Southern District of Florida

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.

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.

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

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 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 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.

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.

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 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.

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.

 

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.

 

 

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.

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

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Palm Beach County resident pled guilty for his participation in a stolen identity tax refund fraud conspiracy involving students and other individuals’ personal identifying information (PII).

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 Terry L. Rhodes, Executive Director, Florida Highway Patrol (FHP), made the announcement.

Oniel Winston Scarlett, 28, pled guilty to one count of conspiracy to commit wire fraud, to retain and conceal monies stolen from the United States, and to commit identity theft, all in violation of Title 18, United States Code, Section 371; one count of wire fraud, in violation of Title 18, United States Code, Section 1343; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.  Sentencing is scheduled for September 30, 2016 before U.S. District Judge Kenneth A. Marra. At sentencing, Scarlett faces a maximum of five years imprisonment for the conspiracy charge, a maximum of twenty years imprisonment for the wire fraud 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, Scarlett and his co-conspirators fraudulently obtained and exchanged amongst themselves the PII of other individuals, filed fraudulent income tax returns with the IRS using the stolen PII, and directed fraudulent refunds to be deposited onto pre-paid debit cards in the names of other individuals using the stolen PII.

The defendant was in possession of stolen PII during a traffic stop on September 20, 2011. During the traffic stop, the FHP trooper conducted a consent search of Scarlett’s vehicle and found 92 Wal-Mart pre-paid debit cards; printouts of hundreds of peoples’ PII; pre-paid debit card information and money amounts for the cards; more than fifty Palm Beach County School Board’s mainframe database printouts with students’ names, Social Security numbers, and dates of birth; two laptop/notebook computers with accessories; two memory sticks; a cell phone; and a phone book for the Belle Glade, Florida area. The trooper also found bank account information, where it was later determined that nearly $77,000 in federal tax refunds were direct deposited from fifty-two separate fraudulent tax returns filed with the IRS.

Scarlett used the PII to make fraudulent cards to sell to another individual.  Scarlett earned between $1,000 to $2,000 a week, for the cards.  Some of the PII was also used to file false tax returns with the IRS. On the computer, law enforcement found 228 separate login user identifications used to file false income tax returns claiming approximately $290,000.

Mr. Ferrer commended the investigative efforts of IRS-CI and the FHP. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.

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.

 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Attorney General Loretta E. Lynch, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Norbert E. Vint, Acting Inspector General, U.S. Office of Personnel Management, Office of Inspector General (OPM-OIG), Pam Bondi, Florida Attorney General, George M. Karavetsos, Director, U.S. Food and Drug Administration’s (FDA) Office of Criminal Investigations (OCI), John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Southeast Field Office, Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Diane J. Sabatino, Director, Field Operations, U.S. Customs and Border Protection (CBP), and Frank Robey, Director, U.S. Army Criminal Investigative Command’s, Major Procurement Fraud Unit, announce that 100 South Florida residents were charged for their alleged participation in various schemes to defraud Medicare and Medicaid out of approximately $220 million.  The charges in South Florida are part of a nationwide takedown by Medicare Fraud Strike Force operations in 36 federal districts that resulted in charges against 301 individuals, including 61 doctors, nurses, and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $900 million in false billings.  In addition, the HHS Centers for Medicare & Medicaid Services (CMS) also suspended a number of providers using its suspension authority as provided in the Affordable Care Act.  This coordinated takedown is the largest in the history of the Medicare Fraud Strike Force.

The defendants announced today are charged with various health care fraud-related crimes, including conspiracy to commit health care fraud, violations of the anti-kickback statutes, money laundering and aggravated identity theft.  The charges are based on a variety of alleged fraud schemes involving various medical treatments and services, including home health care, psychotherapy, physical and occupational therapy and prescription drugs.  Approximately 28 South Florida defendants are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall. 

