Southern District of Florida
Press releases recorded for this federal judicial district.
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.
Co-defendant Christopher Simpson remains a fugitive.
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.
Colombian National Sentenced to Prison for Unlawfully Injecting Silicone into Victims’ BodiesRead the Press Release
A Colombian national was sentenced today to prison for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George M. Karavetsos, Director, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), made the announcement.
Juan David Acosta, 44, of Hallandale Beach, was sentenced to a year and a day in prison, to be followed by one year of supervised release. Acosta previously pled guilty to two counts of receipt in interstate commerce of a misbranded device and delivery for pay with intent to defraud or mislead, in violation of Title 21, United States Code, Sections 331(c) and 333(a)(2).
According to court record, Acosta engaged in the business of administering injections of polydimethylsiloxane, commonly referred to as silicone, into the bodies of other individuals. Acosta was paid thousands of dollars for this service. Specifically, on July 29, 2015 and again on August 9, 2015, Acosta, at his residence in the Southern District of Florida, injected silicone into the buttocks of two victims in order to affect the size, contour, and structure of that portion of the human body for aesthetic purposes. The injection of silicone into the human body in this manner, regardless of whether such injection was dispensed and administered by a licensed practitioner, requires an FDA-approved application. Acosta did not advise the victims that silicone was being injected into their bodies. Acosta is not a licensed medical practitioner and he had not received FDA approval to administer the injections.
Mr. Ferrer commended the investigative efforts of the FDA-OCI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Palm Beach County Sherriff’s Office Narcotics Unit, and Miami-Dade Police Department’s Medical Crimes Unit. The case was prosecuted by Assistant United States Attorney Randy Katz.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.A Colombian national was sentenced today to prison for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Tampa-Area Medical Device Salesman Guilty of Selling Expired Lap-Band DevicesRead the Press Release
A Tampa-area medical device salesman pleaded guilty on Friday, January 13, 2017, to conspiracy to commit wire fraud in connection with the sale of expired LAP-BAND Adjustable Gastric Banding Systems to physicians in South Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations (OCI), Miami Field Office, made the announcement.
Gregory Charles Grimm, 45, of Saint Petersburg, pleaded guilty to a single count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. Grimm faces a statutory maximum sentence of twenty years in prison. Grimm is scheduled to be sentenced on March 24, 2017 at 1:15 p.m., by United States District Judge William P. Dimitrouleas in Fort Lauderdale.
According to court records, between June 2014 and October 15, 2015, defendant Grimm and a co-conspirator, Peter Lawrence Kafka, both Senior Account Executives for Apollo Endosurgery, Inc., engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit. Kafka would purchase expired or nearly expired LAP-BANDS through the internet. Kafka would then supply Grimm with these expired or nearly expired LAP-BANDs. Grimm created false labels with fraudulent serial numbers and expiration dates to hide the true expiration date of the LAP-BANDs. Grimm would then provide Kafka the misbranded LAP-BANDs, the labeling of which bore false expiration dates. Kafka then sold the misbranded LAP-BANDs to local physicians. At least seven of these misbranded LAP-BANDS were subsequently implanted into patients.
The investigation began as a result of a referral by Apollo Endosurgery to the FDA.
Mr. Ferrer commended the investigative efforts of the FDA-OCI in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
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 Pharmaceutical Salesman Pleads Guilty in $13 Million Money Laundering Conspiracy Involving 2 Million Doses of OxycodoneRead the Press Release
A former pharmaceutical salesman pled guilty on January 13, 2017, for his role in a $13 million money laundering conspiracy involving more than 2 million dosage units of oxycodone.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Ric L. Bradshaw, Sheriff, Palm Beach Sheriff’s Office, Albert Arenal, Chief, Coconut Creek Police Department, and Daniel C. Alexander, Chief, Boca Raton Police Department, made the announcement.
Jonathan Sendor, 60, of Aurora, Colorado, pled guilty to one count of conspiracy to commit money laundering involving criminally derived property valued greater than $10,000, in violation of Title 18, United States Code, Sections 1956(h) and 1957. Sentencing is scheduled for March 14, 2017 at 2:00 p.m. At sentencing, Sendor faces up to ten years in prison.
According to court documents, between March 2010 and June 2011, Sendor’s co-conspirators operated six pain clinics in Broward and Palm Beach counties with the purpose of unlawfully dispensing oxycodone that had not been prescribed for a legitimate medical purpose. Approximately 2,007,695 oxycodone 30 mg pills were dispensed and distributed through the pain clinics before they were closed following the execution of search warrants in June 2011. The co-conspirators operated the clinics to ensure that the maximum amount of oxycodone would be prescribed without regard to a legitimate medical need, and purely for the sake of profit. The pain clinics failed to comply with Florida standards for the use of controlled substances. The pain clinics generated approximately $13,466,598 from the unlawful prescribing and dispensing of oxycodone.
For his role in the scheme, Sendor created multiple companies, building upon the connections he had formed as a pharmaceutical salesman, to act as a quasi-broker between the doctors of the pain clinics needing oxycodone and the wholesalers. Sendor misled the wholesale pharmaceutical companies and told them that he would function as an inspector and check whether any prospective customer pain clinic was operating a pill mill by conducting site visits and by requiring the clinic manager/doctor to complete a site survey. Sendor misrepresented the results of the site survey and directed the doctors, pain clinic managers, owners and other coconspirators to lie on the survey form.
In October 2010 the law changed and clinics were prohibited from dispensing oxycodone on-site. Sendor then assisted in opening two pharmacies – one in Boca Raton, Florida and another pharmacy in Orlando, Florida. Patients of the pain clinics were then directed to these pharmacies for oxycodone.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, PBSO, Coconut Creek Police Department, and Boca Raton Police Department. Mr. Ferrer also recognized the South East Regional Task Force (SERTF) and the Palm Beach Sheriff's Office Multi-Agency Diversion Task Force (PBSO MAADTF). SERTF is headed by the DEA and includes representatives from the Fort Lauderdale Police Department, Pembroke Pines Police Department, Hallandale Beach Police Department, Lauderhill Police Department, Margate Police Department, and Coconut Creek Police Department. PBSO MAADTF is headed by the Palm Beach County Sheriff's Office and includes representatives from the Boca Raton Police Department, Boynton Beach Police Department, DEA, Delray Beach Police Department, Florida Department of Health, Greenacres Police Department, IRS-CI, Jupiter Police Department, Riviera Beach Police Department, Palm Beach County State Attorney’s Office, PBSO, Palm Beach Gardens Police Department and West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Donald F. Chase, II.
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.
Second Haitian National Sentenced to 19 Years in Prison for International Hostage Taking of U.S. CitizenRead the Press Release
Marcus Noel, 40, of Port-au-Prince, Haiti, was sentenced by U.S. District Court Judge Joan A. Lenard to 235 months’ imprisonment after having previously pled guilty to the international hostage taking of a United States citizen in Haiti. Co-defendant Moises Louinis, 24, also of Port-au-Prince, was previously sentenced to 144 months’ imprisonment for his participation in the scheme.
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.
According to statements made and documents filed in court, defendants Noel and Louinis were charged with the armed hostage taking of a United States citizen on July 5, 2014, in Petion-ville, a neighboring suburb of Port-au-Prince, Haiti. Noel and Louinis approached the victim as she stood by the side of the road and forced her into her car at gunpoint. The defendants then drove with the victim around Port-au-Prince and forced her to place ransom calls to various family members in Haiti. The victim was eventually taken to a school operated by Noel, where she was kept blindfolded, gagged and handcuffed inside a locked room for three days. In addition, the victim was forced to sleep on dirt floors and given only minimal food and water. During the victim’s captivity, Noel continued to call the victim’s family members to demand a $150,000 ransom and made threats to kill the victim and her children if the ransom was not paid. On July 7, 2014, the victim was rescued by Haitian law enforcement officials.
Mr. Ferrer commended the investigative efforts of the FBI, Haitian National Police and the Central Directorate of the Judicial Police (DCPJ) Anti-Kidnapping Unit. Mr. Ferrer thanked the Haitian Government, including the Haitian Ministry of Justice for their assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Cristina M. Moreno.
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 County Resident Sentenced to 5 Years in Prison for Attempting to Receive Child PornographyRead the Press Release
Daniel Tyler Morgan, 30, of Jupiter, Florida, was sentenced today by United States District Judge Robin Rosenberg to 60 months in prison, to be followed by 5 years of supervised release for attempting to receive sexually explicit images of a child. Previously, on October 12, 2016, Morgan pled guilty to one count of attempting to receive sexually explicit images of a child.
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), and Chief John Bolduc, Port St. Lucie Police Department, made the announcement.
According to the court record, Morgan was a history teacher at St. Lucie West Centennial High School in Port St. Lucie, Florida, when he began communicating over the internet with a minor student whom he had taught the previous year. Over a period of three months, Morgan cultivated an increasingly personal online relationship with the student. Morgan began soliciting sexually explicit photographs from the minor and sent the student a sexually explicit image of himself. Morgan also encouraged the minor to join him in smoking marijuana. Morgan is no longer employed as a teacher with the school district.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Port St. Lucie Police Department. The case was prosecuted by Special Assistant U.S. Attorney Ryan Butler and Assistant U.S. Attorney Daniel Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former CEO of Essex Holdings Inc. Convicted of $29 Million Ponzi Scheme and Separate $2.7 Million Scheme Related to South Carolina Development FundsRead the Press Release
The former Chief Executive Officer of Essex Holdings, Inc., was convicted of two separate fraud schemes totaling more than $30 million. The first scheme involved nearly 100 investors who purportedly purchased interests in iron ore mining in Chile. The second scheme involved unlawfully obtaining economic development funds from the State of South Carolina.
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.
Shankar Subramaniam Xavier, a/k/a "Navin Xavier," a/k/a "Dr. Navin Xavier" (Xavier), 44, of Miramar, entered a guilty plea on January 13, 2017, before U.S. District Judge Darrin P. Gayles in Miami to two counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Xavier faces a maximum statutory sentence of twenty years in prison for each count and a fine up to $250,000. One wire fraud count pertained to the investment fraud scheme and the other count pertained to the South Carolina economic development scheme. Xavier is scheduled to be sentenced on March 27, 2017, before Judge Gayles.
According to documents filed in court, from September 2010 through May 2014, Xavier operated Essex Holdings, Inc. (“Essex Holdings”) from an office in Miami Gardens, and raised more than $29 million from nearly 100 investors for supposed investments in sugar transportation and shipping, as well as iron ore mining in Chile. Xavier used a false financial statement, forged documents, and false promises of fixed rates of return, to induce investors to invest with Essex Holdings. Most of the money was used for purposes other than what was promised, including to support lavish spending by Xavier and his wife for expensive jewelry, luxury vehicles, wedding expenses, and cosmetic surgery. Eventually, Xavier used new investor money to pay old investors in a Ponzi-like fashion before the scheme collapsed.
second scheme involved Xavier using Essex Holdings to obtain $1.2 million in payments and approximately $1.5 million worth of commercial real estate from the South Carolina Coordinating Council for Economic Development (“SCCCED”), a division of the South Carolina state government, that was supposed to be used to develop a dilapidated industrial property into a diaper plant and rice packaging facility. According to documents filed in court, Xavier provided false financial documentation to SCCCED in order to obtain the contract, and later provided fake contractor invoices and fake bank statements in order to get paid under the contract. As with the investment fraud scheme, Xavier spent a significant portion of the development money for his personal living expenses, and wired some of it to the same overseas accounts used in the investment fraud.
