Southern District of Florida
Press releases recorded for this federal judicial district.
Florida Man Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, 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.
Edwin Fana, 37, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. Fana also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
Fana’s role in the scheme included operating a “call site” in his residence in Miami Gardens, according to the plea agreement. He admitted that he would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. According to the plea agreement, Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Fana admitted that law enforcement seized nearly 11,000 telecommunications identifying numbers from him and that the scheme caused at least $1 million in losses.
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.
Port St. Lucie Resident Charged with Running Fraudulent Tax Preparation BusinessRead the Press Release
A Port St. Lucie resident is charged in a fifty-two count indictment with running a fraudulent tax preparation business in order to file fraudulent tax returns on behalf of her clients and for filing false individual returns on her own behalf.
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.
Dianne Mowatt, 39, of Port St. Lucie, Florida, is charged by indictment with fifty counts of assisting in the filing of false tax returns and two counts of filing false tax returns, in violation of Title 26, United States Code, Sections 7206(2) and (1). If convicted, Mowatt faces a maximum statutory sentence of three years’ imprisonment, a fine of $100,000, and one year of supervised release, as to each count.
According to the indictment, from January 1, 2012 and into 2016, Mowatt owned, operated, or otherwise provided services to Mowatt Financial Services and Proven Tax Services, both being tax return preparation businesses located in Port Saint Lucie and Miami, Florida. Mowatt prepared and submitted individual tax returns (Forms 1040), with accompanying schedules, to the IRS on behalf of taxpayers claiming false deductions and credits for tax years 2011 through 2014. Mowatt also filed false individual returns for herself for the tax years 2010 and 2011 by falsely claiming five different people as her dependents.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorneys Russell Killinger and Marton Gyires.
An indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Court Approves U.S. Department of Justice and U.S. Army Corps of Engineers Settlement of Clean Water Act Violations by the Bear’s Club Founding Partners, LtdRead the Press Release
Yesterday, U.S. District Judge William P. Dimitrouleas of the U.S. District Court for the Southern District of Florida approved a consent decree that resolves alleged violations of the Clean Water Act by The Bear’s Club Founding Partners Ltd., several of its officers and related entities. The complaint was brought in 2015 by the U.S. Attorney’s Office for the Southern District of Florida, on behalf of the U.S. Army Corps of Engineers (Corps), Jacksonville District.
The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. A permit issued to The Bear’s Club Founding Partners Ltd., in 1999 authorized it to fill certain wetlands on its property in Jupiter, Florida, for the purpose of building a residential golf community. As a condition of the permit, the Bear’s Club was required to preserve certain wetlands on its property in their natural state. The complaint alleged that the Bear’s Club violated the conditions of its permit by filling nearly an acre of wetlands which were required to remain intact. The Bear’s Club’s apparent purpose for filling the wetlands was to make its golf course more easily playable by weaker golfers.
Under the consent decree, the defendants are required to pay a civil penalty of $400,000. In addition, to offset the environmental impact of their activity, The Bear’s Club had previously contributed additional sums toward the enhancement of seven acres of wetlands in the Grassy Waters Preserve in West Palm Beach.
“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable for their non-compliance.”
Compliance and enforcement is an important component of the Corps’ Regulatory program. The Corps’ Jacksonville district has an ongoing compliance inspection program throughout Florida, Puerto Rico and the U.S. Virgin Islands. Corps’ surveillance and monitoring activities are often aided by state and federal agencies, groups and individuals, who report suspected violations. To address violations, the Corps is authorized to prescribe corrective action, impose fines and/or prescribe removal of the offending fill, work or structure.
“The penalty in this case furthers the Army's mission to administer and enforce section 404 of the Clean Water Act by encouraging compliance with permits and the regulatory process,” said Colonel Jason A. Kirk, commander for the Jacksonville district.
For more information on Jacksonville district and the Corps’ Regulatory program, visit: www.saj.usace.army.mil/.
This case is being handled by Assistant U.S. Attorney Carlos Raurell for the Southern District of Florida and Andrew J. Doyle of the Environmental Defense Section of the Environment and Natural Resources Division of the U.S. Department of Justice.
Related court documents and information may be found on the website of the district court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former St. Lucie County School Teacher Charged with Luring a Student over the InternetRead the Press Release
A Former St. Lucie County school teacher was arrested and charged with luring a student over the internet.
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), Miami Field Office, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Daniel Tyler Morgan, 30, of Jupiter, is charged by grand jury indictment with using the internet to persuade, induce, or entice a child to engage in prohibited sexual activity, in violation of Title 18, United States Code, Section 2422(b). If convicted, Morgan faces a statutory minimum 10-year sentence and a maximum of life in prison.
According to the court record, on May 13, 2016, a concerned citizen reported to St. Lucie County School District authorities that Morgan, a history teacher at St. Lucie West Centennial High School, had been sending inappropriate messages over the internet to a minor student at the school. The subsequent law enforcement investigation revealed that Morgan had been communicating with the student for several months using a social media application. Many of the communications were sexual in nature. Morgan is no longer employed as a teacher with the school district.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Port St. Lucie Police Department. This case is being prosecuted by Assistant U.S. Attorney Daniel E. Funk and Special Assistant United States Attorney Ryan Butler.
An indictment is only an accusation, and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Resident Pleads Guilty to Possessing 2,875 Stolen IdentitiesRead the Press Release
A North Miami resident pled guilty to possessing 2,875 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), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Camelin Junior Desrosiers, 28, 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). Sentencing is scheduled for October 25, 2016 before U.S. District Court Judge Darrin P. Gayles. At sentencing, Desrosiers faces a statutory maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, on February 25, 2015, law enforcement initiated a traffic stop on a rental car leased by Desrosiers. The defendant, the driver, and a passenger were ordered to exit the vehicle. Because the vehicle contained after-market tinted windows, and because the tinted windows violated the rental car contract, law enforcement initiated a tow of the vehicle to return it to the rental car company.
An inventory search of the car was conducted prior to it being towed. In the trunk of the car, law enforcement found a laptop computer owned by Desrosiers. A forensic analysis of the computer revealed 2,875 pieces of personal identifying information (PII), including names, dates of birth and social security numbers.
Law enforcement spoke with one individual whose name, date of birth, and social security number were in the computer, and confirmed that he/she did not authorize Desrosiers to be in possession of the PII. Desrosiers knew that the names, dates of birth, and social security numbers belonged to real persons.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, and the NMBPD. 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.
Colombian Citizen Sentenced for his Participation in an International Money Laundering ConspiracyRead the Press Release
A Colombian citizen was sentenced to 30 months in prison, to be followed by two years of supervised release for his participation in an international money laundering conspiracy.
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.
Juan Carlos Medina Cardenas, 46, previously pled guilty to one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h).
According to court documents, Medina was employed as a branch manager at a Colombian bank where his duties included handling customer accounts. In January 2009, Medina opened an account for co-defendant Leonardo Forero Ramirez, 59, [case number 1:13-20556] at the bank. The account could be used to receive and disburse funds through wire transfers, cash, or other withdrawals. The bank was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions.
Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Medina was involved in the receipt of approximately $338,000 from IRS undercover accounts in the United States to the bank in Colombia, and the conversion of the dollars into pesos and their withdrawal by Forero. Medina understood that the money transfers were falsely represented as payments for fictitious services in order to disguise their source and origin as proceeds from illegal drug trafficking.
Forero was sentenced on July 17, 2015 to 37 months in prison, to be followed by one year of supervised release for his participation in the scheme.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney Frank H. Tamen.
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.
California Woman Sentenced to 50 Months in Prison for Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.
The sentence was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
HSI and DCIS investigated the case. Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
California Woman Sentenced to 50 Months in Prison for Conspiring to Illegally Export Fighter Jet Engines and Unmanned Aerial Vehicle to ChinaRead the Press Release
Wenxia Man, aka Wency Man, 45, of San Diego, was sentenced today to 50 months in prison for conspiring to export and cause the export of fighter jet engines, an unmanned aerial vehicle – commonly known as a drone – and related technical data to the People’s Republic of China in violation of the Arms Export Control Act.
The sentence was announced by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge Mark Selby of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) in Miami and Special Agent in Charge John F. Khin of the Department of Defense’s Defense Criminal Investigative Service (DCIS).
On June 9, 2016, Man was convicted by a federal jury in the Southern District of Florida of one count of conspiring to export and cause the export of defense articles without the required license.
According to evidence presented at trial, between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in China, to illegally acquire and export to China defense articles including: Pratt & Whitney F135-PW-100 engines used in the F-35 Joint Strike Fighter; Pratt & Whitney F119-PW-100 turbofan engines used in the F-22 Raptor fighter jet; General Electric F110-GE-132 engines designed for the F-16 fighter jet; the General Atomics MQ-9 Reaper/Predator B Unmanned Aerial Vehicle, capable of firing Hellfire Missiles; and technical data for each of these defense articles. During the course of the investigation, when talking to an undercover HSI agent, Man referred to Zhang as a “technology spy” who worked on behalf of the Chinese military to copy items obtained from other countries and stated that he was particularly interested in stealth technology.
HSI and DCIS investigated the case. Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Trial Attorney Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section prosecuted 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.
North Miami Beach Resident Pleads Guilty to Possessing 225 Stolen IdentitiesRead the Press Release
A North Miami Beach resident pled guilty to 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, 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). Sentencing is scheduled for November 3, 2016 before U.S. District Court Judge Kathleen M. Williams. At sentencing, Pierre faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a probation compliance check of Pierre’s residence, law enforcement located a small 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.
The intended loss in this case is more than $95,000 but less than $150,000.
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.
Miami Man Pleads Guilty to Fraud Charges for Role in $4.2 Million Home Health Care SchemeRead the Press Release
A Miami man pleaded guilty yesterday to charges related to his role in a $4.2 million home health care fraud scheme.
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, 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 (HHS-OIG) Miami Regional Office made the announcement.
Ramon Collado Gonzalez, 56, pleaded guilty to one count of conspiracy to defraud the United States and make false statements in connection with a federal health care benefit program before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Sentencing has been scheduled for Oct. 24, 2016.
As part of his guilty plea, Collado Gonzalez admitted that in approximately March 2014, he was recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Golden Home Health Care Inc. (Golden), a home health care agency in Miami, to falsely and fraudulently represent himself to be Golden’s owner. Collado Gonzalez further admitted that in return for hiding Mildrey Gonzalez’s and Alfaro’s ownership interests, he received a monthly payment and periodic bonuses from them, despite the fact that he did not do any actual work for Golden. Instead, he simply signed Medicare applications and other documents for the purpose of facilitating submission of claims to Medicare and concealing Mildrey Gonzalez’s and Alfaro’s ownership interests, he admitted.
According to admissions made as part of the defendant’s plea, Golden received approximately $4.2 million from Medicare as a result of false and fraudulent claims submitted during the time Collado Gonzalez served as its nominee owner.
In June 2016, Mildrey Gonzalez and Alfaro were separately charged in an indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering, among other charges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 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.
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 University of Miami Director of Finance Sentenced for Tax EvasionRead the Press Release
A former University of Miami Director of Finance was sentenced to 37 months in prison, to be followed by 1 year of supervised release for committing tax evasion and failing to report to the Internal Revenue Service (IRS) $2.3 million that she embezzled from the university.
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.
Kimberly Jean Miller, 58, previously pled guilty to four counts of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, from 2002 until 2012, Miller was the director of finance at the University of Miami's Rosensteil School of Marine and Atmospheric Science (RSMAS). The defendant's job responsibilities included overseeing the payment of RSMAS's vendor invoices. Between 2002 and 2012, Miller used her authority at RSMAS to embezzle $2.3 million from the University of Miami by falsifying invoices from a vendor called International Assets. Specifically, Miller altered the International Assets invoices so that the company name would appear as "Inter, Inc." and the checks would be mailed back to RSMAS, instead of to International Assets directly. Miller then deposited the "Inter, Inc." checks into a business bank account in the name Intercontinental Oceans, Inc., a company Miller opened in 1993.
