow money from the lenders and the values of the mortgage properties.
Miguel Soto, Jr., Hector Santana, Maria Diaz and their co-conspirators agreed to submit the unqualified buyers’ fraudulent mortgage loan applications to the lenders through certain mortgage broker firms, including Diaz’s company, Crisvan Investment Group, Inc.
Miguel Soto, Jr. and Hector Santana agreed with one another, and with other co-conspirators, that the settlement agents for the purchase transactions would disburse mortgage loan proceeds for the purchase of condominium units in Portofino at Largo and Bayside Landing, even though the borrowers would not pay the earnest the money deposits and/or cash-to-close required by their loan applications and HUD-1 Settlement Statements.
Miguel Soto, Jr. and Hector Santana agreed with Miguel Faraldo, Jenny Nillo, Jorge Sola, and Heberto Gamboa, and with other co-conspirators, that the settlement agents would use some of the proceeds from certain of the fraudulently obtained mortgage loans to pay a fictitious “marketing fee” to one of the “marketing companies.” Faraldo, Nillo, Sola, and Gamboa would then cause their companies to pay some of those funds to the unqualified buyers as an undisclosed kick-back for buying their units.
If convicted, the defendants face a statutory maximum term of 30 years’ imprisonment, a $1 million fine, and mandatory restitution, on each count in the indictment.
Mr. Ferrer commends the investigative efforts of the FHFA-OIG, FBI and MDPD. The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.
An indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are 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.
Palm Beach Resident Sentenced to More than 6 Years in Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Palm Beach resident was sentenced to 74 months in prison, to be followed by three years of supervised release for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, 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.
Raphael Oswald, a/k/a Mackenson R. Olibrice, 37, of Rivera Beach, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of theft of public money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, in August 2013, law enforcement began investigating Oswald for identity theft charges related to his use of the stolen identity of a woman to purchase and finance a 2006 Porsche and BMW X-5 in New York. Specifically, the defendant walked into two separate car dealerships and presented a fraudulent passport and fraudulent Florida driver’s license in the name of the woman but bearing Oswald’s photo.
During the course of the initial identity theft investigation, a separate tax refund fraud scheme involving Oswald was discovered. Oswald possessed and used stolen personal identifying information of numerous individuals, and used the information to file fraudulent tax returns and collect tax refunds in the name of those individuals. More than one hundred fraudulent federal tax returns were filed, and the fraudulent refunds totaling $139,308 were directed into bank accounts in the name of Oswald’s company. Oswald then made a series of cash withdrawals and made several purchases for personal items from the bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Dr. Gary Marder and the United States Consent to a Final Judgement of over $18 Million to Settle False Claims Act AllegationsRead the Press Release
Gary L. Marder, D.O., a physician residing in Palm Beach County and the owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, and the United States of America have stipulated to a consent final judgment of over $18 million to settle False Claims Act allegations against Dr. Marder. Co-defendant, Robert I. Kendall, M.D., a physician practicing in Coral Gables, has also agreed to pay the United States $250,000 to settle allegations that he violated the False Claims Act.
Wifredo A. Ferrer, 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), Miami Region, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, made the announcement.
The allegations arose from a qui tam lawsuit filed by whistleblower, Theodore A. Schiff, M.D., alleging that Dr. Marder knowingly submitted claims to federal healthcare programs for medically unnecessary biopsies and radiation therapy services, radiation therapy services performed in contravention of standard practice regarding the amount of time between radiation treatments, and radiation therapy services performed without direct supervision and by unlicensed and/or unqualified physician assistants. The lawsuit further alleged that Dr. Kendall submitted false claims to federal and state healthcare programs for laboratory services tainted by kickbacks to, and improper financial relationships with, Dr. Marder. The United States intervened in the Civil Action on October 14, 2014, and filed its Complaint in Intervention on November 19, 2014.
In September 2016, the Court granted summary judgment in favor of the United States with respect to several key issues in the case, finding that Dr. Marder knowingly submitted false claims to Medicare by requesting reimbursement for services that he never actually performed or directly supervised due to his frequent absence from his medical clinics (including expansive periods of foreign travel) on days corresponding to over fifty percent of the payments that Dr. Marder received from Medicare. The Court further found that all Dr. Marder’s claims for medical physicist services submitted to Medicare since 2011 were false, and that Dr. Marder had actual knowledge that a physicist did not perform the corresponding services. The Court made no determination of liability against Dr. Kendall in this matter.
“Today’s settlement demonstrates this Office’s ongoing commitment to hold accountable healthcare providers who receive reimbursements from government-sponsored healthcare programs for services that are never actually performed. This conduct results in significantly increased costs to the federal government and others,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida.
“Doctors who are more concerned with boosting their profits at the expense of taxpayer-funded health care programs than they are with patient safety will be held accountable,” said Shimon R. Richmond, HHS-OIG Miami Special Agent in Charge. “Working with our law enforcement partners, we will continue to protect the integrity of federal health care programs and the patients served by those programs.”
"This settlement highlights the commitment of DCIS and its law enforcement partners to protect the integrity of TRICARE, the Department of Defense health care program serving our warfighters, their family members, and military retirees," said Special Agent in Charge John F. Khin of DCIS Southeast Field Office. "Health care providers who seek financial gain through false claims and irresponsible treatment of their patients, will be diligently investigated and held accountable for their actions."
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Southern District of Florida, HHS-OIG, DCIS, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG) and the Federal Bureau of Investigation (FBI). The case was investigated and the settlement negotiated by Assistant U.S. Attorney’s Mark Lavine and John Spaccarotella.
The case is captioned United States of America and the State of Florida ex rel. Theodore A. Schiff, M.D. v. Gary L. Marder, D.O., Allergy, Dermatology & Skin Cancer Center, Inc., Megan Bock, P.A., Martin Burke, P.A., Robert I. Kendall, M.D., and Kendall Medical Laboratory, Inc., Case No. 1:13-cv-24503-KMM (S.D. Fla.). The claims asserted against Dr. Marder and Dr. Kendall are merely allegations.
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 Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice.
Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney Wifredo A. Ferrer 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 in order to steal their money, in violation of the motorists’ 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.
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers,” said U.S. Attorney Ferrer.
“This officer's abuse of authority will not be tolerated,” said Special Agent in Charge Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by 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.Miami-Dade Police Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice. Kostopoulos is scheduled to be sentenced before United States District Judge Marcia G. Cooke, in Miami, on April 19, 2017 at 9:30 a.m.
United States Attorney for the Southern District of Florida Wifredo A. Ferrer, Acting Assistant Attorney General Thomas 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 in order to steal their money, in violation of the motorists’ 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.
U.S. Attorney Ferrer said, “The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers.”
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“This officer's abuse of authority will not be tolerated,” said FBI Special Agent in Charge George L. Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by 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.
Miami-Dade Police Detective Convicted of Civil Rights Offenses for Stealing Property from Motorists and Obstructing JusticeRead the Press Release
The Justice Department announced today that a federal jury convicted former Miami-Dade Police Detective William Kostopoulos, 49, with using his law enforcement authority to violate the civil rights of two motorists as well as obstructing justice. Kostopoulos is scheduled to be sentenced before United States District Judge Marcia G. Cooke, in Miami, on April 19, 2017 at 9:30 a.m.
United States Attorney for the Southern District of Florida Wifredo A. Ferrer, Acting Assistant Attorney General Thomas 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 in order to steal their money, in violation of the motorists’ 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.
U.S. Attorney Ferrer said, “The U.S. Attorney’s Office, the Department of Justice and the FBI stand committed to holding those who betray the public trust accountable for their criminal actions, while supporting the overwhelming majority of men and women who proudly uphold their duties to serve and protect the community as law-abiding police officers.”
“The defendant abused the power granted to him as a law enforcement officer to prey upon unsuspecting motorists for personal gain and then lied about his criminal actions to investigating detectives,” said Acting Assistant Attorney General Thomas Wheeler of the Justice Department’s Civil Rights Division. “He violated not only the law, but also the public trust.”
“This officer's abuse of authority will not be tolerated,” said FBI Special Agent in Charge George L. Piro. “His actions do not represent all other law enforcement officers who are diligent, hard working professionals.”
Kostopoulos faces a statutory maximum sentence of 22 years in prison on these charges. Sentencing is scheduled for April 19 before U.S. District Court Judge Marcia G. Cooke in Miami, Florida.
This case was investigated by the FBI, with assistance from the Homestead Police Department and the Miami-Dade Police Department. The matter is being prosecuted by 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.
New York Resident Charged in South Florida with Conspiracy to Distribute and Attempted Possession with the Intent to Distribute CocaineRead the Press Release
A New York resident has been charged in Broward County, Florida for conspiring to possess with the intent to distribute and attempting to possess with the intent to distribute, cocaine.
Wifredo A. Ferrer, 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), Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection (CBP), Miami Field Office, and made the announcement.
Siffredo Gonzalez, 39, of New York, is charged in a two-count indictment with conspiracy to possess a controlled substance with the intent to distribute and attempting to possess a controlled substance with the intent to distribute. If convicted, Gonzalez faces a minimum mandatory sentence of ten years and a maximum statutory sentence of life imprisonment on each count.
According to court documents, including the criminal complaint and indictment, on December 15, 2016, Customs and Border Protection officers located approximately 83 kilograms of cocaine in a shipping container at Port Everglades. The container, which also held avocados, originated in the Dominican Republic. On January 10, 2017, Siffredo Gonzalez is alleged to have met with an undercover agent and paid him $25,000 to return the interdicted cocaine.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, Broward County Sheriff’s Office and CBP. The case is being prosecuted by Assistant U.S. Attorney Anita White.
An indictment and a criminal complaint are formal charging documents notifying the defendant of the charges. All persons charged by indictment and/or complaint are 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.
United States Files Enforcement Action Against Florida Company and Senior Managers to Stop the Adulteration and Misbranding of Medicated Animal FeedsRead the Press Release
A civil complaint was filed in the U.S. District Court for the Southern District of Florida 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 to stop the adulteration and misbranding of medicated animal feed in violation of the federal Food, Drug, and Cosmetic Act (FDCA), the Department of Justice announced today.
Syfrett Feed Company Inc. (Syfrett Feed) manufactures and distributes medicated and non-medicated feed, primarily for food-producing animals and fowl. The complaint alleges that the defendants adulterated and misbranded animal feeds while such feeds were held for sale. The Department filed the complaint at the request of the U.S. Food and Drug Administration (FDA).
“The Food, Drug, and Cosmetic Act is designed to make sure that medicated animal feed has sufficient labeling to ensure its safe use,” said Acting Assistant Attorney General Chad A. Readler, head of the Justice Department’s Civil Division. “The Department of Justice will work closely with the FDA to ensure that medicated animal feeds are manufactured in compliance with current good manufacturing practices.”
According to the complaint, the company’s medicated animal feeds failed to list the name of the active drug ingredients on the label of the medicated animal feeds and failed to include adequate instructions for use on the labels of the medicated animal feeds. For example, as noted in the complaint, the defendants did not include adequate instructions when they omitted dose administration instructions, feeding limitations and/or cautionary statements for use of the drugs in combination with other drugs on the label of the medicated feeds.
The complaint further alleges that the feed was not manufactured in conformity with current good manufacturing practices for medicated feeds. Specifically, according to the complaint, 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; failed to establish and use adequate procedures for all equipment used in the production and distribution of medicated feeds to avoid unsafe contamination of medicated and non-medicated feeds; and failed to adopt labeling practices that assure that the correct labels are used for the medicated feeds they manufacture.
As noted in the complaint, the company conducted a recall of its non-medicated horse pellet food in April 2014 when customers complained that their horses were falling ill. According to the complaint, 15 horses had to be euthanized after consuming the company’s horse pellet food and in September 2014, two more horses had to be euthanized after consuming the company’s horse pellet food. Following these events, the company discontinued manufacturing medicated and non-medicated feeds for horses, according to the complaint.
According to the complaint, FDA conducted inspections of Syfrett Feed’s facility located at 3079 NW 8th Street, Okeechobee, Florida, in January 2014, June 2015 and June 2016. In 2014, following the inspection, FDA sent a Warning Letter to Mr. Syfrett I, notifying him of the significant current good manufacturing practices deviations and misbranding violations observed during the January 2014 inspection. In September 2015, FDA wrote to Mr. Syfrett I, stating that Syfrett Feed had not taken adequate measures to correct the current good manufacturing practice deviations and misbranding violations noted in FDA’s 2014 Warning Letter and 2015 inspection. According to the complaint, Syfrett Feed did not respond to FDA’s September 2015 letter.
“Animal owners and caretakers must be able to have confidence that the feed they purchase is safe and properly labeled,” said Steven M. Solomon, D.V.M., M.P.H., director of the FDA’s Center for Veterinary Medicine. “It is the responsibility of feed manufacturers to have proper procedures in place and follow good manufacturing practices to ensure the safety of their products and the animals that consume them.”
The government is represented 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 F DA, Office of General Counsel, Department of Health and Human Services.
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
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.
Seven Defendants Indicted in Multi-Million Health Care Fraud and Money Laundering Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Seven defendants including owners, doctors, a manager, and a laboratory representative of sober homes and alcohol and drug addiction treatment centers were charged for their participation in a health care fraud and money laundering scheme that involved the filing of fraudulent insurance claim forms and defrauded health care benefit programs.
Wifredo A. Ferrer, 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.
Kenneth Chatman, a/k/a “Kenny,” 46, of Boynton Beach, Joaquin Mendez, 52, of Miramar, Donald Willems, 40, of Weston, Fransesia Davis, a/k/a “Francine,”a/k/a “Francesa,” 44, of Lake Worth, Michael Bonds, 45, of Delray Beach, and Laura Chatman, 44, of Boynton Beach, are charged with one count of conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349, and one count of money laundering conspiracy, in violation of Title 18, United States Code, Section 1956(h). Stefan Gatt, 27, of Deerfield Beach, is charged with one count of conspiracy to commit health care fraud. Kenneth and Laura Chatman are also charged with seven counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(A)(i), three counts of money laundering in excess of $10,000, in violation of Title 18, United States Code, Section 1957, and two counts of making a false statement related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1). Joaquin Mendez, Fransesia Davis, and Michael Bonds are also charged with two counts of money laundering. Donald Willems is also charged with one count of money laundering. Kenneth Chatman and Davis are charged with one count of maintaining a drug-involved premises, in violation of Title 21, United States Code, Section 856(a)(2). Kenneth Chatman is charged with one count of sex trafficking conspiracy, in violation of Title 18, United States Code, Section 1594(c). The defendants have each been arraigned on the charges.
According to the indictment, 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, some of the defendants 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 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.
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.
