Southern District of Florida
Press releases recorded for this federal judicial district.
Princess Cruise Lines to Pay Largest-Ever Criminal Penalty for Deliberate Vessel PollutionRead the Press Release
Company to Pay $40 Million and Implement Remedial Measures on All Carnival Companies Visiting U.S. Ports
Princess Cruise Lines Ltd. (Princess) has agreed to plead guilty to seven felony charges stemming from its deliberate pollution of the seas and intentional acts to cover it up. Princess will pay a $40 million penalty– the largest-ever criminal penalty involving deliberate vessel pollution – and plead guilty to charges related to illegal dumping of oil contaminated waste from the Caribbean Princess cruise ship. The plea agreement was announced today by U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida in Miami, Florida and Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.
Princess, headquartered in Santa Clarita, California, is a subsidiary of Carnival Corporation (Carnival), which owns and operates multiple cruise lines and collectively comprises the world’s largest cruise company. Carnival is headquartered in Miami. As part of the plea agreement with Princess, cruise ships from eight Carnival cruise line companies (Carnival Cruise Line, Holland America Line N.V., Seabourn Cruise Line Ltd. and AIDA Cruises) will be under a court supervised Environmental Compliance Program (ECP) for five years. The ECP will require independent audits by an outside entity and a court appointed monitor.
The charges to which Princess will plead guilty concern the Caribbean Princess cruise ship which visited various U.S. ports in Florida, Maine, Massachusetts, New Jersey, New York, Puerto Rico, Rhode Island, South Carolina, Texas, U.S. Virgin Islands and Virginia. The U.S. investigation was initiated after information was provided to the U.S. Coast Guard by the British Maritime and Coastguard Agency (MCA) indicating that a newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England. The whistleblowing engineer quit his position when the ship reached Southampton, England. The chief engineer and senior first engineer ordered a cover-up, including removal of the magic pipe and directing subordinates to lie. The MCA shared evidence with the U.S. Coast Guard, including before and after photos of the bypass used to make the discharge and showing its disappearance. The U.S. Coast Guard conducted an examination of the Caribbean Princess upon its arrival in New York City, New York, on Sept. 14, 2013, during which certain crew members continued to lie in accordance with orders they had received from Princess employees.
According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations. The discharge on Aug. 26, 2013, involved approximately 4,227 gallons, 23 miles off the coast of England within the country’s Exclusive Economic Zone. At the same time as the discharge, engineers simultaneously ran clean seawater through the ship’s overboard equipment in order to create a false digital record for a legitimate discharge.
Caribbean Princess used multiple methods over the course of time to pollute the seas. Prior to the installation of the bypass pipe used to make the discharge off the coast of England, a different unauthorized valve was used. When the Department of Justice investigative team conducted a consensual boarding of the ship in Houston, Texas, on March 8, 2014, they found the valve that crew members had described. When it was removed by Princess at the department’s request, it was found to contain black oil.
In addition to the use of a magic pipe to circumvent the oily water separator and oil content monitor required pollution prevention equipment, the U.S. investigation uncovered two other illegal practices which were found to have taken place on the Caribbean Princess as well as four other Princess ships – Star Princess, Grand Princess, Coral Princess and Golden Princess. One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor. The purpose was to prevent the oil content monitor from otherwise alarming and stopping the overboard discharge. This was done routinely on the Caribbean Princess in 2012 and 2013. The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges. This waste was pumped back into the graywater system rather than being processed as oily bilge waste. Neither of these practices were truthfully recorded in the oil record book as required. All of the bypassing took place through the graywater system which was discharged when the ship was more than four nautical miles from land. As a result, discharges within U.S. waters were likely.
“The conduct being addressed today is particularly troubling because the Carnival family of companies has a documented history of environmental violations, including in the Southern District of Florida,” said U.S. Attorney Ferrer. “Our hope is that all companies abide by regulations that are in place to protect our natural resources and prevent environmental harm. Today’s case should send a powerful message to other companies that the U.S. government will continue to enforce a zero tolerance policy for deliberate ocean dumping that endangers the countless animals, marine life and humans who rely on clean water to survive.”
“The pollution in this case was the result of more than just bad actors on one ship,” said Assistant Attorney General Cruden. “It reflects very poorly on Princess’s culture and management. This is a company that knew better and should have done better. Hopefully the outcome of this case has the potential not just to chart a new course for this company, but for other companies as well.”
“The safety, security and environmental stewardship of our ports, waterways and oceans is an important Coast Guard mission set and the complexity of the challenges we face today requires a global unity of effort among law enforcement partners,” said Rear Admiral Scott Buschman Commander, Coast Guard District Seven. “I sincerely thank the U.S. Attorney and the United Kingdom Maritime and Coastguard Agency for your leadership, your collaboration and the hard work put forth to reach a plea agreement with significant penalties that serve as a clear warning to all polluters.”
“This shows just how well the U.K. and U.S. can work together on these kind of cases,” said Jeremy Smart, head of enforcement at the Maritime & Coastguard Agency of the United Kingdom. “It also sends a clear message to the industry that this kind of pollution practice will not be tolerated anywhere in the world. It also shows that we will always take any information we are given by those who report such practices to us very seriously and will act upon it.”
In addition to the criminal information, a plea agreement and joint factual statement were today filed in court in Miami. Photographs of some of the evidence provided by the whistleblower and obtained by the government were also filed in federal court. In the factual statement, Princess also admitted to the following:
- Illegal discharges took place on the Caribbean Princess dating back to 2005, one year after the vessel started operations, as part of a conspiracy to violate the Act to Prevent Pollution from Ships and to obstruct justice.
- Different bypass methods were used over the course of time, including a “magic pipe” used to transfer oily waste overboard.
- After learning that an engineer had blown the whistle, senior ship engineers dismantled the bypass pipe and instructed crew members to lie.
- Prior to the MCA boarding, the chief engineer and senior first engineer ordered crew members to lie. Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.” The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident.
- When using the magic pipe, engineers processed sea water through the oily water separator in order to create a digital record to account for the missing waste.
- Shore-side management failed to provide and exercise sufficient supervision and management controls to prevent or detect criminal violations by Caribbean Princess crew members.
- A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
- Princess engineers on the Caribbean Princess indicated that the chief engineer responsible for the discharge on Aug. 26, 2013, was known as “broccino corto” (a person with short arms), an Italian expression for a cheap person whose arms are too short to reach his wallet. Some expressed the same opinion of the shore-side superintendent.
- Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste. The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system. Graywater tanks overflowed at least once a month and, at times, as frequently as once per week. Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
- Princess discovered “stub pipes” along the entire length of the ship for the apparent purpose of pumping graywater overflows into the bilges back into the graywater system and subsequently overboard.
According to papers filed in court, Princess has undertaken remedial measures in response to the government’s investigation, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.
If approved by the court, $10 million of the $40 million criminal penalty will be devoted to community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will be earmarked for projects to benefit the marine environment in United Kingdom waters.
Today’s prosecution was made possible through the combined efforts of the U.S. Coast Guard Investigative Service, the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis. In announcing the case, U.S. Attorney Ferrer and Assistant Attorney General Cruden expressed their appreciation to the U.K.’s MCA for their cooperation and assistance. The case was prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida.
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.
- Illegal discharges took place on the Caribbean Princess dating back to 2005, one year after the vessel started operations, as part of a conspiracy to violate the Act to Prevent Pollution from Ships and to obstruct justice.
Palm Beach Resident Pleads Guilty in Stolen Identity Tax Fraud SchemeRead the Press Release
A Palm Beach resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Raphael Oswald, a/k/a Mackenson R. Olibrice,37 Rivera Beach, Florida, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of theft of public money, in violation of Title 18, United States Code, Section 641, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, in August 2013, law enforcement began investigating Oswald for identity theft charges related to his use of the stolen identity of a woman to purchase and finance a 2006 Porsche and BMW X-5 in New York. Specifically, the defendant walked into two separate car dealerships and presented a fraudulent passport and fraudulent Florida driver’s license in the name of the woman but bearing Oswald’s photo.
During the course of the initial identity theft investigation, a separate tax refund fraud scheme involving Oswald was discovered. Oswald possessed and used stolen personal identifying information of numerous individuals, and used the information to file fraudulent tax returns and collect tax refunds in the name of those individuals. More than one hundred fraudulent federal tax returns were filed, and the fraudulent refunds totaling $139,308 were directed into bank accounts in the name of Oswald’s company. Oswald then made a series of cash withdrawals and made several purchases for personal items from the bank accounts.
Oswald is scheduled to be sentenced on February 7, 2017 before United States District Judge Cecilia M. Altonaga. At sentencing, the defendant faces up to twenty years in prison for the wire fraud charge, up to ten years in prison for the theft of public money charge, and two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Keys Boat Lift Installation Company and South Florida Resident Sentenced in Connection with Rivers and Harbors Act ViolationsRead the Press Release
A Florida Keys boat lift installation company and a South Florida resident pled guilty and were sentenced in connection with the installation of illegal boat lifts without the requisite federal permits from the United States Army Corp of Engineers (ACOE).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; Colonel Jason Kirk, District Engineer, United States Army Corps of Engineers, Jacksonville District; John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office; Frank Robey, Director, United States Army Criminal Investigation Command, Major Procurement Fraud Unit; and Andy Castro, Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office.
Florida Keys company Kevin P. Mason Builder, LLC (Mason) and Jennifer Ashlee Davis, 32, of Tavernier, pled guilty and were sentenced today in federal court in Key West before United States District Court Judge Jose E. Martinez. Mason and Davis pled guilty for their involvement in the building of approximately twelve boat lifts and associated structures without federal permits issued by the ACOE, in violation of Title 33, United States Code, Sections 403 and 406. Mason was sentenced to five years of probation, ordered to pay a $15,000 fine, and required to implement and enforce an Environmental Compliance Plan. Davis was sentenced to one year of probation and ordered to pay a $2,000 fine.
According to court records, including a joint factual statement, the Rivers and Harbors Act prohibits commencing building any structure in any navigable water of the United States without authorization from the ACOE. Mason was in the business of installing boat lifts and other associated structures in navigable waters and was subject to ACOE permitting. Davis was the permitting agent, acting on behalf of Mason and the individual property owners. Both Mason and Davis were responsible for applying for and obtaining all necessary authorization including, but not limited to, ACOE permits. Mason and Davis knew that permits were required, prior to commencing all work. Between February 1, 2015 and September 30, 2015, the Mason and Davis commenced and/or completed 12 boat lift installations knowing no ACOE authorization had been granted.
U.S. Attorney Wifredo Ferrer stated, “It is imperative that companies and their agents abide by all compliance programs, including permit regulations, to ensure the protection of our environment.”
“The United States Army Corps of Engineers, Department of Defense, is charged with managing the Intracoastal Waterways to protect vital resources,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS will investigate those who defraud the Government by circumventing United States law intended to protect our waterways, and hold them accountable for their actions. This resolution sends a clear message that preserving the environment of the Florida Keys is taken very seriously.”
“The United States Army Corps of Engineers, is responsible for regulating construction activities, which affect the navigable waters of the United States,” said Director Frank Robey, Major Procurement Fraud Unit (MPFU), United States Army Criminal Investigation Command (USACIDC). “USACIDC will investigate those who defraud the Government to circumvent United States laws intended to protect our navigable waters, and hold them accountable for their actions. This resolution sends a clear message that preserving the environment of the Florida navigable waters is a priority for the United States Army.”
Mr. Ferrer commended the investigative efforts of the U.S. Army Corps of Engineers, DCIS, U.S. Army Criminal Investigation Command’s, Major Procurement Fraud Unit, and EPA. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer of the Economic & Environmental Crimes Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Aquarium Operator Sentenced to Additional Prison Term for Violating Conditions of ReleaseRead the Press Release
Aquarium operator re-sentenced to eight additional months of incarceration, after violating conditions of his release.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge U.S. Fish & Wildlife Service, Miami, made the announcement.
Ammon Covino, 43, formerly of Meridian, Idaho, was ordered to return to prison today for eight months and to serve an additional one-year term of supervised release, following a re-sentencing hearing before U.S. District Judge Jose E. Martinez in Key West. Covino violated court-imposed employment restrictions as a result of his 2013 conviction for conspiring to harvest, transport, and sell spotted eagle rays and lemon sharks, knowing the marine life were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, contrary to the federal Lacey Act, all in violation of Title 18, United States Code, Section 371.
According to the original charging Indictment, during the period of March 2012 through approximately November 2012, Covino and others purchased and transported wildlife from the Florida Keys to Idaho for exhibit at the Idaho Aquarium in Boise. The wildlife included spotted eagle rays and lemon sharks, which required Florida licenses and permits never acquired by the participants in the deals. Covino at the time was an officer of the Aquarium, had been advised of the requirements of the law, and nevertheless directed his Florida-based suppliers to ignore the law and make the shipments. Unknown to Covino at the time of the phone calls, that business owner was cooperating with federal authorities and the phone conversations and text messages were recorded. Payment for the various specimens was made by credit cards held in the Aquarium?s name. In the same case, Idaho Aquarium, Inc. pled guilty to the same conspiracy count and was ordered to pay a $50,000 penalty.