Between 2008 and 2011, Miller prepared her own tax returns and knowingly failed to report to the IRS the money she had unlawfully obtained through her embezzlement scheme. Miller owes the IRS an additional $329,020 in income taxes for her 2008 through 2011 tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Amanda Perwin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Seven Defendants Sentenced in Extensive Drug Trafficking and Identity Theft SchemesRead the Press Release
Seven defendants were sentenced for their participation in extensive identity theft and drug trafficking schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Juan J. Perez, Director, Miami-Dade Police Department, and Dexter M. Williams, Chief, Miramar Police Department, made the announcement.
On August 12, 2016, Eddie Elistin, a/k/a “Horse,” a/k/a “Edith Elistin,” was sentenced to 72 months in prison, to be followed by three years of supervised release. On July 28, 2016, Michael Descolline, a/k/a “Fat Mike,” was sentenced to 30 months in prison, to be followed by three years of supervised release. On July 14, 2016, Odenia Samson, a/k/a “Pimp,” was sentenced to 122 months in prison, to be followed by five years of supervised release. On May 31, 2016, Ensi Prudent, a/k/a “Chuck,” was sentenced to 66 months in prison, to be followed by three years of supervised release. On May 16, 2016, Saintana Daniel was sentenced to 15 months in prison, to be followed by three years of supervised release. On July 14, 2016, Ingrinesia Mathis, a/k/a “Bri,” was sentenced to a year and a day in prison, to be followed by three years of supervised release.
Defendant Samson previously pled guilty to conspiring to possess cocaine and Ethylone with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(C); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Defendant Prudent previously pled guilty to possession of cocaine with the intent to distribute, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(l)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(l)(A)(i). Defendant Daniel previously pled guilty to conspiring to possess with the intent to distribute cocaine, in violation of Title 21, United States Code, Sections 846(a)(1) and 841(b)(1)(C). Defendants Elistin, Descolline, and Mathis pled guilty to conspiring to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2). Elistin and Descolline also previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Samson sold narcotics to Prudent and Daniel, and Prudent also sold narcotics to other individuals for Samson. Samson and Prudent each possessed a firearm in furtherance of their drug trafficking crimes.
Court documents further indicate that during the execution of search warrants, law enforcement agents discovered more than 3,000 individual victims’ personal identification information (PII) including names, dates of birth, and Social Security numbers, at residences were Samson, Mathis, Elistin, and Descolline lived. Law enforcement agents also intercepted calls where Elistin and Samson discussed using the PII of victims and incarcerated individuals to receive fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, Miami-Dade Police Department, and Miramar Police Department. The case is being prosecuted by Assistant United States Attorney Jamie R. Garman.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Convicted of Illegally Possessing Ammunition After Shooting at the Liberty Square Housing ComplexRead the Press Release
A Miami-Dade resident was convicted by a jury in federal court for being a felon in possession of ammunition, after he shot an AK-47 firearm in the Liberty Square Housing Complex.
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 Division, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Willie Wilcher, 35, of Miami, was convicted after a three-day trial for being a felon in possession of ammunition and is scheduled to be sentenced before U.S. District Judge Donald M. Middlebrooks on October 11, 2016.
According to evidence presented at trial, on the afternoon of December 29, 2015, Wilcher walked into a convenience store in Liberty City with an AK-47 and was caught on video threatening to kill other individuals. Wilcher then left the store, got into his car, and drove across the street to the Liberty Square Housing Complex and immediately began shooting the firearm. Two nearby officers heard the gunshots and rushed to the scene, where law enforcement recovered multiple types of ammunition, including six 7.62 x 39 mm (AK47) shell casings in the road, and Wilcher’s car, which had crashed after knocking down a cement electrical pole. Officers also observed several bullet holes in the passenger side door and rear window of Wicher’s car, consistent with shots being fired from inside the vehicle. Fortunately, no one was injured during the shooting.
A subsequent investigation revealed that, when Wilcher exited his vehicle and fled the scene, he left behind a rental receipt in his sister’s name, a parcel addressed to him, his iPhone with his fingerprint, and his fingerprints on the driver’s side door of the car. He also left behind eleven 7.62 x 39 mm (AK47) shell casings in the vehicle. Wilcher was previously convicted of a felony and was not legally permitted to possess the recovered ammunition.
Mr. Ferrer commended the investigative efforts of the FBI and MPD. Mr. Ferrer also thanked the Miami Dade Police Department for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorneys Miesha Shonta Darrough and Jonathan Kent 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.
Miami Man Pleads Guilty to Fraud Charges for Role in $4.2 Million Home Health Care SchemeRead the Press Release
A Miami man pleaded guilty today to charges related to his role in a $4.2 million home health care fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ramon Collado Gonzalez, 56, pleaded guilty to one count of conspiracy to defraud the United States and make false statements in connection with a federal health care benefit program before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Sentencing has been scheduled for Oct. 24, 2016.
As part of his guilty plea, Collado Gonzalez admitted that in approximately March 2014, he was recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Golden Home Health Care Inc. (Golden), a home health care agency in Miami, to falsely and fraudulently represent himself to be Golden’s owner. Collado Gonzalez further admitted that in return for hiding Mildrey Gonzalez’s and Alfaro’s ownership interests, he received a monthly payment and periodic bonuses from them, despite the fact that he did not do any actual work for Golden. Instead, he simply signed Medicare applications and other documents for the purpose of facilitating submission of claims to Medicare and concealing Mildrey Gonzalez’s and Alfaro’s ownership interests, he admitted.
According to admissions made as part of the defendant’s plea, Golden received approximately $4.2 million from Medicare as a result of false and fraudulent claims submitted during the time Collado Gonzalez served as its nominee owner.
In June 2016, Mildrey Gonzalez and Alfaro were separately charged in an indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering, among other charges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 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.
Three Individuals Convicted at Trial in Marriage Fraud ConspiracyRead the Press Release
On July 18, 2016, three individuals were convicted at trial for their participation in a fourteen defendant marriage fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Odalys Marrero, 51, of Kendall, Rolando Mulet, 62, of Kendall and Javier Manejias, 51, of Antioch, Tennessee, were convicted by a Miami federal jury of conspiring to defraud the United States. Marrero and Mulet were also convicted of additional counts of unlawfully encouraging an alien to reside in the United States. The defendants face a statutory maximum sentence of 5 years in prison, as to the conspiracy charge. Marrero and Mulet also face a statutory maximum sentence of 10 years in prison, for each of the additional counts of conviction. The defendants are scheduled to be sentenced on September 26, 2016 before United States District Judge Joan A. Lenard.
According to the court record, including evidence presented during the three-week long trial, between December 2009 and July 2014, organizers Marrero and Mulet recruited Cuban citizens to enter into fraudulent marriages with undocumented aliens for the purpose of evading the immigration laws of the United States. Manejias was one such Cuban citizen, who, in exchange for money, participated in the conspiracy by agreeing with Marrero and Mulet to marry a Venezuelan citizen in order to secure her lawful permanent residency in the United States.
The evidence as trial established that Marrero and Mulet charged these aliens tens of thousands of dollars in cash to arrange the fraudulent marriages, notarize marriage licenses, complete the necessary immigration paperwork, and prepare the co-conspirators for their marriage interviews with United States Citizenship and Immigration Services (“USCIS”). This preparation included Marrero and Mulet directing the couples to conduct a fraudulent wedding ceremony and submit supporting documents such as joint utility bills and bank statements to make it appear that they couple lived together, though in fact they did not. As part of the scheme, these contrived photos and documents were provided to USCIS.
Of the fourteen defendants charged in the indictment, ten of the co-conspirators previously pled guilty for their participation in the fraudulent scheme. Those defendants, including Venezuelan and Colombian nationals, Katiusca Aguilar Navarro, Manuel Andres Gomez, Natacha Perera, Marianelly Auxiliado Rodriguez, and Okyvi Yoll Mesa, each paid tens of thousands of dollars to enter into fraudulent marriages with co-conspirator Cuban nationals Carlos Alberto Mederos Paule, Virginia De la Caridad Mederos Paule, Osvaldo Lastre Duran, Rafael Abreu Gonzalez, and Salvador Cabanas. All of these fraudulent marriages took place in the Southern District of Florida.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also recognized USCIS for the significant and valuable support the agency provided the investigation. The case was prosecuted by Assistant United States Attorney Anne P. McNamara and Special Assistant United States Attorney Michele Vigilance.
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.
Six Tax Return Preparers Sentenced for Filing False Tax Returns with the IRS Using Stolen IdentitiesRead the Press Release
Six additional tax return preparers were sentenced for filing false tax returns with the Internal Revenue Service (IRS) in a scheme that claimed more than $6,663,976 in fraudulent tax refunds.
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), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
On August 8, 2016, Danny Horne, 30, was sentenced to 51 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $200,484. On July 29, 2016, Artravette Thomas, a/k/a Artravette Wilson, 41, was sentenced to 51 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $538,765. On July 22, 2016, Tomeka Anderson, a/k/a Tomeka Owens, 36, was sentenced to 65 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $774,320. On July 21, 2016, Natalie Mitchell, 42, and Artrice Reid, a/k/a Artrice Nelson, 40, were each sentenced to 57 months in prison, to be followed by three years of supervised release, and were ordered to pay joint and several restitution in the amounts of $954,557 and $880,457, respectively. On July 20, 2016, Tiffany Gaines, a/k/a Tiffany Morris, 38, was sentenced to 61 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $607,377. Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1).
Four additional co-conspirators previously pled guilty and were sentenced for their participation in the fraudulent scheme. On December 15, 2015, Tameka Walker, 38, Celia Cromer, 43, and Maritynque Cromer, 25, were sentenced to 78 months, 50 months, and 36 months in prison, respectively, followed by three years of supervised release, and were all ordered to pay joint and several restitution in the amount of $796,535. On September 29, 2015, Marlin Mejia, 29, was sentenced to 21 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $17,428.
Co-defendant Paganini Fleurantin, a/k/a Hu’Ra Al’Dey, 28, pled not guilty. A trial date has not been set.
According to court documents, from September 2010 through May 22, 2013, the defendants conspired to defraud the IRS by filing fraudulent tax returns claiming fraudulent tax refunds. Defendant Walker owned and operated Family Tree Taxes, Inc., a tax preparation business in Miami Gardens. Walker purchased stolen personal identification information (PII) from various sources, including defendant Mejia, to file fraudulent tax returns. Mejia worked as a radiology transporter at a hospital and stole documents (face sheets) containing patients’ PII (including names, dates of birth, and Social Security numbers) from patient files at the hospital. Mejia knew the PII belonged to real people who did not authorize him to possess their personal information. Mejia sold the face sheets to Walker knowing that Walker would use the stolen PII to file fraudulent tax returns.
Defendants Mitchell, Reid, Anderson, Gaines, Thomas, Horne, Fleurantin, Celia Cromer and Maritynque Cromer were employed by Walker as tax preparers at Family Tree Taxes. The employees filed tax returns using stolen identities to claim fraudulent tax refunds, and also filed tax returns claiming fraudulent overinflated tax refunds. Specifically, the stolen PII of 95 hospital patients was used by the employees to claim over $76,757 in fraudulent tax refunds. And in 2012, Mejia authorized Walker to file a tax return for him claiming a fraudulent overinflated tax refund of $3,452.
As part of the conspiracy, the defendants collectively filed tax returns claiming over $6.6 million in fraudulent tax refunds.
A defendant is presumed innocent unless he is proven guilty beyond a reasonable doubt in a court of law.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and the USPIS. The case is being prosecuted by Assistant United States Attorney Vanessa 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.