Mr. Ferrer commended the investigative efforts of the FBI, the Miami Regional Office of the U.S. Securities and Exchange Commission, and the South Carolina Office of Inspector General, for assisting with this matter. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Alison Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
The Department of Justice Releases New Report on the Attorney General’s Twelve-City Community Policing Tour and Regional Justice ForumsRead the Press Release
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.
Justice Department Settles Pregnancy Discrimination Lawsuit Against Palm Beach County, Florida, School BoardRead the Press Release
According to the department’s complaint, the board discriminated on the basis of sex against Assistant Principal Anne Williams Dorsey of the Palm Beach County School District by unlawfully demoting her. The department alleges that after Dorsey became pregnant, her supervisor reassigned her to a position with less pay and benefits and filled her former position by replacing her with a male colleague she had trained. The department further alleges that Dorsey’s demotion was also unlawful retaliation against her for her efforts to report sexual harassment allegations, made by a third employee, against the male colleague who replaced her in her former position.
Under the consent decree, which still must be approved by the U.S. District Court for the Southern District of Florida, the board has agreed to pay $350,000 in back pay and compensatory damages to Dorsey. In addition, the board must review and revise its anti-discrimination policies and procedures to ensure that it protects its employees from discrimination on the basis of sex, including pregnancy, and unlawful retaliation. The board must also provide training to its employees on its anti-discrimination policies and procedures.
“The U.S. Attorney’s Office is committed to preventing pregnancy discrimination and ensuring workplace equity,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “A woman should never have to choose between having a family and pursuing her professional career. We are pleased that the Palm Beach County School Board has agreed to review its policies and procedures to ensure that it promotes a professional environment that is fully compliant with Title VII. Our Office will continue to enforce the right of pregnant employees to be free from employment discrimination and retaliation.”
“No woman should face discrimination for her decision to have a family,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Women like Anne Williams Dorsey deserve the full enforcement of this nation’s employment discrimination laws, which ensure that they do not lose valuable positions, pay or benefits because of their pregnancies.”
Title VII is a federal statute which prohibits employment discrimination on the basis of sex (including pregnancy), race, color, national origin or religion. Title VII also prohibits retaliation against an employee who opposes an unlawful employment practice, makes a charge of discrimination or participates in an investigation, proceeding or hearing under the Civil Rights Act.
Dorsey initially filed charges of sex discrimination and retaliation with the Equal Employment Opportunity Commission’s Miami Field Office, which investigated the matter, determined there was reasonable cause to believe discrimination had occurred and referred the matter to the Justice Department.
The case is being handled by Assistant U.S. Attorney Veronica Harrell-James of the Southern District of Florida and Trial Attorneys Nadia Said and Louis Whitsett of the Civil Rights Division’s Employment Litigation Section.
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.
New York Resident Pleads Guilty in South Florida to Money Laundering Conspiracy Involving Stolen Identity Tax Fraud and Recreational Vehicles Fraud SchemesRead the Press Release
A New York resident pled guilty for his participation in a money laundering conspiracy involving stolen identity tax fraud and a recreational vehicles fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Marlen Manukyan, 41, of Brooklyn, New York, pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). As part of his plea agreement, Manukyan agreed to restitution in the amount of $124,009.
According to court documents, from August to November 2013, Manukyan opened bank accounts using counterfeit driver's licenses that he knew would be used to conduct financial transactions involving funds derived from unlawful activities. Specifically, from August 1, 2013 to August 9, 2013, Manukyan opened multiple bank accounts using the identities of two individuals without their permission using counterfeit Pennsylvania Driver's Licenses. These accounts received money from two illicit sources for the next several months.
First, Manukyan's co-conspirators filed fraudulent tax returns with the IRS using the stolen identities of various individual taxpayers without the taxpayers' knowledge or consent. The fraudulent tax refunds (minus fees) were sent to several of the bank accounts that were set-up by the defendant. Co-conspirators then withdrew the money through cash withdrawals or debit card transactions. In total, Manukyan's co-conspirators filed approximately 71 fraudulent tax returns with the IRS.
Second, Manukyan's co-conspirators engaged in a scheme to defraud individuals who were seeking to buy used recreational vehicles (RVs) on the internet. To perpetrate this scheme, the defendant's co-conspirators used fake names and advertised on internet websites that they had used RVs for sale. Interested purchasers were told to send their money by wire transfer to a bank account in the name of a shell company that Manukyan opened using a counterfeit driver's license. Specifically, a retired couple was defrauded into believing that they had reached an agreement to purchase a used RV. The individuals sent $39,960 by wire transfer to complete the purchase, but the couple never received the RV and the co-conspirators ceased communicating with the victims once they received the money. The defendant and his co-conspirators caused the bank to send $39,000 by international wire transfer from the shell company’s bank account to a bank account in the name of another individual in Moscow, Russia.
Manukyan is scheduled to be sentenced on March 16, 2017, before United States District Judge Darrin P. Gayles. At sentencing, the defendant faces up to twenty years in prison.
Mr. Ferrer commended the investigative efforts of the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Harold E. Schimkat.
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 Ferrer Speaks About Human Trafficking in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
As part of National Slavery & Human Trafficking Prevention Month, Attorney General Loretta E. Lynch yesterday announced the Justice Department’s National Strategy to Combat Human Trafficking (National Strategy), as required by the 2015 Justice for Victims of Trafficking Act. U.S. Attorney for the Southern District Florida Wifredo A. Ferrer joined Attorney General Lynch for her announcement regarding the National Strategy and participated in a panel discussion about human trafficking.
“The U.S. Attorney’s Office for the Southern District of Florida is honored to have been selected as a participating member of the Justice Department’s Anti-Trafficking Coordination Teams and the Federal South Florida Human Trafficking Task Force,” stated U.S. Attorney Wifredo A. Ferrer. “These invaluable partnerships have offered the survivors assistance in connection with hard-fought criminal prosecutions and protected others from falling victim to modern-day slavery and trafficking schemes. Only through our ongoing collaboration, expanded partnerships and the implementation of prevention and enforcement strategies can we eradicate the human trafficking problem. Until then, we will continue to stand up as the outspoken voice on behalf of the victimized and against the accused, in order to hold those accountable in federal court who use fraud, force or other illicit means to victimize others. But, we cannot do this important work – alone. We rely on the members of our diverse community to continue to raise public awareness and report suspected trafficking.”
Since being appointed as U.S. Attorney for the Southern District of Florida in 2010, Wifredo A. Ferrer has made the identification and prosecution of human traffickers a priority for the Office. The Special Prosecution’s Section of the U.S. Attorney’s Office focuses on the protection of some of the most vulnerable segments of our diverse population. The Section has helped to oversee the district’s Human Trafficking and Project Safe Childhood Programs (PSC), and the Office’s Violence Reduction Partnership (VRP) Program, while prosecuting cases involving victims of violent crimes (resulting in death or serious bodily injury), human trafficking, child exploitation, and other criminal offenses. 2010, the U.S. Attorney’s Office for the Southern District of Florida has prosecuted 84 offenders in 50 human trafficking cases. These cases collectively involved the victimization of more than 70 survivors of human trafficking.
In 2011, the U.S. Department of Justice selected the Southern District of Florida as one of six Phase I Pilot Anti-Trafficking Coordination Teams (ACTeams) convened through an interagency collaboration of the Departments of Justice, Labor and Homeland Security to develop high-impact federal human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking of adults by force, fraud and coercion.
The Federal South Florida Human Trafficking Task Force, led by the U.S. Attorney’s Office and Homeland Security Investigations, works to increase public awareness, rescue victims, and prosecute traffickers. The Task Force is composed of federal agencies including, the Federal Bureau of Investigation (specifically its Crimes Against Children Task Force), State Department’s Diplomatic Security Service, U.S. Department of Labor and Internal Revenue Service. Many state and local law enforcement entities in South Florida, such as the Miami-Dade Police Department and Broward County Sheriff’s Office, are supportive task force members. Additionally, the Task Force partners with non-law enforcement entities, including the Florida Department of Children and Families, service providers, victim advocates, faith-based organizations, academic representatives and community members. In 2016, the Task Force included more than 120 non-law enforcement members. Last year alone, ACTeam and Task Force members participated in more than 140 human trafficking community outreach events.
The U.S. Attorney’s Office for the Southern District of Florida and its ACTeam is fully committed to using proactive means to combat labor, human and sex trafficking schemes. Prior to 2011, most of the human trafficking prosecutions handled by the U.S. Attorney’s Office in South Florida involved the trafficking of minor victims. Presently, the U.S. Attorney’s Office for the Southern District of Florida prosecutes more human trafficking cases involving adult survivors than ever before. The U.S. Attorney’s Office has also increased the number of human trafficking cases prosecuted in recent years.
The following are a few of the notable prosecutions that resulted from the district’s anti-trafficking collaboration:
1. Southern District Handles First Sex Trafficking by Fraud Prosecution
In 2011, Lavont Flanders and Emerson Callum were charged with sex trafficking by fraud, among other charges (Case No. 11-CR-20557-KMM). The defendants falsely and fraudulently lured women to Miami for supposed modeling auditions. Once the women arrived, they were provided with a drink that, unbeknownst to the victims, had been laced with Xanax. The women were then filmed engaged in sexual acts with Callum, who owned an adult pornography business. The victims had no idea that the defendants subsequently sold the video footage for profit. Both defendants were convicted of all criminal charges and sentenced to life in prison.
2. The Southern District Has Obtained Significant Victim Restitution Orders
In United States v. Israel Cortes-Morales, et al., Case No. 11-CR-20005-DPG, the defendants pled guilty to participating in a human trafficking conspiracy. A Miami federal judge ordered the defendants to pay $1.2 million in restitution to the five sex trafficking victims.
Thereafter, in another human trafficking case, Rafael Alberto Cadena-Sosa, a Mexican national, was sentenced in West Palm Beach to 15 years in prison and ordered to pay $1,261,563 in victim restitution for his participation in a family run sex trafficking organization (Case No. 98-CR-14015-JEM). Cadena-Sosa pleaded guilty and admitted that he, along with other family members, approached women and girls in Mexico, as young as 14 years of age, and lured them into the U.S. using false promises of legitimate jobs. The trafficking ring imposed a smuggling debt and used brutal violence and threats to compel the victims to engage in prostitution.