Covino was originally sentenced in December 2013 by United States District Court Judge Jose E. Martinez to a term of imprisonment of one year and a day, followed by a term of supervised release of 2 years, and was barred from any employment during that period that involved the possession, display, transportation, exhibition, purchase, or sale of marine life.
In February 2016, Covino was sentenced to an additional 3 months in prison and a $50,000 financial penalty, for violating the special employment restrictions after agents discovered that he had secretly become involved in the development and construction of two aquarium facilities in the State of Texas, using false names and false claims of employment.
According to statements made in court during today’s hearing, within five days of Covino’s release from his most recent prison sentence, he again became involved in consulting and directing the development, construction, and exhibition details for two new aquarium facilities, located in Layton, Utah and Las Vegas, Nevada. Covino traveled to visit the facilities several times and lied to his probation officer regarding his travels.
Mr. Ferrer commended the joint investigative efforts of the Special Agents of the NOAA Office of Law Enforcement and the Fish & Wildlife Service Office of Law Enforcement who participated in the long-term investigation into the illegal harvesting and sale of marine life resources from the Florida Keys. This matter was prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Charged with Money LaunderingRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, announced federal money laundering charges against Miami-Dade County resident Luis Hernandez-Gonzalez.
Hernandez-Gonzalez, 45, of Miami Lakes, appeared in federal court today before U.S. Magistrate Judge Patrick A. White and was arraigned on an Indictment charging:
- 18 U.S.C. § 1956(h) - Conspiracy to Commit Money Laundering
- 18 U.S.C. §§ 1956(a)(1)(B)(ii) and 1957 - Money Laundering
- 31 U.S.C. § 5324(a)(1) - Structuring to Avoid Reporting Requirements
The Indictment alleges that Mr. Hernandez-Gonzalez avoided and attempted to avoid currency reporting rjavascript:void('Copy')equirements that apply to currency deposits exceeding $10,000 at financial institutions and to the purchase of money orders in amounts in excess of $3,000 at United States post offices. The Indictment further alleges that Mr. Hernandez-Gonzalez committed money laundering by conducting financial transactions in amounts over $10,000 using the proceeds of the manufacture, importation, and distribution of a controlled substance and by conducting financial transactions designed to avoid currency reporting requirements with proceeds of the manufacture, importation, and distribution of a controlled substance.
An Indictment is merely an accusation and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mr. Ferrer commended the investigative efforts of USPIS, the U.S. Drug Enforcement Administration (DEA), Internal Revenue Service, Criminal Investigation (IRS-CI), and Miami-Dade Police Department (MDPD). The case is being prosecuted by Assistant United States Attorney Elijah Levitt.
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.
Georgia Resident Sentenced to over Three Years in Prison for Threatening Several Palm Beach County LocationsRead the Press Release
Preston Alexander McWaters was sentenced by United States District Judge James I. Cohn, in Fort Lauderdale, Florida, to forty-two months in prison for sending threatening communications to several Palm Beach County locations.
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 Lawrence Leon, Chief, Palm Beach County School District Police Department, made the announcement.
McWaters, 26, of Athens, Georgia, previously pled guilty before U.S. District Judge James I. Cohn to four counts of transmitting a threat in interstate commerce to injure another person, in violation of Title 18, United States Code, Section 875(c), and two counts of conveying false and misleading information indicating that a bombing of a place of public use would take place, in violation of Title 18, United States Code, Section 1038(a)(1)(A) and (c).
According to the factual proffer accompanying his plea, McWaters, over the course of several months in late 2015 and early 2016, sent numerous e-mails and other communications threatening to bomb various locations in Palm Beach County, including schools, a hospital, a business and the Palm Beach International Airport. McWaters also posted a number of threats to injure a woman who had previously obtained a protective order against him as well as to injure the family of a high school principal in Palm Beach County. McWaters used tools to prevent law enforcement from tracing the online threats back to him, and exerted substantial effort to implicate a romantic rival and, later, his rival’s then-girlfriend in an attempt to conceal his identity. The FBI ultimately was able to trace the threats back to McWaters, who was arrested in March 2016.
While awaiting sentencing McWaters sent and attempted to send additional threating communications to others. The subsequent criminal conduct increased McWaters’ sentencing guidelines.
Mr. Ferrer commended the outstanding investigative efforts of the FBI, Palm Beach County School District Police Department and the Jupiter Police Department. Mr. Ferrer also thanked the myriad of law enforcement partners in Florida and Georgia, including the Palm Beach County Sheriff's Office, the Palm Beach County State Attorney's Office, the Jupiter Police Department, the West Palm Beach Police Department, the University of Georgia Police Department, the Clarke County Georgia Police Department, and the United States Attorney's Office for the Middle District of Georgia, for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Edward Nucci, Karen Gilbert, and 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
U.S. Department of Justice Encourages Reporting of Human Rights ViolationsRead the Press Release
Representatives from the Human Rights and Special Prosecutions Section of the U.S. Department of Justice traveled to Miami for a roundtable meeting with community stakeholders to combat and encourage reporting of, human rights violations.
U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer, Deputy Chief Kathleen O’Connor, Human Rights and Special Prosecutions Section of the U.S. Department of Justice, and Special Agent in Charge Xanthi C. Mangum, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
“The U.S. Attorney’s Office and our federal law enforcement partners have taken an aggressive stance against perpetrators of human rights violations,” stated U.S. Attorney Wifredo Ferrer “Although we have successfully brought to justice a number of human rights violators, there is still much more work to be done to protect our nation’s residents, refugees and asylum seekers. We implore the community to report human rights violators who are living among us in the South Florida community.”
On November 3, 2016, as part of an effort to foster dialogue between those who investigate and enforce human rights laws in the United States and members of the community, the U.S. Attorney’s Office for the Southern District of Florida, the Human Rights and Special Prosecutions Section of the U.S. Department of Justice, the FBI, and U.S. Immigration and Custom Enforcement’s Homeland Security Investigations hosted a roundtable meeting with community groups in the South Florida region that provide services to immigrants. This forum, titled No Safe Haven: Keeping Immigrants Safe from Human Rights Violators, brought together stakeholders, including immigrant and refugee service providers, immigration attorneys, non-governmental organizations, local and state law enforcement, medical service providers, educators, and representatives from other federal agencies.
The Human Rights and Special Prosecutions Section of the U.S. Department of Justice works with other federal government agencies and community stakeholders to identify and prosecute human rights violators and other international criminals. Offenses such as murder, rape, physical or mental torture, and the recruitment or use of children as soldiers, are considered human rights violations and are a priority for the Department of Justice. Our united mission is to ensure that the United States is not a haven to those who commit such atrocities. The U.S. Attorney’s Office for the Southern District of Florida seeks to bring the perpetrators to justice, while striving to protect and improve lives. The U.S. Attorney’s Office has a specialized section that focuses on the protection of some of the most vulnerable segments of our communities, that have fallen victim to human rights atrocities. The U.S. Attorney’s Office has utilized immigration fraud statutes and other legal provisions to hold those accountable who carry out international rights violations. In, U.S. v. Eriberto Mederos, the defendant hid the fact that he had tortured political prisoners on behalf of Cuba’s communist government and was convicted of making false statements to obtain U.S. citizenship. In U.S. v. Charles “Chuckie” Taylor, the Southern District of Florida obtained the nation’s first conviction for overseas torture and the defendant was sentenced to 97 years in prison.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at [email protected] or toll-free at 1-800-813-5863, or through the HSI tip line at 1-866-DHS-2-ICE or to complete their online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.
Stuart Resident Convicted of Federal Offenses Related to Armed Robberies in Florida and KentuckyRead the Press Release
On November 21, 2016, Todd Erling Becker, 46, of Stuart, Florida, was convicted of committing and conspiring to commit fives robberies with a firearm at business located in Stuart, Vero Beach, and Orlando, Florida and Lexington, Kentucky.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge for the Federal Bureau of Investigation (FBI), Miami Field Office, Ken Mascara, Sheriff, St. Lucie County Sheriff’s Office, William Snyder, Sheriff, Martin County Sheriff’s Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, Jerry Demings, Sheriff, Orange County Sheriff’s Office, and Mark Barnard, Police Chief, Lexington Police Department, Kentucky, made the announcement.
A federal jury in the Southern District of Florida convicted Becker of one count of conspiracy to commit robbery affecting interstate and foreign commerce, three counts of robbery affecting interstate commerce, and three counts of using a firearm in the furtherance of a crime of violence. Becker faces a minimum of 57 years’ and a maximum of life imprisonment. Becker is scheduled to be sentenced on February 3, 2017 before U.S. District Judge Donald L. Graham.
According to the court record, including evidence presented at trial, between August 13, 2013 and August 21, 2014, Becker and various accomplices robbed four convenience stores catering to Latin communities in Stuart and Vero Beach, Florida and Lexington, Kentucky. Additionally, Becker and an accomplice robbed a cash exchange business in Orlando, Florida. On all five occasions, a disguised gunman entered the stores with a semi-automatic handgun and demanded money from the store clerks. For four of the five robberies, Becker served as the lookout and the driver of the vehicle used to flee from the crime scenes. During the robbery in Vero Beach, Florida Becker entered the store with the gunman and bound the store clerk before fleeing.
During the robbery in Lexington, Kentucky, during business hours, the gunman entered the Latin market and demanded money while pointing his semi-automatic handgun at multiple customers, including young children. The gunman fired two shots at employees. Shortly after the shots were fired, Becker drove to the location, picked up the gunman, and fled back to Florida.
Mr. Ferrer commended the investigative efforts of the FBI, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Indian River County Sheriff’s Office, Orange County Sheriff’s Office, and Lexington Police Department in Kentucky. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk and Special Assistant U.S. Attorney Ryan Butler.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney Ferrer Attends Bilateral Summit with Attorney General of Colombia to Discuss Transnational CrimeRead the Press Release
Today, U.S. Attorney Wifredo A. Ferrer, U.S. Deputy Assistant Attorney General Kenneth A. Blanco, U.S. Ambassador to Colombia Kevin Whitaker, Attorney General of Colombia Nestor Humberto Martinez Neira and Colombia National Police Director General Jorge Hernandez Nieto Rojas met in Cartagena, Colombia for a summit to combat organized transnational crime.
During the meeting, the delegations from the United States and Colombia agreed to strengthen bilateral cooperation in dismantling the financial structures of the criminal organizations, the fight against drug trafficking and the use of asset forfeiture against organized crime.
Colombia and the United States seek to exchange the understandings, visions and interests with respect to the objectives of both countries in order to combat transnational organized crime. In addition, in order to strengthen the commitment of both nations, the parties reached an agreement concerning the sharing of assets confiscated in connection with criminal conduct. The agreement aims to allow Colombia and the United States to share assets - including money and goods of any kind - that have been confiscated by the respective authorities of the parties, and are subject to forfeiture in either of the two jurisdictions. The main purpose of this agreement is to collectively impact the financial structures of the criminal organizations. The recoveries will be used to cover the costs of the investigations and the prosecution of offenses by the respective authorities.
Leaders of the international law enforcement community attended the summit, including representatives from the Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), U.S. Immigration and Customs Enforcement (ICE) and Internal Revenue Service (IRS). The Colombian government was also represented by the Assistant Attorney General María Paulina Riveros Dueñas, the National Director of the Prosecutor’s Office, the Ministry of Defense, the Ministry of Finance and Public Credit, the National Police and the Financial Analysis and Information Unit.
Two Individuals Pled Guilty to Smuggling over $2.4 Million into the United States from the Dominican RepublicRead the Press Release
On November 14, 2016, two individuals pled guilty to smuggling over $2.4 million into the United States from the Dominican Republic.
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, David P. D’Amato, Special Agent in Charge, U.S. Immigration and Customs Enforcement, Office of Professional Responsibility (ICE-OPR), Jay Donly, Special Agent in Charge, Department of Homeland Security, Office of the Inspector General (DHS-OIG), Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Diane J. Sabatino, Director, Field Operation, U.S. Customs and Border Protection, Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
Mildrey De La Caradid Gonzalez, 61, and Milka Yarlin Alfaro, 40, pled guilty before Chief U.S. District Judge K. Michael Moore, in Miami, Florida to charges of bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a). Alfaro and Gonzalez face a statutory maximum sentence of five years’ imprisonment. They are scheduled to be sentenced on February 2, 2017, before U.S. Chief District Judge K. Michael Moore.
According to court records, including a stipulated factual basis in support of Alfaro and Gonzalez’s guilty plea, on June 4, 2016, Alfaro, Gonzalez, and co-defendant Luis de Jesus Alonzo, Jr. (collectively, the “Defendants”), arrived at Miami International Airport in Miami, Florida from the Dominican Republic. The Defendants presented at least seven pieces of luggage for entry into the United States. Alonzo filled out the required United States Customs and Border Protection Form 6059B (the “Declaration Form”) as the “responsible family member” on behalf of the Defendants. Alonzo declared that he and his co-defendants were not carrying in excess of ten thousand dollars in United States currency and presented the Declaration Form to Passport Control officers.
However, at the time Alonzo presented the Declaration Form, Alfaro and Gonzalez knew that the Defendants had in excess of ten thousand dollars hidden within their luggage. During a subsequent search of the Defendants’ luggage, approximately $2,463,759.00 in United States currency was discovered concealed within the luggage in diapers, baby wipes, makeup pouches, and purses, among other things. Alfaro and Gonzalez both admitted to United States Customs and Border Patrol Officers that the luggage with the concealed currency was theirs, and that Alfaro and Gonzalez had packed the luggage together.