Sebring Mother and Son Plead Guilty to Conspiring to Import EcstasyRead the Press Release
Yesterday, a mother and her son pled guilty to conspiring to import Ecstasy from the Netherlands.
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), and Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Annalisa Anfuso Patterson, 56, and her son, Jake Elwyn Patterson, 19, both from Sebring, pled 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. Each offense carries a maximum statutory penalty of 20 years in prison. The defendants are scheduled to be sentenced on November 14, 2016 at 2:00 p.m., before U.S. District Judge Jose E. Martinez in Fort Pierce.
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 (USPS) 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 record indicates that the defendants used Bitcoins to place orders for MDMA through internet websites, the “dark web,” from the Netherlands. Jake Patterson used a test kit to ensure that the substances they had purchased were in fact Ecstasy. The defendants supplied other individuals with Ecstasy, from their Sebring residence.
Mr. Ferrer commended the investigative efforts of ICE-HSI, CBP, and USPIS. This case is being 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.
Lake Worth Resident Convicted of Distributing Fentanyl Resulting in DeathRead the Press Release
A Palm Beach County resident was convicted yesterday by a jury in United States District Court of unlawfully distributing a controlled substance, Fentanyl, which resulted in the death of a 23 year old man.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
"This case illustrates that there can be grave consequences that result from the distribution of illegal narcotics,” stated U.S. Attorney Wifredo Ferrer. “We implore the South Florida community to be aware of the dangers of illicit drugs, particularly given the fact that the number of drug overdoses has increased dramatically in our jurisdiction over the past year. The U.S. Attorney’s Office and our law enforcement partners will continue to aggressively prosecute individuals who engage in drug trafficking, especially in cases where the illicit distribution results in the death or serious bodily injury of the user."
“Fentanyl is a deadly drug that kills instantly,” said DEA Special Agent in Charge Adolphus Wright. “DEA, along with our law enforcement partners, will continue to aggressively investigate to take such deadly drugs off the streets of our communities. Massena’s conviction is an example of that effort and commitment to the fullest degree. Let it be clear, drug dealers selling illegal drugs mixed with Fentanyl will not be tolerated in any way.”
Christopher Sharod Massena, 24, of Palm Beach County, was convicted at trial of a single count of distribution of fentanyl, resulting in death. For this charge of conviction, Massena faces a statutory mandatory minimum sentence of 20 years’ imprisonment up to a maximum term of life imprisonment, to be followed by a mandatory minimum term of 3 years of supervised release. Previously, on August 1, 2016, Massena pled guilty to the other charges in the superseding indictment, specifically four counts of distributing a controlled substance containing heroin and a single count of possessing with the intent to distribute a controlled substance containing heroin. Massena faces a statutory sentence of up to 20 years in prison, to be followed by a mandatory minimum term of three years of supervised release, for each count to which he pled guilty.
According to the court record, including evidence introduced at trial, on February 18, 2016, Massena distributed Fentanyl, a Schedule II controlled substance, to a 23 year old man. The man died of acute Fentanyl toxicity shortly after ingesting the controlled substance. Thereafter, on four separate dates Massena distributed other controlled substance (heroin and heroin mixed with Fetanyl) to an undercover police officer. On the date of his arrest, Massena possessed with the intent to distribute heroin.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, WPBPD, and the Palm Beach Narcotics Task Force for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Return Preparer Sentenced for Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer was sentenced to 30 months in prison, to be followed by one year of supervised release, and was ordered to pay restitution in the amount of $163,865 for filing false tax returns with the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Erica Antoinette Hollingsworth, 37, of Opa Locka, previously pled guilty to one count of aiding and assisting tax fraud, in violation of Title 26, United States Code, Sections 7206(2) and 2.
According to court documents, the IRS received information that Hollingsworth prepared a false tax return for an unemployed student claiming a $4,000 refund. Based on this information, an undercover agent (UC) met with Hollingsworth in an office at her house to discuss the filing of a tax return. The UC provided identification and a Form W-2 to Hollingsworth. In exchange, the defendant explained the tax filing process and advised that a refund in the “thousands” was possible.
IRS agents then executed a search warrant at Hollingsworth’s residence, where agents recovered tax returns and a computer. During the investigation, Hollingsworth stated that she was a self-employed tax return preparer and had compiled returns through her current company, EH&S Professional Services, LLC, and previous company, A&E Professional Services. Hollingsworth advised that she learned how to prepare tax returns from another individual, who taught her how to get clients inflated refunds even if they were not entitled to such refunds.
Hollingsworth ultimately admitted to entering false amounts on some of her clients' Form W-2s. Hollingsworth made $60 to $500 for each return that she prepared. Hollingsworth filed approximately thirty-five fraudulent returns that falsely represented that the taxpayer worked for a company, earned wages, and had federal taxes withheld from those wages, even though the taxpayer never actually worked for the company.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorneys Brooke Watson and John R. Byrne.
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 More than 3 Years in Prison for Using Names and Credit Card Numbers of Other Individuals to Steal $14,610Read the Press Release
A Miami-Dade County resident was sentenced to 39 months in prison, to be followed by three years of supervised release, for using the names and credit card numbers of other individuals to steal $14,610.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Leo Philippe Altenor, 26, of Miami Dade-County, previously pled guilty to one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. As part of his plea agreement, Altenor agreed to pay restitution in the amount of $14,610.
According to court documents, this case is part of an investigation into recent fraudulent activity against a federally insured bank. Since June 2015, individuals have stolen over one million dollars from the bank’s accounts in the Southern District of Florida. To accomplish this, individuals use the personal identifying information of victims to take over their bank accounts, and use fraudulent means to obtain the credit cards that are linked to the accounts. The individuals involved in this scheme then utilize ATM machines to withdraw money from the victims' bank accounts using the credit card numbers.
From June to October 2015, Altenor was identified as fraudulently withdrawing over $14,610 from multiple victims’ bank accounts.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. The case was prosecuted by Assistant U.S. Attorney Brooke Watson.
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.
Former Opa Locka City Officials Charged in Corruption SchemeRead the Press Release
Former Opa Locka City Manager David Chiverton and former Opa Locka Assistant Public Works Director Gregory Harris have been charged for their participation in a two-year long bribery and extortion under color of official right conspiracy, in violation of Title 18, United States Code, Sections 371, 666(a)(1)(B), and 1951(a).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Chiverton is charged by Information with conspiring 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. The case against Chiverton is assigned to United States District Judge Cecilia M. Altonaga, Case No. 16-20596-CR. Chiverton is scheduled for an initial appearance before United States Judge John J. O’Sullivan on August 8, 2016 at 1:30 p.m.
As alleged in the Information, in exchange for the illegal payments, Public Official A would direct Chiverton, Harris, and other City of Opa Locka employees to assist the paying businesses and individuals by issuing occupational licenses; waiving, removing, and settling code enforcement matters and liens; initiating, restoring and continuing water service; and assisting with zoning issues. Public Official A would pay Chiverton, and also would tell the businesses and individuals to pay Chiverton directly in exchange for these official actions. Chiverton is also alleged to have directly and indirectly solicited and obtained illegal cash payments in exchange for official actions assisting businesses and individuals with the same types of issues as described above.
Earlier today, former Opa Locka Assistant Public Works Director Gregory Harris made his initial appearance on a separate Information. The case against Harris is assigned to United States District Judge Beth Bloom, Case No. 16-20589-CR.
In that separate Information, Harris is alleged to have participated in the Public Works Department aspects of the broader conspiracy set out in the Information filed against Chiverton. In particular, the Information filed against Harris alleges that both Public Official A and Chiverton would direct Harris to take actions such as restoring water service to businesses which had paid them illegal bribes. The Information alleges that Harris also obtained illegal payments in exchange for using his official position to assist those businesses and individuals by taking official actions including stopping the shutdown of water service, and directing that their water service be turned back on.
If convicted, Chiverton and Harris each face a maximum statutory sentence of five years’ imprisonment, a fine of $250,000 and three years of supervised release.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force This case is being prosecuted by Senior Litigation Counsel Edward Stamm.
An Information is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
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.
Two Investment Advisors Charged with Securities Fraud in Connection with Sales of Unit Investment TrustsRead the Press Release
Two investment advisors are charged with conspiring to commit securities fraud in connection with a multi-million dollar scheme to sell unit investment trusts.
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.
David Garcia Villasana, 48, and Yul L. Pinto, 41, both of Miami, are charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 15, United States Code, Sections 78j(b) and 78ff(a) and Title 17, Code of Federal Regulations, Section 240.10b-5. Villasana and Pinto face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge James I. Cohn in Ft. Lauderdale.
According to court documents, including the information, Villasana and Pinto operated Great Financial Consultants L.C. (“Great Financial”) and York Kingdom International, Inc., in the Brickell area of Miami. Villasana and Pinto, who previously had worked as investment advisors in Venezulea, solicited wealthy investors throughout the United States that had ties to Venezuela. Villasana and Pinto created investment offering documents entitled “Global Capital Builder,” among other references, to make it appear that investments with York Kingdom and Great Financial had a track record of producing high rates of return. During telephone conversations, Villasana and Pinto promised investors safety and security of the investments, by claiming that the profits could be withdrawn at any time and that the submitted monies would be placed into specific investments or categories of investments. The pitch to investors included false representations that investors’ monies would be invested in a diversified portfolio of stocks and bonds in a manner that tracked other, well known investment trusts. Villasana and Pinto also falsely represented to investors that York Kingdom and Great Financial operated as affiliates of European-based investment companies.
The court documents further allege that upon receipt of investor monies, Villasana and Pinto did not invest the funds as promised. Instead, Villasana and Pinto used more than $2.2 million of investor funds to purchase goods and services for themselves, including a Bentley and several BMW automobiles.
According to court documents, Villasana and Pinto would transmit to investors periodic “Unit Allocation Statements” that represented that the investors’ funds had appreciated in value, and to purportedly show that the investors held a certain number of “units” in specific investment trusts, or mutual funds. In reality, the information on these statements was fabricated by Villasana and Pinto, as the investors’ money was never placed in any such investments. When investors contacted York Kingdom and Great Financial and attempted to cash in on their investments, Villasana and Pinto provided a series of false explanations about the status of their monies and alleged that return payments would be forthcoming. Toward the end of the scheme, Villasana and Pinto failed to respond to investor requests to cash in on their investments or have their money returned.
Mr. Ferrer commended the investigative efforts of the FBI. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Allison Lehr.
A criminal information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miramar Resident Convicted of Access Device Fraud and Aggravated Identity TheftRead the Press Release
A Miramar, Florida resident was convicted by a Southern District of Florida jury of access device fraud and aggravated identity theft following a two-day trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Miami Office (DOL-OIG), and William Hernandez, Chief, North Miami Beach Police Department, made the announcement.
Marletta Jasmine Knowles, 26, of Miramar, Florida, was convicted at trial of one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18, United States Code, Section 1029(a)(2), and four counts of aggravated identity theft, in violation of Title 18 United States Code, Section 1028A(a)(1). She faces a statutory maximum penalty of 18 years in prison. Sentencing is scheduled for October 7, 2016 before U.S. District Judge Beth Bloom.
The evidence at trial established that between December 30, 2014 and February 21, 2015, Knowles used fraudulent debit cards to obtain $3,000 in money orders at Publix Super Markets in Miami-Dade County. These debit cards had been issued using the names, dates of birth, and social security numbers of two victims.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, DOL-OIG and the North Miami Beach Police Department. The case was prosecuted by Assistant United States Attorneys Joshua S. Rothstein and Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Colombian National Charged for Unlawfully Injecting Silicone into Victims’ BodiesRead the Press Release
A Colombian national was charged criminally for unlawfully injecting silicone into victims’ bodies for aesthetic enhancements, without a medical license or approval by the U.S. Food and Drug Administration.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert J. West, Special Agent in Charge, U.S. Food & Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, made the announcement.