3. Southern District Prosecuted First Sex Trafficking Case in Country Based on Extraterritorial Jurisdiction
In 2014, Damion St. Patrick Baston, a native of Jamaica, was sentenced to 27 years in prison after having been convicted at trial of trafficking several women through Miami, Australia and the Middle East for the purpose of prostitution.(Case No. 13-CR-20914-CMA). Baston was also ordered to pay $499,270.00 in restitution to the victims. This was the first case in the country to charge the extraterritorial provision of our anti-trafficking laws and it has paved the way for other such prosecutions.
4. First Prosecution in South Florida Involving Farm Workers
In October 2016, Augustin Mendez pled guilty to conspiracy to provide and obtain forced labor (Case No. 16-CR-20170-RNS). Mendez, who was a supervisor of migrant farm workers in the tomato fields of Homestead, Florida, physically assaulted his workers, threatened and intimidated them, kept them in “debt-bondage,” and confiscated their passports and official travel documents, all to maintain control over his workforce. Mendez’s son, Ever Mendez, who was also charged in the case, pled guilty to encouraging and inducing illegal aliens to remain and reside in the United States.
5. Expanded Partnership with U.S. Department of State’s Diplomatic Security Service to Combat Human Trafficking
This past November, the coordinated efforts of our Task Force and members of our ACTeam, including representatives from the U.S. Diplomatic Security Service, obtained justice for human trafficking victims who traveled to Miami from Kazakhstan. Jeffrey Jason Cooper, a Miami Beach resident, was convicted at trial of sex trafficking after he used deception to lure unsuspecting foreign university students into the United States under false pretenses of legitimate summer jobs, only to then advertise the students to customers of his illicit prostitution and erotic massage enterprise (Case No. 16-CR-20345-KMM).
6. Additional Trafficking Prosecutions
Some of the recently convicted traffickers also include Ricky Jermaine Atkins of Key Largo, a former staff mentor at the Florida Keys Children’s Shelter, and Sandra Simon of Homestead (Case No. 14-CR-20895-MGC). While working at the shelter Atkins arranged for two residents, girls aged 15 and 16, to be brought from Tavernier to a hotel in Cutler Bay where Simon supervised their prostitution. Atkins also arranged for one of the minors to have sex with three associates in order to prepare her for prostitution. Simon pled guilty and Atkins was convicted at trial in Miami and is to be sentenced on February 17, 2017.
In another case, Shaun McKinley was convicted of sex trafficking following a Fort Lauderdale trial and sentenced to life in prison (Case No. 14-CR-60163-WPD). Within three days of meeting the 28-year-old victim in Hollywood, Florida, McKinley was acting as her pimp and physically assaulting her. The first time that the victim attempted to leave McKinley, he quickly found her, dragged her for blocks by the hair, and punished her by making her strip naked, covering her head with a pillow case, hog-trying her with extension cords and beating her with a board. The victim was taken to a hospital after another beating. A concerned nurse and an alert police officer kept McKinley from subsequently reaching the victim.
The U.S. Attorney’s Office continues to work with our law enforcement and community partners to successfully target for prosecution the offenders who perpetuate these illicit and depraved schemes.
Raising awareness, supporting initiatives that prevent human trafficking and bringing justice to those that bring harm to the vulnerable remains a top priority for the U.S. Department of Justice, Attorney General Loretta Lynch and the U.S. Attorney’s Office Southern District of Florida. The department’s anti-trafficking efforts involve numerous components engaged in a full spectrum of activities: investigations, prosecutions, services for victims, enforcement initiatives to strengthen anti-trafficking partnerships, innovative prevention efforts, capacity-building programs to advance survivor-centered anti-trafficking strategies and grant funding to state, local and tribal authorities and to non-governmental organizations.
In support of our anti-trafficking efforts, the U.S. Attorney’s Office for the Southern District of Florida will be participating in an Anti-Trafficking Consortium Summit at Broward County Community College on January 24-25, 2017. The program is free and will provide training and resources for the legal, law enforcement, medical, and local community regarding issues related to human trafficking. To register for the summit visit www.1HTC.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Two Broward County Return Preparers Sentenced to Prison in Stolen Identity Tax Fraud and Check Cashing SchemesRead the Press Release
Two Broward County return preparers were sentenced for their participation in stolen identity tax fraud and treasury check cashing schemes.
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), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Peterson Jerome, 37, of Margate, and Oldy Elisee, 42, of Miramar, were sentenced to 24 months, and 18 months in prison, respectively, to be followed by one year of supervised release, and were ordered to pay joint and several restitution in the amount of $274,425.05. The defendants previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Jerome and Elisee operated a tax preparation business called Freedom Tax Plus Multi Services, Inc. in Tamarac, Florida. From February 19 to April 13, 2011, the defendants filed fraudulent income tax returns with the IRS claiming $274,425.05 in fraudulent refunds using another individual’s Preparer Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN). The other individual admitted that he allowed the defendants to use his PTIN and EFIN to file fraudulent tax returns containing victims' personal identifying information in exchange for 35% of the preparation fees of the fraudulent tax returns. Jerome and Elisee also prepared and submitted falsified Forms W-2 with many of the fraudulent tax returns.
Jerome cashed the fraudulent refunds (minus tax preparation and other fees) at a check cashing store called American Quick Cash (AQC) using fraudulent Florida Driver’s Licenses. In a separate but related case, it was determined that AQC’s owners were cashing fraudulent tax refund checks arising out of fraudulent tax refund filings containing stolen identities and that the owners received 25 to 50 percent of the checks value to negotiate the stolen checks. Jerome was identified as a “middle man” participating in this scheme at AQC to cash stolen checks.
Later in their scheme, Jerome and Elisee directed the IRS to mail the treasury checks to various addresses, and Jerome and Elisee cashed the checks at AQC.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case was prosecuted by Assistant U.S. Attorney Alicia E. Shick.
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 Opa Locka City Commissioner Pleads Guilty to Participating in Corruption SchemeRead the Press Release
Former City of Opa Locka Commissioner Luis Santiago pled guilty today, before United States District Judge Kathleen M. Williams, for his participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a). Santiago is scheduled to be sentenced on March 30, 2017 at 10:00 a.m. before Judge Williams.
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.
“Today in open court, a former City Commissioner admitted that he betrayed the trust placed in him by the people of Opa Locka by abusing his authority to demand and obtain bribes from local individuals and businesses,” stated U.S. Attorney Wifredo Ferrer. “This type of public corruption by an elected official erodes the crucial bond between our public institutions and the communities that they serve. This latest prosecution, arising from the ongoing Opa Locka corruption investigation, again demonstrates the commitment of the U.S. Attorney’s Office and our law enforcement partners to holding accountable those public officials who engage in criminal activity.”
Santiago pled guilty to an Information and admitted to conspiring with former Opa Locka City Manager David Chiverton, former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka.
In exchange for the illegal payments, Santiago would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Santiago would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions.
Chiverton and Harris previously pled guilty. Chiverton was sentenced to 38 months in prison by United States District Judge Cecilia M. Altonaga, while Harris is awaiting sentencing before United States District Judge Beth Bloom.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm and Assistant United States Attorney Kimberly Selmore.
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.
Esteban Santiago Has Initial Appearance in Federal Court in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
Esteban Santiago Ruiz (Santiago) had his initial appearance before U.S. Magistrate Judge Alicia O. Valle this morning in Fort Lauderdale, Florida. Santiago is being temporarily detained without bond. A detention hearing has been scheduled for Tuesday, January 17, 2017 at 1:00 p.m., before United States Magistrate Judge Lurana S. Snow 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 criminal complaint with violations of: Title 18, United States Code, Section 37(a)(1), performing an act of violence against a person at an airport serving international civil aviation that caused serious bodily injury; Title 18, United States Code, Section 924(c)(1)(A), using and carrying a firearm during and in relation to a crime of violence; and Title 18, United States Code, Section 924(j), 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). 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, on January 6, 2017, at approximately 12:56 p.m., Santiago was present in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, when he pulled out a handgun. The area was crowded with newly-arrived passengers retrieving their luggage. Santiago started shooting, aiming at his victims’ heads 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 Assistant United States Attorney Ricardo A. Del Toro with assistance from Department of Justice Trial Attorney Larry Schneider.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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.
Alaska Resident Arrested in Connection with Shooting at Fort Lauderdale-Hollywood International AirportRead the Press Release
An Alaska resident was arrested and charged in a federal criminal complaint in connection with the deadly shooting of multiple victims at Fort Lauderdale-Hollywood International Airport on January 6, 2017.
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) announce the arrest of Esteban Santiago Ruiz (Santiago), 26, based on a federal criminal complaint charging him with violations of: Title 18, United States Code, Section 37(a)(1), performing an act of violence against a person at an airport serving international civil aviation that caused serious bodily injury; Title 18, United States Code, Section 924(c)(1)(A), using and carrying a firearm during and in relation to a crime of violence; and Title 18, United States Code, Section 924(j), 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). The statutory charges authorize a maximum penalty, upon conviction, of death or imprisonment for life or any term of years.
Santiago will have his initial appearance Monday, January 9, 2017 at 11:00 a.m., before United States Magistrate Judge Alicia O. Valle in Fort Lauderdale, Florida.
"The U.S. Attorney's Office expresses our deepest condolences to the victims’ families and to all of those impacted by yesterday's tragedy. Our Office commends the first responders, civilians and law enforcement partners who came together to provide assistance to those in need and support the ongoing investigation," stated U.S Attorney Wifredo Ferrer. "Today's charges represent the gravity of the situation and reflect the commitment of federal, state and local law enforcement personnel to continually protect the community and prosecute those who target our residents and visitors. As the investigation unfolds, we will continue to pursue all leads and evidence in this matter."
“Our condolences are with the victims of this heinous crime and their families,” said George L. Piro, Special Agent in Charge, FBI Miami. “I want to ensure these families that law enforcement is working tirelessly in order to ensure justice is served.”
According to the criminal complaint, on January 6, 2017, at approximately 12:56 p.m., Santiago was present in the Terminal 2 baggage claim area of the Fort Lauderdale-Hollywood International Airport in Fort Lauderdale, Florida, when he pulled out a handgun. The area was crowded with newly-arrived passengers retrieving their luggage. Santiago started shooting, aiming at his victims’ heads 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 Assistant United States Attorney Ricardo A. Del Toro with assistance from Department of Justice Trial Attorney Larry Schneider.
A criminal complaint is merely an allegation, and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
ComplaintU.S. Attorney Wifredo Ferrer to Participate in Human Trafficking Panel Discussion with Department of Justice Employees on Monday in Washington, DC to Commemorate National Slavery and Human Trafficking Prevention MonthRead the Press Release
U.S. Attorney Wifredo Ferrer of the Southern District of Florida will join the “Human Trafficking: Preventing the Crime, Prosecuting the Perpetrators, Protecting the Survivors” panel discussion with U.S. Department of Justice employees to commemorate National Slavery and Human Trafficking Prevention Month in Washington, DC on MONDAY, JAN. 9, AT 1:00 P.M. EST. Attorney General Loretta E. Lynch Attorney General Loretta E. Lynch will deliver opening remarks.