If convicted, the defendants face a maximum statutory sentence of ten years in prison for the conspiracy to commit health care fraud and money laundering in excess of $10,000 charges; a maximum statutory sentence of twenty years in prison for the money laundering conspiracy, money laundering, and maintaining a drug-involved premises charges; and a maximum statutory sentence of five years in prison for making a false statement related to a health care matter. Kenneth Chatman faces a maximum statutory sentence of life in prison for the sex trafficking conspiracy charge. The indictment also seeks the forfeiture of more than $5.4 million that insurance companies paid based upon the fraudulent claims submitted by members of the conspiracy.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
Potential victims should call (561) 822-5114 or submit complaints through the IC3 Complaint Form - https://www.ic3.gov/complaint/default.aspx and use the key word “Chatman Reflections” in the “Description of the Incident” field when submitting complaints related to this case.
Ferrer 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.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced to Prison in Stolen Identity Tax Fraud SchemeRead the Press Release
Defendant’s mother, a postal employee, provided him with stolen tax refund checks from the mail
A Miami resident was sentenced to 24 months in prison, to be followed by four years of supervised release, for his participation in stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Rick Maglione, Chief, Fort Lauderdale Police Department, and Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
David Earl Tucker, 30, of Miami, previously pled guilty to one count of conspiracy to commit an offense against the United States, 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 l028A(a)(1).
According to court documents, during a traffic stop of a vehicle that Tucker was driving, the defendant presented law enforcement with a fake Texas driver's license in another person's name. Tucker was taken into custody, and a tax refund Treasury check in another individual’s name was found during an inventory search of the vehicle. Further investigation revealed that the tax refund check was stolen by a postal employee, Tara Marshea Tucker, 47, of Miami, the mother of David Tucker.
According to court records, Tara Tucker stole mail while in the performance of her duties as a postal employee. On separate occasions, Tara removed two tax refund Treasury checks and gave them to her son, David Tucker. Tara Tucker was supposed to receive a percentage of each check that she gave to her son. Tara Tucker improperly removed a total of 4 to 5 checks from the mail stream.
Tara Tucker previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371. On November 2, 2016, Tara Tucker was sentenced to 4 months in prison and 4 months of home confinement, to be followed by two years of supervised release.
The intended loss amount for the scheme was $12,139.16.
Mr. Ferrer commended the investigative efforts of IRS-CI, USPS-OIG, Fort Lauderdale Police Department and TIGTA. The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein, Ilham A. Hosseini and Anne P. McNamara.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Postal Carrier Convicted of Dumping MailRead the Press Release
A federal jury convicted a former U.S. postal carrier of delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was convicted by a federal jury yesterday of three counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). Caddle faces a maximum statutory sentence of five years in prison as to each count of conviction. Sentencing is scheduled for April 21, 2017 at 9:00 a.m. before U.S. District Judge James I. Cohn.
According to the court record, including trial testimony, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail from Caddle’s assigned mail route. The witness contacted U.S. postal authorities and alerted them to the mail that had been discovered in in the dumpster. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney’s Randy Katz and Jennifer A. Keene.
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 Department of Health Supervisor Sentenced to Prison for Accepting a BribeRead the Press Release
Florida Department of Health supervisor sentenced to prison for accepting a bribe.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announce that
Johnson, 58, of Tamarac, was sentenced yesterday to five months’ imprisonment by U.S. District Judge Daniel T. K. Hurley, after having previously pled guilty to extortion under color of official right, in violation of Title 18, United States Code, Section 1951.
On June 22, 2015, Johnson was employed as a supervisor at the Broward County office of the Florida Department of Health, in Fort Lauderdale, Florida. Two home builders met Johnson while he was working at the Florida Department of Health office and paid the defendant $500 in exchange for sewage and water permits.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney 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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Over 100 Defendants Charged in Government Impersonation, Fraud, and Theft Schemes Involving Tens of Thousands of Stolen Personal IdentitiesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Miami Field Office Juan P. Perez, Director, Miami Dade Police Department (MDPD), Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Miami Field Office (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG) announce the filing of federal charges against more than 100 defendants in 81 separate cases, dealing with over 30,000 stolen identities and the intended theft of over $60 million dollars from individuals, businesses and government agencies through fraudulent schemes.
In August 2012, the U.S. Attorney’s Office for the Southern District of Florida, with the collaboration of our federal, state and local law enforcement partners, established the South Florida Identity Theft Refund Fraud Strike Force (Strike Force) to combat an increase in stolen identity tax refund scams. The collective efforts of the Strike Force resulted in the successful prosecution of countless stolen identity tax refund cases. However, while the wave of these pernicious offenses subsided, evolving fraud schemes have spread across South Florida. No longer limited to stolen identity tax refund fraud, the Strike Force, now Stolen Identity Fraud (SIF) Strike Force is investigating and prosecuting a variety of cases stemming from stolen personal identifying information (PII). These cases include intrusion into proprietary government databases; theft of customer account information; takeovers by identity thieves of accounts as diverse as U.S. Social Security and unemployment benefits, retail credit card accounts, and bank accounts; and the use of skimmers to steal valuable PII. These cases demonstrate that law enforcement in general and the Strike Force in particular continue to adapt to meet this insidious identity theft threat.
Since the inception of the Strike Force in 2012, the U.S. Attorney’s Office has charged more than 600 defendants, who were responsible for over $400 million in intended losses.
“Law enforcement will not stand by as criminals attempt to disrupt our lives, steal our savings, ravage our credit, and compromise our government benefit programs through calculated and pervasive fraud schemes,” stated U.S. Attorney Wifredo A. Ferrer. “Today’s announcement demonstrates that the collective response by our federal, state, and local law enforcement partners has had a profound impact on protecting the community from identity theft.”
“I urge everyone to take steps to protect their personally identifiable information (PII) from criminals who seek illicit profits through stolen identity fraud,” said George L. Piro, Special Agent in Charge, FBI Miami. “Learn how you can protect your PII at FBI.GOV or FTC.GOV. The FBI and our partners continue to actively target these fraudsters who victimize hard-working taxpayers.”
Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), stated, “Today’s announcement reinforces law enforcement’s continued commitment to combat identity theft in South Florida. As an agency, the IRS has made remarkable progress in its efforts to protect taxpayers, and we are focused on strengthening our systems and processes even more for this 2017 tax season. I urge taxpayers to protect their personal information and remain vigilant when choosing a return preparer. Beware of return preparers who claim they can get you a ‘higher’ refund then another preparer and those that set their fee based on a percentage of your refund. Ultimately, the taxpayer is responsible for what is filed with the IRS, so choose wisely. IRS-CI will continue to investigate significant Stolen Identity Refund Fraud (SIRF) schemes and egregious tax return preparers, and will collaborate with other federal agencies and IRS civil divisions to stop these thieves in their tracks.”
“The DOL-OIG is committed to working with our Identity Theft Strike Force partners to combat identity theft in the Southern District of Florida and safeguard the Nation's Unemployment Insurance program for those who seek relief from the financial impact of being unemployed,” stated Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor, Office of Inspector General.
"The impersonation of IRS employees continues to represent a serious threat to taxpayers and to the integrity of tax administration,” said Timothy P. Camus, Deputy Inspector General for the Treasury Inspector General for Tax Administration (TIGTA). “We are extremely grateful to the U.S. Attorney’s Office in Miami and their counterparts around the country for their excellent teamwork, collaboration, and support of our efforts on such cases. As these cases show, TIGTA agents continue to relentlessly pursue investigations of individuals who engage in this fraudulent activity and aggressively refer them for criminal prosecution.”
“These arrests are a reflection of the success that comes when federal, state and local law enforcement agencies work together to target criminal organizations and individuals in South Florida,” said Mark Selby, Special Agent in Charge of HSI Miami. “At HSI we will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system and are often a gateway to further criminal activity.”
Antonio J. Gomez, Postal Inspector in Charge of the Miami Division stated, “The arrests of these individuals should serve as reassurance to our customers that the U.S. Postal Service remains one of the safest and securest ways of conducting both personal and private business and the U.S. Postal Inspection Service will stop at nothing to bring these criminals to account. Postal Inspectors will continue to partner with our federal and local law enforcement partners to aggressively investigate these types of crimes.”
Today’s Strike Force announcement reaffirms the collective joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes. The cases brought under the Strike Force operation, from October 2016 to the present day, include:
IRS IMPERSONATORS
United States v. Abhijeetsinh Jadeja and Rachel Jean Roragen, Case No. 17-CR-20085-Martinez
On January 27, 2017, Abhijeetsinh Jadeja, 29, of Miami, and, Rachel Jean Roragen, 41, of Miami Beach, were charged in a twelve-count indictment with conspiracy to commit wire fraud, possessing fifteen or more unauthorized access devices and aggravated identity theft.
to allegations contained in the indictment, between January 2014 and March 2016, Jadeja and Roragen’s co-conspirators impersonated officials from the IRS and other agencies during telephone calls in which they falsely represented to individual victims that they owed money to the IRS or fees on loans or grants. To satisfy their alleged debts, victims were fraudulently induced to send payments to bank accounts and debit cards under the control of Jadeja, Roragen and their conspirators.
Mr. Ferrer commends the investigative efforts of the TIGTA, ICE-HSI, IRS-CI, and the Miami Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Andre Oakley Wellington, Case No. 17-CR-60027-Dimitrouleas
On January 27, 2017, Andre Oakley Wellington, 37, of Coral Springs, was charged in a two-count indictment for participating in a conspiracy to commit mail fraud and mail fraud.
According to the allegations contained in the criminal complaint and indictment, beginning in July of 2016 and ending in January 2017, Wellington’s conspirators impersonated IRS employees during telephone calls in which they falsely represented to an individual victim that he/she owed money to the IRS. Wellington’s conspirators fraudulently induced the victim to send payments via private and commercial mail carriers to addresses located throughout the United States, in order to satisfy the alleged IRS debt. In addition, Wellington’s co-conspirators demanded that the victim send a package containing $25,000 to Wellington’s address in Coral Springs. The conspirators provided Wellington with the FedEx tracking number, which the defendant used to track the package’s arrival. The package was delivered to Wellington’s residence, and was then recovered by TIGTA Special Agents. In total, Wellington and his co-conspirators fraudulently obtained over $550,000 from the victim.
Mr. Ferrer commends the investigative efforts of TIGTA and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
TAX REFUND FRAUD
United States v. Silvio Galvez, Case No. 16-CR-20016-Middlebrooks
On January 20, 2017, Silvio Galvez, 30, of Miami, was arrested on a criminal complaint and is charged by indictment for his alleged involvement in a $50 million stolen identity refund fraud scheme involving the cashing of fraudulently obtained large-dollar tax refund checks. Galvez was charged with conspiracy to commit theft of government money, conspiracy to commit bank fraud, theft of government money, and aggravated identity theft.
to allegations in the criminal complaint, Galvez was a leader in a conspiracy involving the filing of over $50 million in large tax refund claims — each claim ranging from approximately $130,000 to $170,000 — in 2013 and 2014. These fraudulent refund requests were submitted to the IRS for payment using stolen identity information. The tax refunds contained the same set of repeated addresses, including the defendant’s address. The IRS paid out at least $4.3 million via U.S. Treasury checks mailed to the addresses listed on the returns. Galvez directed individuals to deposit these fraudulently obtained tax refunds and other fraudulently obtained checks at a bank in Miami. Galvez separately directed a bank employee to open up accounts using stolen identity information so that fraudulently obtained tax refund checks could be deposited. Finally, Galvez directed the bank employee to obtain account information for accounts with substantial funds, in order to conduct account takeovers.
Mr. Ferrer commends the investigative efforts of IRS-CI, FBI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
United States v. Evelina Sophia Reid, Case No. 17-CR-20057-Williams
On January 26, 2017, Evelina Sophia Reid, 35, of Miami Gardens, was charged in a fourteen-count indictment with conspiracy to commit access device fraud, possessing fifteen or more unauthorized access devices, aggravated identity theft, and computer fraud.
According to the indictment and publicly available documents, Reid was an employee of Jackson Health System when she accessed Jackson’s computer databases to steal patient PII, including social security numbers, of over approximately 24,000 individuals during a five-year period. Using the stolen information, Reid’s co-conspirators filed fraudulent tax returns in the names of Jackson Hospital patients.
Mr. Ferrer commends the investigative efforts of SSA-OIG, IRS-CI, USSS, DOL-OIG, MDPD Professional Compliance Bureau and Public Corruption Section, and the Miami-Dade County Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Douglas McArthur Bentley, Jr., et al,
Case No. 17-CR-20033-Altonaga
On January 19, 2017, Douglas Mcarthur Bentley, Jr., 41, Yvonne Lynn Bentley, 40, and Willie Ellis Hayden, 25, all of Homestead, were charged in a thirteen-count indictment for participating in a conspiracy to defraud the government with respect to claims, theft of government funds and aggravated identity theft.
According to the allegations contained in the indictment, starting on or about January 29, 2010, and continuing to on or about April 16, 2013, the defendants and their co-conspirators obtained stolen PII from various individuals without their consent and used the PII to file false and fraudulent tax returns with the IRS. The defendants and their co-conspirators also directed the IRS to electronically transfer tax refunds from the false and fraudulent tax returns to personal and corporate bank accounts they controlled at several banks located in Miami-Dade County, Florida. Once the tax refunds were deposited in bank accounts the defendants controlled, the illicitly obtained refunds were used for their personal gain and profit. According to allegations made in court, the intended loss amount for the fraud scheme was approximately $472,393.07 and the actual loss was $414,838.07.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Homestead Police Department. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
United States v. Blain, et al., Case No. 16-CR-14076-Middlebrooks
On December 1, 2016, five people were charged in a three-count indictment for their participation in conspiracy to commit stolen identity tax refund fraud.
Charlton Tierry Blain, 30, Clifford Raoul Blain, 28, Stephane Randolph Blain, 25, all of Pembroke Pines, and Dorsey Sims, Jr., 31, and Luis Roberto Rodriguez, 38, both of Sebring, were charged with conspiracy to defraud the government with respect to claims; conspiracy to commit access device fraud; and unlawful transfer, possession or use of means of identification.
According to the allegations contained in the indictment, between January of 2012 and December of 2013, the defendants conspired to unjustly enriched themselves by using unlawfully obtained personally identifiable information to file false and fraudulent income tax returns. The fraudulently obtained tax refunds were deposited into fraudulent bank accounts controlled by the defendants, and the illicit proceeds were then withdrawn from those accounts. In total, 679 fraudulent tax returns were filed, claiming $986,978.00 in total refunds.
Mr. Ferrer commends the efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Daniel E. Funk and Adam C. McMichael.
United States v. Teri Onick and Philip White,
Case No. 17-CR-20011-Williams
On January 6, 2017, Teri Onick, 44, of Miami, and Phillip White, 45, of Salt Lake City, UT, of Miami, were charged in a thirteen-count indictment for their participation in a conspiracy to defraud the U.S. government.