Juan David Acosta, 44, of Hallendale Beach, is charged by criminal information with two counts of receipt in interstate commerce of a misbranded device and delivery for pay with intent to defraud or mislead, in violation of Title 21, United States Code, Sections 331(c) and 333(a)(2). If convicted, Acosta faces a maximum statutory sentence of three years in prison as to each count.
According to the information, Acosta engaged in the business of administering injections of polydimethylsiloxane, commonly referred to as silicone, into the bodies of other individuals. Acosta was paid thousands of dollars for this service. Specifically, on July 29, 2015 and again on August 9, 2015, Acosta, at his residence in the Southern District of Florida, injected silicone into the buttocks of two victims in order to affect the size, contour, and structure of that portion of the human body for aesthetic purposes. The injection of silicone into the human body in this manner, regardless of whether such injection was dispensed and administered by a licensed practitioner, requires an FDA-approved application. Acosta did not advise the victims that silicone was being injected into their bodies. Acosta is not a licensed medical practitioner and he had not received FDA approval to administer the injections.
Mr. Ferrer commended the investigative efforts of the FDA-OCI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Palm Beach County Sherriff’s Office Narcotics Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
An information 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.
Three Miami Residents Sentenced in Largest Medicare Fraud Scheme Loss in 2015Read the Press Release
Three Miami residents were sentenced for their role in the largest Medicare fraud scheme loss prosecuted in the Southern District of Florida in 2015.
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 Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, made the announcement.
Jorge Lorenzo, 36, Yahima Pardo, 33 and Roberto De Jesus Alonso, 48, all of Miami, Florida were sentenced by U.S. District Judge William Dimitrouleas to 188 months, 41 months, and 37 months in prison, respectively. The defendants were also ordered to pay $40,388,943.00 in restitution to the Medicare program. In addition, forfeiture money judgments were entered against each defendant and the government has seized assets and cash in excess of $2 million. On May 10, 2016, Lorenzo and Pardo pled guilty to conspiracy to commit health care and wire fraud, and Alonso pled guilty to conspiracy to commit money laundering.
According to the court record Lorenzo, Pardo, and De Jesus Alonso participated in massive health care fraud, money laundering and kickback schemes, that over the course of approximately four years, resulted in more than $40 million in losses to the Medicare program. During the course of the criminal conduct, Lorenzo owned and/or controlled eight home health agencies across Miami-Dade County that collectively received more than $40 million in fraudulent claim payments from Medicare. Lorenzo installed shell owners at his home health agencies whose primary role was to authorize millions of dollars in Medicare claim payments through corporate checks made out to fictitious companies staffed by other co-conspirators. The co-conspirators then laundered the fraudulently obtained money to Lorenzo. More than $40 million in Medicare payments were made in response to fraudulent claims for services that were not medically necessary, never rendered and in some instances were linked to prescriptions that Lorenzo counterfeited. Collectively, these eight home health agencies were operational for an average of only 8 months before being closed at Lorenzo’s direction at the first hint of a Medicare fraud investigation. Conspirators Pardo and Alonso, were shell owners of two of the eight home health agencies and laundered millions of dollars in Medicare claim payments to Lorenzo.
Lorenzo also directed co-conspirators to incorporate more than fifteen fictitious shell companies. The shell companies were used to disguise the flow of more than $25 million in fraudulently-obtained Medicare proceeds for Lorenzo’s personal benefit, including the purchase of real estate, luxury vehicles, artwork and jewelry. Coconspirator Alonso incorporated at least two of the fictitious companies to launder proceeds which were intended to benefit elderly, blind and disabled patients.
An additional co-conspirator, Sonmy Rodriguez, 45, of Miami, Florida, was sentenced on July 27, 2016 to 22 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant United States Attorneys Kevin J. Larsen and Evelyn B. Sheehan.
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 Additional Stock Promoters Charged with Securities Fraud in Connection with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
Two additional stock promoters were charged with conspiracy to commit securities fraud in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commision (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Eric I. Bustillo, Director, U.S. Securities and Exchange Commission (SEC), Miami Regional Office, made the announcement.
Steven Sanders, 73, of Lake Worth, Florida, and Alvin S. Mirman, 78, of Sarasota, Florida, were charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Sections 1348 and 1350. Sanders and Mirman face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge Cecilia M. Altonaga in Miami (Case No. 16-20572-CMA).
Previously, on July 20, 2016, Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, formerly of El Dorado Hills, California, were charged by criminal information in connection with the same scheme, in Case No. 16-20546-CR-RNS. That case is assigned to U.S. District Judge Robert N. Scola Jr. in Miami. On July 22, 2016, McKelvey entered a guilty plea to the Information before U.S. Magistrate Judge Barry L. Garber. Sentencing for McKelvey is scheduled for October 7, 2016 before Judge Scola.
According to court documents, Sanders, Mirman, McKelvey, Lamson and other conspirators, would recruit individuals to serve as straw chief executive officers (CEOs) for shell companies. The conspirators would inform the straw CEO that they would have no further role with the company and would only be paid when the business was later sold. Sanders, Mirman, McKelvey, Lamson and other conspirators would prepare corporate documents for the shell companies, such as board meeting minutes, stock certificates and shareholder lists, all of which were false and fraudulent. The conspirators would submit these documents, as well as other false information, to the SEC on Form S-1 in order to register securities offerings in the name of the shell companies. The false filings would include representations as to the role of the straw CEO in the company and the intent and purpose of the company itself.
Once a company’s registration was effective, Sanders, Mirman, McKelvey, Lamson and other conspirators would recruit individuals to serve as nominee shareholders, to make it appear that there was a group of shareholders that were unaffiliated with the company. This was done in order to create a class of unrestricted shares that could later be publicly traded. In reality, these nominee shareholders were promised a fixed amount of money once the company was ready to be sold, in exchange for allowing their names to be used as shareholders on subscription agreements. By obtaining control of all or nearly all of the purportedly unrestricted shares of the company without disclosure to the SEC or the public, the conspirators were in a position to subsequently sell or transfer the shares to others, or to the investing public, while avoiding the SEC’s prohibitions against insider trading or undisclosed trading by persons who exercise control over a public company.
The conspirators would also solicit broker-dealers to submit false information to the Financial Industry Regulatory Authority (FINRA) to obtain authorization for the company’s shares to be publicly traded (traded “over the counter”). In forms and other materials submitted to FINRA, the conspirators would falsely describe and conceal their own role with, the companies and conceal the roles of the conspirators. Once FINRA gave authorization for the shares to be traded over the counter in the penny stock markets, the conspirators would transfer control of the unrestricted, or publicly tradeable shares, into accounts they controlled.
The conspirators would then seek buyers who would acquire control of the shell companies as well as the secretly controlled unrestricted shares. The buyer’s acquisition of the company would typically take the form of a “reverse merger,” and be publicly disclosed. The secretly controlled unrestricted shares would typically be transferred to a third party or other account designated by the buyer, and would not be disclosed to the SEC or the public. In this way, the buyer would be in a position immediately to engage in stock swindles or other manipulation schemes. According to court documents, Sanders, Mirman, McKelvey and Lamson collectively reaped more than $6 million in proceeds from the scheme.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Securities and Exchange Commission’s Miami Regional Office for their assistance, which previously filed a civil enforcement action against Sanders, Mirman, McKelvey and Lamson. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An Information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Romanian National Sentenced to 70 Months in Prison for His Participation in an ATM Skimming SchemeRead the Press Release
On July 22, 2016, A Romanian national was sentenced to 70 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $905,901.00 for his involvement in a conspiracy to defraud a financial institution and possessing device making equipment.
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) made the announcement.
Sorin Condrache, 36, of Craiova, Romania previously pled guilty to one count of conspiracy to defraud a financial institution in violation of Title 18, United States Code, Section 1349 and one count of possession of device making equipment in violation of Title 18, United States Code, Section 1029(a)(4).
According to court documents, Condrache engaged in a scheme to defraud financial institutions referred to as “ATM skimming.” Condrache operated this scheme by placing skimming devices and pinhole cameras on SunTrust Bank ATMs located in Florida, Georgia, Maryland, North Carolina and Tennessee. The skimming devices fit over the ATMs' card slots and recorded the data encoded on the bank customers' debit cards. The skimming devices looked like part of the ATM so that customers were unaware that a device had been installed on the machine. At the same time, the pinhole camera surreptitiously recorded the customers' personal identification numbers (the PINs). Condrache then made counterfeit debit cards by re-encoding the magnetic strips on other cards, such as gift cards, with the customers' bank account information. The defendant then made unauthorized withdrawals from the customers' bank accounts using the counterfeit debit cards and the customers' PINs. In total, the defendant and his co-conspirators installed skimming devices on ATMs on 35 occasions and made withdrawals in the amount of $905,901.00
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jupiter Attorney Pleads Guilty to Filing False Tax Returns with the IRSRead the Press Release
A Jupiter trust and estate attorney pled guilty before United States Magistrate Judge James M. Hopkins in West Palm Beach to filing false personal income tax returns with the Internal Revenue Service (IRS) in which her income was underreported, resulting in additional tax due of $923,695 for tax years 2007 through 2012.
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, 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. As part of her plea agreement, Kozinski agreed to pay $923,695 in restitution to the IRS to reflect unpaid and underreported taxes due and owing for tax years 2007-2102. Kozinski is scheduled to be sentenced before United States District Judge Robin L. Rosenberg in West Palm Beach on October 7, 2016 at 11:00 a.m. At sentencing, Kozinski faces up to three years in prison per count of conviction.
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 is being 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.
Miami-Dade Psychiatrist Sentenced to Prison for His Participation in Various Fraud SchemesRead the Press Release
Fernando Mendez Villamil, a Miami-Dade psychiatrist was sentenced by United States District Judge Frederico A. Moreno to 151 months in prison, to be followed by 3 years of supervised release, for his participation in various schemes to defraud the United States government. Villamil was also ordered to pay $50,697,081 in restitution.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Villamil, 48, of South Miami, previously pled guilty to conspiracy to commit health care and wire fraud, in violation of Title18, United States Code, 1349, conspiracy to defraud the United States and make false statements with respect to immigration matters, in violation of Title18, United States Code, 371, conspiracy to defraud the government with respect to claims, in violation of Title18, United States Code, 286, for his participation in a scheme to defraud Medicare, Medicaid, the SSA, and USCIS.
According to court documents, Villamil, a licensed psychiatrist with a medical office in Miami-Dade, conspired with Maritza Exposito, 57, and Yomara Vila, 45, both of Miami, and Arnaldo O Jimenez, of Hialeah, and provided false and fraudulent mental health diagnoses to thousands of individuals seeking to obtain disability benefits and waivers from the civic and language requirements of the U.S. citizenship and naturalization process. Villamil did so in exchange for bribes and kickback payments and the ability to submit false claims to Medicare and Medicaid for medication management visits that were not needed and were not provided. Villamil also issued prescriptions for medications that were not needed to support a false disability claim and cause Medicare and Medicaid to pay for the unnecessary medications. Through the fraudulent scheme the co-conspirators sought an excess of $62.8 million dollars from various governmental programs run by the Centers for Medicare and Medicaid Services, the Florida Medicaid program, the SSA and USCIS.
Villamil’s three co-conspirators previously pled guilty and were sentenced for their conduct. Maritza Exposito was sentenced on May 13, 2016 to 48 months in prison, to be followed by 3 years of supervised release and was ordered to pay $33,551,022 in restitution. Yomara Vila was sentenced on May 10, 2016 to 33 months in prison, to be followed by 3 years of supervised release and was ordered to pay $502,626 in restitution. Arnaldo Jimenez, who plead guilty to providing false statements to the Social Security Administration, in his own disability benefit determination process, was sentenced to 6 months in prison, to be followed by 3 years of supervised release and was ordered to pay $248,211 in restitution.
Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS. The case was prosecuted by Special Assistant United States Attorney Hagerenesh Simmons.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Individuals Charged in $1 Billion Medicare Fraud and Money Laundering SchemeRead the Press Release
The owner of more than 30 Miami-area skilled nursing and assisted living facilities, a hospital administrator and a physician’s assistant were charged with conspiracy, obstruction, money laundering and health care fraud in connection with a $1 billion scheme involving numerous Miami-based health care providers.
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, 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 (HHS-OIG) Miami Regional Office made the announcement.
“Medicare fraud has infected every facet of our health care system,” said U.S. Attorney Ferrer. “As a result of our unrelenting efforts to combat these pernicious schemes, the Criminal Division, the U.S. Attorney’s Office and our law enforcement partners continue to identify and prosecute the criminals who, driven by greed, steal from a program meant for our aged and infirmed to increase their personal wealth.”
“This is the largest single criminal health care fraud case ever brought against individuals by the Department of Justice, and this is further evidence of how successful data-driven law enforcement has been as a tool in the ongoing fight against health care fraud,” said Assistant Attorney General Caldwell.
“Esformes is alleged to have been at the top of a complex and profitable health care fraud scheme that resulted in staggering losses – in excess of $1 billion,” said Special Agent in Charge Piro. “The investigators who unraveled this intricate scam are to be commended for their diligence and commitment to root out fraud within our health care system.”
“Health care executives who exploit patients through medically unnecessary services and conspire to obstruct justice in order to boost their own profits – as alleged in this case – have no place in our health care system,” said Special Agent in Charge Richmond. “Such actions only strengthen our resolve to protect patients and the U.S. taxpayers.”
Philip Esformes, 47, Odette Barcha, 49, and Arnaldo Carmouze, 56, all of Miami-Dade County, Florida, were each charged in an indictment unsealed today. According to the indictment, Esformes operated a network of over 30 skilled nursing homes and assisted living facilities (the Esformes Network), which gave him access to thousands of Medicare and Medicaid beneficiaries. Many of these beneficiaries did not qualify for skilled nursing home care or for placement in an assisted living facility; however, Esformes and his co-conspirators nevertheless admitted them to Esformes Network facilities where the beneficiaries received medically unnecessary services that were billed to Medicare and Medicaid. Esformes and his co-conspirators are also alleged to have further enriched themselves by receiving kickbacks in order to steer these beneficiaries to other health care providers – including community mental health centers and home health care providers – who also performed medically unnecessary treatments that were billed to Medicare and Medicaid. In order to hide the kickbacks from law enforcement, these kickbacks were often paid in cash, or were disguised as payments to charitable donations, payments for services and sham lease payments, court documents allege.
Esformes and Barcha were also charged with obstructing justice. According to the indictment, following the 2014 arrest of co-conspirators Guillermo and Gabriel Delgado, Esformes attempted to fund Guillermo Delgado’s flight from the United States to avoid trial in Miami. The indictment further alleges that Barcha created sham medical director contracts following receipt of a grand jury subpoena in June 20, 2016, in order to conceal and disguise the payment of kickbacks she made in exchange for patient referrals for admission to Esformes Network facilities and another Miami-area hospital.
According to court documents, in 2006, Esformes paid $15.4 million to resolve civil federal health care fraud claims for essentially identical conduct, namely unnecessarily admitting patients from his assisted living facilities into a Miami-area hospital. However, Esformes and his co-conspirators allegedly continued this criminal activity-adapting their scheme to prevent detection and continue their fraud after the civil settlement. The indictment alleges that the co-conspirators accomplished this by employing sophisticated money laundering techniques in order to hide the scheme and Esformes’ identify from investigators. The FBI and HHS-OIG ultimately employed advanced data analysis and forensic accounting techniques and were able to identify the full scope of the fraud scheme.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Deputy Chief Joseph Beemsterboer, Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Alison Lehr, Daren Grove and Susan Torres of the Southern District of Florida are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Three Individuals Charged in $1 Billion Medicare Fraud and Money Laundering SchemeRead the Press Release
The owner of more than 30 Miami-area skilled nursing and assisted living facilities, a hospital administrator and a physician’s assistant were charged with conspiracy, obstruction, money laundering and health care fraud in connection with a $1 billion scheme involving numerous Miami-based health care providers.
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 (HHS-OIG) Miami Regional Office made the announcement.
“This is the largest single criminal health care fraud case ever brought against individuals by the Department of Justice, and this is further evidence of how successful data-driven law enforcement has been as a tool in the ongoing fight against health care fraud,” said Assistant Attorney General Caldwell.
“Medicare fraud has infected every facet of our health care system,” said U.S. Attorney Ferrer. “As a result of our unrelenting efforts to combat these pernicious schemes, the Criminal Division, the U.S. Attorney’s Office and our law enforcement partners continue to identify and prosecute the criminals who, driven by greed, steal from a program meant for our aged and infirmed to increase their personal wealth.”
“Esformes is alleged to have been at the top of a complex and profitable health care fraud scheme that resulted in staggering losses – in excess of $1 billion,” said Special Agent in Charge Piro. “The investigators who unraveled this intricate scam are to be commended for their diligence and commitment to root out fraud within our health care system.”
“Health care executives who exploit patients through medically unnecessary services and conspire to obstruct justice in order to boost their own profits – as alleged in this case – have no place in our health care system,” said Special Agent in Charge Richmond. “Such actions only strengthen our resolve to protect patients and the U.S. taxpayers.”
Philip Esformes, 47, Odette Barcha, 49, and Arnaldo Carmouze, 56, all of Miami-Dade County, Florida, were each charged in an indictment unsealed today. According to the indictment, Esformes operated a network of over 30 skilled nursing homes and assisted living facilities (the Esformes Network), which gave him access to thousands of Medicare and Medicaid beneficiaries. Many of these beneficiaries did not qualify for skilled nursing home care or for placement in an assisted living facility; however, Esformes and his co-conspirators nevertheless admitted them to Esformes Network facilities where the beneficiaries received medically unnecessary services that were billed to Medicare and Medicaid. Esformes and his co-conspirators are also alleged to have further enriched themselves by receiving kickbacks in order to steer these beneficiaries to other health care providers – including community mental health centers and home health care providers – who also performed medically unnecessary treatments that were billed to Medicare and Medicaid. In order to hide the kickbacks from law enforcement, these kickbacks were often paid in cash, or were disguised as payments to charitable donations, payments for services and sham lease payments, court documents allege.
Esformes and Barcha were also charged with obstructing justice. According to the indictment, following the 2014 arrest of co-conspirators Guillermo and Gabriel Delgado, Esformes attempted to fund Guillermo Delgado’s flight from the United States to avoid trial in Miami. The indictment further alleges that Barcha created sham medical director contracts following receipt of a grand jury subpoena in June 20, 2016, in order to conceal and disguise the payment of kickbacks she made in exchange for patient referrals for admission to Esformes Network facilities and another Miami-area hospital.
According to court documents, in 2006, Esformes paid $15.4 million to resolve civil federal health care fraud claims for essentially identical conduct, namely unnecessarily admitting patients from his assisted living facilities into a Miami-area hospital. However, Esformes and his co-conspirators allegedly continued this criminal activity-adapting their scheme to prevent detection and continue their fraud after the civil settlement. The indictment alleges that the co-conspirators accomplished this by employing sophisticated money laundering techniques in order to hide the scheme and Esformes’ identify from investigators. The FBI and HHS-OIG ultimately employed advanced data analysis and forensic accounting techniques and were able to identify the full scope of the fraud scheme.
The charges and allegations contained in an indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Deputy Chief Joseph Beemsterboer, Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Criminal Division’s Fraud Section, and Assistant U.S. Attorneys Alison Lehr, Daren Grove and Susan Torres of the Southern District of Florida are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Three Florida Men Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Three Palm Beach County, Florida, residents were charged with conspiring and attempting to support the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
Gregory Hubbard, aka Jibreel, 52, of West Palm Beach, Florida; Darren Arness Jackson, aka Daoud, 50, also of West Palm Beach; and Dayne Atani Christian, aka Shakur, 31, of Lake Park, Florida, were charged by a criminal complaint with knowingly conspiring and attempting to provide material support and resources to ISIL. Christian was also charged with being a felon in possession of a firearm. The detention hearing will take place on July 27, 2016, and the defendants will be arraigned on Aug. 5, 2016.
“Individuals seeking to travel and take up arms with ISIL pose a threat to the United States and humanity across the globe,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, the FBI and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by the terrorist organizations and their supporters.”
“According to the complaint, these defendants conspired and attempted to provide material support to ISIL and one of the defendants was arrested attempting to travel overseas to join and fight for the deadly terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire and attempt to provide material support to designated foreign terrorist organizations.”
“Terrorism-related arrests such as this serve to remind us of the importance of being vigilant,” said Special Agent in Charge Piro. “When you see something that doesn't seem right, report it to law enforcement. Fighting terrorism is the FBI’s number one priority. Any information that can put us on the trail of individuals intent on terrorist acts is valuable.”
According to the allegations contained in the complaint, Hubbard expressed support for ISIL and told an FBI confidential human source (CHS) that he wanted to travel to Syria and join ISIL for the purpose of engaging in violent jihad. Hubbard introduced the CHS to Christian and Jackson, both of whom provided weapons and firearms instruction to Hubbard and the CHS, whom they understood were preparing to travel overseas to join and fight for ISIL.
The complaint further alleges that Jackson and Christian also expressed a desire to join ISIL. Hubbard purchased an airplane ticket to Germany, where he planned to board a train to Turkey and then head to Syria. Hubbard was arrested on July 21, 2016, at Miami International Airport prior to the first leg of his overseas trip. Jackson, who had driven Hubbard to the airport, was arrested after he left the airport premises. Christian was arrested at his place of work.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for the material support charge. Christian faces a statutory maximum sentence of 10 years in prison if convicted on the charge of being a felon in possession of a firearm. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; and City of West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert, Brian K. Frazier and Edward C. Nucci and Trial Attorneys Larry Schneider and David Cora of the National Security Division’s Counterterrorism 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.
Three Florida Men Charged with Conspiring and Attempting to Provide Material Support to ISILRead the Press Release
Three Palm Beach County, Florida, residents were charged with conspiring and attempting to support the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization.
Assistant Attorney General for National Security John P. Carlin, 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 members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
Gregory Hubbard, aka Jibreel, 52, of West Palm Beach, Florida; Darren Arness Jackson, aka Daoud, 50, also of West Palm Beach; and Dayne Atani Christian, aka Shakur, 31, of Lake Park, Florida, were charged by a criminal complaint with knowingly conspiring and attempting to provide material support and resources to ISIL. Christian was also charged with being a felon in possession of a firearm. The detention hearing will take place on July 27, 2016, and the defendants will be arraigned on Aug. 5, 2016.
“According to the complaint, these defendants conspired and attempted to provide material support to ISIL and one of the defendants was arrested attempting to travel overseas to join and fight for the deadly terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who conspire and attempt to provide material support to designated foreign terrorist organizations.”
“Individuals seeking to travel and take up arms with ISIL pose a threat to the United States and humanity across the globe,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office, the FBI and the Joint Terrorism Task Force continue to work proactively in order to stifle and disrupt any potential danger posed by the terrorist organizations and their supporters.”
“Terrorism-related arrests such as this serve to remind us of the importance of being vigilant,” said Special Agent in Charge Piro. “When you see something that doesn't seem right, report it to law enforcement. Fighting terrorism is the FBI’s number one priority. Any information that can put us on the trail of individuals intent on terrorist acts is valuable.”
According to the allegations contained in the complaint, Hubbard expressed support for ISIL and told an FBI confidential human source (CHS) that he wanted to travel to Syria and join ISIL for the purpose of engaging in violent jihad. Hubbard introduced the CHS to Christian and Jackson, both of whom provided weapons and firearms instruction to Hubbard and the CHS, whom they understood were preparing to travel overseas to join and fight for ISIL.