WHAT: A panel discussion on human trafficking with department employees to commemorate National Slavery and Human Trafficking Prevention Month at the U.S. Department of Justice.
WHO: Attorney General Loretta E. Lynch to deliver opening remarks
Panelists:
U.S. Attorney Wifredo Ferrer of the Southern District of Florida
U.S. Attorney Kenneth Polite of the Eastern District of Louisiana
U.S. Attorney Carole Rendon of the Northern District of Ohio
Director Hilary Axam of the Civil Rights Division’s Human Trafficking Prosecution Unit
Acting Director Marilyn Roberts of the Office of Justice Programs’ Office for Victims of Crime
WHEN: MONDAY, JANUARY 9, 2017
1:00 p.m. EST
WHERE: Department of Justice
7th Floor Conference Center
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Gather Time: 12:00 p.m. EDT; Final Access: 12:50 p.m. EDT)
LIVESTREAMED AT: HTTPS://WWW.JUSTICE.GOV/LIVE
NOTE: Media should RSVP to [email protected]. Questions regarding logistics should be directed to the Office of Public Affairs at [email protected] or (202) 514-2007. All media will use the main visitor’s entrance on Constitution Avenue, between 9th and 10th Streets. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office announced that the indictment against Guy Philippe, 48, of Haiti, was unsealed this morning in the Southern District of Florida.
Philippe was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for January 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Haitian National Charged with International Narcotics and Money Laundering ConspiracyRead the Press Release
An indictment was unsealed today in connection with the arrest of a Haitian national charged with conspiracy to import narcotics and money laundering offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Adolphus P. Wright of the Drug Enforcement Administration’s (DEA) Miami Field Division and Special Agent in Charge Kelly R. Jackson of Internal Revenue Service – Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
Guy Philippe, 48, of Haiti, was indicted in 2005 on one count of conspiracy to import narcotics; one count of conspiracy to launder monetary instruments and engage in monetary transactions in property derived from unlawful activity; and one substantive count of engaging in monetary transactions derived from unlawful activity. This afternoon, Philippe was ordered held without bond during an initial hearing before U.S. Magistrate Judge Barry L. Garber of the Southern District of Florida. Philippe’s arraignment hearing is scheduled for Jan. 13, 2017.
According to the indictment, from approximately 1997 through 2001, Philippe conspired with others to import more than five kilograms of cocaine into the United States. From approximately June 1999 through April 2003, Philippe also allegedly conspired with others to engage in money laundering to conceal their participation in criminal activity, including narcotics trafficking. The indictment alleges that in 2000, Philippe transferred a $112,000 check through a financial institution, affecting interstate and foreign commerce, that included monies derived from the illicit drug trafficking enterprise.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The DEA and IRS-CI investigated the case. The Criminal Division’s Office of International Affairs, U.S. Marshals Service Fugitive Task Force, U.S. Customs and Border Protection’s Miami Office of Field Operations and the Haitian Government, including the Haitian Ministry of Justice, Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided assistance in this matter. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Lynn M. Kirkpatrick and Andy R. Camacho of the Southern District of Florida are prosecuting the case.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Four Defendants Sentenced to Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
Four defendants were sentenced to federal prison for their participation in a 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), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Wolf Obin, 32, of Miami-Dade, was sentenced to 64 months in prison, to be followed by 3 years of supervised release. Stanley Moscova, 28, of Miami-Dade, was sentenced to 60 months in prison, to be followed by 3 years of supervised release. Rosny Muller, 29, of Broward County, was sentenced to 33 months in prison, to be followed by 3 years of supervised release. These three defendants were previously convicted at trial of one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3). Obin and Moscova were also convicted of three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, beginning in October 2011, Obin, Moscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (EFINs) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file fraudulent federal income tax returns with the IRS using the stolen personal identifying information (PII) of other individuals without their knowledge and authority. During a search warrant of the defendants’ Aventura apartment, law enforcement discovered the PII of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,300,000 in fraudulent federal tax refunds from the IRS.
In a separate but related case, defendant Leonard Rosalvo Obin (Case Number 16CR20525), was sentenced to 30 months in prison, to be followed by 3 years of supervised release. Leonard Obin previously pled guilty to one count of possession of fifteen or more unauthorized access devices, and one count of aggravated identity theft. During the search warrant, law enforcement found a phone and flash drive in Leonard Obin’s pants pockets. The phone and flash drive contained the names, dates of birth, and Social Security numbers of 86 and 91 individuals, respectively.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. These cases were prosecuted by Assistant U.S. Attorneys Matthew J. Langley and Luis M. Perez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida 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.
Owner of Florida Telecommunications Company Pleads Guilty, Second Defendant Sentenced to 52 Months in Prison for Involvement in International Cellphone Fraud SchemeRead the Press Release
The owner and operator of a Florida-based telecommunications company pleaded guilty today and a West Palm Beach, Florida, resident was sentenced yesterday to 52 months in prison in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, 49, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud; and one count of aggravated identity theft. Sentencing for Batista will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley in the Southern District of Florida. Judge Hurley sentenced Jose Santana, aka Octavio Perez, 53, yesterday to 52 months in prison on similar charges. Santana pleaded guilty on Oct. 26, 2016.
According to the plea agreements, Batista, Santana and their co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Batista, Santana and others also operated “call sites” in South Florida and elsewhere, where they would receive telecommunications identifying information associated with customers’ accounts from their co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that they controlled. Batista and other co-conspirators would then transmit thousands of international calls over the internet to the call sites, where Batista, Santana and others would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
Batista admitted that his role in the scheme included selling fraudulent telecommunications services through his company, Arymyx, Inc.; operating a “call site” with reprogrammed cellphones through which he routed international phone calls as part of the fraud scheme; and using and providing other co-conspirators with stolen or compromised telecommunications identifying information that was then employed to reprogram cellphones.
In addition, Batista admitted that he sent or received 1,132 “lines,” that is, combinations of telecommunications identifying numbers for specific devices or accounts associated with U.S. cellphone customers. Likewise, Santana admitted that, in just one 11-month period, he received more than 1,000 emails containing similar “lines.” Batista and Santana also admitted that that they were personally responsible for, respectively, more than $794,000 and $170,000 in loss resulting from the scheme.
Batista is the fourth defendant to plead guilty in the case and Santana is the second to be sentenced. Edwin Fana and Farintong Calderon previously pleaded guilty to similar charges in this matter. Fana was sentenced on Dec. 22, 2016, to 48 months in prison and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Former Newspaper Publisher, Mortgage Broker, Title Agent and Others Charged in $10 Million Mortgage Fraud SchemeRead the Press Release
A former newspaper publisher, mortgage broker, title agent and other individuals are charged federally for their participation in a $10 million mortgage fraud scheme.
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.
Marco Laureti, 45, of Sunny Isles Beach, and Felix Mostelac, 44, of Miami Beach, are charged by Indictment with one count of conspiracy to commit wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1349 and multiple counts of wire fraud affecting a financial institution, in violation of Title 18, United States Code, Section 1343 (Case No. 16-60340-CR-ZLOCH). Michelle Cabrera, 48, of Miami Lakes, and Pedro Melian, 39, of Hialeah, are charged by criminal Information with one count of conspiracy to commit wire fraud affecting a financial institution (Case No. 16-60354-CR-DIMITROULEAS), If convicted, each defendant faces up to thirty years? imprisonment on each charged count.
According to court documents, defendants Laureti, Mostelac, Cabrera and Melian were involved with a $10 million mortgage fraud scheme. Laureti was a former newspaper publisher and owner of Laureti Publishing Company, in addition to being a licensed real estate sales associate and mortgage broker. Mostelac was Laureti’s associate and also the owner of several companies. Cabrera owned Florida Elite Title & Escrow in Davie and served as the title agent for these transactions. Melian also owned several companies.
According to court documents, the defendants engaged in a fraud scheme involving a condominium complex located at 45 Hendricks Isle in Fort Lauderdale. Defendants Laureti, Mostelac and Melian made false and fraudulent statements to a financial institution on loan applications and closing statements for the multi-million dollar condominiums. Once the loans were approved, defendant Cabrera, at Laureti’s direction, diverted the loan proceeds to fund the cash the borrower was expected to bring to the property’s closing, as well as diverting additional monies from the loan proceeds to various companies owned by Laureti and Mostelac. Furthermore, according to court documents, Laureti and Mostelac utilized the same scheme on the loan applications and closing statements to purchase their own multi-million dollar residential properties in Miami Beach, in addition to Laureti directing Cabrera to divert funds. The defendants’ scheme defrauded the financial institution of approximately $10 million.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An Indictment and a criminal Information merely contain allegations and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Miami-Dade County Aviation Department Procurement Employee Charged in Bribery SchemeRead the Press Release
A former employee in the Procurement Section of the Miami-Dade County Aviation Department has been charged with accepting bribery payments.
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.
Glenwood Pla, 50, of Miami, a former procurement specialist for the Miami-Dade County Aviation Department, was charged in a criminal Information with bribery in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. If convicted, Pla faces a statutory maximum term of 5 years’ imprisonment and a fine up to $250,000. Pla had his initial appearance today before U.S. Magistrate Judge Barry L. Garber.
- set forth in the charging document, Pla was employed in the procurement section of the Aviation Department, creating and sending RFQs for lighting products requested by the Aviation Department to a qualified pool of vendors. Pla collected and tallied the bids and declared the lowest responsive bidder on the RFQs. A co-conspirator owned companies that provided, among other items, lighting products and services to the Aviation Department. The co-conspirator sought contracts for the installation of lighting products for his companies and sought contracts for the sale of lighting products on behalf of a second co-conspirator.
Beginning in or about 2011, Pla would notify one of the co-conspirators that RFQ’s were being issued for lighting products, and the second co-conspirator would then bid on the sale of the lighting products and was awarded a number of the contracts.
From in or about 2011 and continuing through in or about 2015, Pla accepted and received in excess of $35,000 in U.S. currency, which the defendant knew was paid to him with the intent to influence and reward Pla for utilizing his official position to favor his two co-conspirators.
Mr. Ferrer commended the investigative efforts of the FBI in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
- criminal Information is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Miami-Dade County Aviation Department Division Director Sentenced to 7 Years Imprisonment for $5,000,000 Fraud and Kickback SchemeRead the Press Release
A former Division Director of the Miami-Dade County Aviation Department was sentenced to seven year’s imprisonment for his involvement in a $5,000,000 fraud and kickback scheme.
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.
- The public has a right to expect that officials who oversee local government agencies are ethical, trustworthy, responsible, and represent the best interests of the community,” stated U.S. Attorney Wifredo Ferrer. “The United States Attorney’s Office for the Southern District of Florida and our law enforcement partners will continue to identify for prosecution those individuals who choose to betray the public’s trust and steal funds for their own illicit personal gain.”