The Defendants misrepresented that they were not carrying in excess of ten thousand dollars in United States currency in order to evade a currency reporting requirement under Title 31, United States Code, Section 5316.
Alonzo pled guilty to bulk cash smuggling on September 15, 2016. He is scheduled to be sentenced on November 30, 2016, before U.S. Chief District Judge K. Michael Moore.
Mr. Ferrer commended the investigative efforts of ICE-HSI, ICE-OPR, DHS-OIG, USSS, CBP and HHS-OIG. The case is being prosecuted by Assistant U.S. Attorney J. Mackenzie Duane.
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 Manager Sentenced to 38 months in Prison for Participating in Corruption ConspiracyRead the Press Release
The former Opa Locka City Manager was sentenced to over three years in federal prison for accepting bribes in furtherance of an illegal municipal corruption scheme.
Wifredo A. Ferrer, U.S. 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.
David Chiverton previously pled guilty to participating in a conspiracy against the laws of the United States, that is, Federal programs bribery and extortion under color of official right, in connection with his official duties as Opa Locka’s Assistant City Manager, and subsequently as City Manager, in violation of Title 18, United States Code, Section 371. U.S. District Court Judge Cecilia M. Altonaga sentenced Chiverton to 38 months’ imprisonment, to be followed by 3 years of supervised release to include 8 months of home detention. Chiverton was also ordered to forfeit $7,600 to the United States.
According to the court record and statements made in open court, between March 2014 and March 2016, Chiverton agreed with an unnamed Opa Locka elected official (“Public Official A”), 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.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case was 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.
Broward County Resident Sentenced to Three Years in Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Broward County resident was sentenced to 36 months in prison, to be followed by three years of supervised release, for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Clifford Blain, 28, was previously convicted of one count of uttering a forged United States Treasury check, in violation of Title 18, United States Code, Section 510(a)(2), one count of bank fraud, in violation of Title 18, United States Code, Section 1344, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, Blain deposited a United States Treasury check containing a forged endorsement and signature of another individual into a bank account he controlled. An image of the defendant making the deposit was captured by ATM cameras and introduced during the trial proceedings.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Russell Killinger.
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 Resident is Convicted of Attempting to Conceal Money Subject to SeizureRead the Press Release
Doraisy Martinez, 39, of West Palm Beach, pled guilty to one count of attempted removal of property to prevent seizure.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), made the announcement.
According to the court record, including facts admitted at the plea hearing, in March 2016, Martinez was living with her boyfriend, Osvaldo Rizo Santana, in Boynton Beach. On March 16, 2016, DEA agents executed a search warrant at the house, seized almost a kilogram of cocaine, and arrested Santana. On March 17 and 18, 2016, Santana called Martinez several times from jail. In the recorded calls, Santana and Martinez discussed an item that was buried in their yard. On March 18, 2016, DEA agents went to Santana and Martinez’s house. There they observed Martinez digging a hole in the ground and new holes on the property. Agents then obtained a search warrant for the premises. There they discovered, buried at the location where Ms. Martinez had been digging when the agents arrived, $20,000 in a vacuum sealed package. Martinez had attempted to remove the money to prevent it from being seized by law enforcement.
In a separate case, Santana pled guilty to conspiracy to possess with the intent to distribute cocaine and was sentenced to 37 months’ incarceration.
Martinez faces a maximum possible statutory sentence of five years in prison.
Mr. Ferrer and Mr. Wright commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Owner of Miami Based Pharmacy Convicted at Trial of $700,000 Medicare Fraud SchemeRead the Press Release
The former owner of a Miami based retail pharmacy was convicted, following a three-day trial, for his participation in a scheme that involved the fraudulent submission of approximately $700,000 dollars in false billing to Medicare.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Andres Alfonso, 54, of Miami, was convicted of three substantive counts of health care fraud. Alfonso faces a maximum possible sentence of ten years in prison for each count of conviction. Alfonso is scheduled to be sentenced on January 27, 2017, by United States District Judge James I. Cohn in Fort Lauderdale.
Evidence presented at trial showed that, for less than six months in 2014, Andres Alfonso owned a retail pharmacy called La Gloria Pharmacy, in Miami. During that time, Alfonso stole approximately $700,000 from Medicare Part D, by stealing the identities of doctors and Medicare beneficiaries and billing for prescription drugs he never purchased nor dispensed. The beneficiaries testified at trial that, although La Gloria Pharmacy had submitted claims for prescription drugs in their names, they had never heard of La Gloria Pharmacy, never received the drugs for which the pharmacy had submitted claims, and had never been treated by the doctor listed in the claim. The doctors testified that, although their names were listed as the prescribing physician in La Gloria Pharmacy’s claims submissions, they had never treated, nor prescribed medication for, any of those beneficiaries.
Mr. Ferrer commended the investigative efforts of HHS-OIG. This case is being prosecuted by Assistant U.S. Attorneys Amanda Perwin and James V. Hayes, in coordination with the Fraud Section of the Justice Department’s Criminal Division and the Medicare Strike Force.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Convicted of Sex Trafficking in Connection with Human Trafficking Scheme Targeting Foreign University StudentsRead the Press Release
Defendant Used False and Fraudulent Promises to Recruit Foreign Students to Further a Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was convicted late yesterday on all 11 counts for organizing a scheme to lure foreign university students into the United States under false pretenses of legitimate summer jobs, only to advertise the students to customers of his prostitution and erotic massage enterprise.
Cooper was convicted of sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of persons for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise. A jury in the Southern District of Florida returned the verdict after four days of trial.
According to evidence presented in court, Cooper recruited foreign students from Kazakhstan through the State Department’s J-1 Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States. After the students arrived in Miami in May 2011, Cooper revealed that the yoga studio did not exist and that he expected the students to perform erotic massages and commercial sex acts as part of his prostitution and erotic massage enterprise. According to testimony and evidence presented at trial, the students were advertised to customers from June 2011 until they were recovered by law enforcement in August 2011.
“Jeffrey Cooper used deception to lure unsuspecting foreign university students across the globe, only to be exploited for the defendant's own personal profit,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office is fully committed to our international efforts to combat human trafficking - whether by fraud, force or otherwise.”
“Cooper preyed on students seeking to broaden their opportunities through an educational exchange program, using fraud and false promises to sell their bodies for his own profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As this case demonstrates, the Civil Rights Division will continue to work vigorously with our Anti-Trafficking Coordination Team partners to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“This case is the perfect example of how victims can travel half way around the world in an effort to better themselves only to be defrauded and exploited sexually,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI along with our federal and international law enforcement partners will continue to work diligently to ensure that individuals like Cooper do not exploit educational work programs for their own profit.”
“Diplomatic Security is committed to using all of the tools at our disposal to prevent human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Our global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop those that would manipulate instruments of international travel in order to exploit international students in this way.”
Cooper faces a maximum sentence of life in prison, a fine of up to $2,750,000 and an order to pay mandatory restitution to the victims. U.S. District Court Judge K. Michael Moore of the Southern District of Florida will sentence Cooper on Feb. 16, 2017.
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Convicted of Sex Trafficking in Connection with Human Trafficking Scheme Targeting Foreign University StudentsRead the Press Release
Defendant Used False and Fraudulent Promises to Recruit Foreign Students to Further a Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was convicted late yesterday on all 11 counts for organizing a scheme to lure foreign university students into the United States under false pretenses of legitimate summer jobs, only to advertise the students to customers of his prostitution and erotic massage enterprise.
Cooper was convicted of sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of persons for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise. A jury in the Southern District of Florida returned the verdict after four days of trial.
According to evidence presented in court, Cooper recruited foreign students from Kazakhstan through the State Department’s J-1 Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States. After the students arrived in Miami in May 2011, Cooper revealed that the yoga studio did not exist and that he expected the students to perform erotic massages and commercial sex acts as part of his prostitution and erotic massage enterprise. According to testimony and evidence presented at trial, the students were advertised to customers from June 2011 until they were recovered by law enforcement in August 2011.
“Cooper preyed on students seeking to broaden their opportunities through an educational exchange program, using fraud and false promises to sell their bodies for his own profit,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “As this case demonstrates, the Civil Rights Division will continue to work vigorously with our Anti-Trafficking Coordination Team partners to bring traffickers to justice and vindicate the rights of vulnerable victims.”
“Jeffrey Cooper used deception to lure unsuspecting foreign university students across the globe, only to be exploited for the defendant's own personal profit,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “The U.S. Attorney’s Office is fully committed to our international efforts to combat human trafficking – whether by fraud, force or otherwise.”
“This case is the perfect example of how victims can travel half way around the world in an effort to better themselves only to be defrauded and exploited sexually,” said Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami. “HSI along with our federal and international law enforcement partners will continue to work diligently to ensure that individuals like Cooper do not exploit educational work programs for their own profit.”
“Diplomatic Security is committed to using all of the tools at our disposal to prevent human trafficking,” said Director Bill A. Miller of the State Department’s Diplomatic Security Service (DSS). “Our global presence enables our agency to serve as a liaison between U.S. and foreign law enforcement counterparts assisting both in their efforts to stop those that would manipulate instruments of international travel in order to exploit international students in this way.”
Cooper faces a maximum sentence of life in prison, a fine of up to $2,750,000 and an order to pay mandatory restitution to the victims. U.S. District Court Judge K. Michael Moore of the Southern District of Florida will sentence Cooper on Feb. 16, 2017.
The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida is 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.South Florida Resident Sentenced to Prison for Stealing Housing and Food Assistance Benefits and Committing Aggravated Identity TheftRead the Press Release
A South Florida resident was sentenced to three years in prison and ordered to pay $187,997 in restitution for stealing housing and food assistance benefits and committing aggravated identity theft.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ann Deibert, Chief Executive Officer, Broward County Housing Authority (BCHA), made the announcement.
Jamye Sharne Barnes, a/k/a Jamye Barnes Sawyers, 36, of South Florida, previously pled guilty to two counts of theft of government money for taking HUD funded Section 8 program assistance and USDA Supplemental Nutrition Assistance Program benefits to which she was not entitled, in violation of Title 18, United States Code, Section 641; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Barnes was sentenced to 36 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution in the amount of $187,997.
According to court documents, on May 17, 2011, Barnes applied to receive Section 8 housing benefits in Broward County, Florida through the Broward County Housing Authority (BCHA), which administers United States Department of Housing & Urban Development (HUD) Section 8 housing benefits. Barnes was approved by BCHA to live at a house in Miramar, Florida, and HUD, through BCHA, paid $1,154 in rent per month from July 26, 2011 through November 8, 2012 for this residence on behalf of Barnes. From May 2012 up to 2016, Barnes received a total of $38,000 in benefits. Throughout that period, Barnes filed annual applications certifying under oath information relating to her income, employment, and bank accounts held, but failed to disclose income that would have disqualified her from receiving HUD Section 8 benefits.
On or about December 16, 2008, Barnes applied to receive United States Department of Agriculture (USDA) Supplemental Nutrition Assistance Program (SNAP) benefits, formerly known as food stamps. Barnes was approved by the USDA, and from May 2012 through 2016, she received benefits ranging from $313 to $526 per month based upon the information she provided to the Florida Department of Children and Families (DCF). Throughout that period, Barnes filed annual applications certifying under oath her income, employment, and bank account records, but failed to disclose income that would have disqualified her from receiving USDA SNAP benefits.
From May 2012 through 2016, Barnes worked at Loyalty Financial, Inc., a tax preparation business in the Southern District of Florida. Barnes was the authorized signee of several bank accounts for Loyalty Financial, and Barnes used the bank accounts to pay the company’s employees and for her personal benefits. In 2012, over 30 fraudulently obtained United States Treasury income tax refund checks were deposited into one of Loyalty Financial's bank accounts. The total amount of the checks deposited was $188,746.70. Barnes personally withdrew at least $127,327 from the account.
Mr. Ferrer commended the investigative efforts of HUD-OIG, USDA-OIG, IRS-CI, and the BCHA. The case was prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Seven Defendants Plead Guilty to Conspiracy Related to Mortgage Fraud SchemeRead the Press Release
In two related cases, seven residents of Miami-Dade County pled guilty to conspiracy charges arising from their involvement in a complex mortgage fraud scheme involving two condominium conversion projects in central Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan J. Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
On November 10, 2016, Orlando Ortiz, 53, Luis Enrique Tur, 47, Jeffrey Todd Canfield, 49, Rafael Amador, 34, and Osvaldo Sanchez, 40, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Federico A. Moreno. The defendants are scheduled to be sentenced on January 19, 2017.
On November 16, 2016, Mirna Pena, 54, and Pedro Reynaldo Allende, 66, pled guilty to one count of conspiracy to commit bank fraud and wire fraud affecting a financial institution, before U.S. District Judge Patricia A. Seitz. The defendants are scheduled to be sentenced on March 28, 2017.
According to court documents, including the agreed upon factual statements:
In 2007 and 2008, Ortiz, Tur, Canfield, Amador, and Sanchez participated in a mortgage fraud scheme involving two condominium projects: “Portofino at Largo,” in Largo, Florida, and “Bayshore Landing,” in Tampa, Florida. Pena and Allende were involved in the same mortgage fraud scheme; however, their involvement was limited to units in the Portofino at Largo project.