According to the allegations in the indictment, on various dates between February and October 2012, Onick and White unlawfully obtained and deposited the fraudulently obtained tax refund checks belonging to other persons, without their permission or authority, into Onick and White’s bank accounts for their personal use and benefit. The estimated fraud loss is over $150,000.00.
Mr. Ferrer commends the efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.
United States v. Gregory Clermont, Case No. 17-mj-2128-Torres
On January 30, 2017, Gregory Clermont, 25, of Miami, was charged by criminal complaint with possession of fifteen or more unauthorized access devices, that is, social security numbers issued to other persons.
to the allegations contained in the criminal complaint, on May 7, 2013, Clermont was in possession of official tax documents and handwritten lists of names, dates of birth, and social security numbers belonging to other individuals, as well as other handwritten notes appearing to relate to the filing of tax returns. Clermont was also in possession of a composition book containing what appeared to be the names, dates of birth, and social security numbers of approximately 140 individuals, three H&R Block debit cards in other people’s names, and a laptop that contained user identification numbers associated with the filing and attempted filing of tax returns through TurboTax online. More than fifteen of the social security numbers in the composition book belonged to other individuals.
Mr. Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
United States v. Johnathan Jameel Ford, Case No. 17-CR-20079-Williams
On January 27, 2017, Johnathan Jameel Ford a/k/a “Johnatan Jameel Ford”, 41, of Broward, was charged in a fourteen-count indictment for the theft of government money and aggravated identity theft.
According to the indictment, between September 2013 and July 2015, Ford received stolen tax refunds or deposited altered U.S. Treasury checks, totaling over $45,000, knowing that the tax refunds or U.S. Treasury checks had been stolen.
Mr. Ferrer commends the efforts of IRS-CI, TIGTA and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Crystal Jesha Griffin, Case No. 17-CR-20076-Williams
On January 27, 2017, Crystal Jesha Griffin, 25, of Miramar, was charged in a nine-count indictment for theft of government money.
According to the allegations contained in the indictment, Griffin did knowingly and willfully receive United States Department of Treasury tax refunds, knowing the tax refunds to have been stolen. Specifically, Griffin is accused of receiving nine different tax refunds, from nine different victims, totaling $8,074.00.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Ronald Esperant, Case No. 17-mj-2122-O’Sullivan
On January 27, 2017, Ronald Esperant, 31, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, in April 2013 multiple tax refunds issued to other persons, without their permission or authority, were deposited into Esperant’s bank account for an actual loss amount of $5,885.00.
Mr. Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Ricardo Innocent, Case No. 17-mj-2123-O’Sullivan
On January 27, 2017, Ricardo Innocent, 34, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, Innocent, filed fraudulent tax returns from January 2011 through February 2014 and had those fraudulently obtained tax refunds deposited into his bank account for an actual loss amount of $77,381.18.
Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Michelin Petit-Maitre, Case No. 17-mj-2124-O’Sullivan
On January 27, 2017, Michelin Petit-Maitre, 36, of Miami, was charged by criminal complaint with the theft of government money for his participation in a tax scheme that defrauded the U.S. government.
According to the allegations contained in the complaint, Petit-Maitre filed fraudulent tax returns from June 2013 through in or around February 2014 in the names of other persons and had those fraudulently obtained tax refunds deposited into his bank for an actual loss amount of $41,840.00.
Ferrer commends the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Martha Somayra Gomez, Case No. 17-CR-20061-King
On January 26, 2017, Martha Somayra Gomez, 28, of Miami, was charged in a nine-count indictment for the theft of government money.
According to the allegations contained in the indictment, between August 20, 2012 and June 5, 2013, nine tax refunds issued to other persons were deposited into Gomez’s bank accounts for an actual loss amount of $24,922.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Youri P. Baptiste, Case No. 17-CR-20048-Altonaga
On January 24, 2017, Youri P. Baptiste, 23, of Miami, was charged in a six-count indictment for the theft of government money.
According to the allegations contained in the indictment, between September 5, 2012 and September 24, 2013, six tax refunds issued to other persons were deposited into Baptiste’s bank accounts for an actual loss amount of $22,048.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Altagrace Shaina Descollines, Case No. 17-CR-20047-Scola
On January 24, 2017, Altagrace Shaina Descollines, 25, of Hollywood, was charged in a three-count indictment for the theft of government money.
According to the allegations contained in the indictment, between December 5, 2012 and April 24, 2013, three tax refunds issued to other persons were deposited into Descollines’ bank account for an actual loss amount of $13,169.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Quincy Thomas Cook, Case No. 17-CR-20059-Williams
On January 26, 2017, Quincy Thomas Cook, 24, of Miramar, was charged in a four-count indictment for the theft of government money.
According to the allegations contained in the indictment, between April 2012 and April 2013, four tax refunds issued to other persons were deposited into Cook’s bank account for an actual loss amount of $5,896.00.
Mr. Ferrer commends the investigative efforts of the FBI, IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Willie Lee Parker, III, Case No. 17-CR-20058-Middlebrooks
On January 26, 2017, Willie Lee Parker III, 23, of Opa-Locka, was charged in an eleven-count indictment for the theft of government money.
According to the allegations contained in the indictment, between February 2013 and April 2013, eleven tax refunds issued to other persons were deposited into Parker III’s bank account for an actual loss amount of $6,610.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Damon Donnell Rhodes, Case No. 17-CR-20062-Lenard
On January 26, 2017, Damon Donnell Rhodes, 23, of Hialeah, was charged in a seven-count indictment for the theft of government money.
According to the allegations contained in the indictment, between November 2012 and December 2012, seven tax refunds issued to other persons were deposited into Rhodes’ bank account for an actual loss amount of $5,495.00.
Mr. Ferrer commends the investigative efforts of the FBI, USPIS and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Rashaundra Javanni Lewis, Case No. 17-CR-20060-Scola
On January 26, 2017, Rashaundra Javanni Lewis, 26, of Miami, was charged in a five-count indictment for the theft of government money.
According to the allegations contained in the indictment, between September 19, 2012 and September 26, 2012, five tax refunds issued to other persons were deposited into Lewis’ bank account for an actual loss amount of $3,953.00.
Mr. Ferrer commends the investigative efforts of the FBI and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
THEFT OF PUBLIC BENEFIT FUNDS
United States v. Phyllistone Termine, Case No. 17-mj-2098-O’Sullivan
On January 26, 2017, Phyllistone Termine, 19, of Miami, was charged by criminal complaint for access device fraud, possession of fifteen or more unauthorized access devices, possession of device making equipment, and aggravated identity theft related to his alleged participation in a fraudulent unemployment compensation scheme.
According to the court record, including allegations contained in the criminal complaint, an IP address connected to Termine’s residence was used to access and file fraudulent unemployment benefit claims for more than 800 individuals on the Florida Department of Employment and Opportunity’s online database between March 23, 2015, and March 7, 2016.
the course of the investigation law enforcement executed a search warrant at Termine’s residence and allegedly discovered the defendant in his bedroom, writing on a small notepad. The first line on the notepad read “Summer 2016th” and stated “Buy 3 Phones, 1 clean 2 dirty’s” and “Buy online – Merrick BNK & CCVs.” CCVs are numeric fraud-prevention codes on credit cards that are used to help verify possession of your credit card. They can also be purchased from internet sources, in order for people to obtain stolen credit card data. On the bed next to Termine were three cellular phones and a laptop computer. Hidden between the defendant’s mattress and box spring was a black case containing several debit and credit cards belonging to individuals who did not reside at Termine’s residence. Inside the black case were several white blank plastic cards with magnetic stripes that are used to make debit and credit cards. On the floor next to Termine’s bed was hardware used to encode the magnetic stripe on credit/debit cards. Several victims whose credit or debit cards were found during the search also had their identities used to file for unemployment benefits using the IP Address at Termine’s home. These victims had not filed unemployment claims within the last 5 years, did not authorize anyone else to, and did not know Termine.
Mr. Ferrer commends the investigative efforts of DOL-OIG and SSA-OIG. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Kicksonley Azema and Abdul Pierrelus,
Case No. 17-CR-20081-Moore
On January 27, 2017, Kicksonley Azema, 26, and Abdul Pierrelus, 29, both of North Miami, were charged in a five-count indictment with conspiracy to commit access device fraud, using unauthorized access devices to fraudulently obtain something valued at $1,000 or more and aggravated identity theft.
According to the allegations contained in the indictment, beginning on or about January 26, 2015, and continuing through the date of the indictment, Azema and Pierrelus unlawfully used social security numbers of Michigan residents to fraudulently file unemployment benefit claims with the state of Michigan, and directed those fraudulently obtained funds to debit card accounts fraudulently established using the social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of DOL-OIG, ICE-HSI and the State of Michigan Unemployment Insurance Agency. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. James Kelly Morency, Frantzy Morency, and Jakeem Amal Stevens, Case No. 17-CR-20075-Huck
On January 27, 2017, James Kelly Morency, 21, of Hallandale Beach, Frantzy Morency, 26, of Lehigh Acres, and Jakeem Amal Stevens, 28, of Hollywood, were charged in a thirteen-count indictment with conspiracy to commit access device fraud, aggravated identity theft, possession of 15 or more unauthorized access devices, access device fraud, and computer fraud.
According to the indictment, between May 2011 and February 2015, the defendants possessed, transferred and used the social security numbers of other persons to obtain Social Security Administration (SSA) benefits by creating online accounts with the SSA with the stolen social security numbers belonging to other persons and having the SSA benefits redirected to accounts that the defendants controlled.
Mr. Ferrer commends the investigative efforts of the FBI, SSA-OIG, and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Sammie Nathaniel Williams, Jr., a/k/a “Old School,” Case No. 16-CR-20921-Scola
On December 9, 2016, Sammie Nathaniel Williams, Jr., a/k/a “Old School,” 58, of Miami, was charged in a six-count indictment for mail theft by a postal employee and theft of government money. On January 19, 2017, Williams pleaded guilty to theft of government money.
According to the court record, on November 29, 2016, Williams, a United States Postal Service employee, stole three U.S. Treasury checks from the mail.
Mr. Ferrer commends the investigative efforts of USPIS, TIGTA and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
BANK ACCOUNT TAKEOVERS
United States v. Jonathan Phanor, Case No. 16-CR-60349-Dimitrouleas
On December 13, 2016, Jonathan Phanor, 33, of Margate, was charged in a four-count indictment for his participation in a conspiracy to commit bank fraud and identity theft scheme.
According to court documents, from May 18, 2013 through August 13, 2013, Phanor accessed Wells Fargo customers’ bank accounts to obtain their name, date of birth, social security number and bank account numbers and provided the information to his co-conspirator. A co-conspirator would then open joint bank accounts using Wells Fargo customer’s name, date of birth, social security number and bank account numbers and move Wells Fargo customers’ money to the joint account. Once the money was in the joint account, the co-conspirator would then transfer the money belonging to the Wells Fargo customers’ from the joint account to bank accounts controlled by the co-conspirators. The defendant and his co-conspirators used the customers’ identities without their permission or authority.
Mr. Ferrer commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Mike Edwing Brizard, Case No. 16-CR-20931-Altonaga
On December 13, 2016, Mike Edwing Brizard, 28, of Miramar, was charged in a seven-count indictment for his participation in a conspiracy to commit bank fraud and identity theft scheme. On January 20, 2017, Brizard pleaded guilty to conspiracy to commit bank fraud and bank fraud. Brizard is scheduled to be sentenced by Judge Altonaga on April 3, 2017.
According to the court record, from August 20, 2012 through February 26, 2013, Brizard accessed Wells Fargo customers’ bank accounts to obtain their name, date of birth, social security number and bank account numbers and provided the information to his co-conspirator. A co-conspirator would then open joint bank accounts using Wells Fargo customers’ name, date of birth, social security number and bank account numbers and move Wells Fargo customers’ money to the joint account. Once the money was in the joint account, a co-conspirator would then transfer the money belonging to the Wells Fargo customers from the joint account to bank accounts controlled by the co-conspirators. The defendant and his co-conspirators used the customers’ identities without their permission or authority and were responsible for a loss totaling approximately $164,755.91.
Mr. Ferrer commends the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
ACCOUNT TAKEOVERS (INCLUDING CREDIT CARD FRAUD)
United States v. Yulier Blanco Perez, et al., Case No. 17-CR-20073-Altonaga
On January 27, 2017, Yulier Blanco Perez, 34, David Machado Frometa, 34, and Silvio Lopez Cuellar, 30, of Miami, were charged in an eleven-count indictment with conspiracy to commit access device fraud, access device fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices.
According to the allegations contained in the indictment, from July 28, 2016 through October 27, 2016, Perez, Frometa and Cuellar conspired to use credit card account numbers issued to other persons to unlawfully obtain items with an aggregate value of at least $1,000.00. The defendants used the fraudulent credit card account numbers to purchase stone tile from various tile retailers in South Florida. Over four days, during the three-month conspiracy, the defendants fraudulently purchased over $96,000.00 worth of stone tile from three retailers.
Mr. Ferrer commends the investigative efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Jessica Kahn Obenauf.
United States v. Geraldine Hughes, Case No. 17-CR-20065-Gayles
On January 26, 2017, Geraldine Hughes, 30, of Pompano Beach, was charged in a four-count indictment for access device fraud and aggravated identity theft.
to the allegations contained in the indictment and other public records, in August of 2016, Hughes conspired with another person to create a Care Credit account in another person’s name to which Hughes was later fraudulently added on as an authorized user and able to charge dental procedures onto the Care Credit account. Hughes made several visits to dental offices in North Miami and Aventura. Approximately $7,000 worth of dental work was charged to the individual’s account, without his/her permission or authority.
Mr. Ferrer commends the investigative efforts of the Aventura Police Department and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Fernando Garcia Cala, Case No. 17-CR-20072-Moore
On January 26, 2017, Fernandeo Garcia Cala, 32, of Miami, was charged in a nine-count indictment for access device fraud, possession of device-making equipment and aggravated identity theft.
According to the court record, including allegations contained in the indictment, Garcia operated a Ford F-350 diesel truck that was illegally outfitted with “bladders,” which are containers attached to the fuel line that allow the vehicle to hold more than 300 gallons of diesel fuel. Garcia used gift cards, fraudulently re-encoded with bank account numbers belonging to other individuals, to obtain hundreds of gallons of fuel from several different fuel stations. A search warrant executed at Garcia’s home revealed skimming devices that can be used to capture debit/credit card account number and pin numbers as they are inputted at the fuel pump, an encoding device that is used to place the skimmed numbers onto the magnetic stripes (such as those found on gift cards and hotel room keys), and more than 196 counterfeit access devices that were encoded with account numbers belonging to other individuals.