“Corrupt officials are on notice – breach the public’s trust through stealing or accepting bribes in the course of their official duties and they will be vigorously investigated,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “The South Florida community can be assured that public corruption will remain a top priority for the FBI.”
Ivan Valdes, 46, of Miami, was sentenced to 7 year’s imprisonment, ordered to pay $5,247,539 in restitution, and must serve 3 years of supervised release after having previously pled guilty to a one-count criminal Information charging him with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666.
According to the court record, including a stipulated statement of facts, Valdes, a former Miami-Dade County Aviation Department Division Director was involved in a $5,000,000 fraud and kickback scheme. During in or about 2010, Valdes arranged with a co-conspirator to request that the Miami-Dade County Aviation Department purchase light fixtures for the Miami International Airport, in exchange for Valdes being paid a share of the proceeds. Between 2010 and 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of over 9,000 LED light fixtures which cost Miami-Dade County millions of dollars. Valdes was paid in cash by a co-conspirator, with whom he split approximately $2 million in fraudulent proceeds from the scheme. Valdes used some of the fraudulent proceeds to pay an employee in the procurement section of the Miami-Dade County Aviation Department, who assisted with the fraud.
On two occasions, Valdes instructed a co-conspirator to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. The co-conspirator bid and won the contracts. As a result, Valdes and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to the Miami-Dade County Aviation Department.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. This case was 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 www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Opa Locka City Commissioner Charged in Corruption SchemeRead the Press Release
Former City of Opa Locka Commissioner Luis Santiago has been charged for his participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a).
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.
Santiago is charged by Information with conspiring with former Opa Locka City Manager David Chiverton, former Opa Locka Assistant Public Works Director Gregory Harris, and others to use their official positions and authority with the City of Opa Locka to solicit, demand, and obtain thousands of dollars in illegal cash payments from businesses and individuals in exchange for taking official actions to assist and benefit those businesses and individuals in their dealings with the City of Opa Locka. The case against Santiago is assigned to United States District Judge Kathleen M. Williams (Case No. 16-20971-CR). Santiago had his initial appearance today before United States Magistrate Judge Alicia Otazo-Reyes.
As alleged in the Information, in exchange for the illegal payments, Santiago would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Santiago would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions.
Chiverton and Harris previously pled guilty. Chiverton was sentenced to 38 months in prison by United States District Judge Cecilia M. Altonaga, while Harris is awaiting sentencing before United States District Judge Beth Bloom.
If convicted, Santiago faces a maximum statutory sentence of five years’ imprisonment, a fine of $250,000 and three years of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
An Information is merely an allegation and every 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.
Florida Man Sentenced to 48 Months in Prison for Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, Florida, resident was sentenced to 48 months in prison in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edwin Fana, 37, was sentenced yesterday by U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida. He pleaded guilty on Aug. 29 to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
In addition, Fana admitted that his role in the scheme included operating a “call site” in his residence in Miami Gardens. He would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Law enforcement seized nearly 11,000 telecommunications identifying numbers from Fana and he admitted that the scheme caused at least $1 million in losses.
Fana is the first defendant to be sentenced in the case. Jose Santana and Farintong Calderon have also pleaded guilty in connection with the scheme; Santana is scheduled to be sentenced on Jan. 4, 2017, and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Florida Man Sentenced to 48 Months in Prison for Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, Florida, resident was sentenced to 48 months in prison in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edwin Fana, 37, was sentenced yesterday by U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida. He pleaded guilty on Aug. 29 to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft. Fana received a reduced prison sentence due to his cooperation in the government’s investigation.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
In addition, Fana admitted that his role in the scheme included operating a “call site” in his residence in Miami Gardens. He would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Law enforcement seized nearly 11,000 telecommunications identifying numbers from Fana and he admitted that the scheme caused at least $1 million in losses.
Fana is the first defendant to be sentenced in the case. Jose Santana and Farintong Calderon have also pleaded guilty in connection with the scheme; Santana is scheduled to be sentenced on Jan. 4, 2017, and Calderon is scheduled to be sentenced on Feb. 21, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Teva Pharmaceutical Industries Ltd. Agrees to Pay More Than $283 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Companies Agree to Pay Nearly $520 Million to U.S. Criminal and Regulatory Authorities, Representing the Largest Criminal Fine Imposed Against a Pharmaceutical Company for Violations of the FCPA
WASHINGTON – Teva Pharmaceutical Industries Ltd. (Teva), the world’s largest manufacturer of generic pharmaceutical products, and its wholly-owned Russian subsidiary, Teva LLC (Teva Russia), agreed to resolve criminal charges and to pay a criminal penalty of more than $283 million in connection with schemes involving the bribery of government officials in Russia, Ukraine and Mexico in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
“Teva and its subsidiaries paid millions of dollars in bribes to government officials in various countries, and intentionally failed to implement a system of internal controls that would prevent bribery,” said Assistant Attorney General Caldwell. “Companies that compete fairly, ethically and honestly deserve a level playing field, and we will continue to prosecute those who undermine that goal.”
“No matter where corruption occurs, the FBI and our global partners are committed to diligently rooting out the corruption that betrays the public trust and threatens a fair economy for all,” said Special Agent in Charge Piro.
According to the companies’ admissions, Teva executives and Teva Russia employees paid bribes to a high-ranking Russian government official intending to influence the official to use his authority to increase sales of Teva’s multiple sclerosis drug, Copaxone, in annual drug purchase auctions held by the Russian Ministry of Health. The corrupt arrangement occurred at the same time that the Russian government was seeking to reduce the amount spent on costly foreign pharmaceutical products, such as Copaxone. Between 2010 and at least 2012, pursuant to an agreement with a repackaging and distribution company owned by the Russian government official, Teva earned more than $200 million in profits on Copaxone sales to the Russian government. Moreover, the Russian official earned approximately $65 million in corrupt profits through inflated profit margins granted to the official’s company.
Teva also admitted to paying bribes to a senior government official within the Ukrainian Ministry of Health to influence the Ukrainian government’s approval of Teva drug registrations, which were necessary for the company to market and sell its products in the country. Between 2001 and 2011, Teva engaged the official as the company’s “registration consultant,” paid him a monthly fee and provided him with travel and other things of value totaling approximately $200,000. In exchange, the official used his official position and influence within the Ukrainian government to influence the registration in Ukraine of Teva pharmaceutical products, including Copaxone and insulins.
In addition, Teva admitted that it failed to implement an adequate system of internal accounting controls and failed to enforce the controls it had in place at its Mexican subsidiary, which allowed bribes to be paid by the subsidiary to doctors employed by the Mexican government. Teva admitted that its Mexican subsidiary had been bribing these doctors to prescribe Copaxone since at least 2005. Teva executives in Israel responsible for the development of the company’s anti-corruption compliance program in 2009 had been aware of the bribes paid to government doctors in Mexico. Nevertheless, Teva executives approved policies and procedures that they knew were not sufficient to meet the risks posed by Teva’s business and were not adequate to prevent or detect payments to foreign officials. Teva also admitted that its executives put in place managers to oversee the compliance function who were unable or unwilling to enforce the anti-corruption policies that had been put in place.
Teva entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the Southern District of Florida, charging the company with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of failing to implement adequate internal controls. Pursuant to its agreement with the department, Teva will pay a total criminal penalty of $283,177,348. Teva also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for a term of three years.
Teva Russia has signed a plea agreement in which it has agreed to plead guilty to a one-count criminal information, also filed today in the Southern District of Florida, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. The plea agreement is subject to court approval. The case was assigned to U.S. District Judge Kathleen M. Williams of the Southern District of Florida and Teva Russia's initial court appearance has been scheduled for January 12, 2017.
In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Teva, whereby the company agreed to pay approximately $236 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Teva is nearly $520 million.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that Teva did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after the SEC served it with a subpoena. Teva received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its substantial cooperation and remediation. The company, however, did not receive full cooperation credit because of issues that resulted in delays to the early stages of the Fraud Section’s investigation, including vastly overbroad assertions of attorney-client privilege and not producing documents on a timely basis in response to certain Fraud Section document requests. Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of three years.
The FBI’s International Corruption Unit and Miami Field Office investigated the case. Fraud Section Trial Attorneys Rohan A. Virginkar and John-Alex Romano prosecuted the case. The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter. The Criminal Division’s Office of International Affairs and the Mexican Attorney General’s Office (Procuradura General de la República or PGR) also provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Teva Pharmaceutical Industries Ltd. Agrees to Pay More Than $283 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Teva Pharmaceutical Industries Ltd. (Teva), the world’s largest manufacturer of generic pharmaceutical products, and its wholly-owned Russian subsidiary, Teva LLC (Teva Russia), agreed to resolve criminal charges and to pay a criminal penalty of more than $283 million in connection with schemes involving the bribery of government officials in Russia, Ukraine and Mexico in violation of the Foreign Corrupt Practices Act (FCPA).
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division, and Assistant Special Agent in Charge William J. Maddalena of the FBI’s Miami Field Office made the announcement.
“Teva and its subsidiaries paid millions of dollars in bribes to government officials in various countries, and intentionally failed to implement a system of internal controls that would prevent bribery,” said Assistant Attorney General Caldwell. “Companies that compete fairly, ethically and honestly deserve a level playing field, and we will continue to prosecute those who undermine that goal.”
“No matter where corruption occurs, the FBI and our global partners are committed to diligently rooting out the corruption that betrays the public trust and threatens a fair economy for all,” said FBI Assistant Director Stephen Richardson.
“As demonstrated by this case, the Foreign Corrupt Practices Act has a long reach,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Teva’s egregious attempt to enrich themselves failed and they will now pay a tough penalty.”
According to the companies’ admissions, Teva executives and Teva Russia employees paid bribes to a high-ranking Russian government official intending to influence the official to use his authority to increase sales of Teva’s multiple sclerosis drug, Copaxone, in annual drug purchase auctions held by the Russian Ministry of Health. The corrupt arrangement occurred at the same time that the Russian government was seeking to reduce the amount spent on costly foreign pharmaceutical products, such as Copaxone. Between 2010 and at least 2012, pursuant to an agreement with a repackaging and distribution company owned by the Russian government official, Teva earned more than $200 million in profits on Copaxone sales to the Russian government. Moreover, the Russian official earned approximately $65 million in corrupt profits through inflated profit margins granted to the official’s company.
Teva also admitted to paying bribes to a senior government official within the Ukrainian Ministry of Health to influence the Ukrainian government’s approval of Teva drug registrations, which were necessary for the company to market and sell its products in the country. Between 2001 and 2011, Teva engaged the official as the company’s “registration consultant,” paid him a monthly fee and provided him with travel and other things of value totaling approximately $200,000. In exchange, the official used his official position and influence within the Ukrainian government to influence the registration in Ukraine of Teva pharmaceutical products, including Copaxone and insulins.