During the course of the conspiracy, Pena, Allende, and other individuals recruited straw buyers and unqualified buyers, including Ortiz, Tur, and Canfield, to purchase units in the two condominium projects. Among other things, the recruiters told certain prospective buyers that: buyers did not have to contribute any money to purchase a unit; buyers would receive a cash-back incentive or “kick-back” after closing; and buyers would receive several months’ mortgage payments.
The co-conspirators prepared and submitted false and fraudulent mortgage loan applications and related documents to various lenders including Bank of America, BankUnited, Chase Bank USA, CitiMortgage, First National Bank of Arizona, IndyMac Bank, JPMorgan Chase Bank, and Washington Mutual Bank. Among other things, the loan applications and related documents contained false and fraudulent statements and omissions regarding: the borrower’s intention to reside in the unit; the borrower’s employment and income; the borrower’s assets and liabilities; the borrower’s payment of an earnest money deposit and cash-to-close; and the use of mortgage loan proceeds to pay “marketing fees” to various “marketing companies.” In truth and in fact, the marketing companies were fraudulent businesses that did not provide any marketing services. Instead, the “fraudulently induced marketing fees” were a means of diverting proceeds from the fraud scheme to the marketing companies. The fraudulent marketing companies would then use the fraud proceeds to pay undisclosed kick-backs to the buyers.
Pena and Allende operated two Miami-based businesses, which were used to perpetrate the mortgage fraud scheme: Mortgage Bankers Lenders, Inc., a mortgage broker business, which submitted false and fraudulent loan applications and related documents to the lenders; and United Title Services & Escrow, Inc., which closed mortgage loan transactions even though the buyers had not paid earnest money deposits or cash-to-close, and used loan proceeds to pay “marketing fees” to a marketing company operated by unindicted co-conspirators.
Ortiz, Canfield, and Tur purchased units in Portofino at Largo. Tur also purchased units in Bayshore Landing. Ortiz, Canfield, and Tur engaged a Miami-based mortgage broker business operated by an unindicted co-conspirator to prepare and submit mortgage loan applications for their units. On their behalf, the co-conspirator prepared and submitted fraudulent loan applications and other documents to various lenders. The fraudulent loan documents included fabricated W-2 Wage and Tax Statements and pay stubs. After closing on their units, Ortiz, Canfield, and Tur received substantial undisclosed kick-backs from a marketing company operated by an unindicted co-conspirator. The kick-backs were funded with fraud proceeds, which had been paid to the marketing company as “marketing fees.”
Amador and Sanchez operated Allegiance Title of America, Inc., which served as the closing agent for mortgage loans involving condominium units in Portofino at Largo and Bayshore Landing. Among other things, Amador and Sanchez caused Allegiance Title of America to disburse loan proceeds even though the buyers had not paid the earnest money deposits or cash to close, that was required by their loan applications and settlement statements. Amador and Sanchez also caused Allegiance Title of America to pay fraudulent “marketing fees” to marketing companies.
The defendants face a maximum statutory term of thirty years’ imprisonment for their participation in the mortgage fraud conspiracy.
Mr. Ferrer commended the investigative efforts of the FHFA-OIG, FBI and MDPD. Both cases are being prosecuted by Assistant United States Attorney Dwayne E. Williams.
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 Check Casher Sentenced to More than 17 Years in Prison for Cashing over $11 Million in Fraudulent Tax Refund ChecksRead the Press Release
A North Miami check casher was sentenced to more than 17 years in prison, after having been convicted by a federal jury, for cashing over $11 million in fraudulent tax refund checks obtained from the filing of stolen identities.
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 Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Junior Jean Baptiste, 36 of North Miami, Florida, was convicted on charges of conspiracy to commit money laundering, money laundering, possession of five or more false identification documents, theft of government money, and aggravated identity theft. Baptiste was sentenced to a total of 212 months’ imprisonment, to be followed by three years of supervised release, by United States District Judge Jose E. Martinez.
According to the evidence presented in court, from 2009 to 2011, the defendant operated a check cashing store called Surveillance Masters LLC in North Miami, Florida. During this period, trial evidence demonstrated that the defendant knowingly cashed over $11 million from over 2,000 fraudulent tax refund checks that had been issued in the names of dead people, disabled people, and other people who do not typically file tax returns. Furthermore, trial evidence showed that the defendant typically took a fee of half of the value of the checks and made false identification documents for his files. Trial evidence demonstrated that, in connection with the cashing of these fraudulent checks, the defendant possessed over 900 false driver’s licenses, work permits, and green cards.
Finally, the evidence at trial showed that the defendant used the fraudulently obtained funds for, among other things, a cargo ship, multiple vehicles, and rights to an album of a prominent hip-hop artist.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This was prosecuted by Assistant U.S. Attorneys Michael N. Berger and Michael B. Nadler.
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.
U.s. Attorney Wifredo Ferrer to Speak at Naturalization Ceremony with Uscis District Director Linda SwacinaRead the Press Release
United States Attorney for the Southern District of Florida Wifredo A. Ferrer will participate and deliver remarks at a special naturalization ceremony conducted by the U.S. Citizenship and Immigration Services (USCIS) at the USCIS office in Miami, Florida on FRIDAY, NOV. 18, AT 11:00 A.M. EST. District Director Linda Swacina of the USCIS will administer the Oath of Allegiance to 170 candidates from 27 countries who will become America’s newest citizens.
The 170 naturalization candidates originate from the following 27 countries: Argentina, Bahamas, Brazil, Canada, Colombia, Cuba, Dominican Republic, Ecuador, El Salvador, France, Guatemala, Haiti, Honduras, Hungary, Israel, Italy, Jamaica, Mexico, Morocco, Nicaragua, Nigeria, Peru, Russia, Spain, Thailand, Uruguay, and Venezuela.
USCIS is asking new citizens and their families and friends to share the experiences and photos from their ceremonies via Twitter using the hashtag #newUScitizen. For more information about USCIS visit www.uscis.gov.
WHAT:
U.S. Citizenship and Immigration Services conducting a special naturalization ceremony
WHO:
U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer
USCIS Miami and Caribbean District Director Linda Swacina
USCIS Miami Field Office Director Yeseira Diaz
USCIS Senior Immigration Services Officer Melissa Andrews
WHEN:
FRIDAY, NOVEMBER 18, 2016
11:00 a.m. EST
WHERE:
Department of Homeland Security
United States Citizenship and Immigration Services
8801 NW 7th Avenue, Miami FL 33150
OPEN PRESS
NOTE:
Media should RSVP to USCIS Public Information Officer Ana Santiago at [email protected]. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.
Sebring Mother and Son Sentenced to Prison for Conspiring to Import Ecstasy into the United StatesRead the Press Release
Yesterday, a mother and her son from Sebring were sentenced to federal prison, by U.S. District Judge Jose E. Martinez in Fort Pierce, for conspiring to import Ecstasy from the Netherlands into the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, and Diane J. Sabatino, Director, Office of Field Operations, U.S. Customs and Border Protection (CBP), Miami Field Office, made the announcement.
Annalisa Anfuso Patterson, 56, and her son Jake Elwyn Patterson, 19, previously pleaded guilty to conspiracy to import a controlled substance 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” in violation of Title 21, United States Code, Section 963; and attempted possession with intent to distribute a controlled substance- 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy” in violation of Title 21, United States Code, Section 846 and Title 18, United States Code, Section 2. Annalisa Patterson was sentenced to 24 months’ imprisonment, to be followed by 3 years of supervised release. Jake Patterson was sentenced to 18 months’ imprisonment, to be followed by 3 years of supervised release.
According to the court record, including the stipulated factual proffer, U.S. Customs and Border Protection (CBP) Officers in Miami identified, searched and detained two U.S. Postal Service parcels, destined for Highlands County. The parcels were found to contain approximately 525 tablets of 3,4-methylenedioxy-methamphetamine (MDMA), also known as “Ecstasy,” a schedule I controlled substance. On May 17, 2016, HSI agents, with the assistance of United States Postal Inspectors, conducted a controlled delivery of one of the parcels to Sebring, Florida. Annalisa Patterson accepted and opened the parcel. Law enforcement then executed a search warrant at the residence and observed, next to the opened parcel, a laptop computer with images of MDMA on the screen.
The court record indicates that Annalisa and Jake Patterson used Bitcoins to place orders for MDMA from the Netherlands, using internet websites (the “dark web”). Jake Patterson used a test kit to ensure that the substances they had purchased were in fact Ecstasy. Annalisa and Jake Patterson supplied other individuals with Ecstasy, from their Sebring residence.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CBP, and USPIS. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Sentenced to Fifteen Months in Prison for Distributing Contaminated CheeseRead the Press Release
A Miami-Dade County resident was sentenced to 15 months in prison, by U.S. District Judge Robert N. Scola, Jr., for distributing contaminated cheese.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Justin Green, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
Christian Rivas, the owner of Oasis Brands, Inc. (“Oasis”), located in Miami, Florida, previously pled guilty to a two-count criminal Information. Pursuant to Count 1, a felony, Rivas, with the intent to defraud and mislead, delivered cheese processed and packed at the Oasis facility into interstate commerce that was “adulterated . . . in that it contained lysteria monocytogenes (“listeria”) a deleterious substance, which may render the food injurious to health,” in violation of Title 21, United States Code, Section 331(a) and 333(a)(2). Pursuant to Count 2, a misdemeanor, Rivas, as the responsible corporate official of Oasis, delivered cheese into interstate commerce, “which was prepared, packed and held [at the Oasis facility] under insanitary conditions whereby it may have been rendered injurious to health,” in violation of Title 21, United States Code, Section 331(a) and 333(a)(1).
“Consumer protection is a top priority for the U.S. Attorney’s Office,” stated U.S. Attorney Wifredo Ferrer. “The Southern District of Florida will continue to work with the FDA to identify for prosecution cases where consumers are exposed to the risk of serious harm from contaminated food purchased in the marketplace, while being fraudulently led to believe that it is safe.”
“U.S. consumers rely on the FDA to ensure that the food they eat is safe and wholesome,” said Justin D. Green, Special Agent in Charge, FDA Office of Criminal Investigations’ Miami Field Office. “We will continue to pursue and bring to justice those who put the public’s health at risk by allowing contaminated foods to enter the U.S. marketplace.”
According to the court record, including the sentencing hearing and stipulated statement of facts in support of Rivas’ guilty plea, the Virginia Department of Agriculture and Consumer Services had alerted the FDA to the fact that cheese supplied by Oasis and located at a Virginia grocery store had been randomly sampled on July 26, 2014 and had tested positive for the presence of listeria. A resulting FDA inspection of the Oasis processing facility revealed “numerous failures to comply with current Good Manufacturing Practice federal regulatory standards,” as well as several environmental swab samples taken from within the facility which tested positive for the presence of listeria.
At the close of the first inspection on August 22, 2014, Rivas agreed to do the following: (1) suspend manufacturing of new cheese products; (2) hire a consultant to inform the firm how to clean its facility; (3) stop distribution of finished food products in its inventory until a laboratory (retained by Oasis at its cost) could confirm that Oasis’ cheese products and its facility were negative for listeria; and (4) place all in-process product which was in the process of being manufactured or packaged and on the verge of distribution on hold until further discussions with FDA officials.
From October 7 through December 16, 2014, the FDA conducted a follow-up inspection at the Oasis facility and collected product samples of “Lacteos Santa Martha Cuajada en Hoja Fresh Curd,” then in storage at the facility, one of which later tested positive for listeria.
The court record indicates that subsequent to the first inspection and during the period September 24, 2014 through October 1, 2014, Rivas had, in violation of his agreement with the FDA, finished packaging multiple trays of cheese then held in-processing and had gone on to ship and distribute these items. The cheese in question also consisted of numerous cases of individually packaged “Lacteos Santa Martha Cuajada en Hoja Fresh Curd.” Rivas had initiated these shipments after he had learned from his testing laboratory, on September 24, 2014, that a sample of this same product had tested positive for the presence of listeria.
During the course of the sentencing hearing, the Court was informed that the Centers for Disease Control (CDC) had determined through DNA testing that an identified number of individuals were physically harmed as a consequence of having consumed contaminated cheese from Oasis during the summer and fall of 2014.
Mr. Ferrer commended the investigative efforts of the FDA-OCI. This case was prosecuted by Assistant U.S. Attorney Peter Outerbridge.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
United States Attorney’s Office and City Year Miami Celebrate American Education Week and Read to Local Students as Part of Violence Reduction Partnership (VRP)Read the Press Release
VRP Program Reaches 23 Schools in Miami-Dade and Over 12,000 Students Every Month
WHO: U.S. Attorney for the Southern District of Florida Wifredo A. Ferrer, City Year Miami Executive Director Keith “Fletch” Fletcher, and elementary students at Charles R. Drew K-8 Center for the Visual and Performing Arts.