The complaint further alleges that Jackson and Christian also expressed a desire to join ISIL. Hubbard purchased an airplane ticket to Germany, where he planned to board a train to Turkey and then head to Syria. Hubbard was arrested on July 21, 2016, at Miami International Airport prior to the first leg of his overseas trip. Jackson, who had driven Hubbard to the airport, was arrested after he left the airport premises. Christian was arrested at his place of work.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face a statutory maximum sentence of 20 years in prison for the material support charge. Christian faces a statutory maximum sentence of 10 years in prison if convicted on the charge of being a felon in possession of a firearm. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The FBI and JTTF investigated the case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; Transportation Security Administration; Miami International Airport Police Department; Boca Raton, Florida, Police Department; Palm Beach Sheriff’s Office; and City of West Palm Beach Police Department. This case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert, Brian K. Frazier and Edward C. Nucci and Trial Attorneys Larry Schneider and David Cora of the National Security Division’s Counterterrorism Section.
Defendants Charged with Participating in Sophisticated International Cell Phone Fraud SchemeRead the Press Release
Criminal charges were unsealed against multiple defendants relating to their participation in a sophisticated global cell phone fraud scheme, involving the takeover or compromise of cell phone customers’ accounts and the “cloning” of their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, aka Porfirio, 49, of Orlando, Florida; Edwin Fana, 36, of Miami Gardens, Florida; and Jose Santana, aka Octavio Perez, 52, of Royal Palm Beach, Florida, made their initial appearances in court this week after being arrested or self-surrendering. Batista, Fana and Santana were each charged in U.S. District Court for the Southern District of Florida with 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, as well as additional counts of wire fraud and aggravated identity theft.
According to the indictment, the defendants and their co-conspirators participated in a scheme to steal access to and fraudulently open new cell phone accounts using the personal information of individuals around the United States. The conspirators then trafficked in the cell phone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cell phones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts.
Moreover, according to allegations in the indictment, as part of the scheme, the conspirators used the reprogrammed cell phones and additional telecommunications equipment to run illegal call-termination businesses—contracting with calling card companies, Voice over Internet Protocol providers and other telecommunications companies nationwide—in which the defendants routed international calls for payment and then transmitted those calls through the reprogrammed phones without paying for access to the phone companies’ networks. In so doing, they pushed costs from themselves to cell phone customers around the country and those customers’ cell phone providers, which typically absorbed the costs for the fraudulent international calls, according to the indictment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
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.
Defendants Charged with Participating in Sophisticated International Cell Phone Fraud SchemeRead the Press Release
Criminal charges were unsealed against multiple defendants relating to their participation in a sophisticated global cell phone fraud scheme, involving the takeover or compromise of cell phone customers’ accounts and the “cloning” of their phones to make fraudulent international calls.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Ramon Batista, aka Porfirio, 49, of Orlando, Florida; Edwin Fana, 36, of Miami Gardens, Florida; and Jose Santana, aka Octavio Perez, 52, of Royal Palm Beach, Florida, made their initial appearances in court this week after being arrested or self-surrendering. Batista, Fana and Santana were each charged in U.S. District Court for the Southern District of Florida with 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, as well as additional counts of wire fraud and aggravated identity theft.
According to the indictment, the defendants and their co-conspirators participated in a scheme to steal access to and fraudulently open new cell phone accounts using the personal information of individuals around the United States. The conspirators then trafficked in the cell phone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cell phones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts.
Moreover, according to allegations in the indictment, as part of the scheme, the conspirators used the reprogrammed cell phones and additional telecommunications equipment to run illegal call-termination businesses—contracting with calling card companies, Voice over Internet Protocol providers and other telecommunications companies nationwide—in which the defendants routed international calls for payment and then transmitted those calls through the reprogrammed phones without paying for access to the phone companies’ networks. In so doing, they pushed costs from themselves to cell phone customers around the country and those customers’ cell phone providers, which typically absorbed the costs for the fraudulent international calls, according to the indictment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida are prosecuting the case.
Two Stock Promoters Charged with Securities Fraud in Connection with Scheme to Fraudulently Register Shell Companies and Secretly Sell StockRead the Press Release
Two stock promoters were charged with conspiracy to commit securities fraud in connection with a scheme to fraudulently register shell companies with the U.S. Securities and Exchange Commission (SEC), issue shares in the companies that they and other conspirators secretly controlled, and sell the shares to the investing public at a profit.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George Piro, Special Agent in Charge, Federal Bureau of Investigation(FBI), Miami Field Office, and Eric I. Bustillo, Director, U.S. Securities and Exchange Commission (SEC), Miami Regional Office, made the announcement.
Daniel McKelvey, 49, of Foster City, California, and Jeffrey L. Lamson, 51, formerly of El Dorado Hills, California, were charged by criminal information with one count of conspiracy to commit securities fraud, in violation of Title 18, United States Code, Section 1348 and Title 18, United States Code, Section 1350. McKelvey and Lamson face a maximum statutory sentence of five years in prison and a fine up to $250,000. The case is assigned to U.S. District Judge Robert N. Scola Jr. in Miami.
According to court documents, McKelvey, Lamson and other conspirators, including persons located in the Southern District of Florida, would recruit individuals to serve as straw chief executive officers (CEOs) for shell companies. The conspirators would inform the straw CEO that they would have no further role with the company and would only be paid when the business was later sold. McKelvey, Lamson and other conspirators would prepare corporate documents for the shell companies, such as board meeting minutes, stock certificates and shareholder lists, all of which were false and fraudulent. The conspirators would submit these documents, as well as other false information, to the SEC on Form S-1 in order to register securities offerings in the name of the shell companies. The false filings would include representations as to the role of the straw CEO in the company and the intent and purpose of the company itself.
Once a company’s registration was effective, McKelvey, Lamson and other conspirators would recruit individuals to serve as nominee shareholders, to make it appear that there was a group of shareholders that were unaffiliated with the company. This was done in order to create a class of unrestricted shares that could later be publicly traded. In reality, these nominee shareholders were promised a fixed amount of money once the company was ready to be sold, in exchange for allowing their names to be used as shareholders on subscription agreements. By obtaining control of all or nearly all of the purportedly unrestricted shares of the company without disclosure to the SEC or the public, the conspirators were in a position to subsequently sell or transfer the shares to others, or to the investing public, while avoiding the SEC’s prohibitions against insider trading or undisclosed trading by persons who exercise control over a public company.
The conspirators would also solicit broker-dealers to submit information to the Financial Industry Regulatory Authority (FINRA) to obtain authorization for the company’s shares to be publicly traded (traded “over the counter”). Forms and other materials submitted to FINRA, would falsely describe the companies and conceal the roles of the conspirators. Once FINRA gave authorization for the shares to be traded over the counter in the penny stock markets, the conspirators would transfer control of unrestricted, or publicly tradeable shares, into accounts they controlled.
The conspirators would then seek buyers who would acquire control of the shell companies as well as the secretly controlled unrestricted shares. The buyer’s acquisition of the company would typically take the form of a “reverse merger,” and be publicly disclosed. The secretly controlled unrestricted shares would typically be transferred to a third party or other account designated by the buyer, and would not be disclosed to the SEC or the public. In this way, the buyer would be in a position immediately to engage in stock swindles or other manipulation schemes.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the U.S. Securities and Exchange Commission’s Miami Regional Office, which previously filed a civil enforcement action against McKelvey and Lamson. The matter is being prosecuted by Assistant U.S. Attorney Jerrob Duffy.
An Information is merely an allegation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guyanese National Sentenced to over 21 Years for Mortgage FraudRead the Press Release
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was sentenced by United States District Judge Jose E. Martinez on July 14, 2016 to 262 months in prison, following his conviction by a federal jury on charges stemming from his leadership and participation in an extensive mortgage fraud scheme. Following his term of imprisonment, Roopnarine will be placed on supervised release for five years. Roopnarine was also ordered to pay $9,041,133.46 in restitution to the defrauded lenders and banks.
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.
An indictment charged Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. The indictment charged Roopnarine with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida. On March 11, 2016, a jury convicted Roopnarine on all three counts.
According to the court documents and statements made in court, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Found Guilty of Defrauding Federal AgenciesRead the Press Release
Alexander Robert Xavier, 51, of Jensen Beach, Florida, was found guilty on July 14, 2016, of defrauding federal agencies by issuing fraudulent bonds to insure government construction projects.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Florida, Jerry Polk, Special Agent in Charge, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG), Atlanta Field Office and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
A jury convicted Xavier of mail fraud, in violation of Title 18, United States Code, Section 1341, major fraud, in violation of Title 18, United States Code, Section 1031, and making a false statement to the United States Department of the Army, in violation of Title 18, United States Code, Section 1001. A sentencing hearing has been set before U.S. District Judge Kenneth A. Marra on September 30, 2016. Xavier faces a statutory maximum sentence of 35 years’ imprisonment.
According to court documents and evidence introduced at trial, from approximately May 2008 to October 2010, Xavier devised a scheme to unlawfully enrich himself by representing that he was an “individual surety” on various performance and payment bonds – a type of insurance required on major government construction contracts. During the course of the fraud, Xavier pledged millions of dollars in assets to agencies of the United States. In truth, and as Xavier well knew, there were no such assets.
The evidence at trial showed that Xavier issued a large number of bonds and dealt with various contractors and government agencies. Often, the construction contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
During the course of the scheme, Xavier pledged over $25 million in collateral for the bonds. Xavier was paid over $400,000 in bond fees as a result. The defrauded federal agencies included, among others, the United States Department of the Army and the United States Department of Labor.
Mr. Ferrer commended the investigative efforts of the EPA-OIG, VA-OIG. Mr. Ferrer also thanked the U.S. Army Criminal Investigation Command; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and Department of State-OIG.
This case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Wilfredo Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced for Smuggling Birds from CubaRead the Press Release
Hovary Muniz, 39, of Miami, was sentenced today in Fort Lauderdale, for his involvement in an attempt to import undeclared wildlife from Cuba, in violation of the federal anti-smuggling statute, Title 18, United States Code, Section 545.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Resident Agent in Charge David Pharo, United States Fish & Wildlife Service, Major Alfredo Escanio, Florida Fish & Wildlife Conservation Commission, South Region Bravo, and Christopher D. Maston, Port Director for Miami International Airport, Customs and Border Protection (CBP), made the announcement.
U.S. District Judge James I. Cohn sentenced Muniz to four months of home confinement with electronic monitoring and a term of three years’ probation, with the special condition that he perform 200 hours of community service.
According to the charges, statements in court, and an agreed upon factual statement Muniz was intercepted at Miami International Airport on January 9, 2016, returning to the United States aboard a flight originating in Havana, Cuba. In a CBP Entry Declaration, Muniz claimed he was not carrying any birds or other wildlife. When specifically questioned by CBP Officers, Muniz verbally repeated that he had no birds to declare.
In a subsequent pat-down, CBP officers found that MUNIZ was carrying plastic tubes concealed in his underwear and in a fanny pack hidden beneath his shirt, containing live birds. Muniz was found to be transporting nine live birds, including five Cuban Melodious Finches (Tiaris canora), one Cuban Bullfinch (Melopyrrha nigra), one Yellow-faced Grassquit (Tiaris olivaceus), one Indigo Bunting (Passerina cyanea), and one Blue Grosbeak (Passerina caerulea).
Under federal law, all wildlife, including birds, being imported into the United States must, be made available for inspection and properly declared to the United States Fish and Wildlife Service and CBP, pursuant to Title 50, Code of Federal Regulations, Sections 14.52 and 14.61. Some wildlife is also subject to quarantine before they can be released into the country. The purpose of the quarantine regulations are, in part, to protect both commercial and wild species of avians in the United States from possible exposure to diseases such as Exotic Newcastle’s and other maladies against which they would have no natural immunity. According to the U.S. Department of Agriculture, Cuba is considered a high-risk source country for high pathogenic avian influenza and Exotic Newcastle’s disease.