Mr. Ferrer commends the investigative efforts of the USSS and MDPD. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Bamby Pierre, Case No. 16-CR-20945-Williams
On December 15, 2016, Bamby Pierre, 26, of Miami, was charged in an eight-count indictment for attempted use of unauthorized access devices, access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, between November 2015 and April 2016, Pierre attempted to use and used the debit card numbers issued to other persons to make over $500,000 in withdrawals from ATMs. Bamby also unlawfully possessed and used the names and debit card numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the USPIS and Broward County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Marcus Lee Grant, Case No. 17-CR-20077-Moreno
January 27, 2017, defendant Marcus Lee Grant, 26, of Miramar, was charged in a five-count indictment for his participation in a scheme to steal credit cards by directing and intercepting mail containing credit cards and other credit card account information. The indictment charges the defendant with conspiracy to commit access device fraud, access device fraud and aggravated identity theft. The indictment further charges that Grant and his co-conspirators changed the mailing addresses of other individuals, without their permission or authority, in order to intercept the mail and facilitate the fraudulent scheme.
Mr. Ferrer commends the investigative efforts of the United States Postal Inspection Service (USPIS). The case is being prosecuted by Assistant U.S. Attorney Cary Aronovitz.
United States v. Michel Gonzalez Suarez, et al., Case No. 16-CR-10053-King
On December 20, 2016, Michel Gonzalez Suarez, 38, and Beatriz Morales Saladriga, 20, both of Hialeah, were charged in a five-count indictment for their participation in a conspiracy to commit access device fraud, access device fraud, and aggravated identity theft in the Florida Keys.
to the allegations contained in the indictment, on October 5, 2016, Suarez and Saladriga conspired with each other and others to commit access device fraud. As part of the conspiracy, the defendants used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at several stores located in Monroe County. The defendants are also alleged to have unlawfully possessed fifteen or more counterfeit credit and debit cards encoded with unauthorized account numbers, and to have used one or more counterfeit credit cards encoded with account numbers issued to other persons.
Mr. Ferrer commends the efforts of ICE-HSI and the Monroe County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Brandon Bair, et al., Case No. 17-CR-60005-Zloch
On January 10, 2017, Brandon Bair, 23, of Cutler Bay, Aimee Chin-Sang, 22, of Homestead, and Kevin Lawson Mitchell, 21, of Davie, were charged in a seven-count indictment for access fraud and aggravated identity theft indictment relating to trafficking in and using unauthorized AT&T merchant account numbers and credit card account numbers to commit more than $80,000 of fraud.
According to allegations contained in the indictment, on various dates in February, April and May of 2016, Bair and Chin-Sang used credit cards to conduct multiple fraudulent transactions at Home Depot stores located in Sunrise and Davie. Mitchell, an employee at the Davie Home Depot, helped Bair and Chin-Sang conduct several of these transactions. As part of the fraudulent scheme, Bair and Chin-Sang also presented counterfeit licenses and used unauthorized AT&T merchant account numbers to conduct fraudulent transactions involving thousands of dollars of Apple products at an AT&T store located in Fort Lauderdale. All three defendants are charged with conspiring to commit access device fraud. Bair and Chin-Sang are also charged with multiple counts of use of unauthorized access devices and aggravated identity theft.
Mr. Ferrer commends the investigative efforts of the USSS, Fort Lauderdale Police Department, and Davie Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Angela Maria Villegas, 17-CR-20086-Ungaro
On January 27, 2017, Angela Maria Villegas, 41, of Miami Beach, was charged in a five-count indictment for aggravated identity theft and use of unauthorized access devices.
According to the court record, including allegations contained in the indictment, from January 20, 2015, through April 12, 2016, Villegas, a high-end retail employee, made over $20,000 worth of unauthorized purchases using the credit card account numbers belonging to her high-end specialty customers, without their permission or authority.
Mr. Ferrer commends the efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Ahlaniee Maheei Chinn, 17-CR-20031-Middlebrooks
On January 7, 2017, Ahlaniee Maheei Chinn, 23, of Miami, was charged in a two-count indictment for access device fraud and aggravated identity theft.
to the court record, including allegations contained in the indictment, on March 4, 2016, Chinn, purchased more than two-thousand dollars’ worth of goods with a counterfeit credit card. The counterfeit card had the true account holders’ information shaved off and Chinn’s name was fraudulently embossed onto the credit card.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Suzelie Cheremond, Case No. 17-CR-60025-Bloom
On January 26, 2017, Suzelie Cheremond, 25, of Miami, was charged in a five-count indictment for access device fraud and aggravated identity theft.
According to the court record, including allegations contained in the indictment, in December of 2015, Cheremond, a Sam’s Club employee in Miramar, unlawfully obtained and used credit cards belonging to other persons to make purchases at Sam’s Club for $4,110.11.
Mr. Ferrer commends the investigative efforts of IRS-CI, the Aventura Police Department and Miramar Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Quienece Shedina Saintvil and Larod James Robinson,
Case No. 17-CR-20064-Ungaro
On January 26, 2017, Quienece Shedina Saintvil, 30, and Larod James Robinson, 34, both of Miami, were charged in a three-count indictment for their participation in a conspiracy to commit access device fraud and aggravated identity theft.
According to the court record, including allegations contained in the indictment, in August of 2016, Saintvil and Robinson entered the Bloomingdale’s Department store and unlawfully used a credit card account belonging to another person to make purchases. Saintvil and Robinson picked out merchandise and then Saintvil provided a Bloomingdale customer’s social security number in order to access the customer’s Bloomingdale’s credit account. Saintvil and Robinson made a total of three transactions, totaling $3,416.77, without the permission or authority of the true credit card account holder.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Shanisa Bell, Case No. 17-CR-60029-Bloom
On January 27, 2017, Shanisa Bell, 25, of Coconut Creek, was charged in a three-count indictment for using unauthorized access devices to fraudulently obtain something valued at $1,000 or more and aggravated identity theft.
According to the allegations contained in the indictment, between July 2015 and June 2016, Bell unlawfully used debit card account numbers issued in the names of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of DOL-OIG, ICE-HSI and the State of Michigan Unemployment Insurance Agency. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Edrey Acosta, Case No. 17-CR-20071-Martinez
On January 26, 2017, Edrey Acosta, 27, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on November 8, 2016, Acosta used counterfeit encoded with credit card account numbers issued to other persons.
Mr. Ferrer commends the investigative efforts of the USSS and MDPD. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Crystal Henderson, Case No. 17-CR-20066-Gayles
On January 26, 2017, Crystal Henderson, 34, of Homestead, was charged in a four-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on various dates throughout September of 2016, Henderson unlawfully used a credit card account belonging to another person to make purchases over $1,000.00.
Mr. Ferrer commends the investigative efforts of IRS-CI, Stamford Connecticut Police Department, and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Shante Marie Wesby, Case No. 17-CR-20032-Scola
On January 7, 2017, Shante Marie Wesby, 37, of Fort Lauderdale, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on various dates throughout January and February of 2016, Wesby unlawfully used a social security number and a credit card account number belonging to another person, without his/her permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
United States v. Kevin Martinez Morazan, Case No. 17-CR-60016-Bloom
On January 24, 2017, Kevin Martinez Morazan, 24, of Broward County, was charged in a five-count indictment with possessing fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on May 7, 2015, Martinez unlawfully possessed names and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of the Fort Lauderdale Police Department, USSS and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Tymonzo Ward, Case No. 16-CR-60306-Cohn
On October 28, 2016, Tymonzo Ward, 37, of Wilton Manors, was charged in a six-count indictment for access device fraud and aggravated identity theft.
According to allegations contained in the indictment, on May 21, 2015, Ward unlawfully possessed fifteen or more credit card account numbers and social security numbers belonging to other persons. Ward also unlawfully possessed and used the names, date of births, and driver licenses of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI, the USSS, and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara
United States v. Rayden Garcia Ramos, Case No. 16-CR-20808-Lenard
On October 21, 2016, Rayden Garcia Ramos, 46, of Hialeah, was charged in a six-count indictment for access device fraud, possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, from September 8, 2015 through December 5, 2015, Ramos trafficked in and used one or more credit card account numbers issued to other persons in order to obtain something of value worth $1,000 or more. Additionally, on October 21, 2015, Ramos possessed unlawfully possessed fifteen or more counterfeit credit card account numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of the USSS. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Terry Tyrone Clowers, Case No. 17-CR-60004-Dimitrouleas
On January 10, 2017, Terry Tyrone Clowers, 30, of Fort Lauderdale, was charged in a two-count indictment for attempted use of unauthorized access devices and aggravated identity theft.
According to the court record, including allegations contained in the indictment, on January 2, 2017, Clowers used the name and social security number of another person in an attempt to purchase an All-Terrain Vehicle worth thousands of dollars from a Broward Motor Sports store in Fort Lauderdale.
Mr. Ferrer commends the investigative efforts of the USSS and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Halima Ouedraogo, Case No. 17-CR-60015-Moreno
On January 24, 2017, Halima Ouedraogo, 35, of Kirkland, Washington, was charged in a twelve-count indictment for access device fraud, possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, from August 4, 2015 through August 25, 2015, in Broward County, Ouedraogo used credit cards issued to other persons to fraudulently obtain things valued at $1,000 or more. The indictment also alleges that on August 25, 2015, Ouedraogo possessed fifteen or more credit card account numbers and social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of IRS-CI, USSS, and the Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Terrell Tyrone Rivers and Preston Elijah Parrish, Case No. 17-CR-60024-Dimitrouleas
On January 26, 2017, Terrell Tyrone Rivers, 27, of Orlando, and Preston Elijah Parrish, 25, of Lauderhill, were charged in a ten-count indictment with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
According to allegations contained in the indictment, from February 10, 2016 through February 24, 2016, Rivers and Parrish conspired to possess fifteen or more unauthorized access devices, that is, social security numbers issued to other persons. On February 24, 2016, Rivers drove from Orlando to Lauderhill, Florida, to meet Parrish. According to court documents, on February 24, 2016, Rivers and Parrish were pulled over in Lauderhill, Florida. Upon a search of Rivers, several driver licenses with other persons’ information and Rivers’ photograph were recovered, along with personalized checks in other persons’ names. In the vehicle, a black suitcase, printer, tablets, and multiple blank business checks were recovered. A search of Rivers’ electronics revealed the PII of more than fifteen other persons. A search of Parrish’s electronics also revealed the PII of more than fifteen other persons.
Mr. Ferrer commends the investigative efforts of the USSS and the Lauderhill Police Department. This case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
United States v. Jessie Aguilar, Case No. 16-CR-20944-Gayles
On December 15, 2016, Jesse Aguilar, 28, of Hallandale Beach, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, on or about November 2, 2014, through on or about September 15, 2015, Aguilar conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $308,830.86.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Dave Benggie Alin, Case No. 16-CR-20815-Williams
On October 25, 2016, Dave Benggie Alin, 21, of Miami, was charged in a three-count indictment with fraudulent use of a counterfeit credit card. aggravated identity theft, and possession of a firearm and ammunition by a convicted felon. On January 18, 2017, Alin pleaded guilty to all charges. He is currently set for sentencing on April 7, 2017.
According to the court record, on October 12, 2016, Alin was found by law enforcement to be in possession of a counterfeit credit card and a firearm. Alin used the credit card to check into a hotel in Miami, and then he continued to use the credit card to make purchases at the hotel.
Mr. Ferrer commends the investigative efforts of the MDPD and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
United States v. Luis Miniert, Case No. 16-CR-20941-Scola
On December 15, 2016, Luis Miniert, 26, of Miami, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from November 2, 2014 through September 15, 2015, Miniert conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $119,210.73.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Anthony Leon, Case No. 17-CR-20068-Lenard
On January 26, 2017, Anthony Leon, 31, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, March 20, 2014 through July 18, 2015, Leon conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $158,690.37.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Diana Leon a/k/a “Diana Montoya”, Case No.17-CR-20069-Altonaga
On January 26, 2017, Diana Leon a/k/a “Diana Montoya,” 22, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from September 20, 2014 through August 31, 2015, the defendant conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $141,503.01.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Stephanie Vargas, Case No. 17-CR-20070-Moreno
On January 26, 2017, Stephanie Vargas, 26, of Hialeah, was charged in a five-count indictment for conspiring to commit access device fraud, access device fraud, and aggravated identity theft.
According to the allegations contained in the indictment, from December 20, 2014 through July 17, 2015, Vargas conspired with others to commit access device fraud. As part of the conspiracy, they used counterfeit credit cards encoded with account numbers issued to other people to conduct a series of fraudulent transactions at the Apple Store in Miami Beach, Florida. The loss amount was approximately $174,152.60.
Mr. Ferrer commends the efforts of ICE-HSI and the MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
UNLAWFULLY POSSESSING PII
United States v. Alvin Celius Andre, Case No. 17-CR-60014-Zloch
On January 20, 2017, Alvin Celius Andre, 26, of Miramar, was charged in a four-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on March 26, 2016, Andre possessed fifteen or more social security numbers issued to other persons. Andre also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Frantz Felix, Jr, Case No. 17-CR-20038-Williams
On January 20, 2017, Frantz Felix, Jr, 23, of Miramar, was charged in a six-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on March 26, 2016, Felix possessed fifteen or more social security numbers issued to other persons and used a credit card account number issued to another person. Felix, Jr. also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Marcus Allen Griffin, Case No. 17-CR-60011-Dimitrouleas
On January 13, 2017, Marcus Allen Griffin, 22, of Miramar, was charged in a six-count indictment with access device fraud and aggravated identity theft.
to the allegations contained in the indictment, on September 1, 2016, Griffin possessed fifteen or more social security numbers and credit card account numbers issued to other persons. Griffin also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of the Miramar Police Department and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Marc Antoine Riviere, Case No. 17-CR-20024-Moore
On January 13, 2017, Marc Antoine Riviere, 29, of Miami, was charged in a four-count indictment for identity theft in connection with his possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, on July 17, 2014, Riviere was found in possession of fifteen or more social security numbers issued to other persons, without their permission or authority. Riviere also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of FBI, IRS-CI, and Miami-Dade County Schools Police Department. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Jacqueloi Trishauna Moreau, Case No. 17-CR-60003-Bloom
On January 10, 2017, Jacqueloi Trishauna Moreau, 28, of Lauderdale Lakes, was charged in a four-count indictment for identity theft in connection with her possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, on July 18, 2016, Moreau was found in possession of fifteen or more names, dates and social security numbers issued to other persons. Moreau also unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of USPIS, IRS-CI and Margate Police Department. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Elena Caridad Amaya, Case No. 17-CR-20067-Ungaro
On January 26, 2017, Elena Caridad Amaya, 42, of Lauderdale Lakes, was charged in a four-count indictment for identity theft in connection with her possession of at least fifteen social security numbers belonging to other individuals.
According to the allegations in the indictment, in April 2016, Amaya was found in possession of fifteen or more counterfeit card encoded with account numbers and social security numbers issued to other persons. Amaya used a credit card account number issued to another person, without his/her permission or authority, to make purchases totaling $20,681.64.