WHAT: To celebrate the National Education Association’s American Education Week, Director Fletcher and U.S. Attorney Ferrer will read to students as part of the Violence Reduction Partnership’s monthly readings to more than 1,200 pre-kindergarten and elementary school students in 23 schools across the Southern District of Florida. The joint effort brings books and the joy of reading into the lives of students in many of Miami’s highest-need schools, in order to combat the potential correlation between low literacy levels and poverty, crime and unemployment. Following each reading session, the children receive books to take home – often the only books they have ever owned. Since 2014, the program has distributed more than 11,000 books.
WHERE: Charles R. Drew K-8 Center for the Visual and Performing Arts
1775 NW 60th St.
Miami, Fla. 33142
(Media, please meet in the front lobby of the school)
WHEN: Tomorrow, Tuesday, November 15th
9:15 a.m. – 9:45 a.m.
About City Year:
City Year is an education-focused organization, founded in 1988 dedicated to helping students and schools succeed. City Year partners with public schools in 26 urban, high-poverty communities across the U.S. and through international affiliates in the U.K. and Johannesburg, South Africa. Diverse teams of City Year AmeriCorps members provide high-impact student, classroom and school-wide support to help students stay in school and on track to graduate from high school and prepare for college and career success. A member of the AmeriCorps national service network, City Year is made possible by support from the Corporation for National and Community Service, school district partnerships, and private philanthropy from corporations, foundations and individuals. More information about City Year is available at www.cityyear.org/miami.
To learn how you can partner with the VRP, please contact the United States Attorney’s Office Community Outreach Team at (305) 961-9134 or [email protected].
To partner with City Year Miami and sponsor a Miami-Dade County School, you can contact Keith “Fletch” Fletcher at (305) 778-5579 or [email protected].
Interviews are available after the event. Photograph and video opportunities are available before, during and after the event.
Reno Was a Public Serveant Who Didn't Take Herself Too SeriouslyRead the Press Release
Commentary by Wifredo Ferrer, Daily Business Review
November 7, 2016
Though it was a long time ago, I vividly remember the day I met the woman who would eventually become my boss, my colleague, my friend and my mentor.
As a high school student at Hialeah-Miami Lakes, Janet Reno came to our class to talk about community safety and the value of public service. At the time, Reno was the Miami-Dade state attorney. Despite the demands of her job, Reno always made it a priority to connect with our community's youth. Her accessibility and core belief in the principle of justice for all was as clear to me that day as it was when I had the honor to work closely with her when she was the attorney general of the United States.
Though she would ultimately return to the community she loved, Reno left Miami to begin her tenure as U.S. attorney general in 1993. In 1995 I was fortunate enough to begin working with her, serving as her counsel and deputy chief of staff. She was the ideal and consummate public servant who believed deeply in the mission of the Department of Justice. She was tough and believed that those who violate our nation's laws must be punished and deterred.
But her view of justice transcended the role of the nation's top prosecutor. Reno also firmly believed that all Americans should have true and meaningful access to the law, and she demanded that we always remember that those in need, especially children, deserve a voice. The country witnessed these traits over and over again during her tenure. Indeed, as a member of the president's Cabinet, much of what she did played out in the public eye.
But I was blessed to also work with Reno behind closed doors, out of the glaring lights that she became accustomed to as attorney general. It is hard to appreciate the number of decisions an attorney general must make on a daily basis. Some are small and some are large, but each one is important to someone.
And regardless of the magnitude of the issue before her, the players involved or the gravity of the decision with which she was faced, her approach was consistent – she was guided by the evidence and the law and called it as she saw it.
As a young lawyer navigating the halls of Justice, I saw Reno lead by her values and principles. She was guided by an unwavering sense of right and wrong, and that was a powerful thing to witness. She was firm and decisive but never arrogant. Reno was a good listener but never allowed herself to be swayed by popular opinion. Reno was never tempted to take the easy way out simply to avoid hard choices. Her character and integrity would not allow that.
In addition to witnessing her leadership and character as attorney general, I also had the great fortune to be touched by her warmth, humanity and sense of humor.
Many Americans fondly recall Reno dancing with Will Ferrell on "Saturday Night Live." She reminded us to always take our responsibilities seriously but never to take ourselves too seriously.
Reno cared deeply about the professional and personal lives of all of her colleagues and tried to know everyone's name and life story. Reno taught me and so many others what it means to be a leader.
When I had the privilege to be sworn in as U.S. attorney, Reno was there. Although she was in very poor health, it meant so much to have her by my side.
Though she has left us, in many ways she will always be by my side, and her life and work will continue to inspire us all.
Wifredo Ferrer in U.S. attorney in the Southern District of Florida.Nineteen Individuals in the Southern District of Florida Receive Attorney General AwardsRead the Press Release
Attorney General Loretta E. Lynch recognized 376 department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony. Forty-seven other individuals outside of the department were also honored for their work. This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice.
Nineteen individuals from the Southern District of Florida are honored with an award.
“The honorees from the Southern District of Florida represent federal prosecutors and their law enforcement partners whose steadfast commitment to public service has had an international impact on the illicit narcotics trade and resulted in justice for defrauded investors,” stated U.S. Attorney Wifredo A. Ferrer. “These award recipients have made invaluable contributions to the mission of the Department of Justice and their respective agencies. I am incredibly proud of their work and applaud their well-deserved recognition.”
“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch. “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”
The following individuals from the Southern District of Florida were recognized for the following awards:
The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice. Two Awards for Excellence in Law Enforcement were presented this year.
One award recognized, from the U.S. Attorney’s Office of the Southern District of Florida, Assistant U.S. Attorney Marton Gyires; from the DEA’s Miami Field Office, Group Supervisor Jarod A. Forget, Special Agents John P. Garcia, Amber M. McKeone and Robert J. Roth and Intelligence Analyst Christine M. Galluccio; from the Fort Lauderdale Police Department, Detective Karin Alvarez; from the city of North Miami Beach Police Department, Sergeant William Beauparlant; from the Davie Police Department, Detective Lisa V. Choquette; from the Coconut Creek Police Department, Detective Angela L. Hofer; from the city of Coral Springs Police Department, Detective Chad L. Kuschel; and from the Miami-Dade Police Department, Detective Robert D. Love.
Operation Driving Dirty dismantled the Consolidated Priority Organization Target linked to transnational drug trafficking organizations, to include Los Urabeños, at an unprecedented rate. The recipients worked extensively with foreign DEA offices and host country counterparts in China, Hong Kong, Guatemala, Venezuela, Chile, Colombia, Mexico, Spain, Panama, Canada and the Netherlands. The international partnerships were unparalleled as Operation Driving Dirty led to significant worldwide seizures, arrests and prosecutions. As a result of leads provided to the DEA Caracas Country Office, Venezuelan counterparts seized $7 million, deemed one of the largest currency seizures in that country’s history. Additionally, while working with its partners at the U.S. Attorney’s Office, the team conducted a substantial financial investigation into the drug trafficking organization’s money laundering operations, which led to the civil forfeiture of numerous bank accounts. This cooperative effort with the U.S. Attorney’s Office led to the arrest and prosecution of over 50 high-level defendants to include the regional priority organization target, Ronen Nahmani, who was identified as one of the largest synthetic marijuana distributors in the United States. To this end, Operation Driving Dirty led to seizures totaling 6,349 kilograms of cocaine, 28 kilograms of heroin, 15 pounds of methamphetamine, 100 pounds of synthetic marijuana and precursor chemicals, 21 weapons and $30 million.
The Attorney General’s Award for Distinguished Service is the Justice Department’s second-highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Seventeen Distinguished Service Awards were presented this year to individuals or teams of people.
A Distinguished Service Award was presented to Assistant U.S. Attorneys Michelle B. Alvarez, Jeffrey N. Kaplan, Lawrence D. LaVecchio, Alison W. Lehr, Paul F. Schwartz, Evelyn B. Sheehan and Madeleine Shirley of the U.S. Attorney’s Office for the Southern District of Florida.
In October 2009, it was discovered that attorney Scott Rothstein was conducting one of the largest Ponzi schemes in American history through the operation of the Ft. Lauderdale, Florida, law firm of Rothstein Rosenfeldt & Adler P.A. (RRA). The basis of the scheme was the sale of securities in which investors purchased the rights to a stream of payments from corporate entities which ostensibly had reached confidential settlements with purported plaintiffs in sexual harassment, employment discrimination and whistleblower cases. Settlements were available for purchase in amounts ranging from hundreds of thousands to tens of millions of dollars. During the operation of the scheme, hundreds of investors remitted more than $1.2 billion to RRA, which funds were utilized to pay previous investors in the scheme to finance a lavish lifestyle for the participants, and to make political and charitable contributions which enhanced the prestige and visibility of RRA, thereby enhancing RRA’s ability to attract new investors. During the ensuing six years of litigation, 29 defendants, including attorneys and public officials, were convicted and sentenced on charges including racketeering, wire fraud, money laundering, income tax fraud, campaign finance violations, obstruction of justice, extortion and civil rights violations. Additionally, through forfeiture proceedings instituted by the government, coupled with proceedings in bankruptcy court and other ancillary civil proceedings, more than $400 million in assets were ultimately recovered, resulting in full restitution to the defrauded investors.
Nine South Florida Residents Charged with Stealing over $800,000 from the United States Department of Veterans AffairsRead the Press Release
Nine South Florida residents are charged with stealing more than $800,000 from the United States Department of Veterans Affairs.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
Mary Flynn, 67, of Miami; George Byrnes, 55, of Coral Springs; Marta Correa, 58, of Miami; Judy Jasiecki, 54, of Davie; Gregory Kramer, 64, of Fort Pierce; Leroy Weston, 58, of Pembroke Pines; Devorah Rosello, 52, of Miami; Beverly Anne Garcia, 62, of Lake Worth; and Peggy Karrh, 61, of Royal Palm Beach are each charged with theft of government funds, in violation of Title 18, United States Code, Section 641. If convicted, the defendants each face a statutory maximum penalty of up to 10 years in prison.
According to allegations in the Indictments, Mary Flynn, George Byrnes, Marta Correa, Judy Jasiecki, Gregory Kramer, Leroy Weston, Devorah Rosello, Beverly Anne Garcia, and Peggy Karrh obtained and utilized, for their own unauthorized personal use, federal government benefit funds of deceased veterans or their beneficiaries. All nine defendants failed to notify the U.S. Department of Veterans Affairs (VA) of the benefit recipients’ death; thereby, enabling continued payments for several years and in one case up to 14 years. In total, the VA made over $800,000 in fraudulently induced payments to the defendants.
Mr. Ferrer commended the investigative efforts of the VA OIG, Criminal Investigations Division. These cases are being prosecuted Assistant U.S. Attorneys Gera Peoples, Jonathan Stratton, Breezye Telfair, Rilwan Adeduntan, and Matthew Langley.
The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jupiter Attorney Sentenced Federally for Filing False Tax Returns with the IRSRead the Press Release
A Jupiter trust and estate attorney, who filed false personal income tax returns with the Internal Revenue Service (IRS), was ordered to pay $923,695 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Kathleen Kozinski, previously pled guilty to a criminal information charging her with two counts of filing a false tax return, in violation of Title 26, United States Code, Section 7206(1), for tax years 2008 and 2011. United States District Judge Robin L. Rosenberg in West Palm Beach sentenced Kozinski to eight months’ incarceration, to be followed by a year of supervised release and ordered her to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102.
According to court documents, Kozinski was an attorney with a solo estate planning and probate practice, Kathleen G. Kozinski, PA, located in Jupiter, Florida. For tax years 2007 through 2012, Kozinski failed to report all of her income on her individual Form 1040 tax returns.
Specifically, Kozinski willfully failed to report all of the gross receipts from Kathleen G. Kozinski, PA on her Form 1120S, Income Tax Return for an S Corporation. Shareholders of S corporations are required to report the flow-through of income and losses on their personal tax returns and are assessed tax at their individual income tax rates. Kozinski underreported her income on her individual Form 1040 tax returns by not reporting all of the gross receipts from her law practice on her Form 1120S.
In addition to not including all of the gross receipts, Kozinski also falsely claimed “mortgage write-off” losses in the amount of $137,293.00 in tax year 2007, while she knew she had not provided an actual loan to another individual and was not entitled to this deduction. In tax year 2011, Kozinski claimed a loss of $113,745 on a “Schedule F Farm Loss” by falsely claiming that she paid labor expenses and insurance expenses, but the defendant did not operate a farming business and knew she was not entitled to these deductions. In 2012, Kozinski claimed a “Home Office” expense of $39,001, but the defendant knew that she was not entitled to claim this deduction because she did not have a home office.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Aurora Fagan.
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 Florida Attorney and Lobbyist Sentenced to Prison for Agreeing to Launder Proceeds of Illegal ActivityRead the Press Release
An attorney and lobbyist from Hollywood, Florida was sentenced to a year in federal prison for agreeing to launder what he believed to be the cash proceeds of illegal activity.
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.
Alan Koslow, 62, a Hollywood, Florida attorney and lobbyist, and Susan Mohr, 57, of Delray Beach, Florida both previously pled guilty to conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, by agreeing to launder what they believed to be the cash proceeds of illegal activity. U.S. District Judge William P. Dimitrouleas sentenced Koslow to one year and a day in prison, to be followed by three years of supervised release. Koslow was also ordered to pay a $7,500 fine and $8,500 in restitution. Mohr is scheduled to be sentenced on December 8, 2016 in Fort Lauderdale, before U.S. District Judge Dimitrouleas.