During the continuing investigation, utilizing aircraft provided by the CBP Air & Marine Branch, agents detected the presence of active bird-traps at Muniz’s residence and executed a search warrant which located additional Cuba-origin specimens and various domestic species of birds protected under the Migratory Bird Treaty Act.
Mr. Ferrer commended the investigative efforts of the Special Agents of the Fish & Wildlife Service, the Customs & Border Protection Officers at Miami International Airport, U.S. Customs & Border Protection Air & Marine Branch, and the Florida Fish & Wildlife Conservation Commission, who investigated this matter. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes section of the U.S. Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Georgia Resident Convicted in the Southern District of Florida of Threatening Several Palm Beach County LocationsRead the Press Release
Preston Alexander McWaters, 25 of Athens, Georgia, pled guilty today before United States District Judge James I. Cohn, in Fort Lauderdale, Florida, 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).
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 faces a statutory maximum of five years’ imprisonment on each count to which he pled guilty. He is scheduled to be sentenced before Judge Cohn on September 23, 2016.
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.
“Bomb threats present significant safety and security issues to both law enforcement and the general public,” said U.S. Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will take all necessary steps to ensure that people who use the internet or other means to threaten the physical structure of buildings or well-being of the American people will face serious consequences.”
“Threats like these bomb scares by Mr. McWater are serious crimes and warrant a serious response,” said George L. Piro, Special Agent in Charge, FBI Miami. "They frighten innocent people and waste valuable law enforcement resources, which could be better spent responding to actual crimes. These type of threats will be investigated thoroughly and vigorously by the FBI and our partners.”
Palm Beach County School District Police Chief Lawrence Leon stated, “I am truly appreciative of the partnership and assistance given to the Palm Beach County School District Police by the Federal Bureau of Investigations and the U.S Attorney’s Office in this successful prosecution of this case. All threats to our schools, students, and staff are taken seriously and the Palm Beach County School District Police will take the appropriate actions to ensure that we are safe.”
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
Former Employee of Health Insurance Company Sentenced for Possessing More Than 50 Customers’ Identities that she Stole from her EmployerRead the Press Release
Some of the victims’ information was used to file false tax returns with the IRS
A former health insurance company employee was sentenced to 32 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $16,264 for possessing more than 50 customers’ identities that she stole from her employer.
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 Tony Pustizzi, Chief, Coral Springs Police Department (CSPD), made the announcement.
Quinzella J. Romer, 39, previously pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) issued to other persons, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on April 8, 2014, CSPD officers conducted a traffic stop of a vehicle that Romer was driving. During this traffic stop, officers determined that Romer had an outstanding arrest warrant for petit theft. A pat down was conducted of Romer’s person, and law enforcement found a Florida driver’s license in another person’s name and a cellular phone. After obtaining a search warrant, law enforcement searched Romer's cellular phone where they found over 20 screenshots containing more than 50 names, Social Security numbers, and dates of birth of health insurance customers.
Romer was employed as a Short-Term Disability Benefit Manager at a health insurance company from June 18, 2007 until August 23, 2013, and it was determined that the screenshots were taken from her work station at the company.
Further investigation revealed that 12 of the names and social security numbers found in Romer's phone were victims of tax-related identity theft for tax year 2013. The tax returns claimed refunds of $38,196, and the IRS actually paid $16,264.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
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.
Florida Keys Residents Plead Guilty to Illegally Trafficking in Marine LifeRead the Press Release
On July 11, 2016, two residents of the Florida Keys pled guilty to illegally trafficking in marine life.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracey Dunn, Assistant Director, NOAA Fisheries Office of Law Enforcement, and David Pharo, Resident Agent in Charge, U.S. Fish & Wildlife Service, Office of Law Enforcement, Miami Area, made the announcement.
Leah Gould, 51, and Phillip Gould, 57, of Big Pine Key, Florida, pled guilty to conspiring with others to commit certain offenses against the United States, that is conspiracy to transport, sell, receive, acquire, and purchase any fish and wildlife, that is juvenile bonnethead sharks (Sphyrna tiburo), with a fair market value in excess of $350.00, and attempt to do the same, knowing that said fish were taken, possessed, transported, sold, and intended to be sold in violation of the laws and regulations of the State of Florida, in violation of Title 16, United States Code, Sections 3372(a)(2)(A), 3372(a)(4)and 3373(d)(1) and (2), all in violation of Title 18, United States Code, Section 371. The defendants each face possible sentences of up to 5 years’ imprisonment, a term of supervised release of up to three years, and a criminal fine of up to $250,000. United States District Judge Jose E. Martinez, who accepted the guilty pleas, set sentencing for the defendants for October 3, 2016 at 2:30 p.m., in the Sidney M. Aronovitz Federal Courthouse in Key West.
According to the court record, including the indictment, a joint factual statement, and the defendants’ admissions during court hearings, at the relevant times, Leah Gould and Phillip Gould were residents of Monroe County, Florida and owned and operated Florida Keys Marine Life, LLC. (FKML), a Florida corporation with its principal place of business on Big Pine Key, Florida. FKML was engaged in the wholesale marketing of ornamental fish and live rock. Over the period extending from at May 2012 through August 2012, the Goulds engaged in the purchase and sale of bonnethead sharks (Sphyrna tiburo) through FKML. The Goulds negotiated for and received the sharks from an unlicensed harvester in the Florida Keys. At no time did the harvester, directly or as a third party contractor, possess or hold any State of Florida special activities license to collect, harvest, or transport any shark species, nor did he possess and hold a valid federal annual vessel permit for sharks issued pursuant to 50 C.F.R. 635.4 to harvest, collect, or take shark species as required by the laws of the State of Florida.
The Indictment also charged that the harvested bonnethead sharks were taken from the waters of the Key Deer National Wildlife Refuge, and subsequently shipped by the Goulds in interstate commerce by a variety of means, including rental truck and as commercial air cargo.
The Indictment and joint factual statement, in a series of “overt acts”, describes multiple instances when specific numbers of sharks were harvested, the transfer of the sharks from the harvester to the FKML commercial marine life facility on Big Pine Key, and specific payments received by the harvested for sharks sold in interstate commerce. The Goulds also admitted that in August 2012, Phillip Gould personally transported four bonnethead sharks by rental truck to St. Louis, Missouri where they were transferred to the St. Louis Zoo, in a sale set up by a middle-man located in Las Vegas, Nevada, and that in November 2012, Leah Gould negotiated the sale of four bonnethead sharks in interstate commerce to a customer located in Atlanta, Georgia. In Court, the government revealed that the transaction had been recorded by government agents.
Mr. Ferrer commended the joint investigative efforts of NOAA Office of Law Enforcement and the local and Atlanta-area 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 known as Operation Rock Bottom, and noted the assistance of Refuge Officers from the Florida Keys National Wildlife Refuges and the U.S. Customs and Border Protection Air Marine Branch in the development of the case. This matter is being prosecuted by Assistant U.S. Attorneys Thomas Watts-FitzGerald and Antonia Barnes.
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
City of Miami Resident Pleads Guilty to Possessing 242 Stolen Identities Used in Unemployment and Tax Fraud SchemesRead the Press Release
A City of Miami resident pled guilty to possessing 242 stolen identities used in unemployment and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, Miami Office (DOL-OIG), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Yordan Gorotiza, 25, pled guilty to one count of possession of fifteen or more unauthorized access devices (social security numbers) with intent to defraud, 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. Sentencing is scheduled for September 16, 2016 before U.S. District Court Judge Paul C. Huck. At sentencing, Gorotiza faces a maximum of ten years’ imprisonment for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, during a traffic stop of Gorotiza’s vehicle, law enforcement officers found Gorotiza in possession of (among other items) four Florida unemployment cards in the names of other individuals; 26 Visa gift cards; a Florida driver’s license with Gorotiza’s picture but with another individual’s name; and a book bag containing personal identifying information (PII) of 242 different people, including employment records from a business and patient data sheets from a hospital. Several of the sheets contained handwritten driver's license numbers and markings commonly used to represent tax or unemployment benefits filings.
Records from the Florida Department of Economic Opportunity show that between October 1, 2013 and July 11, 2014, at least 64 of the victims had their personal information used without authorization to obtain unemployment benefits, including the victims whose unauthorized unemployment cards Gorotiza possessed during the traffic stop. The total actual loss to the Florida Department of Economic Opportunity was $33,608, and the total intended loss was $192,009. The total intended loss attributable to Gorotiza, including the 178 victims whose social security numbers were not used to obtain unauthorized unemployment benefits, was $281,009.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, and the Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
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.
South Florida Resident Sentenced to 4 Years in Prison for Filing Fraudulent BP Fund Claim in Connection with the Deepwater Horizon Explosion and Pollution IncidentRead the Press Release
A South Florida resident was sentenced to 48 months in prison, to be followed by three years of supervised release for her involvement in the filing of a false claim in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Caridad Rioseco Alejandrez, 50, of Key West, Florida, previously pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Sections 1341 and 2.
Her father, Raul Rioseco, 73, of Stock Island, Florida, was sentenced on April 12, 2016 to one year and a day in prison in connection with his involvement in a similar false claim. Rioseco was also ordered to serve six months of house arrest and a three-year term of supervised release. Rioseco was further ordered to make restitution payments to the Deepwater Horizon Fund in the amount of $144,606.57, which represented the money he unlawfully received from the Gulf Coat Claims Facility (GCCF) and the amounts received by certain other individuals based on fraudulent documents Rioseco provided in support of other fraudulent claims. Additionally, Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities. Rioseco previously pled guilty to one count of mail fraud.
According to court filings and proceedings, in June 2010, BP established the GCCF for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010 explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private Trust Fund established for that purpose.
Alejandrez and her father, Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the Internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez produced and provided the documents to the GCCF on behalf of herself and her father. The documents were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not the truth.
Rioseco represented himself to the GCCF to be a commercial fisherman, when he was retired and had not been an active fisherman for many years. A lobster boat, licenses, and permits in his name were in fact being used by others, and Rioseco suffered no loss of income or other adverse effect from the oil spill. Additionally, Rioseco admitted that he facilitated the filing of other false claims, in addition to his own fraudulent claims, by signing and providing notarized “Crewshare Statements” for at least five other individuals attesting that he had employed and paid wages to those persons as boat crewmembers during periods relevant to the GCCF claims process. The fraudulent statements were produced to support claims for compensation which were filed by Alejandrez with the GCCF, claiming approximately $89,000 for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals were crewmembers aboard the vessel or had been fishing during the relevant time period. Additionally, according to the Florida Fish & Wildlife Conservation Commission, the oil spill had little if any effect on the Key West fishing industry with commercial landings in 2010, the year of the spill, and every year since.
Alejandrez created false income tax returns which she provided to the GCCF in support of her claim that her tax and document preparation business, located on Stock Island, lost income after the oil spill because her customers, primarily fishermen operating out of Stock Island, could no longer afford her services. To maximize her compensation, Alejandrez significantly increased her claimed income on returns for 2008 and 2009, over the income actually reflected in the tax returns filed with the Internal Revenue Service for those years. Alejandrez provided similar false documentation in the support of claims for many other individuals. A U.S. Postal Service document analyst evaluated Alejandrez’ bank records and found that contrary to the sworn statements on her claim forms, her income had increased substantially after the oil spill. The United States advised the Court that records established an actual loss due to the fraudulent claims of approximately $500,000, and that the amounts claimed, although not all paid, approached $1.5 million.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
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.
Monroe County Firearms Dealers Plead Guilty to National Firearms Act ChargesRead the Press Release
Former firearms and ammunition dealers pled guilty today to National Firearms Act charges, for their unlawful possession of an unregistered firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Rick Ramsay, Sheriff, Monroe County Sheriff’s Office, made the announcement.