Mr. Ferrer commends the efforts of IRS-CI and MDPD. This case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
United States v. Robert Jamorris Jackson, Case No. 16-CR-60337-Bloom
On December 2, 2016, Robert Jamorris Jackson, 33, of Broward County, was charged in a six count indictment with possession of fifteen or more unauthorized access devices and aggravated identity theft.
The indictment alleges that on February 18, 2016, in Broward County, Jackson possessed personal identifying information of more than fifteen people.
Mr. Ferrer commends the investigative efforts of the USSS. This case was indicted by Assistant U.S. Attorney Daniel Cervantes and is being prosecuted by Assistant U.S. Attorney Jonathan Stratton.
United States v. Aamir Khan, Case No. 16-CR-20839-Lenard
On November 1, 2016, Aamir Khan, 20, of Miami, was charged in a six-count indictment with possession of fifteen or more unauthorized access devices and aggravated identity theft. On January 3, 2017, Khan pleaded guilty to possession of fifteen or more unauthorized access devices and one count of aggravated identity theft. Khan is scheduled to be sentenced on March 15, 2017.
According to the court record, on or about June 10, 2014, Khan was arrested for driving without a license. A search incident to arrest revealed that Khan had a USB drive in his pocket. A consensual search of the USB drive revealed PII for approximately 3,680 individuals, including their names, addresses, dates of birth, and social security numbers.
Mr. Ferrer commends the investigative efforts of IRS-CI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Daniel Cervantes.
United States v. Victor Joseph, Case No. 16-CR-60335-Zloch
On November 29, 2016, Victor Joseph, 26, of Orlando, was charged in a seven-count indictment with using one or more unauthorized access devices, possessing fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations in the indictment, between January and March 2015, Joseph possessed and used social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the efforts of IRS-CI and USSS. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
United States v. Dave Pierre, Case No. 17-CR-60023-Moreno
On January 26, 2017, Dave Pierre, 28, of Miami, was charged in a five-count indictment with access device fraud and aggravated identity theft.
According to the allegations contained in the indictment, on November 7, 2016, Pierre unlawfully possessed fifteen or more names, dates of birth and social security numbers belonging to other persons. Pierre unlawfully possessed and used the names and date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Ricky Cearc, Case No. 17-CR-20083-Moreno
On January 27, 2017, Ricky Cearc, 27, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
According to allegations contained in the indictment, on August 29, 2013, Ricky Cearc unlawfully possessed fifteen or more social security numbers belonging to other persons. Ricky Cearc unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
United States v. Lyns Cearc, Case No. 17-CR-20084-Gayles
On January 27, 2017, Lyns Cearc, 34, of Miami, was charged in a three-count indictment for access device fraud and aggravated identity theft.
to allegations contained in the indictment, on August 29, 2013, Lyns Cearc unlawfully possessed fifteen or more social security numbers belonging to other persons. Lyns Cearc unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-his and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan D. Stratton.
United States v. Edouard Bastien, Case No. 16-CR-20953-Gayles
On December 19, 2016, a criminal information was filed, charging Edouard Bastien, 27, of North Miami Beach, with possession of fifteen or more unauthorized access devices and aggravated identity theft.
to the allegations contained in the information, on June 20, 2014, Bastien unlawfully possessed fifteen or more social security numbers belonging to other persons. Bastien also unlawfully possessed and used the names and social security numbers of other persons without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI, DOL-OIG, IRS-CI and North Miami Beach Police Department (NMBPD). This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. D’Andre Nathaniel Watson. Case No. 16-CR-20958-Lenard
On December 20, 2016, D’Andre Nathaniel Watson, 19, of North Miami Beach, was charged in a six-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on February 25, 2016 and again on March 16, 2016, Watson unlawfully possessed fifteen or more social security numbers belonging to other persons. Watson also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI, DOL-OIG, and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Brian Anthony Joseph, Case No. 17-CR-20004-Moore
On January 5, 2017, Brian Anthony Joseph, 21, of Miami, was charged in a four-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on November 9, 2015, Joseph unlawfully possessed fifteen or more social security numbers belonging to other persons. Watson also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts ICE-HSI, DOL-OIG, NMBPD and the Florida Department of Economic Opportunity. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Richard Wayne Brown, Case No. 17-CR-60010-Cohn
On January 13, 2017, Richard Wayne Brown, 29, of Miramar, was charged in a seven-count indictment for possession of fifteen or more unauthorized access devices and aggravated identity theft.
According to the allegations contained in the indictment, on December 28, 2016 and January 6, 2017, Brown unlawfully possessed fifteen or more social security numbers belonging to other persons. Brown also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of U.S. Department of Agriculture, Office of the Inspector General (USDA-OIG), FBI, USSS, and Fort Lauderdale Police Department. This case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
United States v. Peterson Joseph, Case No. 16-CR-20830-Moore
On October 28, 2016, Peterson Joseph, 24, of Miami, Florida, was charged in a four-count indictment with aggravated identity theft, possession of fifteen or more unauthorized access devices, and using unauthorized access devices to fraudulently obtain something valued at $1,000 or more.
According to the allegations contained in the indictment, from June 17, 2014 through May 19, 2015, Joseph unlawfully possessed and used fifteen or more social security numbers belonging to other persons.
Mr. Ferrer commends the investigative efforts of DOL-OIG. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Jason Douglas, Case No. 16-CR-60308-Bloom
On October 28, 2016, Jason Douglas, 26, of New York, was charged in a three-count indictment with possessing fifteen or more unauthorized and counterfeit access devices and aggravated identity theft.
to the allegations contained in the indictment, on or about April 16, 2016, Douglas unlawfully possessed fifteen or more social security numbers issued to other persons and debit cards encoded with account numbers issued to other persons. Douglas also unlawfully possessed and used the names, date of births and social security numbers of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Jerry Jean Baptiste and Stanley Auguste, Case No. 16-CR-20934-Cooke
On December 15, 2016, Jerry Jean Baptiste, 22, of Miami, and Stanley Auguste, 25, of Miami Gardens, were charged in a nine-count indictment with conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
to the allegations contained in the indictment, from April 24, 2015 through August 5, 2015, Baptiste and Auguste conspired to possess unlawfully fifteen or more social security numbers issued to other persons. On or about April 30, 2015, Baptiste possessed and sold electronic files containing lists of PII of various individuals, including social security numbers issued to fifteen or more individuals. On or about May 6, 2015, and again on August 5, 2015, Baptiste and Auguste possessed and sold electronic files containing lists of PII, including fifteen or more social security numbers. Baptiste and Auguste possessed and used the names, social security numbers, and dates of birth of real individuals, without permission or authority.
Mr. Ferrer commends the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
ACCESS DEVICE FRAUD
United States v. Alexey Abreu Chapotin, et al., Case No. 17-CR-20043-Lenard
January 24, 2017, Alexey Abreu Chapotin, 22, Yankiel Blanco, 34, and Yuliesky Cespedes Perez, 26, all of Miami, were charged in a two-count indictment for conspiracy to commit access device fraud and possession of device making equipment.
According to the allegations contained in the indictment, on August 16, 2016, Chapotin, Blanco and Perez possessed credit card “skimming” devices, drills, and other equipment which was used to modify the skimmers so that they could be surreptitiously installed onto credit card readers at gas pumps. The indictment further alleges that on August 16, 2016, the defendants installed one of these card “skimming” devices at a pump at the gas station, in order to capture customer credit card account information.
Mr. Ferrer commends ICE-HSI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
United States v. Omar Pulido Sanchez, et al., Case No. 17-mj-2112-JJO
On January 27, 2017, Omar Pulido Sanchez, 38, Uriel Pulido Sanchez, 42, and Maria Castillo Sarmiento, all of Colombia, were charged by criminal complaint with conspiracy to possess fifteen or more access devices and conspiracy to possess access device making equipment.
According to the allegations contained in the complaint, in June of 2016, the defendants installed credit card skimming devices onto bank ATMs throughout South Florida. In total, the defendants stole the bank account information of at least three hundred victims, and of those three hundred victims, over sixty reported fraudulent withdrawals from their accounts.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Rene Hernandez, Case No. 17-mj-2111-O’Sullivan
On January 27, 2017, Rene Hernandez, 57, of Miami, was charged by criminal complaint for possession of access device making equipment.
According to the allegations contained in the complaint, on April 5, 2016, Hernandez was found by law enforcement to be in possession of a magnetic stripe encoding device, multiple fuel pump credit card skimming devices, and several counterfeit credit cards in his own name.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Cesar Castillo Vargas, Case No. 17-mj-6040-O’Sullivan
On January 27, 2017, Cesar Castillo Vargas, 37, of Colombia, was charged by criminal complaint with possession of access device making equipment.
According to the allegations contained in the complaint, on August 1, 2016, law enforcement found Castillo Vargas in possession of a magnetic strip encoder device, a fraudulent Colombian driver license, a fraudulent Mexican passport, and several blank credit or debit cards.
Mr. Ferrer commends the investigative efforts of the MDPD. This case is being prosecuted by Assistant U.S. Attorney Daniel J. Marcet.
United States v. Oberto Jean, Case No. 17-CR-20082-Scola
On January 27, 2017, Oberto Jean, 35, of Miami, Florida, was charged in a five-count indictment with possession of fifteen or more unauthorized access devices, possession of access device-making equipment, aggravated identity theft, and being a felon in possession of firearms and ammunition.
to the allegations contained in the indictment, on or about February 11, 2015, Jean unlawfully possessed access device-making equipment and fifteen or more social security numbers belonging to other persons. Jean unlawfully possessed and used the date of births and social security numbers of other persons, without their permission or authority. Jean, a convicted felon, also possessed two firearms and ammunition.
Mr. Ferrer commends the investigative efforts of IRS-CI, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Miami Police Department (MPD). This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Anthony Reid, Case No. 16-CR-60307-Dimitrouleas
On October 28, 2016, Anthony Reid, 22, of Miami, was charged in a four-count indictment with possessing access device-making equipment, fifteen or more unauthorized and counterfeit access devices, and aggravated identity theft.
According to the allegations contained in the indictment, on April 16, 2016, Reid unlawfully possessed access device-making equipment, social security numbers issued to other persons, and counterfeit credit cards and debit cards encoded with account numbers issued to other persons.
Mr. Ferrer commends the investigative efforts of IRS-CI and the Broward County Sherriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian J. Shack.
United States v. Luis Perez Luis and Jose Luis Perez, Case No. 17-CR-20087-Altonaga
On January 27, 2017, Luis Perez Luis, 57, and Jose Luis Perez, 33, both of Miami, were charged in an eight-count indictment with aggravated identity theft, conspiracy to possess fifteen or more access devices, possession of fifteen or more unauthorized access devices, and possession of device making equipment
According to the allegations contained in the indictment, on August 31, 2016, Luis and Perez conspired to possess and possessed fifteen or more counterfeit credit cards and credit card account numbers issued to other persons, as well as access device making equipment.
Mr. Ferrer commends the investigative efforts of the MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Patrick Gaston Sebastian, Case No. 17-CR-20030-Williams
On January 20, 2017, Patrick Gaston Sebastian, 21, of Miami, Florida, was charged in a four-count indictment with aggravated identity theft, possession of fifteen or more unauthorized access devices and possession of device making equipment.
According to the allegations contained in the indictment, on July 1, 2016, Sebastian possessed fifteen or more social security numbers and credit card account numbers issued to other persons as well as a credit card embosser and credit card skimmer. Sebastian also unlawfully possessed and used the names and the date of births of other persons, without their permission or authority.
Mr. Ferrer commends the investigative efforts of MDPD and USSS. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
United States v. Luis Fernando Casallas Guzman, Case No. 17-CR-20022-Scola
On January 13, 2017, Luis Fernando Casallas Guzman, 61, of Colombia, was charged in a two-count indictment with possession of fifteen or more unauthorized access devices and possession of device making equipment.
According to the allegations contained in the indictment, on March 12, 2015, Guzman possessed fifteen or more counterfeit credit cards and credit card account numbers of other individuals as well as a credit card skimmer and magnetic stripe encoder.
Mr. Ferrer commends the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 10 years in prison for possession of fifteen or more unauthorized access devices; 10 years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtaining anything of value over $1,000; 5 years in prison for theft of mail; 10 years in prison for theft of government money; 5 in prison for conspiracy to commit theft of government money; 5 years in prison for conspiracy to defraud the United States; 15 years in prison for possession of access device making equipment; 20 years in prison for participating in a wire fraud conspiracy; 5 years in prison for conspiracy to pass Treasury checks bearing forged endorsements; and 2 years in prison consecutive to any other term for aggravated identity theft.
Mr. Ferrer commends ATF, the Aventura Police Department, Broward County Sheriff’s Office, U.S. Customs and Border Protection (CBP), Davie Police Department, DOL-OIG, FBI , Florida Department of Economic Opportunity, Homestead Police Department, ICE-HSI, IRS-CI, Lauderhill Police Department, Margate Police Department, Miami Beach Police Department, MDPD Professional Compliance Bureau and Public Corruption Section, Miami-Dade County Office of the Inspector General, Miami-Dade Public Schools Police Department, Miramar Police Department, Monroe County Sheriff’s Office, MPD, NMBPD, Stamford Connecticut Police Department, State of Michigan Unemployment Insurance Agency, SSA-OIG, TIGTA, USDA-OIG, USPIS, USSS, for the investigative support they provide the Strike Force to combat fraud schemes throughout the Southern District of Florida.
A criminal complaint or an indictment is an accusatory instrument that contains formal charges against a defendant. All persons charged in a criminal complaint or indictment are 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.
Monroe County Resident Convicted at Trial of Attempting to Use A Weapon of Mass Destruction and Attempting to Provide Material Support to A Terrorist OrganizationRead the Press Release
This afternoon, a federal jury in Key West convicted a South Florida resident of attempting to use a weapon of mass destruction, an explosive device, and attempting to provide material support to a terrorist organization.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mary B. McCord, Acting Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Monroe County, Florida, was convicted at trial of knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2) and attempting to provide material support to a terrorist organization, in violation of Title 18, United States Code, Section 2339B. Suarez is scheduled to be sentenced by United States District Judge Jose E. Martinez in Key West, on April 18, 2017 at 1:30 p.m.
“By intending to place an explosive device on a public beach, Harlem Suarez posed a grave threat to the residents and visitors of Key West,” stated U.S. Attorney Ferrer. “It is because of the Joint Terrorism Task Force’s unwavering commitment to our national security that law enforcement is able to prevent potential attacks on American soil that are inspired or directed by terrorist organizations. Let this case serve as an example to others that the U.S. Attorney’s Office and our law enforcement partners stand as a united front against all domestic threats.”
“Harlem Suarez, a self-professed ISIL adherent, attempted to use a weapon of mass destruction - a backpack bomb - in the United States and now stands convicted of two terrorism offenses,” said Acting Assistant Attorney General McCord. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division. I want to thank the agents, analysts, and prosecutors who are responsible for today’s result.”