According to the court record, including statement of facts provided by Koslow and co-conspirator Mohr in support of their guilty pleas, beginning in November 2012, Alan Koslow met with two undercover agents from the FBI. During the course of several meetings that followed, the undercover agents explained to Koslow, and later to Mohr, their need to launder cash being generated from an illegal gambling business and from the unlawful sale of narcotics and counterfeit Viagra. Koslow and Mohr agreed to accept the cash and then provide checks to the agents, for the amount of the cash minus a five percent fee, drawn on the business bank account of “Mohr2GoGifts,” a business owned by Mohr and located in Fort Lauderdale, Florida. Pursuant to this agreement, on several occasions Koslow accepted cash from the undercover agents who thereafter received cashiers’ checks and business checks from Mohr equal to the amount of the cash minus the five percent fee.
The law firm that employed Koslow was not involved with the criminal activity.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Senior Litigation Counsel Neil Karadbil.
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.
Twenty-Nine People Indicted in Multi-Agency Law Enforcement Operation Centered in Pompano BeachRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos M. Gonzalez, Public Information Officer, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Amos Rojas, Jr., United States Marshal, United States Marshals Service Fugitive Task Force, announce the filing of federal charges against 29 defendants in 23 separate cases for their alleged participation in criminal conduct, including a narcotics trafficking conspiracy, narcotics trafficking offenses and firearms-related violations.
During the course of the law enforcement operation, the defendants, as charged, sold a total of 285 firearms to undercover officers, including AR-15s, AKs, pistols, revolvers, a short barrel rifle and a police sniper rifle. The charged defendants also collectively sold heroin, flakka, cocaine, oxycodone and marijuana to undercover law enforcement officers.
United States Attorney Wifredo A. Ferrer stated, “It is because of the collective law enforcement efforts of our federal and local partners that 285 unlawfully possessed firearms were taken off of Broward County streets. Today’s announcement should serve as a reminder to those who contaminate the communities we live in with criminal activity that we will continue to work tirelessly to prosecute these important cases.”
“The streets are safer, and the good people of Pompano Beach can sleep a little easier knowing that these drug dealers and firearms traffickers are off the street. Their days of dealing drugs and selling firearms, perpetuating violence in our community, are over. ATF works extensively with local law enforcement to investigate, apprehend and prosecute those who use firearms to commit acts of violent crime in our communities. This investigation is a perfect example of how local and federal agencies working together can remove criminals from the streets of our communities. ATF commends our federal and local law enforcement partners, especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed, violent and dangerous offenders,” said Carlos M. Gonzalez, Public Information Officer ATF Miami Field Division.
“This is a prime example of how one crime is almost always related to and/or leads to another type of criminal activity. Where there is drug trafficking, often times there are guns associated with the activity and when combined; there is a definite danger to innocent people. DEA remains committed and dedicated to stopping criminals in their tracks, and getting them off the streets through joint efforts with our law enforcement partners,” stated DEA Special Agent in Charge Adolphus P. Wright.
“Through diligent efforts, this successful partnership identified, investigated and secured prosecution for more than two dozen dangerous individuals responsible for narcotics and firearms trafficking, throughout South Florida,” said Broward Sheriff Scott Israel. “We’ll never know how many crimes we prevented with these arrests, but our residents and visitors are safer with these criminals off the street.”
“Locating and arresting individuals who engage in criminal activity is the primary day to day mission of our fugitive task force in the Southern District of Florida, as well as working with law enforcement officers from a variety of different agencies,” stated U.S. Marshal Amos Rojas Jr. “There is no doubt taking these alleged criminals off our streets “saves lives.” The men and women of the U.S. Marshals Service in South Florida take great pride in accomplishing this dangerous mission.”
The Indictments announced today relate to law enforcement’s collective efforts to combat unlawful firearms offenses and narcotics trafficking in the Pompano Beach area.
Charged in firearms-related Indictments are Francisco Lazaro Acosta, a/k/a “Chino,” 31, of Fort Lauderdale, James Rodney Baker, a/k/a “Bake,” a/k/a "Bubba,” 32, of Pompano Beach, Terrance Roshaud Demps, a/k/a “J.R.,” 28, of Pompano Beach, Rashaun Gaskin, a/k/a “Shaun,” 19, of Fort Lauderdale, Davon Gilbert, a/k/a “Von,” 19, of Plantation, Edwin Nathan Oliver, a/k/a Edwin Olivert,” 35, of Deerfield Beach, Adrian Stephens, 24, of Tamarac, and Otis Thomas, a/k/a “Fat,” 25, of Pompano Beach.
Acosta, Baker, Demps and Thomas are also charged with narcotics-related offenses.
Charged in narcotics-related Indictments are Alex Bernadin, a/k/a “Ace,” 33, of Deerfield Beach, Jamise Bozeman, a//k/a “J,” 25, of Pompano Beach, Antonio Brown, a/k/a “Big T,” 38 of Pompano Beach, Marcus Depre, 28, of Pompano Beach, Ronald Dutervil, a/k/a “Chris,” 30, of Pompano Beach, Kurt Edward Hanford, 52, of Pompano Beach, Frantz Jacques, a/k/a “Tim,” 34, of Lauderdale Lakes, Terrance Jacsaint, a/k/a “TJ,” 26, of Lantana, Dieuphen Joseph, 28, of Pompano Beach, Vila Desir Jozama, a/k/a “V,” 25, of Pompano Beach, Awince Lasseur, a/k/a “Snowman,” 28, of Pompano Beach, Seaton Letts, Jr., 30, of Pompano Beach, Anthony Tavaris Morris, a/k/a “Amp,” 33, of Pompano Beach, Rodney Levon Newkirk, 20, of Lauderhill, Denny Prenelus, a/k/a “DC,” 25, of Pompano Beach, Wisley Prenelus, a/k/a “Wis,” 33, of Pompano Beach, Walson Prophilis, a/k/a “Wat Wat,” 32, of Pompano Beach, Douglas Tavaris Russell, a/k/a/ “T,” 31, of Pompano Beach, Henry D. Smith, a/k/a “Boss,” 36, of Fort Lauderdale, Michel-Ange Silien, 29, of Pompano Beach, and Jason Howard Tripp, a/k/a “Gucci Guch,” 31, of Boynton Beach.
Mr. Ferrer commended the investigative efforts of ATF, DEA, BSO and the U.S. Marshals Service Fugitive Task Force. This case is being prosecuted by Assistant U.S. Attorneys Bruce Brown, Corey Steinberg, Lawrence D. LaVecchio, Terry Lindsey, William T. Shockley.
An Indictment is only an accusation and the defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Pleads Guilty to Filing False Tax Return with the Internal Revenue ServiceRead the Press Release
Miguel Rosenfeld, an agent for several of the most prominent telenovela writers throughout Latin America, pled guilty today before United States District Judge Jose E. Martinez in Miami, Florida to filing a false individual income tax return with the Internal Revenue Service (“IRS”), which substantially underreported his income for the tax year 2007.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent-in-Charge, Internal Revenue Service, Criminal Investigation (“IRS-CI”), made the announcement.
Rosenfeld was charged in September 2016, by a criminal information, with one count of filing a false federal income tax return, in violation of Title 26, United States Code, Section 7206(1). According to court documents, Rosenfeld failed to report all of his income on his 2007 Form 1040, U.S. Individual Income Tax Return. Specifically, Rosenfeld reported a total income of approximately $1,032,584 on his tax return, while knowingly underreporting his income by approximately $217,974.
Rosenfeld is scheduled to be sentenced on February 27, 2017 at 1:30 p.m. before Judge Martinez. At sentencing, Rosenfeld faces up to three years in prison and a fine of up to $250,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael R. Sherwin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Mother Sentenced to 120 Months in Prison, Son Sentenced to 30 Months in Prison for Involvement in $9.5 Million Pharmacy FraudRead the Press Release
A mother and son based in Miami were sentenced today to 120 months and 30 months in prison, respectively, for their roles in spearheading a $9.5 million health care fraud conspiracy that targeted Medicare Part D.
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 Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Niurka Fernandez, 54, and Roberto Alvarez, 26, each pleaded guilty on Aug. 31 to one count of conspiracy to commit health care fraud. In addition to imposing today’s prison sentences, U.S. District Judge Federico A. Moreno of the Southern District of Florida ordered Fernandez to pay $9.5 million in restitution and to forfeit the same amount. Judge Moreno also ordered Alvarez t to pay $1.5 million in restitution and to forfeit the same amount.
As part of her guilty plea, Fernandez admitted that she co-owned and operated several pharmacies in the Miami area, including Calan Pharmacy & Discount Service LLC (Calan Pharmacy) and Bertyann Corp., doing business as Best Pharmacy, for the purpose of submitting false and fraudulent claims through Medicare Part D. Fernandez was an organizer and leader of the Medicare fraud scheme that paid Medicare beneficiaries and patient recruiters for prescriptions that were medically unnecessary, according to the plea agreement. Fernandez further acknowledged that she directed her co-conspirators at Calan Pharmacy and Best Pharmacy to make kickback payments and write and cash checks for the purpose of facilitating kickback payments and concealing fraud proceeds. Fernandez is also linked to several other Medicare fraud schemes.
As part of his guilty plea, Alvarez admitted that he participated in the Medicare fraud conspiracy at Best Pharmacy. Among other things, Alvarez admitted he wrote checks from Best Pharmacy to money launderers in order to obtain cash to pay the kickbacks to the Medicare beneficiaries.
In her plea documents, Fernandez admitted that she caused at least $9.5 million in losses to Medicare, while Alvarez conceded he caused a loss of at least $1.5 million. In total, Medicare paid at least $9.5 million in overpayments as a result of the health care fraud scheme.
The FBI, U.S. Secret Service 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 of the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller prosecuted the case.Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 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.
Sebring Resident Sentenced to Prison for Unlawfully Dealing Firearms on FacebookRead the Press Release
A Sebring resident was sentenced to federal prison, for dealing firearms without a license and making a false statement to a licensed firearms dealer.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Brandt Schenken, Special Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, made the announcement.
Bryan Grover Marley, 60, of Sebring, Florida, previously pled guilty to one count of dealing firearms without a license, in violation of Title 18, United States Code, Section 922(a)(1)(A); and one count of making a false statement to a firearms dealer, in violation of Title 18, United States Code, Section 922(a)(6). United States District Court Judge Robin L. Rosenberg sentenced Marley to one year and one day of imprisonment, to be followed by one year of supervised release. In addition, Marley agreed to forfeit 17 firearms that had been seized by ATF during the investigation.
According to filed documents and statements made in court, between July 2015 and April 2016, Marley advertised the sale of firearms through multiple Facebook postings. Marley did not have a federal firearms license and unlawfully sold over 170 firearms, including small handguns and AR-15 assault rifles. Marley acquired firearms from licensed firearms dealers and sold them for a profit to people who responded to his listings on Facebook. When Marley bought the firearms from a licensed dealer he falsely indicated on firearms transaction forms that he was the actual buyer, when in fact he was making the purchases on the behalf of his customers. On multiple occasions, Marley sold firearms to individuals who were prohibited from possessing firearms because they were either a convicted felon or had a prior conviction for domestic violence. Four prohibited persons have been indicted for unlawfully possessing the purchased firearms.
Mr. Ferrer commended the investigative efforts of ATF. The case was prosecuted by Assistant U.S. Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Who Shot at a Florida City Police Officer Convicted for Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
A federal jury convicted a Miami resident yesterday of being a felon in possession of a firearm and ammunition, after he shot a stolen gun multiple times at a Florida City Police Department officer.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Brandt Schenken, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Pedro W. Taylor, Chief, Florida City Police Department (FCPD), made the announcement.
Andrew Eckel, 25, of Miami, was convicted by a trial jury of being a felon in possession of a firearm and ammunition. Eckel was previously convicted of felony offenses and faces a mandatory minimum sentence of ten years in prison. Eckel is scheduled to be sentenced on January 12, 2017, at 10:00 a.m., by Senior U.S. District Judge James Lawrence King.
According to the court record, including evidence presented at trial, on November 16, 2015, at approximately 2:15 a.m., a Florida City police officer was on patrol in a marked vehicle when he observed a white Kia car that matched a description provided in a police radio request for assistance. The officer began to follow the white car. Eckel, who was driving the white Kia attempted to elude law enforcement. Eckel slammed on his brakes, before driving the vehicle at a high rate of speed. Eckel immediately made a made a left turn and leaned out of the driver’s side window to fire a .38 caliber Smith & Wesson revolver three times in the direction of the officer.
After the officer radioed for additional assistance by members of law enforcement, Eckel proceeded to lead several marked police vehicles on a high-speed chase. During the chase, Eckel fled his still-moving vehicle, ignored the officers’ commands to stop, and jumped over a wall into a trailer park community in Florida City. Eckel left a stolen firearm with three spent shell casings, two live rounds, gloves, and a ski mask at the crime scene.
“We will not tolerate acts of violence against the brave men and women of law enforcement who protect and serve our South Florida community,” stated U.S. Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office condemns the unlawful possession of firearms and will continue to stand with our law enforcement partners to prosecute those who violate the law and put our citizens in harm’s way.”