In addition, Teva admitted that it failed to implement an adequate system of internal accounting controls and failed to enforce the controls it had in place at its Mexican subsidiary, which allowed bribes to be paid by the subsidiary to doctors employed by the Mexican government. Teva admitted that its Mexican subsidiary had been bribing these doctors to prescribe Copaxone since at least 2005. Teva executives in Israel responsible for the development of the company’s anti-corruption compliance program in 2009 had been aware of the bribes paid to government doctors in Mexico. Nevertheless, Teva executives approved policies and procedures that they knew were not sufficient to meet the risks posed by Teva’s business and were not adequate to prevent or detect payments to foreign officials. Teva also admitted that its executives put in place managers to oversee the compliance function who were unable or unwilling to enforce the anti-corruption policies that had been put in place.
Teva entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the Southern District of Florida, charging the company with one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of failing to implement adequate internal controls. Pursuant to its agreement with the department, Teva will pay a total criminal penalty of $283,177,348. Teva also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for a term of three years.
Teva Russia has signed a plea agreement in which it has agreed to plead guilty to a one-count criminal information, also filed today in the Southern District of Florida, charging the company with conspiring to violate the anti-bribery provisions of the FCPA. The plea agreement is subject to court approval. The case was assigned to U.S. District Judge Kathleen M. Williams of the Southern District of Florida and Teva Russia's initial court appearance has been scheduled for January 12, 2017.
In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Teva, whereby the company agreed to pay approximately $236 million in disgorgement to the SEC, including prejudgment interest. Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Teva is nearly $520 million.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that Teva did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after the SEC served it with a subpoena. Teva received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its substantial cooperation and remediation. The company, however, did not receive full cooperation credit because of issues that resulted in delays to the early stages of the Fraud Section’s investigation, including vastly overbroad assertions of attorney-client privilege and not producing documents on a timely basis in response to certain Fraud Section document requests. Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of three years.
The FBI’s International Corruption Unit and Miami Field Office investigated the case. Fraud Section Trial Attorneys Rohan A. Virginkar and John-Alex Romano prosecuted the case. The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter. The Criminal Division’s Office of International Affairs and the Mexican Attorney General’s Office (Procuradura General de la República or PGR) also provided assistance in this matter.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Palm Beach County Sheriff’s Deputy Arrested for His Role in an Identity Theft SchemeRead the Press Release
A Palm Beach County Sheriff’s deputy was arrested yesterday for 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.
Frantz Felisma, 42, of Boynton Beach, a deputy with the Palm Beach County Sheriff’s Office, was arrested on a federal criminal complaint, which charged him 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); 1030(a)(4) (Access of a Protected Computer in Furtherance of a Fraud); and 1029(b)(2) (Conspiracy to Commit Identity Theft).
As alleged in the criminal complaint, 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.
Felisma made his initial appearance today before U.S. Magistrate Judge William Matthewman. A pre-trial detention hearing is scheduled for Wednesday, December 28, 2016 at 10 a.m.
If 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 charge; a maximum of ten years’ imprisonment as to the access device fraud charge; and a maximum of five years’ imprisonment as to each of the access of a protected computer in furtherance of a fraud and conspiracy to commit identity theft charges.
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.
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.
U.S. Attorney’s Office for the Southern District of Florida Collects $42,643,443 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Miami – U.S. Attorney Wifredo A. Ferrer announced today that the U.S. Attorney’s Office for the Southern District of Florida collected $42,643,443 in criminal and civil actions in Fiscal Year 2016. Of this amount, $31,939,398 was collected in criminal actions and $10,704,045 was collected in civil actions.
Additionally, the U.S. Attorney’s Office for the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $30,323,384 in cases pursued jointly with these offices. Of this amount, $1,673,163 was collected in criminal actions and $28,650,220 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected more than $15.3 billion in civil and criminal actions in fiscal year (FY) 2016 ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The U.S. Attorney’s Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office for the Southern District of Florida, working with partner agencies and divisions, collected $30,830,421 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement programs.
Six Defendants Charged in Health Care Fraud Scheme Involving Sober Homes and Alcohol and Drug Addiction Treatment CentersRead the Press Release
Six defendants, including owners, doctors, and an employee of sober homes and alcohol and drug addiction treatment centers were charged in a health care fraud scheme for filing fraudulent insurance claim forms and license applications and defrauding 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 in a Criminal Complaint with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349. Kenneth and Laura Chatman are also charged with making false statements related to a health care matter, in violation of Title 18, United States Code, Section 1035(a)(1).
According to the Criminal Complaint, defendants Kenneth Chatman, Davis, and Bonds established sober homes, including Stay’n Alive, Inc., Redemption Sober House, Inc., and Total Recovery Sober Living LLC, and an unnamed facility at 962 West 43rd Street, West Palm Beach, in Palm Beach County, Florida, 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, some 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 with 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 the 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 possible maximum statutory sentence of ten years in prison for conspiracy to commit health care fraud, and five years in prison for making a false statement related to a health care matter.
The charges and allegations contained in a Criminal Complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt 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.
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.
North Miami Resident Sentenced for Possessing 2,434 Stolen IdentitiesRead the Press Release
A North Miami resident was sentenced to 47 months in prison, to be followed by three years of supervised release, for possessing 2,434 stolen identities.
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), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Camelin Junior Desrosiers, 28, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on February 25, 2015, law enforcement initiated a traffic stop on a rental car leased by Desrosiers. The defendant, the driver, and a passenger were ordered to exit the vehicle. Because the vehicle contained after-market tinted windows, and because the tinted windows violated the rental car contract, law enforcement initiated a tow of the vehicle to return it to the rental car company.
An inventory search of the car was conducted prior to it being towed. In the trunk of the car, law enforcement found a laptop computer owned by Desrosiers. A forensic analysis of the computer revealed 2,434 pieces of personal identifying information (PII), including names, dates of birth and social security numbers.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the computer, and confirmed that he/she did not authorize Desrosiers to be in possession of the PII. Desrosiers knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DOL-OIG, IRS-CI, and the NMBPD. The case was prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
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 Convicted of Conspiracy to Commit $2.5 Million Medicare Fraud SchemeRead the Press Release
The administrator of a Miami-area home health agency was convicted today for his role in a $2.5 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell 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 R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, 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, between approximately October 2014 and June 2015, 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. In an attempt to support the false claims, Leon’s co-conspirators forged prescriptions and other medical records, and Leon submitted claims to Medicare based on the falsified documentation.
The evidence introduced at trial further established that between October 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
The 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 the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys Lisa Miller and Angela Adams are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 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.
Three Delray Beach Return Preparers Plead Guilty to Preparing False Tax Returns for ClientsRead the Press Release
Three Delray Beach tax return preparers pled guilty to unlawfully enriching themselves by submitting false federal income tax returns to the Internal Revenue Service (IRS) on behalf of their clients.
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.
Devonne Herrington, 64, her son, Lorenzo Wright, 49, and co-defendant Joyce Walker, 61, all of Delray Beach, pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. Herrington also pled guilty to one count of failure to file personal tax returns, in violation of Title 26, United States Code, Section 7203. Walker also pled guilty to one count of filing false personal tax returns, in violation of Title 26, United States Code, Section 7206(1).
Walker is scheduled to be sentenced on January 27, 2017, and Herrington and Wright are scheduled to be sentenced on February 17, 2017, all before United States District Judge Robin L. Rosenberg. At sentencing, the defendants face up to five years in prison for the conspiracy charge. Walker also faces up to three years in prison for filing false tax returns. Herrington also faces up to one year in prison for the failure to file tax returns charge.
According to court documents, Herrington established and operated a tax preparation business in Delray Beach, Florida, that was initially known as Devonne's LLC and later known as Wright's & Family LLC. Herrington hired tax preparers, including her son, Wright, and co-defendant Walker, to assist her with preparing tax returns for her clients. Herrington, Wright and Walker met with clients in person at the tax preparation office in order to conduct a cursory interview and collect required tax forms.
Although the clients did not claim to be eligible for, or provide documents in support of, certain tax credits or income deductions, the defendants prepared tax returns which falsely stated that the clients were eligible for such credits and deductions. The tax credits falsely claimed by the defendants included credits for first time home purchasers and education expenses. The income deductions falsely claimed by the defendants included deductions for business expenses and for being the head of household. These false and fraudulent credits and deductions reduced the clients' tax liability and increased their tax refunds.
The defendants claimed the false tax credits and deductions on IRS schedules and forms which were included in the clients' tax returns. Herrington, Wright, and Walker charged the clients extra fees for these additional fraudulent schedules. In most instances, the defendants did not review the returns with the clients prior to filing them with the IRS and did not provide copies of the returns to the clients.
Many clients have since been audited by the IRS and now have to pay back the refunds they received as a result of the fraudulent credits and deductions added to their tax returns by the defendants.
Herrington did not file her personal income tax returns for calendar years 2010 and 2011. In addition, Walker filed her personal income tax returns for calendar years 2010 and 2011 containing false claims for the Education Expense Credit.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Resident Indicted for Involvement with Tricare Health Care Fraud SchemeRead the Press Release
Tampa resident indicted in the Southern District of Florida for his involvement in Tricare health care fraud scheme, money laundering, and the misbranding of drugs.
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, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Miami Field Office, and Frank Robey, Director, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, made the announcement.
Monty Ray Grow, 45, of Tampa, is charged by Indictment with conspiracy to defraud the United States and to pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371; health care fraud, in violation of Title 18, United States Code, Section 1347; receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(1)(A); payment of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a-7b(b)(2)(B); money laundering, in violation of Title 18, United States Code, Section 1957; and causing the misbranding of drugs while held for sale, in violation of Title 21, United States Code, Sections 331(k) and 331(a)(1).
According to allegations in the indictment, between September 2014 and June 2015, Grow received approximately $20 million in kickbacks from a Broward County, Florida compounding pharmacy in exchange for recruiting and referring patients that were covered by the Tricare health care insurance program. The Tricare program is responsible for providing medical coverage for military personnel, military retirees and military dependents worldwide. The Indictment further alleges that Grow and others defrauded Tricare by paying telemedicine companies to provide compounded medication prescriptions to the recruited patients without conducting any physical examination of the patients as required by law, and that these invalid prescriptions were issued without regard to the patients’ medical necessity. The Indictment alleges Grow laundered cash proceeds of the fraud and kickback schemes through purchases of real estate, luxury vehicles and securities.
An Indictment is merely an accusation and every 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 DCIS, HHS-OIG, FDA-OCI and U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. This case is being prosecuted by Assistant United States Attorneys Kevin J. Larsen and Jon Juenger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Resident Sentenced in Identity Theft Scheme Involving the Cashing of over $140,000 from Altered Tax Refund ChecksRead the Press Release
A South Florida resident was sentenced to 18 months in prison, to be followed by three years of supervised release for his involvement in an identity theft scheme involving the cashing of over $140,000 in altered tax refund checks.
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), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Contreas Faison, 44, previously pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, Faison agreed to restitution in the amount of $140,000.