"Suarez wanted to kill innocent people by detonating a nail laced explosive filled backpack on a crowded Key West beach," said George L. Piro, Special Agent in Charge, FBI Miami. “He was denied his terroristic dreams by several hardworking, dedicated law enforcement organizations and professionals. This is a job well done."
According to evidence introduced at trial, in April 2015, Suarez’s Facebook postings contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. Evidence further indicated that Suarez told an FBI confidential human source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert with assistance from the National Security Division’s Counterterrorism Sectionof the U.S. 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.
Florida Man Convicted at Trial of Attempting to Use a Weapon of Mass Destruction and Providing Material Support to ISILRead the Press Release
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Monroe County, Florida was convicted by a federal jury of attempting to use a weapon of mass destruction, specifically, an explosive device, and providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida FBI-Joint Terrorism Task Force (JTTF).
“Harlem Suarez, a self-professed ISIL adherent, attempted to use a weapon of mass destruction - a backpack bomb - in the United States and now stands convicted of two terrorism offenses,” said Acting Assistant Attorney General McCord. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division. I want to thank the agents, analysts, and prosecutors who are responsible for today’s result.”
“By intending to place an explosive device on a public beach, Harlem Suarez posed a grave threat to the residents and visitors of Key West,” stated U.S. Attorney Ferrer. “It is because of the Joint Terrorism Task Force’s unwavering commitment to our national security that law enforcement is able to prevent potential attacks on American soil that are inspired or directed by terrorist organizations. Let this case serve as an example to others that the U.S. Attorney’s Office and our law enforcement partners stand as a united front against all domestic threats.”
"Suarez wanted to kill innocent people by detonating a nail laced explosive filled backpack on a crowded Key West beach," said Special Agent in Charge Piro. “He was denied his terroristic dreams by several hardworking, dedicated law enforcement organizations and professionals. This is a job well done."
Suarez was convicted at trial of knowingly attempting to use a weapon of mass destruction against a person or property within the U.S., in violation of Title 18, U.S. Code, Section 2332a(a)(2) and providing material support to a terrorist organization, in violation of Title 18, U.S. Code, Section 2339B. Suarez is scheduled to be sentenced by U.S. District Judge Jose E. Martinez in Key West, Florida, on April 18 at 1:30 p.m.
According to evidence introduced at trial, in April 2015, Suarez’s Facebook postings contained extremist rhetoric and promoted ISIL. Evidence further indicated that Suarez told an FBI confidential human source that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
Trial evidence showed that on July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
Mr. Ferrer commended the investigative efforts of the FBI; FBI-JTTF; Bureau of Alcohol, Tobacco, Firearms, and Explosives; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; the Key West Police Department; Monroe County Sheriff’s Office in Florida; and Palm Beach County Sheriff’s Office in Florida.
This case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert, with assistance from the National Security Division’s Counterterrorism Section.
Virginia Man Convicted at Trial of Abusing Corporate Position to Defraud Employer and United States GovernmentRead the Press Release
Yesterday, a West Palm Beach jury convicted Brian Charles Tolley, 41, of Bedford, Virginia, of wire fraud, identity theft, aggravated identity theft, possession of counterfeit government seals with the intent to defraud, money laundering, making and subscribing false federal income tax returns, and failing to file federal income tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Brian A. Hauck, Special Agent-in-Charge, North Central Fraud Field Office, United States Army Criminal Investigation Command, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Special Agent in Charge Wendell W. Palmer, United States Air Force Office of Special Investigations, Procurement Fraud Detachment Southeast, made the announcement.
U.S. Attorney Wifredo Ferrer stated, “Brian Tolley lived a life of luxury by abusing his corporate leadership position to defraud his employer and the United States government. All corporations and our American taxpayers deserve to have their financial pockets protected against illicit fraud schemes. The U.S. Attorney’s Office and our fraud enforcement allies will continue to target for prosecution those who put their own self-interests above lawful business and tax filing practices.”
“Mr. Tolley, as the President and Chief Information Officer of Partsbase, a large marketplace for aviation components, illegally enriched himself by submitting fraudulent expense reports for DoD procurement data to his employer," said Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. "Mr. Tolley embezzled $1.6 million through this scheme, using the money to purchase vehicles, property, and expensive first class vacations for his family. Today's verdict sends a strong message that DCIS agents will vigorously pursue those who defraud and corrupt Defense programs and bring them to justice.”
“The jury’s verdict should stand as a deterrent to those who would engage in fraud and corruption for personal gain, and is a testament to the thorough and professional effort of our investigative and prosecutorial team," said Special Agent in Charge Brian Hauck, of the U.S. Army Criminal Investigation Command's North Central Fraud Field Office. "We will diligently continue our efforts to pursue those engaged in criminal activity that impacts the integrity of U.S. Government and Army programs and resources within our purview.”
Kelly R. Jackson, Special Agent in Charge, IRS-CI stated, "We are pleased with the guilty verdict rendered against Brian Tolley. He perpetuated a fraud scheme against his employer, and then willfully omitted the stolen proceeds from his tax returns. As we are at the beginning of another tax filing season, it is important to remember that all income (whether legal or illegal) must be reported to the IRS. Knowingly omitting income from tax returns and failing to file tax returns are crimes, and IRS-CI Special Agents will continue to provide their financial expertise in the investigation of these cases."
According to the evidence presented at trial, Tolley was employed by PartsBase, Inc., which is located in Boca Raton, Florida, as Vice President from 2001 through 2001, as Chief Information Officer from 2001 through January 2014, and President from 2010 until January 2014. Between June 2007 and September 2013, Tolley submitted to PartsBase forged documentation from various branches of the U.S. military and other government agencies. These documents purported to acknowledge Tolley’s orders of procurement data on PartsBase’s behalf, and purported to be signed by real federal employees. Tolley then requested reimbursement from PartsBase for charges he had purportedly incurred from the government agencies. In total, PartsBase paid Tolley approximately $1.6 million in reimbursements based on this fraudulent scheme. Tolley used the money he procured from the fraudulent scheme to purchase a 2011 Buick Enclave, a 2011 Lincoln Navigator, real estate in Bedford, Virginia and other items. In addition, Tolley failed to report the proceeds of his fraud scheme as income on the federal income tax returns he filed for tax years 2007 through 2011. Tolley failed to file returns for tax years 2012 or 2013.
Tolley faces a maximum statutory sentence of 20 years’ imprisonment on each count of wire fraud; 15 years’ imprisonment on each count of identity theft; 5 years’ imprisonment on each count of possession of counterfeit government seals; 10 years’ imprisonment on each count of money laundering; 3 years’ imprisonment on each count of making and subscribing false federal income tax returns; and 1 year in prison on each count of failing to file federal income tax returns. Tolley also faces a mandatory consecutive sentence of 2 years’ imprisonment for the aggravated identity theft conviction(s).
Mr. Ferrer commended the investigative efforts of DCIS, the U.S. Army Criminal Investigation Command Major Procurement Fraud Unit, IRS-CI, and the Air Force Office of Special Investigations Procurement Fraud Unit. This case is being prosecuted by Assistant U.S. Attorneys Marc Osborne and Mark Dispoto.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Esteban Santiago Ruiz Indicted on Federal Charges in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
A federal grand jury sitting in Broward County returned a twenty-two count indictment against Esteban Santiago Ruiz (Santiago) in connection with the mass-shooting at Fort Lauderdale-Hollywood International Airport on January 6, 2017. Santiago’s arraignment on the charges has been scheduled for Monday, January 30, 2017 at 10:00 a.m., before United States Magistrate Judge Barry L. Seltzer in Fort Lauderdale, Florida.
Wifredo A. Ferrer, 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 Scott Israel, Sheriff, Broward County Sheriff’s Office (BSO) made the announcement.
Santiago is charged in a federal indictment with eleven counts of performing an act of violence against a person at an airport serving international civil aviation that caused death or serious bodily injury, in violation of Title 18, United States Code, Section 37(a)(1); six counts of use and discharge of a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A); and five counts of causing the death of a person through the use of a firearm in the course of a violation of Title 18, United States Code, Section 924(c), in violation of Title 18, United States Code, Section 924(j). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
According to the criminal complaint previously filed in court, shortly before 1 p.m. on January 6, 2017, Santiago carried out an armed attack on newly-arrived passengers retrieving their luggage in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida. Santiago pulled out a handgun and started shooting at numerous victims, aiming at the victims’ heads and bodies until he was out of ammunition. Santiago killed five people and wounded six more. Moments later, Santiago was confronted by a BSO deputy. He dropped his handgun on the ground and was arrested by BSO deputies.
The case is being prosecuted by Assistants United States Attorney Ricardo A. Del Toro and Lawrence LaVecchio, with assistance from Department of Justice Trial Attorney Larry Schneider.
An indictment is a formal charging document notifying the defendant of the criminal charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law. Court documents and information related to this case 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.
Palm Beach County Sheriff’s Deputy Indicted for His Role in an Identity Theft SchemeRead the Press Release
A Palm Beach County Sheriff’s deputy was arraigned today on federal charges related to his role in an identity theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Sean Scheller, Chief, Town of Lantana Police Department, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, made the announcement.
Felisma, 42, of Boynton Beach, a deputy with the Palm Beach County Sheriff’s Office, was charged in a six-count indictment with participating in an identity theft scheme, in violation of Title 18, United States Code, Sections 1028A (Aggravated Identity Theft); 1029(a)(2) (Access Device Fraud); and 1029(b)(2) (Conspiracy to Commit Identity Theft) (Case No. 17-80008-CR-MIDDLEBROOKS). Felisma was previously arrested on a criminal complaint and was ordered to be held without bond pending trial by Magistrate Judge James M. Hopkins.
As alleged in the indictment, over the span of approximately 18 months, Deputy Felisma used his police department issued laptop computer to access a law enforcement database in order to obtain personal identification information belonging to numerous individuals. Felisma sold this information to his co-conspirator, who then used the identities of at least 15 of these victims to set up credit card and bank accounts, stealing tens of thousands of dollars in the names of the victims.
convicted, Felisma faces a mandatory minimum of two years’ imprisonment, to run consecutive to any other term of imprisonment imposed, as to the aggravated identity theft charges contained in Counts 3 through 6; a maximum of ten years’ imprisonment as to the access device fraud charge in Count 2; and a maximum of five years’ imprisonment as to the conspiracy to commit identity theft charge in Count 1.
Felisma is currently on administrative leave without pay from the Palm Beach County Sheriff’s Office.
Mr. Ferrer commended the investigative efforts of ICE-HSI, Lantana Police Department, IRS-CI and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Lauren Jorgensen and Rinku Tribuiani.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Joaquin “El Chapo” Guzman Loera Faces Charges in New York for Leading a Continuing Criminal Enterprise and other Drug-Related ChargesRead the Press Release
Acting Attorney General Sally Q. Yates today announced that Joaquin Archivaldo Guzman Loera, known by various aliases including “El Chapo,” will face charges filed in Brooklyn, New York, following his extradition to the United States from Mexico, alleging that he was operating a continuing criminal enterprise and other drug-related crimes through his leadership of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Acting Attorney General Yates was joined in making the announcement by U.S. Attorney Robert L. Capers of the Eastern District of New York; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Deputy Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division; Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA); Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI); Assistant Director In Charge William F. Sweeney of the FBI New York Field Office: U.S. Marshal Charles G. Dunne of the Eastern District of New York U.S. Marshals Service and Commissioner of the New York City Police Department James P. O’Neill.
Guzman Loera, 59, arrived in the United States on Jan. 19, and will be arraigned on a 17-count superseding indictment on Jan. 20, before U.S. Magistrate Judge James Orenstein in federal court in Brooklyn. The case is assigned to U.S. District Judge Brian M. Cogan. Following his extradition to the United States on related charges filed in the Western District of Texas and Southern District of California, the Mexican government approved a request by the United States to proceed with prosecution on the charges filed in the Eastern District of New York on May 11, 2016.
The charges in the indictment filed against Guzman Loera in the Eastern District of New York will be prosecuted jointly by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division.
The indictment alleges that between January 1989 and December 2014, Guzman Loera led a continuing criminal enterprise responsible for importing into the United States and distributing massive amounts of illegal narcotics and conspiring to murder persons who posed a threat to Guzman Loera’s narcotics enterprise.
Guzman Loera is also charged with using firearms in relation to his drug trafficking and money laundering relating to the bulk smuggling from the United States to Mexico of more than $14 billion in cash proceeds from narcotics sales throughout the United States and Canada. As part of this investigation, nearly 200,000 kilograms of cocaine linked to the Sinaloa Cartel have been seized. The indictment seeks forfeiture of more than $14 billion in drug proceeds and illicit profits.
“Guzman Loera is the alleged leader of a multi-billion dollar, multi-national criminal enterprise that funneled drugs onto our streets and violence and misery into our communities,” said Acting Attorney General Yates. “We are deeply grateful to the Government of Mexico for their assistance in securing Guzman Loera’s extradition. The Mexican people have suffered greatly at the hands of Guzman Loera and the Sinaloa Cartel; Mexican law enforcement officials have died in the pursuit of him. We will honor their sacrifice and will honor Mexico’s commitment to combat narco-trafficking by pursuing justice in this case.”
“Guzman Loera is accused of using violence, including torture and murder, to maintain an iron-fisted grip on the drug trade across the U.S./Mexico border that invaded our community and others across the country,” said U.S. Attorney Capers. “As a result, Guzman Loera made billions of illicit dollars. This prosecution demonstrates that we will apply all available resources to dismantle the leadership of dangerous drug cartels, wherever they operate, and will not rest until we have done so.”
“Guzman Loera is accused of terrorizing communities all over the world,” said U.S. Attorney Ferrer. “With this prosecution we stand united, with our domestic and foreign partners, in our fight against transnational criminal organizations that profit billions of dollars off of the toxic spread of illicit drugs in our global communities. Today’s announcement demonstrates that international borders do not protect narcotics traffickers from criminal prosecution. We will continue to work together to combat narco-trafficking and the cartels that infect our streets, with the long-arm of the law.”
“This extradition is a tremendous victory for the citizens of Mexico and of the United States,” said DEA Acting Administrator Rosenberg. “Two principles stand out: No one is above the law and we simply do not quit in the pursuit of justice.”
“Through investigations led by our offices in New York and Nogales, Arizona, and the coordination efforts of our attaché in Mexico, Homeland Security Investigations gathered significant evidence that is instrumental in the case against Joaquin Guzman Loera in the United States for his alleged crimes as the head of the Sinaloa Cartel,” said HSI Executive Associate Director Edge. “We are pleased to have worked with our federal law enforcement partners to bring about yesterday’s extradition, and look forward to sharing the evidence gathered in this investigation in the criminal proceedings that will follow.”