ATF Acting Special Agent in Charge, Brandt Schenken stated, “This case is a great example of how decisive police action and collaboration with ATF can lead to the apprehension and prosecution of individuals that pose a potential danger to South Florida communities.”
“The law enforcement community is here to protect and serve,” stated FCPD Chief Pedro Taylor. “Andrew Eckel’s conviction sends a clear message that those who pose a threat to the community’s safety will be held accountable. The Florida City Police Department is grateful for the support of our law enforcement partners and the U.S. Attorney’s Office, in the pursuit of justice.”
Mr. Ferrer commended the investigative efforts of the ATF and FCPD. Mr. Ferrer thanked the Miami Dade Police Department Special Response Team for their assistance. The case is being prosecuted by Assistant U.S. Attorneys Anne P. McNamara and Rilwan Adeduntan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Southwest Ranches Residents Charged with Health Care Fraud, Payment of Kickbacks, Money Laundering and Obstruction of JusticeRead the Press Release
Two Southwest Ranches residents were charged with health care fraud, payment of kickbacks, money laundering and obstruction of justice.
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, Chris Cave, Acting Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Scott Rezendes, Special in Charge, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), James T. Wallis, Special Agent in Charge, Southeast Field Office, U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit, and Justin D. Green, Special Agent in Charge, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), made the announcement.
According to allegations in the Indictment:
Serge Francois, 51, and Patrick Tonge, 40, both of Southwest Ranches, were involved with a scheme to defraud the TRICARE program, a health insurance program for military personnel and their dependents, and the Federal Employees Health Benefit Program (“FEHBP”), a health insurance program for employees of the Federal government. Francois was the owner of Vital RX d/b/A Atlantic Pharmacy, a pharmacy which purportedly provided compounded medication for Tricare and other commercial insurance beneficiaries. Tonge was an employee of Atlantic and the CEO of EL& MORE CONSULTING LLC, a company that received funds from Atlantic.
Francois and Tonge engaged in a conspiracy to submit and cause the submission of false and fraudulent claims to TRICARE and FEHBP for compounded medications which were not medically necessary and not properly prescribed by a licensed medical professional in violation of Title 18, United States Code, Section 1349. Francois fraudulently obtained the right to submit claims to TRICARE, through a third party contractor, by making a number of false statements in provider certification and re-certification documents. Francois and Tonge also engaged in a conspiracy to pay kickbacks to patient recruiters who referred TRICARE beneficiaries to Atlantic.
Additionally, Francois and Tonge committed money laundering, in violation of Title 18, United States Code, Section 1957, by engaging in numerous financial transactions over $10,000 involving the use of fraud proceeds. Atlantic Pharmacy submitted approximately $37,263,519 in false and fraudulent claims to TRICARE and FEHBP and as a result of those claims TRICARE and FEHBP made payments to Atlantic Pharmacy in the approximate amount of $31,034,919.
The Indictment also includes allegations seeking criminal forfeiture of a number of assets including real properties, various bank accounts, and numerous luxury vehicles, including a Rolls Royce, a Ferrari, a Land Rover, a Lamborghini, a Cadillac Escalade and a Mercedes Benz van.
Mr. Ferrer commended the investigative efforts of DCIS, USPS-OIG, OPM-OIG, U.S. Army Criminal Investigative Command’s, Major Procurement Fraud Unit, and FDA-OCI. This case is being prosecuted by Assistant United States Attorneys Daniel Bernstein and Evelyn B. Sheehan.
The charges contained in the Indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palmetto Bay Resident Pleads Guilty and Is Sentenced for Illegal Spearfishing ActivityRead the Press Release
On November 1, 2016, a Palmetto Bay resident pled guilty and was sentenced for illegal spearfishing activity in Key Largo, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, made the announcement.
Tone Calle, 52, of Palmetto Bay, Florida, pled guilty to impeding and interfering with a law enforcement officer within the waters of the Florida Keys National Marine Sanctuary, contrary to the Marine Protection and Sanctuaries Act, Title 16, United States Code, Section 1436(3)(B). Following the plea, United States District Court Judge K. Michael Moore sentenced Calle to two years’ probation and ordered him to pay a criminal fine of $2,500. Calle will forfeit his spearfishing gear to the United States government.
According to the court record, including the criminal Information, a joint factual statement and information presented during proceedings, in May 2014, Calle was aboard his vessel within the Special Management Zone in Key Largo (KLMA), part of the Florida Keys National Marine Sanctuary. A Florida Fish & Wildlife Conservation Officer, cross-designated to enforce sanctuary laws and regulations, observed Calle’s anchored vessel and noted it was displaying a “diver down flag.” Calle was seen in the water wearing a camouflage diving suit while tethered to a spearfishing float. As the Officer neared the vessel, Calle dove out of sight, and subsequently resurfaced and boarded his vessel empty-handed. Calle denied engaging in any spearfishing activity at the site, although inspection revealed several spear guns aboard the vessel and speared fish in a cooler. Initially, only a written warning was given by the officer, noting that it was a violation of Sanctuary regulations to be anchored in the KLMA with spearfishing equipment aboard the vessel.
However, further investigation revealed that since Calle had, upon boarding his vessel, immediately weighed anchor, the vessel had drifted from the original point of contact. The officer had marked the initial contact point on a GPS receiver and shortly thereafter returned to the coordinates and dove the site. The officer immediately located a fully rigged customized spear gun on the bottom, similar to those seen on Calle’s vessel.
Later review of a public web site maintained by Calle, to promote his spearfishing guiding activities and his manufacture and sale of spear guns, revealed photographs depicting Calle both in the water and on land, displaying a customized spear gun exhibiting the unique camouflage patter of the weapon seized in the KLMA.
Mr. Ferrer commended the investigative efforts of NOAA Fisheries Office of Law Enforcement and the Florida Fish & Wildlife Conservation Commission. This case was prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald.
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 Beach Resident Sentenced to 3 Years in Prison for Possessing 225 Stolen IdentitiesRead the Press Release
A North Miami Beach resident was sentenced to 36 months in prison, to be followed by three years of supervised release, for possessing 225 stolen identities.
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), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General (DOL-OIG), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Vicky Egalite Pierre, 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, during a probation compliance check of Pierre’s residence, law enforcement located a notebook in her night stand that contained over 225 names, social security numbers and date of births. The notebook containing the personal identifying information was processed for latent prints, and six latent prints from various pages in the notebook belonged to the defendant.
Law enforcement spoke with one individual whose name, date of birth, and Social security number were in the notebook, and confirmed that he/she did not authorize Pierre to be in possession of the personal identifying information. The defendant knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, ICE-HSI, and the NMBPD, and thanked the State of Florida Probation Office for its assistance. The case is being 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.
Former U.S. Postal Carrier Charged with Delaying and Detaining MailRead the Press Release
A former postal carrier was charged with delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Chris Cave, Acting Special Agent in Charge, U.S. Postal Service Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was charged by Indictment with four counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). If convicted, Caddle faces a maximum statutory sentence of five years in prison as to each count. Caddle made his initial appearance this morning in front of U.S. Magistrate Judge Lurana S. Snow in Fort Lauderdale.
According to the court record, including the Indictment, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail. On August 19, 2016, postal agents found five garbage bags of deliverable mail outside Caddle’s home. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the discarded mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney Randy Katz.
An Indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former South Florida Resident Pleads Guilty in $13 Million Money Laundering Conspiracy Involving 2 Million Doses of OxycodoneRead the Press Release
A former South Florida resident pled guilty, yesterday, for his participation 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.
Pasquale Gervasio 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. At sentencing, Gervasio faces up to ten years in prison. A sentencing date has not yet been scheduled.
According to court documents, between March 2010 and June 2011, Gervasio and his 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. Gervasio and his 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.
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, Boca Raton Police Department. PBSO and Coconut Creek 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.
Two Individuals Ordered to Pay over $4 Million in Restitution for Their Participation in a Conspiracy to Defraud Federal Agencies and Federal ContractorsRead the Press Release
Brian J. Garrahan, 42, and Kelly A. Spillman, 35, both of Delray Beach, Florida, were ordered to pay over $4 million for their participation in a conspiracy to defraud federal agencies and federal contractors by issuing fraudulent bonds to insure government contracts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Paul Brezinski, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Office of the Inspector General (OIG), Atlanta Field Office, made the announcement.
Garrahan and Spillman previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. On September 16, 2016, U.S. District Judge Kenneth A. Marra sentenced Garrahan and Spillman, and scheduled a later hearing to determine restitution. Judge Marra sentenced Garrahan to 30 months’ imprisonment, to be followed by two years of supervised release. Garrahan was also ordered to forfeit over $1 million. Judge Marra sentenced Spillman to time served, to be followed by two years of supervised release to include twelve months of home detention. Spillman was ordered to forfeit approximately $130,000.
Today, Judge Marra issued Amended Judgments as to Garrahan and Spillman. Judge Marra ordered Garrahan and Spillman to pay $4,414,847.19 in restitution to fourteen federal agencies and two federal contracting companies. The federal agencies included, among others:
a. The United States Army;
b. The United States Department of Energy;
c. The United States Environmental Protection Agency;
d. The United States Department of Housing and Urban Development;
e. The United States Department of State;
f. The United States Department of Veterans Affairs; and
g. The United States General Services Administration.
The restitution as well as the forfeiture previously ordered is joint and several as to Garrahan, Spillman, and co-conspirator Alex Xavier (Case No. 15-80149-Cr-Marra). Xavier previously pled guilty and is scheduled to be sentenced on November 4, 2016.
According to court documents, from approximately June 2008 through June 2013, Garrahan and Spillman conspired with each other and others to obtain payments from government contractors for issuing fraudulent bonds, that is, insurance, for large government contracts. The fraudulent bonds were individual surety bonds, usually signed by Garrahan and two other co-conspirators, a relative of Garrahan, and Alex Xavier, who had prior experience with government bonds.
Individual surety bonds require collateral. The collateral used was land or cash or cash equivalent assets held in bank accounts. However, Garrahan and Spillman knew that the claims of ownership of land were false and the claims of possessing funds were false. Also, the supporting documents related to these assets were fraudulent.
Garrahan, Spillman and their co-conspirators issued a large number of bonds dealing with over 100 contractors and over ten federal agencies, and other entities. Often contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
Mr. Ferrer commended the investigative efforts of EPA-OIG and the U.S. Department of Veterans Affairs-OIG, together with the Criminal Investigation Command of the U.S. Army; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. Department of Energy-OIG; U.S. General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and U.S. Department of State-OIG. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Broward Residents Sentenced to 12 and 11 Years in Prison in Stolen Identity Tax Fraud Scheme Involving the Personal Identifying Information of Deceased IndividualsRead the Press Release
Two Broward County residents were sentenced to 12 and 11 years in prison for their participation in a stolen identity tax fraud scheme involving the personal identifying information of deceased individuals.
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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Maurice Exavier, 36, of Lauderhill, was sentenced to 145 months in prison, to be followed by three years of supervised release. Carline Maurice, 36, was sentenced to 132 months in prison, to be followed by three years of supervised release. The defendants were ordered to pay joint and several restitution in the amount of $1,265,611. Exavier and Maurice were previously convicted by a trial jury of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, one count of conspiracy to commit identity fraud, in violation of Title 18, United States Code, Section 1028(f), fifteen counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to evidence presented at trial, Exavier and Maurice acquired and used the names, dates of birth, and Social Security numbers of deceased individuals to file false tax returns with the IRS that contained fraudulent claims for refunds. Exavier and Maurice sought payment of the refunds as Refund Anticipation Checks (RACs), checks issued by a bank for the amount of a claimed refund minus deductions for tax preparation and other service fees, if applicable. The RACs were then printed locally at a tax preparation company where a particular defendant had access or control. The refund checks were then deposited into a bank account controlled by defendants Exavier and Maurice so the funds could be used for the personal benefit and use of the conspirators.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Karen E. Rochlin.
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 Investment Company “Capital Finance Group, LLC" Charged with Running an Advance Fee SchemeRead the Press Release
A South Florida resident was arrested and charged with stealing clients’ money for his own personal benefit.
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), and Drew J. Breakspear, Commissioner, Florida Office of Financial Regulation, made the announcement.
Benjamin Crozier, 39, of Coral Springs, Florida, has been arrested and charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and four counts of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to the indictment, between June 2011 and June 2012, Crozier was the manager and registered agent for Capital Finance Group, LLC (“Capital Finance”). Crozier and others falsely represented to individuals that Capital Finance was a company that would secure loans for its clients to finance business projects in return for a small advanced payment, generally between $5,000 and $10,000. In furtherance of the scheme, Crozier and others represented that Capital Finance had contacts with financial lenders interested in providing funding for various business projects of Capital Finance’s clients. The indictment further alleges that Crozier misled prospective borrowers by promising them that the advance fees were fully refundable at the clients’ option if Capital Finance did not obtain financing for its clients within one year and that, in fact, Crozier and his co-conspirators used the clients’ money for their own personal benefit.
In furtherance of the scheme, the indictment alleges that Crozier and others sent individuals a document from “Santander Lending LLC” that purported to be issued by Banco Santander and used registered trademarks of Banco Santander without the bank’s knowledge or permission.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Florida Office of Financial Regulation. The case is being prosecuted by Assistant United States Attorney Brooke Watson.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Second Individual Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A West Palm Beach, Florida, resident pleaded guilty today to multiple criminal charges 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.