According to court documents, in 2013 and 2014, Faison obtained U.S. Treasury tax refund checks that had been fraudulently altered so that the taxpayer's name did not appear on the check. Instead, the check contained the name of the defendant's company or the name of another bank account holder. Faison deposited these checks into bank accounts in his name or in the name of other people, and then Faison used the proceeds for his own benefit. In total, the defendant cashed over $140,000 from fifteen different altered U.S. Treasury tax refund checks that were stolen or otherwise fraudulently obtained.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant United States Attorney Vanessa S. Snyder.
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.
Seven Defendants Sentenced Federally for Their Role in a $36 Million Fraud Scheme Involving Low-Income Housing DevelopmentsRead the Press Release
Between November 30 and December 7, 2016, seven defendants were sentenced for their role in a scheme to steal $36 million of federal funds intended for low-income housing.
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, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Seven defendants previously pled guilty for their involvement in a $36 million housing fraud scheme and were sentenced as follows:
- Lloyd Boggio, 70, of Coconut Grove, was sentenced to 57 months in prison and ordered to forfeit approximately $7.1 million to the United States.
- Matthew Greer, 38, of Miami Beach, was sentenced to 36 months in prison and ordered to forfeit approximately $16 million to the United States.
- Gonzalo DeRamon, of Coral Gables, was sentenced to 18 months in prison and ordered to forfeit approximately $4.4 million to the United States.
- Michael Cox, 48, of Miami, was sentenced to six months’ home confinement and ordered to forfeit approximately $4.4 million to the United States.
- Michael Runyan, 67, of Lighthouse Point, was sentenced to six months’ home confinement and ordered to forfeit approximately $1.1 million to the United States.
- Rene Sierra, 58 of Southwest Ranches, was sentenced to six months’ home confinement and ordered to forfeit approximately $1.2 million to the United States.
- Arturo Hevia, 64, of Miramar, was sentenced to three years of probation and ordered to forfeit approximately $20,000 to the United States.
According to court documents, including the factual proffers in support of the defendants’ guilty pleas, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court records further indicate that Greer and Boggio conspired with contractor Michael Runyan to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. From 2006 to 2012, Greer, Boggio, and Runyan caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.
According to court documents, Gonzalo DeRamon and Michael Cox of Biscayne Housing Group (“BHG”) employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies. CDG and BHG had a joint venture for two developments. From 2009 to 2012, Cox and DeRamon conspired with contractors Rene Sierra and Arturo Hevia to unjustly enrich themselves by submitting fraudulently inflated construction contracts to FHFC’s representatives to receive excess tax credits and grants. As a result of the fraudulent inflation scheme, there were more than $6.2 million in kickbacks from Sierra for the benefit of DeRamon, Cox, Greer, and Boggio; and more than $1 million in kickbacks from Hevia for the benefit of DeRamon and Cox.
During the course of this investigation, through seizure warrants and voluntary payments by the defendants, the United States has collected over $22 million in proceeds connected to the thefts of government funds.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. This and all related cases are being prosecuted by Assistant U.S. Attorneys Michael R. Sherwin, Michael N. Berger, Karen Rochlin, Evelyn Sheehan, and Eloisa Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Farintong Calderon, 37, pleaded guilty to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida 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.
New York City Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A New York City resident pleaded guilty today in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Farintong Calderon, 37, pleaded guilty to one count of conspiracy to commit wire fraud; access device fraud; the use, production or possession of modified telecommunications instruments; and the use or possession of hardware or software configured to obtain telecommunications services. Sentencing was set for Feb. 21, 2017, before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Calderon and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Calderon formerly worked for Verizon Wireless installing cellphone towers and equipment and, after leaving his employer, moved to New York City and became involved in the fraud scheme as a “line” supplier. Specifically, Calderon provided his co-conspirators with telecommunications identifying information associated with the accounts of customers of Verizon and other wireless companies. His co-conspirators used that data—as well as other software and hardware—to reprogram cellphones that they controlled. Calderon’s co-conspirators would then transmit thousands of international calls over the Internet through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the customers’ compromised accounts.
In addition, Calderon admitted that, from approximately 2010 to 2013, he sent or received emails to co-conspirators with at least 1,408 combinations of telecommunication identifying information for specific cellphone devices or accounts belonging to persons around the United States, and was personally responsible for at least $250,000 in loss resulting from the scheme.
Calderon is the third defendant to plead guilty in the case. Edwin Fana and Jose Santana previously pleaded guilty to similar charges in this matter. Fana is scheduled to be sentenced on Dec. 22, 2016, and Santana is scheduled to be sentenced on Jan. 4, 2017.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Two South Florida Residents Charged with Conspiring to Misbrand and Sell Expired Gastric Banding SystemsRead the Press Release
Two South Florida residents charged with conspiring to misbrand and sell expired medical devices, Gastric Banding Systems, for profit.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), Miami Field Office, made the announcement.
On December 8, 2016, Peter Lawrence Kafka, 57, of Parkland, Florida and Gregory Charles Grimm, 45, of Saint Petersburg, Florida were indicted on a single count of conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349, three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, a single count of conspiracy, in violation of Title 18, United States Code, Section 371, and six counts of misbranding devices after shipment in interstate commerce, in violation of Title 21, United States Code, Section 331(k).
According to the indictment, between June 2014 and October 15, 2015, Kafka and Grimm engaged in a scheme to unlawfully enrich themselves by misbranding LAP-BAND Adjustable Gastric Banding Systems, changing the serial number and expiration date in order to sell expired medical devices for profit. Between June 2014 and August 2015, Kafka and Grimm were employees of Apollo Endosurgery, Inc., where they served as Senior Account Executives.
The indictment alleges that Kafka would purchase expired or nearly expired LAP-BANDS through the internet. Kafka would then supply Grimm with these expired or nearly expired LAP-BANDs. Grimm created false labels with fraudulent serial numbers and expiration dates to hide the true expiration date of the LAP-BANDs. Grimm would then provide Kafka the misbranded LAP-BANDs, the labeling of which bore false expiration dates. Kafka then sold the misbranded LAP-BANDs to local physicians.
The investigation began as a result of a referral by Apollo Endosurgery to the FDA.
Mr. Ferrer commended the investigative efforts of the FDA-OCI in this matter. This case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
An indictment contains mere allegations 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.
Foreign National Sentenced to 24 Years in Prison for Kidnapping U.S. Citizen in MexicoRead the Press Release
A Mexican national was sentenced yesterday to 24 years in federal prison for kidnapping a U.S. citizen in Mexico.
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.
Felix Becerra Herrera, 35, of Mexico, was sentenced by United States District Judge Darrin P. Gayles to 288 months’ imprisonment. On September 20, 2016, Becerra Herrera pled guilty to one count of hostage taking and one count of use of a firearm in the commission of a violent felony.
“International borders do not shield foreign based kidnappers and violent offenders from U.S. prosecution,” stated U.S. Attorney Wifredo Ferrer. “The U.S. Attorney’s Office and our law enforcement partners will utilize the long-arm of our American legal system to seek justice on our soil for these egregious offenses.”
“The FBI arrested Felix Becerra Herrera at his place of work in Odessa, TX, in May 2016 after receiving a tip as to his whereabouts,” said Xanthie C. Mangum, Assistant Special Agent in Charge of FBI Miami. “He participated in a gruesome shooting and kidnapping involving two naturalized U.S. Citizens in Mexico in December, 2012, and now faces a 288 month sentence for his crimes.”
According to the court record, Becerra Herrera was involved in the December 2012 armed assault of two nationals of the United States, in Veracruz, Mexico. During the assault, Becerra Herrera and others used handguns to shoot at the truck containing the nationals, seriously wounding the driver. Becerra Herrera and others then kidnapped one of the passengers and held her for ransom before finally releasing her, nearly a week later. Becerra Herrera was ultimately apprehended in Texas, several years after he had illegally entered the United States following the violent kidnapping.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. The case was prosecuted by Assistant United States Attorney Adam Fels.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tampa Area Resident Indicted for Threatening Sandy Hook ParentRead the Press Release
A Tampa resident is indicted for threatening a Sandy Hook parent residing in the Southern District of Florida.
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.
Lucy Richards, 57, of Tampa, was indicted in the Southern District of Florida (Case No. 16-CR-80206) on four counts of transmitting threats in interstate commerce, in violation of Title 18, United States Code, Section 875(c). If convicted, each count carries a maximum term of five years’ imprisonment. Richards was arrested on December 5, 2016 and made her initial appearance before United States Magistrate Judge Mark Pizzo in the Middle District of Florida. Richard is scheduled for an initial appearance in Fort Lauderdale on December 19, 2016.
On December 14, 2012, the Sandy Hook School shooting occurred in Newtown, Connecticut, and resulted in the death of 20 children and 6 adults. According to the court record in this case, including allegations made at the initial hearing, on or about January 10, 2016, Richards made a series of death threats to a parent of a child killed in the Sandy Hook School shooting. The parent resides in South Florida. Richards’ believed that the school shooting was a hoax and never happened allegedly motivated her to make the charged threats.
Mr. Ferrer commended the outstanding investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Attorney’s Office for the Middle District of Florida for their assistance. The case is being prosecuted in the Southern District of Florida by Assistant United States Attorney Karen E. Gilbert.
An indictment contains mere allegations 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.
South Miami Hospital Agrees to Pay the United States $12 Million to Settle False Claims Act AllegationsRead the Press Release
South Miami Hospital, a not-for-profit regional hospital located in South Miami, Florida has agreed to pay the United States approximately $12 million to settle allegations that it violated the False Claims Act by submitting false claims to federal healthcare programs for medically unnecessary electrophysiology studies and other procedures allegedly performed by John R. Dylewski, M.D., at South Miami Hospital.
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, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, and Scott Rezendes, Special Agent in Charge, Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
“This settlement shows our continued resolve to pursue institutional providers who turn a blind eye to the systematic overutilization of medical procedures and inflated billing practices resulting in significantly increased costs to the federal government,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida.
“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program known as TRICARE,” said DCIS Special Agent in Charge John F. Khin. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our warfighters, their family members, and military retirees.”
“Performing medically unnecessary heart procedures is shocking to the conscience,” said Shimon R. Richmond, HHS-OIG Miami Special Agent in Charge. “Conducting cardiac catheterizations purely for profit, not patient care, seriously breaches the “do no harm” commitment physicians pledge. Together with our law enforcement partners, we will seek out, stop these practices and protect the Medicare patients who are victimized by physicians participating in these schemes.”
“It is absolutely unconscionable that anyone in the medical profession would place profit above a patient’s health and well-being,” said OPM-OIG Special Agent in Charge Rezendes. “We remain firmly committed to ensuring that Federal employees, annuitants, and their families are protected and that such unscrupulous behavior is identified and stopped.”