“One of the most dangerous and feared drug kingpins will now be held accountable for his alleged crimes in the United States after decades of eluding law enforcement,” said FBI Assistant Director in Charge Sweeney. “After years of gathering evidence in multiple investigations, the FBI and our law enforcement partners will do everything we can to bring El Chapo to justice.”
“The U.S. Marshals Service will undertake this mission with the same sense of duty that we have undertaken previous missions for the last 228 years,” said U.S. Marshal Dunne. “We will preserve the integrity of the judicial process. We will protect the members of the Eastern District of New York family. We will secure this individual in a humane manner and we will bring him to court on time.”
As detailed in the superseding indictment and other court filings, Guzman Loera and Ismael Zambada Garcia, as leaders of the Sinaloa Cartel, conspired to import more than 200 metric tons of cocaine into the United States. The Sinaloa Cartel shared drug transportation routes and obtained drugs from various Colombian drug trafficking organizations, in particular, the Colombian Norte del Valle Cartel, the Don Lucho Organization, and the Cifuentes-Villa Organization. The cocaine was transported from Colombia via planes, boats, and submarines into ports the enterprise controlled in Southern Mexico and other locations throughout Central America. From there, it was shipped through Mexico to distribution hubs in the United States.
As one of the principal leaders of the Sinaloa Cartel, Guzman Loera allegedly also oversaw the cocaine, heroin, methamphetamine, and marijuana smuggling activities by the Sinaloa Cartel to wholesale distributors in Atlanta, Chicago, Miami, New York, as well as in various locations in Arizona, Los Angeles and elsewhere. The billions of dollars generated from drug sales in the United States were then clandestinely transported back to Mexico.
To evade law enforcement and protect the enterprise’s narcotics distribution activities, Guzman Loera and the Sinaloa Cartel allegedly employed various means including the use of “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico, including murder, to collect drug debts, silence potential witnesses, and prevent public officials from taking action against the cartel. To intimidate and eliminate his rivals, during the Sinaloa Cartel’s internecine war for territory with the Juarez Cartel from approximately 2007 through 2011, Guzman Loera directed these assassins to kill thousands of drug trafficking competitors, during which many of his victims were beheaded.
The government’s case is being prosecuted by Assistant U.S. Attorneys Andrea Goldbarg, Hiral Mehta, Patricia Notopoulos, Gina Parlovecchio and Michael Robotti from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Lynn Kirkpatrick and Kurt Lunkenheimer from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California, and the District of New Hampshire. The Department of Justice’s Office of International Affairs also provided assistance in bringing Guzman Loera to the United States to face charges. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising agents, analysts, and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA, FBI, ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Internal Revenue Service Criminal Investigation, the U.S. Bureau of Prisons, and the New York State Police.
The United States would like to extend its appreciation to the Government of Mexico and, in particular, President Enrique Peña Nieto, Secretary of Foreign Affairs Luis Videgaray Caso and Attorney General Raul Cervantes Andrade for their assistance in this case.
This case is also 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.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty. Guzman faces a sentence of mandatory life imprisonment, if convicted of the continuing criminal enterprise charge, and a maximum sentence of life on the remaining charges.
Detention Memo
Indictment
Joaquin “El Chapo” Guzman Loera Faces Charges in New York for Leading a Continuing Criminal Enterprise and other Drug-Related ChargesRead the Press Release
Acting Attorney General Sally Q. Yates today announced that Joaquin Archivaldo Guzman Loera, known by various aliases including “El Chapo,” will face charges filed in Brooklyn, New York, following his extradition to the United States from Mexico, alleging that he was operating a continuing criminal enterprise and other drug-related crimes through his leadership of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Acting Attorney General Yates was joined in making the announcement by U.S. Attorney Robert L. Capers of the Eastern District of New York; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Deputy Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division; Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA); Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI); Assistant Director In Charge William F. Sweeney of the FBI New York Field Office: U.S. Marshal Charles G. Dunne of the Eastern District of New York U.S. Marshals Service and Commissioner of the New York City Police Department James P. O’Neill.
Guzman Loera, 59, arrived in the United States on Jan. 19, and will be arraigned on a 17-count superseding indictment on Jan. 20, before U.S. Magistrate Judge James Orenstein in federal court in Brooklyn. The case is assigned to U.S. District Judge Brian M. Cogan. Following his extradition to the United States on related charges filed in the Western District of Texas and Southern District of California, the Mexican government approved a request by the United States to proceed with prosecution on the charges filed in the Eastern District of New York on May 11, 2016.
The charges in the indictment filed against Guzman Loera in the Eastern District of New York will be prosecuted jointly by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division.
The indictment alleges that between January 1989 and December 2014, Guzman Loera led a continuing criminal enterprise responsible for importing into the United States and distributing massive amounts of illegal narcotics and conspiring to murder persons who posed a threat to Guzman Loera’s narcotics enterprise.
Guzman Loera is also charged with using firearms in relation to his drug trafficking and money laundering relating to the bulk smuggling from the United States to Mexico of more than $14 billion in cash proceeds from narcotics sales throughout the United States and Canada. As part of this investigation, nearly 200,000 kilograms of cocaine linked to the Sinaloa Cartel have been seized. The indictment seeks forfeiture of more than $14 billion in drug proceeds and illicit profits.
“Guzman Loera is the alleged leader of a multi-billion dollar, multi-national criminal enterprise that funneled drugs onto our streets and violence and misery into our communities,” said Acting Attorney General Yates. “We are deeply grateful to the Government of Mexico for their assistance in securing Guzman Loera’s extradition. The Mexican people have suffered greatly at the hands of Guzman Loera and the Sinaloa Cartel; Mexican law enforcement officials have died in the pursuit of him. We will honor their sacrifice and will honor Mexico’s commitment to combat narco-trafficking by pursuing justice in this case.”
“Guzman Loera is accused of using violence, including torture and murder, to maintain an iron-fisted grip on the drug trade across the U.S./Mexico border that invaded our community and others across the country,” said U.S. Attorney Capers. “As a result, Guzman Loera made billions of illicit dollars. This prosecution demonstrates that we will apply all available resources to dismantle the leadership of dangerous drug cartels, wherever they operate, and will not rest until we have done so.”
“Guzman Loera is accused of terrorizing communities all over the world,” said U.S. Attorney Ferrer. “With this prosecution we stand united, with our domestic and foreign partners, in our fight against transnational criminal organizations that profit billions of dollars off of the toxic spread of illicit drugs in our global communities. Today’s announcement demonstrates that international borders do not protect narcotics traffickers from criminal prosecution. We will continue to work together to combat narco-trafficking and the cartels that infect our streets, with the long-arm of the law.”
“This extradition is a tremendous victory for the citizens of Mexico and of the United States,” said DEA Acting Administrator Rosenberg. “Two principles stand out: No one is above the law and we simply do not quit in the pursuit of justice.”
“Through investigations led by our offices in New York and Nogales, Arizona, and the coordination efforts of our attaché in Mexico, Homeland Security Investigations gathered significant evidence that is instrumental in the case against Joaquin Guzman Loera in the United States for his alleged crimes as the head of the Sinaloa Cartel,” said HSI Executive Associate Director Edge. “We are pleased to have worked with our federal law enforcement partners to bring about yesterday’s extradition, and look forward to sharing the evidence gathered in this investigation in the criminal proceedings that will follow.”
“One of the most dangerous and feared drug kingpins will now be held accountable for his alleged crimes in the United States after decades of eluding law enforcement,” said FBI Assistant Director in Charge Sweeney. “After years of gathering evidence in multiple investigations, the FBI and our law enforcement partners will do everything we can to bring El Chapo to justice.”
“The U.S. Marshals Service will undertake this mission with the same sense of duty that we have undertaken previous missions for the last 228 years,” said U.S. Marshal Dunne. “We will preserve the integrity of the judicial process. We will protect the members of the Eastern District of New York family. We will secure this individual in a humane manner and we will bring him to court on time.”
As detailed in the superseding indictment and other court filings, Guzman Loera and Ismael Zambada Garcia, as leaders of the Sinaloa Cartel, conspired to import more than 200 metric tons of cocaine into the United States. The Sinaloa Cartel shared drug transportation routes and obtained drugs from various Colombian drug trafficking organizations, in particular, the Colombian Norte del Valle Cartel, the Don Lucho Organization, and the Cifuentes-Villa Organization. The cocaine was transported from Colombia via planes, boats, and submarines into ports the enterprise controlled in Southern Mexico and other locations throughout Central America. From there, it was shipped through Mexico to distribution hubs in the United States.
As one of the principal leaders of the Sinaloa Cartel, Guzman Loera allegedly also oversaw the cocaine, heroin, methamphetamine, and marijuana smuggling activities by the Sinaloa Cartel to wholesale distributors in Atlanta, Chicago, Miami, New York, as well as in various locations in Arizona, Los Angeles and elsewhere. The billions of dollars generated from drug sales in the United States were then clandestinely transported back to Mexico.
To evade law enforcement and protect the enterprise’s narcotics distribution activities, Guzman Loera and the Sinaloa Cartel allegedly employed various means including the use of “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico, including murder, to collect drug debts, silence potential witnesses, and prevent public officials from taking action against the cartel. To intimidate and eliminate his rivals, during the Sinaloa Cartel’s internecine war for territory with the Juarez Cartel from approximately 2007 through 2011, Guzman Loera directed these assassins to kill thousands of drug trafficking competitors, during which many of his victims were beheaded.
The government’s case is being prosecuted by Assistant U.S. Attorneys Andrea Goldbarg, Hiral Mehta, Patricia Notopoulos, Gina Parlovecchio and Michael Robotti from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Lynn Kirkpatrick and Kurt Lunkenheimer from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California, and the District of New Hampshire. The Department of Justice’s Office of International Affairs also provided assistance in bringing Guzman Loera to the United States to face charges. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising agents, analysts, and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA, FBI, ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Internal Revenue Service Criminal Investigation, the U.S. Bureau of Prisons, and the New York State Police.
The United States would like to extend its appreciation to the Government of Mexico and, in particular, President Enrique Peña Nieto, Secretary of Foreign Affairs Luis Videgaray Caso and Attorney General Raul Cervantes Andrade for their assistance in this case.
This case is also 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.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty. Guzman faces a sentence of mandatory life imprisonment, if convicted of the continuing criminal enterprise charge, and a maximum sentence of life on the remaining charges.
Detention Memo IndictmentJoaquin “El Chapo” Guzman Loera Faces Charges in New York for Leading A Continuing Criminal Enterprise and Other Drug-Related ChargesRead the Press Release
WASHINGTON – Acting Attorney General Sally Q. Yates today announced that Joaquin Archivaldo Guzman Loera, known by various aliases including “El Chapo,” will face charges filed in Brooklyn, New York, following his extradition to the United States from Mexico, alleging that he was operating a continuing criminal enterprise and other drug-related crimes through his leadership of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Acting Attorney General Yates was joined in making the announcement by U.S. Attorney Robert L. Capers of the Eastern District of New York; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Deputy Assistant Attorney General Kenneth Blanco of the Justice Department’s Criminal Division; Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA); Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI); Assistant Director In Charge William F. Sweeney of the FBI New York Field Office: U.S. Marshal Charles G. Dunne of the Eastern District of New York U.S. Marshals Service and Commissioner of the New York City Police Department James P. O’Neill.
Guzman Loera, 59, arrived in the United States on Jan. 19, and will be arraigned on a 17-count superseding indictment on Jan. 20, before U.S. Magistrate Judge James Orenstein in federal court in Brooklyn. The case is assigned to U.S. District Judge Brian M. Cogan. Following his extradition to the United States on related charges filed in the Western District of Texas and Southern District of California, the Mexican government approved a request by the United States to proceed with prosecution on the charges filed in the Eastern District of New York on May 11, 2016.
The charges in the indictment filed against Guzman Loera in the Eastern District of New York will be prosecuted jointly by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division.
The indictment alleges that between January 1989 and December 2014, Guzman Loera led a continuing criminal enterprise responsible for importing into the United States and distributing massive amounts of illegal narcotics and conspiring to murder persons who posed a threat to Guzman Loera’s narcotics enterprise.
Guzman Loera is also charged with using firearms in relation to his drug trafficking and money laundering relating to the bulk smuggling from the United States to Mexico of more than $14 billion in cash proceeds from narcotics sales throughout the United States and Canada. As part of this investigation, nearly 200,000 kilograms of cocaine linked to the Sinaloa Cartel have been seized. The indictment seeks forfeiture of more than $14 billion in drug proceeds and illicit profits.
“Guzman Loera is the alleged leader of a multi-billion dollar, multi-national criminal enterprise that funneled drugs onto our streets and violence and misery into our communities,” said Acting Attorney General Yates. “We are deeply grateful to the Government of Mexico for their assistance in securing Guzman Loera’s extradition. The Mexican people have suffered greatly at the hands of Guzman Loera and the Sinaloa Cartel; Mexican law enforcement officials have died in the pursuit of him. We will honor their sacrifice and will honor Mexico’s commitment to combat narco-trafficking by pursuing justice in this case.”
“Guzman Loera is accused of using violence, including torture and murder, to maintain an iron-fisted grip on the drug trade across the U.S./Mexico border that invaded our community and others across the country,” said U.S. Attorney Capers. “As a result, Guzman Loera made billions of illicit dollars. This prosecution demonstrates that we will apply all available resources to dismantle the leadership of dangerous drug cartels, wherever they operate, and will not rest until we have done so.”
“Guzman Loera is accused of terrorizing communities all over the world,” said U.S. Attorney Ferrer. “With this prosecution we stand united, with our domestic and foreign partners, in our fight against transnational criminal organizations that profit billions of dollars off of the toxic spread of illicit drugs in our global communities. Today’s announcement demonstrates that international borders do not protect narcotics traffickers from criminal prosecution. We will continue to work together to combat narco-trafficking and the cartels that infect our streets, with the long-arm of the law.”
“This extradition is a tremendous victory for the citizens of Mexico and of the United States,” said DEA Acting Administrator Rosenberg. “Two principles stand out: No one is above the law and we simply do not quit in the pursuit of justice.”
“Through investigations led by our offices in New York and Nogales, Arizona, and the coordination efforts of our attaché in Mexico, Homeland Security Investigations gathered significant evidence that is instrumental in the case against Joaquin Guzman Loera in the United States for his alleged crimes as the head of the Sinaloa Cartel,” said HSI Executive Associate Director Edge. “We are pleased to have worked with our federal law enforcement partners to bring about yesterday’s extradition, and look forward to sharing the evidence gathered in this investigation in the criminal proceedings that will follow.”
“One of the most dangerous and feared drug kingpins will now be held accountable for his alleged crimes in the United States after decades of eluding law enforcement,” said FBI Assistant Director in Charge Sweeney. “After years of gathering evidence in multiple investigations, the FBI and our law enforcement partners will do everything we can to bring El Chapo to justice.”