Jose Santana, aka Octavio Perez, 53, 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 will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Santana 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.
Santana admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach using the alias Octavio Perez. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, Santana’s co-conspirators would then transmit thousands of international calls over the internet to Santana’s residence, where he 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, he admitted.
In addition, Santana admitted that from December 2010 through October 2011, co-conspirators sent him more than 1,000 emails containing telecommunications identifying numbers associated with cellphone account holders around the United States. According to the plea agreement, Santana was personally responsible for than $150,000 in loss resulting from the scheme.
Santana is the second defendant to plead guilty in the case. On Aug. 29, 2016, Edwin Fana pleaded guilty to similar charges in this matter, and is scheduled to be sentenced on Dec. 22, 2016.
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.
Second Individual Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A West Palm Beach, Florida, resident pleaded guilty today to multiple criminal charges 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.
Jose Santana, aka Octavio Perez, 53, 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 will be scheduled for a later date before Senior U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Santana 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.
Santana admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach using the alias Octavio Perez. He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled. According to the plea agreement, Santana’s co-conspirators would then transmit thousands of international calls over the internet to Santana’s residence, where he 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, he admitted.
In addition, Santana admitted that from December 2010 through October 2011, co-conspirators sent him more than 1,000 emails containing telecommunications identifying numbers associated with cellphone account holders around the United States. According to the plea agreement, Santana was personally responsible for than $150,000 in loss resulting from the scheme.
Santana is the second defendant to plead guilty in the case. On Aug. 29, 2016, Edwin Fana pleaded guilty to similar charges in this matter, and is scheduled to be sentenced on Dec. 22, 2016.
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.
Kissimmee Resident Sentenced to More than 17 Years for Wire FraudRead the Press Release
Yesterday, a Kissimmee, Florida resident was sentenced to more than seventeen years in prison, after having been convicted at trial of wire fraud.
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.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was previously convicted at trial by a jury of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. U.S. District Court Senior Judge Patricia A. Seitz sentenced Alocer to 210 months’ imprisonment, to be followed by 3 years of supervised release. A restitution hearing is scheduled for December 13, 2016 at 10:00 a.m.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and 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.
Eight Men Charged for Their Involvement in the Theft of over 23,000 iPhones from Miami International AirportRead the Press Release
Eight men have been arrested and charged by indictment with two separate conspiracies involving the April 2, 2016 theft of over 23,000 Apple iPhones valued at approximately $6,791,636.81 from the Miami International Airport, LAN Storage facility.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) made the announcement.
Yoan Perez, 34, of Miami, Leonel Padron Bello, 35, of Miami, Emilio Herrera, 41, of Miami, Ricardo Gonzalez, 52, of Miami, Rasiel Perez, 45, of Miami, Eloy Garcia, 42, of Miami Springs, Misael Cabrera Ruiz, 37, of Miami, and Rodolfo Urra, 36, of Cutler Bay, were indicted on charges related to their involvement in a conspiracy to steal and unlawfully sell Apple iPhones.
According to court records, on April 2, 2016, Yoan Perez and Leonel Padron Bello, took part in a conspiracy and stole over 23,000 Apple iPhones valued at approximately $6,791,636.81 from the Miami International Airport, LAN Cargo storage facility. According to the indictment, an unknown co-conspirator drove a tractor and trailer to the LAN Cargo facility and purported to be a driver from a shipping company, used fictitious documents, and left the airport with the stolen iPhones. The indictment further charges that on various dates from May 2016 through September 2016, Yoan Perez, Leonel Padron Bello, Emilio Herrera, Ricardo Gonzalez, Rasiel Perez, Eloy Garcia, Misael Cabrera Ruiz, and Rodolfo Urra conspired together and orchestrated a series of sales of the stolen Apple iPhone 5S and 6S devices.
The United States Attorney’s Office warns all consumers to be cautious when purchasing Apple iPhones from unauthorized individuals, as such individuals may be selling stolen iPhones. If members of the community have additional information related to the crimes charged in this indictment, they are encouraged to contact the FBI.
Mr. Ferrer commended the investigative efforts of the FBI, ICE-HSI, and the Miami Dade Police Department Airport Investigative Unit. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney Wifredo Ferrer Announces District Election Officer in Connection with the Justice Department’s Nationwide Election Day ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, announced today that Assistant United States Attorney (AUSA) Harry Wallace, of the Miami Office, will lead the U.S. Attorney’s Office efforts in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Wallace has been appointed to serve as the District Election Officer (DEO) for the Southern District of Florida, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Wifredo Ferrer said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Wifredo Ferrer stated that AUSA/DEO Harry Wallace will be on duty in this District while the polls are open. AUSA Wallace can be reached by the public at the following telephone number: (305) 961-9001.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (754) 703-2000.
Complaints about ballot access problems or discrimination can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767, or by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Wifredo Ferrer said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Ten Assisted Living Facility Owners Indicted for Receipt of Health Care Kickbacks and Health Care FraudRead the Press Release
Ten owners of Miami-Dade assisted living facilities have been charged with participating in a health care fraud scheme and for receiving kickbacks, in violation of Title 18, United Sates Code, Section 1347 and Title 42, United States Code, Section 1320.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Marlene Marrero, 60, of Miami, Blanca Orozco, 69, of Miramar, Norma Casanova, 67, of Miami Lakes, Yeny De Erbiti, 51, of Miami, Rene Vega, 57, of Miami, Maribel Galvan, 43, of Miami Lakes, Dianelys Perez, 34, of Miami Gardens, Osniel Vera, 47, of Hialeah, Alicia Almeida, 56, of Miami Lakes, and Jorge Rodriguez, 57, of Hialeah, are charged in a 30-count indictment for receiving cash kickbacks and bribes in return for referring individuals residing in their assisted living facilities to the former owner of Florida Pharmacy Inc., a Miami-Dade company, for prescription medications and durable medical equipment paid for by Medicare and Florida Medicaid.
The indictment also charges these ten individuals with health care fraud for allegedly participating in a scheme where they signed and submitted Non-Institutional Medicaid Provider Agreements wherein they falsely represented to Medicaid that they would comply with state and federal laws and all agency rules contained in the Florida Medicaid Provider Handbook which prohibits the solicitation and receipt of kickbacks. As a result of the defendants’ submission of these false and fraudulent documents Medicaid renewed their provider numbers which allowed them to continue to submit claims for services purportedly rendered to eligible Medicaid beneficiaries. The defendants caused their assisted living facilities to submit false claims to Medicaid. As a result of these false and fraudulent claims, Medicaid made payments to the assisted living facilities owned and operated by the defendants.
“The U.S. Attorney’s Office and our law enforcement partners remain committed to prosecuting members of the South Florida assisted living community who fraudulently use the Medicare and Medicaid benefits of their residents to obtain illegal bribes and kickbacks,” stated U.S. Attorney Wifredo Ferrer.
Attorney General Pam Bondi stated, “We will not allow anyone to take advantage of seniors to defraud the Medicaid program. Thanks to the joint investigative efforts of my Medicaid Fraud Control Unit and our federal partners, this scheme has been stopped and those responsible will be held accountable.”
“No matter what the scheme or how elaborately disguised, the FBI and our law enforcement partners will investigate and prosecute Medicare fraud to the fullest extent of the law,” said George L. Piro, Special Agent in Charge, FBI Miami.
The case is being investigated by the FBI, HHS-OIG, and the State of Florida’s Medicaid Fraud Control Unit and was brought as part of the Medicare Fraud Strike Force, under the supervision of U.S. Attorney’s Office for the Southern District of Florida. The case is being prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine cities have charged more than 2,180 defendants who collectively have falsely billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Individuals, Including a Former Miami-Dade County Procurement Employee, Pled Guilty in $5,000,000 Fraud and Kickback SchemeRead the Press Release
Four individuals, including a former Miami-Dade County procurement employee pled guilty 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.
Roy Jesus Bustillo, 37, Rolando Perez, 57, and Jose Barroso, 51, all of Miami, pled guilty to a one-count Information charging them with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371. Bustillo, Perez, and Barroso will be sentenced on January 6, 2017 at 9:00 a.m. before U.S. District Judge Robert N. Scola, Jr. Bustillo, Perez, and Barroso face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000. Ygnacio Valdez, 45, of Miami, a former employee in the Procurement Section of the Miami-Dade County Aviation Department, pled guilty to misprision of a felony, in violation of Title 18, United States Code, Section 4. Valdez will be sentenced on December 20, 2016 at 11:30 a.m. before U.S. District Judge Ursula Ungaro. Ygnacio Valdez faces a statutory maximum term of imprisonment of 3 years and a fine of $250,000.
According to the court record, including a stipulated statement of facts, Bustillo was the exclusive area representative in South Florida for the sale of certain LED light fixtures. In or about 2010, Ivan Valdes, a co-conspirator who previously pled guilty for his involvement in the scheme, told Barroso that he would request that the Miami-Dade County Aviation Department purchase the light fixtures represented by Bustillo, if he was paid a share of the proceeds. Valdes and Barroso agreed and during the period of 2010 through and including 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of millions of dollars of LED light fixtures. Bustillo provided a quote to each of the vendors interested in competing for the Invitation to Quote. Global Electrical & Lighting Supplies, Inc., owned by Rolando Perez, submitted bids and was awarded the contracts for each and every Invitation to Quote issued. Perez and Bustillo had a secret agreement wherein Perez would be the only vendor who knew the actual price that Bustillo had agreed upon with the lighting manufacturer for the light fixtures and that a fake mounting accessory was included in the Invitations to Quote. Knowing the additional profit that was to be received from each of the contracts, Bustillo and Perez were able to win the Invitation to Quote by keeping Perez’ bid price low. In order to help ensure that Perez was awarded each of the contracts, Ivan Valdes paid thousands of dollars in cash to Ygnacio Valdez, whose duties in the procurement section in the Miami-Dade County Aviation Department, included collecting and tallying the bids and declaring the lowest responsive bidder on the Invitations to Quote.
On two occasions, Ivan Valdes instructed Barroso to direct Perez 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. Instead, on one occasion the conspirators used light fixtures already in stock at the Miami-Dade County Aviation Department to satisfy the purchase. On the other occasion, no light fixtures were ever provided, not even from those already in stock. Perez bid and won the contracts and he and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to Miami-Dade County Aviation Department.
During the course of the conspiracy, the co-conspirators defrauded the Miami-Dade County Aviation Department of approximately $5,250,000. Barroso and Ivan Valdes split fraudulent proceeds of approximately $2.2 million. Bustillo, through his companies, received fraudulent proceeds of approximately $764,000. Perez received fraudulent proceeds of approximately $1.8 million.
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. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Life Care Centers of America INC. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
WASHINGTON – Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country.
“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients. The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Nancy Stallard Harr for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”
“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit. Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”
As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson. “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblower reward in this case will be $29 million.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Vero Beach Couple Sentenced for Selling Fraudulent Immigration and Identification Documents to Undercover AgentsRead the Press Release
Yesterday, a Vero Beach couple was sentenced for their roles in making and selling homemade immigration and identification documents, by U.S. District Court Judge Robin L. Rosenberg in Ft. Pierce, Florida.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Leynadier Rodriguez Velasquez, 45, of Vero Beach, was sentenced to two years’ imprisonment, followed by 2 years’ supervised release. He also faces deportation proceedings upon release. Vanesa Fonseca, 27, of Vero Beach, was sentenced to 12 months’ house arrest and two years’ probation. Rodriguez Velasquez previously pled guilty to possession with the intent to use unlawfully and to transfer unlawfully, five or more false identification documents, in violation of Title 18, United States Code, Section 1028(a)(3); and immigration document fraud, in violation of Title 18, United States Code, Section 1546(a). Fonseca previously pled guilty to possession with the intent to use unlawfully and to transfer unlawfully, five or more false identification documents, in violation of Title 18, United States Code, Section 1028(a)(3).
According to court records, including stipulated facts supporting the guilty pleas, in December 2014, Rodriguez arranged to sell an undercover agent five sets of fraudulent immigration documents, each with a Legal Permanent Resident and Social Security card, for a total of ten documents for $1,500 in Vero Beach. The documents were later delivered by Fonseca. In April 2016, an undercover agent purchased four sets of documents, each with a Legal Permanent Resident and a Social Security card, for a total of eight documents for $1,500, directly from Rodriguez in Vero Beach. Pursuant to the investigation, on June 16, 2016, HSI agents executed a federal search warrant at the residence of Rodriguez and Fonseca. An HSI Computer Forensic Agent located over 400 false identification documents on the computer hard drives and cellular phone of Rodriguez, including Social Security, Legal Permanent Resident and Florida identification cards, some of which dated back to 2011. The documents included some of the items that had been sold to the undercover agent. Additionally, law enforcement discovered Rodriguez’s computer, printer, laminating plastic and the machine used to produce the fraudulent documents. Agents also found papers with driver’s licenses and a fraudulent Social Security card with Rodriguez’s name and photo.
Mr. Ferrer commended the investigative efforts of ICE-HSI, Florida Alcohol, Tobacco, and Business Regulation and United States Customs and Border Protection for their work on this case. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.