The allegations arose from a lawsuit filed by two whistleblowers, James A. Burks, M.D., and James D. Davenport, M.D., under the qui tam provisions of the False Claims Act. Relator Burks is a board-certified vascular surgeon and medical doctor who began his practice as a vascular surgeon at South Miami Hospital in 2003. Relator Davenport is a board-certified cardiologist and medical doctor, who was an active member of various peer review committees at South Miami Hospital between 2010 and 2014. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Drs. Burks and Davenport will receive approximately $ 2,748,500 from the recovery announced today.
According to court documents, plaintiffs claimed to have personal knowledge of Dr. Dylewski and South Miami Hospital engaging in a number of unnecessary cardiac procedures, including echocardiograms, electrophysiology studies, head upright tilt tests, and other treatments of arrhythmia by ablation, cryoablation, or implantation of an electronic device, for the sole purpose of increasing the amount of physician and hospital reimbursements paid by Medicare and other federally-funded programs.
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, and OPM-OIG. The case was investigated and the settlement negotiated by Assistant U.S. Attorney John C. Spaccarotella.
The case is captioned United States of America ex. rel. James A. Burks, M.D. and James D. Davenport, M.D. v. John R. Dylewski, M.D., et al., Case No. 14-CV-22079 (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.
Broward County Resident Sentenced in Identity Theft Tax Fraud Scheme Involving the Use of Unauthorized Debit Card Account NumbersRead the Press Release
A Broward County resident was sentenced to 24 months in prison, to be followed by three years of supervised release for his involvement in an identity theft tax fraud scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
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), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Dan Giustino, Chief, Pembroke Pines Police Department, made the announcement.
Maraldy Necker Jean, 39, previously pled guilty to one count of trafficking in and using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, fraudulent tax returns were filed using the names and Social Security numbers of individuals without their permission. On February 6, 2014, Jean and co-defendant Wilna Joseph, 36, of Broward County, drove to a Wells Fargo Bank in Pembroke Pines, and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants, between them, had fifteen unauthorized debit cards registered in the names of other persons. The debit cards had been funded with fraudulently obtained federal income tax refunds totaling approximately $76,249.20.
Wilna Joseph was sentenced on November 18, 2016 to 10 months in prison, to be followed by one year of supervised release.
Mr. Ferrer commended the investigative efforts of IRS-CI, the FBI, and the Pembroke Pines Police Department. The case is being prosecuted by Assistant United States Attorneys Daya Nathan and Jonathan K. Osborne and Special Assistant United States Attorney Tyler Jett.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Resident Ordered to Pay More Than $600,000 in Restitution for Filing Fraudulent Claims in Connection with the Deepwater Horizon IncidentRead the Press Release
A South Florida resident was ordered to pay $607,566 for her involvement in the filing of false claims in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010.
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 Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On November 30, 2016, in the Key West Federal Courthouse, United States District Judge Jose E. Martinez entered the restitution order against Caridad Rioseco Alejandrez, 51, of Key West, Florida, who previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2 and was sentenced to serve forty-eight months in prison, to be followed by three years of supervised release. The restitution payment reflected the actual losses suffered by the Gulf Coat Claims Facility (GCCF) trust fund as a result of false claims handled by Caridad Rioseco Alejandrez for her own family members and for hundreds of Key West area residents.
Her father, Raul Rioseco, 74, of Stock Island, Florida, previously pled guilty to one count of mail fraud and was sentenced in April 2016 to one year and a day in prison in connection with his involvement in a similar false claim. He was also ordered to serve a three-year term of supervised release. Raul Rioseco was ordered to make restitution payments to the Deepwater Horizon Fund in the amount of $144,606.57, which represented the money he unlawfully received from the GCCF and the amounts received by certain other individuals based on fraudulent documents Raul Rioseco provided in support of other fraudulent claims. Additionally, Raul Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities.
According to court filings and proceedings, in June 2010, BP plc established the GCCF for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private trust fund established for that purpose.
Caridad Rioseco Alejandrez, and her father, Raul Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the Internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez produced and provided the documents to the GCCF on behalf of herself and her father which were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not the truth.
Additionally, Caridad Rioseco Alejandrez Rioseco, who had long served as a “facilitator” for local area residents, preparing tax returns, handling immigration paperwork, and providing other accounting services, facilitated the filing of hundreds of other false claims, by completing claims paperwork and producing fraudulent tax returns, wage statements, and “loss statements,” to support claims for compensation which were filed by her with the GCCF, for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals had suffered the claimed losses.
The United States advised the Court that records established that the amounts claimed, approached $1.5 million, although the actual amounts paid out by the GCCF on the claims was $607,566.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. This case was prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Medical Device Saleswoman Sentenced to Three Years in Prison for Charges Relating to the Transport of Stolen Medical Devices and Money LaunderingRead the Press Release
On December 1, 2016, a medical device saleswoman was sentenced to three years in prison for her involvement in a stolen medical device and money laundering conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin D. Green, Special Agent in Charge, United States Food and Drug Administration (FDA), Office of Criminal Investigations, Miami Field Office, made the announcement.
Kerri L. Kaley, 50 of Cold Spring Harbor, New York, was sentenced in Miami on eight felony counts in a criminal case arising out of a Miami-based FDA investigation that has led to convictions in over twenty-five cases of medical device theft and has resulted in forfeitures, fines, and restitution totaling over $5 million. U.S. District Court Judge Darrin P. Gayles presided over a trial of seven of Kaley’s charges of conviction in September, for her role in a conspiracy to transport and sell in interstate commerce various stolen prescription medical devices, the actual transport and sale of stolen medical devices, and money laundering associated with that activity. In November 2014, Kaley was tried and convicted on charges of obstructing justice in connection with the same activity. At sentencing, Kaley was ordered to serve a term of thirty-six months in prison, to be followed by a similar term of supervised release. In connection with the criminal trial, Kaley agreed to, and was ordered to forfeit $500,000 to the United States, with the possibility of a further money judgment to be resolved at a later ring.
According to court records and testimony at trial, from approximately 1995 through February 2005, Kaley participated in a conspiracy with a group of individuals based in Long Island, New York. The entire group, including Kaley, were medical device sales representatives for subsidiaries of Johnson & Johnson. While based in Miami, Kaley solicited sales representatives and other employees of medical device manufacturers, seeking to purchase medical devices for re-sale. As part of the conspiracy, Kaley and others working with her would secure possession of significant quantities of prescription medical devices from hospitals they serviced for their employer, which were then forwarded to a conspirator in Delray Beach, Florida. These devices were often state-of-the-art equipment used for minimally invasive surgeries and suture materials used by hospitals. The devices were acquired by theft and fraud from customer medical facilities, New York non-profit hospitals. During the course of the illicit activity Kaley laundered over $2.2 million in payments through two sham construction corporations and used the funds to pay the co-conspirators, their home mortgages, home-renovations, and child care expenses.
Charges remain pending against co-conspirator Brian K. Kaley, but no trial date has been set. An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Mr. Ferrer commended the investigative efforts of the U.S. Food and Drug Administration in this matter. The current case is being prosecuted by Assistant United States Attorneys Thomas Watts-FitzGerald, Brooke Watson, and Alison Lehr.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Palm Beach County Man Sentenced to 150 Months’ Imprisonment for Role in Bonding Fraud SchemeRead the Press Release
Alexander Robert Xavier, 52, of Boca Raton, Florida, was sentenced to twelve-and-a-half years in prison. Previously, a jury found Xavier guilty of defrauding federal agencies by issuing worthless bonds to insure government construction projects. U.S. District Judge Kenneth A. Marra imposed the sentence and ordered Xavier to pay over $4 million in restitution to the victims of the fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Paul Brezinski, Special Agent in Charge, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG), Atlanta Field Office, and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
According to public documents and evidence introduced in court, from approximately May 2008 to October 2010, Xavier devised a scheme to unlawfully enrich himself by claiming to be an “individual surety” on various performance and payment bonds – a type of insurance required on major government construction contracts. During the course of the fraud, Xavier pledged millions of dollars in assets to at least eighteen different federal agencies. In truth, and as Xavier well knew, there were no such assets.
A jury previously found Xavier guilty, on July 14, 2016, of mail fraud, in violation of Title 18, United States Code, Section 1341, major fraud, in violation of Title 18, United States Code, Section 1031, and making a false statement to the United States Department of the Army, in violation of Title 18, United States Code, Section 1001.
The evidence at trial showed that Xavier issued a large number of worthless bonds to various contractors performing work for government agencies. During the course of the fraud scheme, Xavier and his confederates were paid over $4.3 million in fees. The defrauded federal agencies included, among others, the United States Department of the Army and the United States Department of Labor.
Mr. Ferrer commended the investigative efforts of the EPA-OIG, VA-OIG. Mr. Ferrer also thanked the Criminal Investigation Command of the Department of the Army, the Defense Criminal Investigative Services of the OIG of the Department of Defense, the OIG of the General Services Administration, the OIG of the Department of Housing and Urban Development, and the OIG of the Department of State.
This case was prosecuted by Assistant U.S. Attorneys Christopher B. Browne and Wilfredo Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Lake Worth Resident Sentenced for Distribution of Fentanyl Resulting in DeathRead the Press Release
Christopher Sharod Massena, 25, of Palm Beach County, was sentenced today to 360 months in prison to be followed by three years supervised release for the distribution of Fentanyl, resulting in the death of a 23 year old man.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Massena was previously convicted for unlawfully distributing a controlled substance, Fentanyl, which resulted in death.
According to the court record, on February 18, 2016, Massena distributed Fentanyl, a Schedule II controlled substance, to a 23 year old man. The man died of acute Fentanyl toxicity shortly after ingesting the controlled substance. Thereafter, on four separate dates Massena distributed other controlled substance (heroin and heroin mixed with Fetanyl) to an undercover police officer. On the date of his arrest, Massena possessed with the intent to distribute heroin.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case was prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
West Palm Beach Man Ordered to Pay $1 Million in Restitution to United States Coast GuardRead the Press Release
On November 29, 2016, a West Palm Beach man was ordered to repay $1 million to the United States Coast Guard for communicating a false distress call.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott Buschman, United States Coast Guard, District 7, made the announcement.
Richard Ohrn, 46, pled guilty to willfully communicating a false distress message to the United States Coast Guard, causing the Coast Guard to attempt to save lives and property when no help was needed, in violation of Title 14, United States Code, Section 88(c).
According to court records, Ohrn rented a recreational vessel on March 31, 2015, before abandoning it at sea. The vessel was later discovered by a concerned boater, who spotted several patches of blood and a broken pair of eyeglasses onboard. The United States Coast Guard was notified and launched a search and rescue effort over a three-day period. The search utilized both air and sea assets, and cost over $1 million. The investigation revealed that while the Coast Guard was searching for Ohrn he fled to Georgia, where he hid in an unfurnished apartment before returning to the West Palm Beach area on April 12, 2015.
Ohrn was sentenced to a year of probation and was ordered to pay $1 million in restitution to the Coast Guard.
Mr. Ferrer commended the investigative efforts of the United States Coast Guard, United States Coast Guard Investigative Service, and the Palm Beach Sheriff’s Office. This case was prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
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.