“The U.S. Marshals Service will undertake this mission with the same sense of duty that we have undertaken previous missions for the last 228 years,” said U.S. Marshal Dunne. “We will preserve the integrity of the judicial process. We will protect the members of the Eastern District of New York family. We will secure this individual in a humane manner and we will bring him to court on time.”
As detailed in the superseding indictment and other court filings, Guzman Loera and Ismael Zambada Garcia, as leaders of the Sinaloa Cartel, conspired to import more than 200 metric tons of cocaine into the United States. The Sinaloa Cartel shared drug transportation routes and obtained drugs from various Colombian drug trafficking organizations, in particular, the Colombian Norte del Valle Cartel, the Don Lucho Organization, and the Cifuentes-Villa Organization. The cocaine was transported from Colombia via planes, boats, and submarines into ports the enterprise controlled in Southern Mexico and other locations throughout Central America. From there, it was shipped through Mexico to distribution hubs in the United States.
As one of the principal leaders of the Sinaloa Cartel, Guzman Loera allegedly also oversaw the cocaine, heroin, methamphetamine, and marijuana smuggling activities by the Sinaloa Cartel to wholesale distributors in Atlanta, Chicago, Miami, New York, as well as in various locations in Arizona, Los Angeles and elsewhere. The billions of dollars generated from drug sales in the United States were then clandestinely transported back to Mexico.
To evade law enforcement and protect the enterprise’s narcotics distribution activities, Guzman Loera and the Sinaloa Cartel allegedly employed various means including the use of “sicarios,” or hit men, who carried out hundreds of acts of violence in Mexico, including murder, to collect drug debts, silence potential witnesses, and prevent public officials from taking action against the cartel. To intimidate and eliminate his rivals, during the Sinaloa Cartel’s internecine war for territory with the Juarez Cartel from approximately 2007 through 2011, Guzman Loera directed these assassins to kill thousands of drug trafficking competitors, during which many of his victims were beheaded.
The government’s case is being prosecuted by Assistant U.S. Attorneys Andrea Goldbarg, Hiral Mehta, Patricia Notopoulos, Gina Parlovecchio and Michael Robotti from the Eastern District of New York; Assistant U.S. Attorneys Adam Fels, Lynn Kirkpatrick and Kurt Lunkenheimer from the Southern District of Florida; and Trial Attorneys Amanda Liskamm, Anthony Nardozzi and Michael Lang of the Criminal Division’s Narcotic and Dangerous Drug Section.
The case was investigated by the DEA, ICE and the FBI, in cooperation with Mexican and Colombian law enforcement authorities. Substantial assistance was provided by the U.S. Attorney’s Offices in the Northern District of Illinois, the Western District of Texas, the Southern District of New York, the Southern District of California, and the District of New Hampshire. The Department of Justice’s Office of International Affairs also provided assistance in bringing Guzman Loera to the United States to face charges. The investigative efforts in this case were coordinated with the Department of Justice’s Special Operations Division, comprising agents, analysts, and attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section, DEA, FBI, ICE, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Internal Revenue Service Criminal Investigation, the U.S. Bureau of Prisons, and the New York State Police.
The United States would like to extend its appreciation to the Government of Mexico and, in particular, President Enrique Peña Nieto, Secretary of Foreign Affairs Luis Videgaray Caso and Attorney General Raul Cervantes Andrade for their assistance in this case.
This case is also 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.
An indictment is a formal charging document notifying the defendant of the charges. All persons charged in an indictment are presumed innocent until proven guilty. Guzman faces a sentence of mandatory life imprisonment, if convicted of the continuing criminal enterprise charge, and a maximum sentence of life on the remaining charges.
Two Mexican Nationals Sentenced to Prison for Participating in Forced Labor SchemeRead the Press Release
Two Mexican nationals, who were working in the Homestead, Florida, area and elsewhere, were sentenced today to prison for their participation in a conspiracy to obtain and provide forced labor.
Wifredo A. Ferrer, 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.
Agustin Mendez-Vazquez, 44, and his son, Ever Mendez-Perez, 24, both originally of Mexico, pleaded guilty before U.S. District Judge Robert N. Scola Jr. in October 2016. Agustin Mendez-Vazquez pleaded guilty to one count of conspiracy to provide and obtain forced labor, in violation of Title 18, United States Code, Section 1594(b), and was sentenced to 72 months’ imprisonment. Ever Mendez-Perez pleaded guilty to one count conspiracy to encourage and induce illegal aliens to reside in the United States, in violation of Title 8, United States Code, Section 1324(a)(1)(A)(v)(I), and was sentenced to twelve months’ imprisonment. Agustin Mendez-Vazquez has also been ordered to pay restitution to the victims of his scheme.
“Forced labor equates to modern-day slavery and the United States Attorney’s Office, together with our federal, state, and local law enforcement partners stand ready to prosecute those individuals who facilitate these illegal practices,” said U.S. Attorney Ferrer. “Agustin Mendez-Vazquez and Ever Mendez-Perez’s convictions stand as a reminder to the public that the law enforcement community will not tolerate human trafficking - in any form. We urge anyone with information regarding human trafficking and forced labor practices to contact the police.”
"When individuals are forced and exploited for their labor, it erodes our society's belief in the freedoms afforded to us under the laws of our nation,” said Mark Selby, Special Agent in Charge of HSI Miami. “HSI will continue to investigate this type of illegal activity and ensure that those responsible are brought to justice."
According to court records, Agustin Mendez-Vazquez, who worked as an unlicensed labor subcontractor on tomato farms in the Homestead area and elsewhere, utilized physical force, threats of physical force, threats of deportation, and debt bondage to maintain control over other migrant workers. Workers in Mendez-Vazquez’s control were beaten if they did not work every day; were subjected to harassment and abuse; and were required to relinquish large portions of their paychecks – sometimes their entire paychecks – to Mendez-Vazquez. Ever Mendez-Perez, who worked with his father, assisted in maintaining and supervising the migrant workers.
The United States Attorney’s Office for the Southern District of Florida, in collaboration with ICE-HSI, leads the South Florida Human Trafficking Task Force, which works to increase public awareness, rescue victims, and prosecute traffickers. The task force is composed of not only federal, state, and local law enforcement agencies, but also includes non-law enforcement partners, such as service providers, victim advocates, faith-based organizations, academic representatives and community members.
The Fair Food Standards Council, a non-governmental organization that monitors and enforces the rights of migrant farmworkers in the Fair Food Program, referred this matter to law enforcement. Mr. Ferrer would like to thank the Fair Food Standards Council, as well the Coalition of Immokalee Workers, the International Rescue Committee, and VIDA Legal Assistance, Inc., for their assistance with this case.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Benjamin 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.
Joaquin “El Chapo” Guzman Loera Has Arrived in the United StatesRead the Press Release
WASHINGTON – Joaquin Archivaldo Guzman Loera, known by various aliases including “El Chapo,” has arrived in the United States to face criminal charges in connection with his leadership of the Mexican organized crime syndicate known as the Sinaloa Cartel.
Guzman Loera is charged in six separate indictments throughout the United States; however, the indictment filed in the Eastern District of New York contains a provision that he must first enter the United States in that district to preserve the Eastern District of New York indictment. As such, Guzman Loera landed at Long Island MacArthur Airport in Islip, New York.
The Justice Department extends its gratitude to the Government of Mexico for their extensive cooperation and assistance in securing the extradition of Guzman Loera to the United States.
Additional details regarding the time and place of Guzman Loera’s initial appearance in U.S. District Court are forthcoming.
Joaquin “El Chapo” Guzman Loera Extradited to United StatesRead the Press Release
WASHINGTON – Joaquin Archivaldo Guzman Loera, known by various aliases including “El Chapo,” has been extradited and is en route to the United States to face criminal charges in connection with his leadership of the Mexican organized crime syndicate known as the “Sinaloa Cartel.”
Guzman Loera is charged in six separate indictments throughout the United States.
The Justice Department extends its gratitude to the Government of Mexico for their extensive cooperation and assistance in securing the extradition of Guzman Loera to the United States.
Additional details regarding the time and place of Guzman Loera’s initial presentation in court are forthcoming.
Department of Justice Releases Community Policing Report Highlighting AG Lynch's Visit to MiamiRead the Press Release
WASHINGTON – As part of the Department’s commitment to working with communities and law enforcement to build stronger relationships and mutual trust, Attorney General Loretta E. Lynch today announced the release of the “Attorney General’s Community Policing Report,” a summary of the Attorney General’s twelve-city Community Policing Tour and the Department of Justice’s four Regional Justice Forums. The Attorney General’s Community Policing Tour Report builds on President Obama’s priorities to engage with law enforcement and other members of the community to implement key recommendations from the Final Report of the President’s Task Force on 21st Century Policing.
“This document is not meant to be a comprehensive, step-by-step guide, but, rather, a useful blueprint—a window into what citizens across the nation are doing to build stronger bonds between police and the people they serve,” said Attorney General Lynch. “I hope that this report will help inspire ideas and foster cooperation in communities from coast to coast—so that, together, we can continue our work toward a stronger, a safer, and a more united nation.”
During the Community Policing Tour, Attorney General Lynch visited 12 jurisdictions in two phases. Phase I focused on jurisdictions that had addressed difficult histories of mistrust between communities and law enforcement through strong collaboration and innovation. During this phase, the Attorney General traveled to Cincinnati, Ohio; Birmingham, Alabama; East Haven, Connecticut; Pittsburgh, Pennsylvania; Seattle, Washington; and Richmond, California. Phase II highlighted cities that had made outstanding progress implementing the six key pillars identified in the Final Report of the President’s Task Force on 21st Century Policing. During this phase, the Attorney General visited Miami/Doral, Florida; Portland, Oregon ; Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California, with each site focusing on one of the report’s pillars.
In the wake of the horrific tragedies of the summer of 2016 in Baton Rouge, Louisiana; Dallas, Texas; and St. Paul, Minnesota, the Attorney General and Deputy Attorney General Sally Q. Yates convened a series of Regional Justice Forums with members of the local law enforcement, youth, faith, non-profit and civil rights communities. These meetings were designed to help local stakeholders critically examine community policing issues in their respective cities and regions and to seek concrete solutions together. The Attorney General convened Justice Forums in Detroit, Michigan and Newark, New Jersey. The Deputy Attorney General hosted forums in Denver, Colorado, and Atlanta, Georgia.
This report chronicling the community policing work of the Department of Justice highlights innovative local approaches to policing that help foster stronger ties between officers and the people they are sworn to serve and protect. The document is meant to serve as a tool for communities and law enforcement agencies seeking to deepen their own commitment to community policing principles and practices.
Click the following hyperlink to access the report as a pdf file: Attorney General’s Community Policing Report. AG Lynch’s visit to Miami can be found on pages 31-35.
Port St. Lucie Man Charged with Attempts to Import and Distribute LSD and Possessing a FirearmRead the Press Release
A Port St. Lucie Man was charged with attempted importation and distribution of LSD and unlawfully possessing a firearm.
Wifredo A. Ferrer, 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), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division and Adolphus P. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Ralph Robert James Sergo, 24, of Port St. Lucie, is charged by criminal complaint with attempted importation and attempted distribution of Lysergic Acid Diethylamide, also known as “LSD," a Schedule I controlled substance, in violation of Title 21, United States Code, Sections 952, 963, 841(a)(1), 846; and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c). If convicted, Sergo faces a mandatory minimum of 10 years to life in prison for the narcotics offense and a mandatory consecutive 5 years to life term of imprisonment for possessing the firearm and ammunition in furtherance of a drug trafficking crime. Sergo had his initial appearance today before Chief U.S. Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce. Judge Lynch ordered Sergio be detained pending trial. The defendant’s arraignment is scheduled for February 1, 2017.
According to the court record, including the criminal complaint, on October 11, 2016, HSI agents intercepted an international mail parcel that was shipped from Denmark and addressed to Port Saint Lucie, Florida. A search of the parcel revealed a gift box. Hidden inside one of the skin cream jars in the box was a folded piece of paper and a small clear ziplock baggie, both containing a gray coarse powder substance, later confirmed to be LSD.
On January 17, 2017, HSI agents executed a federal search warrant at a residence in Saint Lucie and discovered a small plastic bag, glass jars, containing a gray colored powder which field tested positive for the presence of LSD, and drug paraphernalia. During the execution of the search warrant, Sergo arrived at the residence in possession of a loaded Smith and Wesson .38 caliber firearm.
During the course of the investigation, law enforcement discovered U.S. Postal Service shipping receipts in Sergo’s vehicle, including one dated January 17, 2017, from the Stuart Florida Post Office. Law enforcement intercepted the outbound parcel and found it contained approximately 85 grams of an orange granular substance, which field tested positive for the presence of LSD.
The complaint alleges that Sergo gave a Mirandized statement, admitting that there were jars in the house that contained powder LSD, that he had mailed a package to Mexico, containing LSD, and that he had been expecting a package containing LSD from Denmark.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USPIS, DEA and the St. Lucie County Sheriff's Office for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
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.
Four Miami-Dade County Residents Guilty of Stealing Personal Property from over 380 Victims for Identity Theft Fraud RingRead the Press Release
Four Miami-Dade County residents conspired to break into parked vehicles to steal personal property, including personal identification information, that was then used to carry out identity-related fraud schemes.
Wifredo A. Ferrer, 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), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
According to the court record, Willie Smith, 34, Daryl Pugh 42, Lloyd Scott, 28, Naomie Maitre, 39, and Christopher Simpson, 35, all of North Miami, were charged by indictment for their participation in a identity theft and fraud scheme conspiracy. The defendants conspired to break into vehicles parked at gas stations, day care centers, and churches in order to steal personal property, including purses, which often contained personal identification documents and information belonging to other individuals. This stolen information was then used to commit aggravated identity theft and fraud. In total, the co-defendants unlawfully possessed property, including purses, sunglasses, cellular telephones, credit cards, debit cards, social security cards, legal permanent resident cards, health insurance cards, Florida bar cards, and passports, belonging to more than 380 victims.
Co-defendants Smith, Pugh and Scott pled guilty for their participation in the identity theft and fraud conspiracy. On January 13, 2017, co-defendant Maitre was convicted by a trial jury of conspiracy to possess 15 or more access devices, possession of 15 or more access devices with the intent to commit fraud, and two separate counts of aggravated identity theft. Smith and Scott were each sentenced, by United States District Judge Ursula Ungaro, to 94 months’ imprisonment.
Maitre and Pugh are scheduled to be sentenced on March 27, 2017, at 11:00 am, before U.S. District Judge Ursula Ungaro.
The case against Christopher Simpson is pending before the court.
An indictment is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Mr. Ferrer commended the investigative efforts of ICE-HSI and MDPD. The case is being prosecuted by Assistant U.S. Attorneys Cary O. Aronovitz and Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.