U.S. Attorney Ferrer stated, “The National Firearms Act imposes restrictions on sales of the most dangerous firearms: including concealable weapons, machine guns and sawed-off shotguns. Prosecuting the unlawful receipt and possession of unregistered firearms is part of our mission to reduce gun violence and make our community safer."
“ATF has a strong partnership with Federal Firearms Licensees. They are our first line of defense in stopping the illegal flow of firearms. These individuals betrayed that partnership and have been held accountable,” said Carlos A. Canino, Special Agent in Charge.
“We work very closely with our many law enforcement partners to disrupt the possession, sale and exportation of illegal firearms in south Florida,” said acting Miami HSI Special Agent in Charge Robert C. Hutchinson. “This was another successful opportunity to support the ATF and Monroe County Sheriff’s Office to protect the Florida Keys.”
“This case was just one example of the close partnership we have here in Monroe County between our local and federal agencies,” said Sheriff Rick Ramsay. “We all have the same goal: keeping our citizens safe.”
Jarvis Nelson Osorio, 36, of Miami Lakes, Thomas Joseph Willi, 52, of Key West, and Outbreak Ordnance, LLC, a federally licensed firearms dealer located in Big Pine Key, each pled guilty to one count of knowingly receiving and possessing an unregistered .38 caliber “cane gun,” a weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871. As part of the defendants’ guilty pleas, Osorio, Willi, and Outbreak Ordnance, LLC must surrender their federal firearms licenses, which are required in order to engage in the business of dealing in firearms.
Sentencing is scheduled for October 4, 2016 before U.S. District Judge Jose E. Martinez. At sentencing, Willi and Osorio each face a maximum of ten years’ imprisonment. The company, Outbreak Ordnance, LLC, faces a maximum fine of $500,000.
According to court documents and information disclosed during hearings before United States Magistrate Judge Lurana S. Snow, Osorio and Willi owned and operated co-defendant Outbreak Ordnance, LLC, a firearms and ammunition retail store. Outbreak Ordnance, LLC was licensed to deal in National Firearms Act (“NFA”) weapons. The NFA is a comprehensive taxing scheme that regulates the manufacture, sale, and transfer of certain specially dangerous and concealable weapons, including short-barreled shotguns, short-barreled rifles, any weapon or device capable of being concealed on the person from which a shot can be discharged through the energy of an explosive, machineguns, silencers, and destructive devices.
According to court documents, on July 16, 2015, ATF agents executed a search warrant at Outbreak Ordnance, LLC’s retail store. There, ATF agents discovered records showing that the defendants unlawfully acquired fifteen unregistered NFA weapons, including a .38 caliber “cane gun.” ATF agents subsequently recovered the unregistered weapons, several of which had been advertised for sale on Outbreak Ordnance, LLC’s publicly accessible Facebook page.
Mr. Ferrer commended the investigative efforts of the ATF, HSI, and the Monroe County Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Adam Fels.
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 in Stolen Identity Tax Fraud Scheme Involving Approximately 1,288 Debit Cards Containing More Than $1 Million in Tax RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $973,379 for his participation in a stolen identity tax fraud scheme involving approximately 1,288 debit cards containing more than $1 million in tax refunds.
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), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), and John E. Brooks, Chief, Sunrise Police Department, made the announcement.
Yasmany Lopez, 28, previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).
According to court documents, in early 2012, individuals in Colombia negotiated with a confidential source (CS) to rent an airplane that would be used to transport controlled substances from Colombia to Honduras. As part of these negotiations, the individuals arranged delivery of $500,000 to the CS as payment to use the airplane. The CS received an initial payment of $170,000, and defendant Lopez contacted the CS to arrange delivery of the remaining $330,000. After Lopez met with the CS, officers stopped Lopez in his car. Lopez gave consent to search the vehicle, and the officers located two boxes containing $330,000 in cash, approximately 197 Turbo Tax debit cards and 1,035 Green Dot debit cards each bearing different individual’s names, mail addressed to several different individuals, and ATM receipts.
During a subsequent search of Lopez’s residence, law enforcement found an additional 48 Turbo Tax debit cards, 8 Green Dot debit cards, and numerous Turbo Tax mailing envelopes and cardholder agreements. The IRS determined that the 245 Turbo Tax cards found between Lopez’s car and residence had been loaded with approximately $1,071,188 in federal income tax refunds. The IRS identified the tax returns associated with fifteen of the seized debit cards. The individuals named on these tax returns are all residents of Puerto Rico, but the individuals did not authorize anyone to file these tax returns or to use their personal information.
Lopez admitted that he removed cash from the debit cards at ATMs in exchange for a 2% commission. He also recruited individuals who allowed Lopez to use their mailing addresses to receive the debit cards, in exchange for $100 per card. A portion of the $330,000 he was to deliver to the CS came from the debit cards in his possession.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Inmates Charged with Orchestrating Mail and Wire Fraud Scheme from Federal PrisonRead the Press Release
Four individuals have been charged in connection with a fraud scheme orchestrated from the Federal Detention Center in Miami, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Mark Overton, Chief, Bal Harbour Police Department, made the announcement.
James Sabatino, 39, of Miami, George Duquen, 53, of Davie, Valerie Kay Hunt, 53, of Davie, and Denise Siksha Lewis, 35, of North Lauderdale, were charged by indictment with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, in violation of Title 18, United States Code, Sections 1349, 1341, and 1343.
During the course of the alleged conspiracy, Sabatino and Duquen were incarcerated together at the Federal Detention Center in Miami, Florida. According to publicly filed court documents, Sabatino created several e-mail addresses for the purpose of impersonating employees of Sony Music Entertainment, a recorded music company.
Using the alias “James Prolima,” Sabatino contacted several luxury store employees and brand representatives via telephone calls, e-mails, and text messages. During those communications, Sabatino pretended to be an employee of Sony Music Entertainment and RocNation, a recorded music company founded by a prominent recording artist.
According to the indictment, Sabatino requested that the luxury store employees and brand representatives send retail items such as handbags, wristwatches, apparel, and jewelry to various locations in South Florida. Sabatino claimed the retail items would be featured in music videos and promotional materials that were being filmed and produced in Miami, Florida.
According to court records, Sabatino directed luxury store employees and brand representatives to ship the retail items to co-defendants Hunt and Lewis. From prison, Sabatino and co-defendant Duquen directed Hunt and Lewis to sell the items at South Florida pawn shops and elsewhere.
Mr. Ferrer commended the investigative efforts of the FBI, BSO, and the Bal Harbour Police Department. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
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.
Doctor Who Falsely Diagnosed Hundreds of Patients as Part of a Medicare Fraud Scheme Sentenced to PrisonRead the Press Release
Dr. Isaac Kojo Anakwah Thompson, M.D. 57, of Delray Beach, was sentenced today by United States District Judge William J. Zloch to 46 months’ imprisonment, to be followed by two years of supervised release, after having previously pled guilty to health care fraud. Dr. Thompson was further ordered to pay restitution in the amount of $2,114,332.33.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General William J. Baer, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office and Special Agent in Charge Shimon R. Richmond, Department of Health and Human Services, Office of Inspector General (HHS-OIG), Florida region, made the announcement.
According to the court record, including facts admitted during the defendant’s plea hearing and the parties’ statements at sentencing, Dr. Thompson engaged in a scheme to defraud the Medicare Advantage program, a voluntary system which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary's medical conditions. As a result, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary's medical conditions in part using diagnoses submitted by the beneficiary's Medicare Advantage plan physician.
Dr. Thompson’s fraudulent conduct involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as health maintenance organizations (HMOs) and each enrolled beneficiary selected a primary care physician (PCP) enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP. Dr. Thompson was an internist who operated a medical clinic in Delray Beach and was a PCP in Humana’s HMO network. As such, a beneficiary enrolled in a Humana HMO Medicare Advantage plan could choose Dr. Thompson as the beneficiary’s PCP. Humana paid Dr. Thompson approximately 80% of the capitated fee for each beneficiary who had selected the defendant as his or her PCP.
Between 2006 and 2010, Dr. Thompson defrauded Medicare by diagnosing 387 Medicare Advantage beneficiaries with ankylosing spondylitis, a rare chronic inflammatory disease of the spine. Dr. Thompson reported these diagnoses to Humana, which in turn reported them to Medicare. As a result, Medicare paid approximately $2.1 million in excess capitation fees, approximately 80% of which went to the defendant. All or almost all of these ankylosing spondylitis diagnoses were false because in fact, the patients did not have the condition. Because the diagnoses were false, the defendant did not have any corresponding increase in his cost to treat the patients.
Mr. Ferrer and Mr. Baer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne and Trial Attorney Paul Gallagher, United States Department of Justice, Antitrust Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Sentenced to 4 Years in Prison for Possessing at Least 652 Identities Used in Stolen Identity and Tax Fraud SchemesRead the Press Release
A Broward County resident was sentenced to 48 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $12,640.35 for possessing at least 652 identities that were used in stolen identity and tax fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.
Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, previously pled guilty to one count of using an unauthorized access device to obtain $1,000 or more, in violation of Title 18, United States Code, Sections 1029(a)(2), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals. Also seized from the duffel bag were 13 debit or visa cards from various banks where some of the real account owners had reported fraud on their accounts.
IRS-CI Special Agents determined that some of the individuals whose personal identifying information (PII) was found in the duffel bag had tax returns filed in their names. The agents interviewed numerous individuals and found that the individuals did not authorize Charles-Coldros to have their names, dates of birth, and Social Security numbers in her possession, and did not authorize anyone to file a tax return in their names. Another individual did not authorize Charles-Coldros to have a debit card in his/her name.
According to court documents in a separate, but related, (case #1:16-cr-20055), when Federal Protective Services (FPS) agents advised Charles-Coldros of the outstanding warrant for her arrest related to identity theft, the defendant ran away from the agents and jumped through the opened front-passenger window into another individual’s car. An FPS agent unsuccessfully attempted to pull Charles-Coldros out of the car. Fearing that the other individual, who was already in the driver's seat of the car, would drive away with the defendant in the car, the FPS agent jumped through the opened front-passenger window into the car with his legs dangling out. While in the car, the defendant and other individual repeatedly struck the FPS agent. In this case, Charles-Coldros previously pled guilty to one count of forcibly assaulting and interfering with officers and employees of the United States, and inflicting bodily injury in the commission of the offense, in violation of Title 18, United States Code, Sections 111(a)(1) and (b) and 2. Sentencing is scheduled in this case for July 12, 2016 before U.S. District Judge Kathleen M. Williams. The defendant faces a maximum of twenty years in prison for the assault charge.
Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service and the U.S. Marshals Service for their assistance in this matter. The cases are being prosecuted by Assistant U.S. Attorneys Cynthia R. Wood and Brian J. Shack.
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.
Florida Resident Charged in Superseding Indictment with Attempting to Damage Religious PropertyRead the Press Release
Defendant Was Previously Charged with Attempting to Use Explosive Device on Florida Synagogue
James Gonzalo Medina, 40, of Hollywood, Florida, was charged today by superseding indictment with attempting to damage religious property following his initial charge on May 2, 2016, of attempting to use a weapon of mass destruction – an explosive device – at a synagogue in Aventura, Florida.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Assistant Attorney General for National Security John P. Carlin; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Medina is now charged with knowingly attempting to use a weapon of mass destruction against a person or property within the United States and attempting to damage religious property. If convicted, Medina faces a maximum sentence of life in prison.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the original complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS), to whom Medina expressed anti-Semitic views and identified the Aventura-Turnberry Jewish Center in Aventura as the target of his attack.
The complaint further alleged that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance, and the FBI effectively mitigated any danger posed to the public.
A complaint and indictment are merely accusations and a defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert of the Southern District of Florida and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.