U.S. Attorney Wifredo A. Ferrer stated, “The United States Attorney’s Office for the Southern District of Florida remains relentless in combating health care fraud. The takedown announced today is the largest in the history of the Southern District of Florida in terms of the number of defendants charged. It also demonstrates that we continue to prosecute every link in the health care fraud chain - from the pharmacy or home health agency owner that submits false claims to the Medicare beneficiaries who decide to abuse their health care privileges by accepting kickbacks from patient recruiters, to the medical professionals whose judgment becomes compromised by the payment and receipt of kickbacks, we will find them and bring them to justice. I thank our federal, state and local law enforcement partners who with our Office stand committed to find, stop and punish those who steal from a program that provides the security of health care to the most needy in our society.”

“As this takedown should make clear, health care fraud is not an abstract violation or benign offense – It is a serious crime,” said Attorney General Lynch.  “The wrongdoers that we pursue in these operations seek to use public funds for private enrichment.  They target real people – many of them in need of significant medical care.  They promise effective cures and therapies, but they provide none.  Above all, they abuse basic bonds of trust – between doctor and patient; between pharmacist and doctor; between taxpayer and government – and pervert them to their own ends.  The Department of Justice is determined to continue working to ensure that the American people know that their health care system works for them – and them alone.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare and Medicaid for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, Medicare beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare for services that were medically unnecessary or never performed.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of conspiring to submit a total of approximately $900 million in fraudulent billing.

“Health care providers and patients are key to protecting the Medicare and Medicaid programs, but when they instead choose to commit fraud and engage in widespread kickback schemes, they steal precious tax dollars and corrupt the integrity of our health care system,” said Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health & Human Services Office of Inspector General (OIG).  “This takedown reflects the dedication of OIG and our law enforcement partners to bring such fraudsters to justice.”

Acting Inspector General Norbert E. Vint stated, “Today’s arrests demonstrate that the U.S. Government will not tolerate fraud in the compounding pharmacy industry.  We appreciate the efforts of all the investigating agencies and the Department of Justice that have held these individuals accountable for their actions, and thereby protected taxpayer funded health care programs, including the Federal Employees Health Benefits Program.”  

Florida Attorney General Pam Bondi stated, “With this historic fraud takedown we are sending the message to anyone scheming to steal from our Medicaid and Medicare programs that we will find them and they will be held accountable.  Thanks to the joint efforts of my Medicaid Fraud Control Unit and our federal partners, this takedown has stopped millions of dollars in potential future fraud and will ensure those responsible are held to account.”

“Healthcare providers who dispense prescription drugs that are medically unnecessary put patients’ health at risk,” said George M. Karavetsos, Director, FDA Office of Criminal Investigations. “The FDA will continue to pursue those who perpetrate fraudulent schemes that target the health and safety of consumers.”

“These arrests demonstrate an unrelenting effort by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. “Fraud and abuse by pharmacies, marketing entities, and medical providers involved in fraudulent compounded drug prescriptions is a significant threat to the DoD health care system. DCIS will fully pursue both criminal and civil remedies to recover taxpayer dollars and bring justice to violators who target American service members, veterans, and their families.”

“These arrests should send a clear message to all pharmacies that FEHB fraud is a federal crime that carries serious consequences and will not be tolerated,” said Special Agent in Charge Max Eamiguel, U.S. Postal Service, Office of Inspector General (USPS-OIG.) “We along with our law enforcement partners will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”

“We utilize our extensive financial and money laundering investigative authorities to combat fraud throughout our economy, especially in areas such as identity theft and health care fraud,” said Robert C. Hutchinson, Acting Special Agent in Charge of HSI Miami.  “Due to the importance of the health care sector, these investigations are particularly critical for our nation.”

“U.S. Customs and Border Protection is committed to fighting fraud by providing unparalleled support to an ever-expanding network of law enforcement partners across Florida,” said Diane J. Sabatino, Director Field Operations for Miami/Tampa Field Offices. “CBP enforces more than 400 laws and regulations for 40 different agencies and will continue to work alongside local, state, and federal government partners every day to protect the public.”

“We are very pleased with the results of this complex and lengthy investigation and today’s announcement is a textbook example of seamless interagency law enforcement cooperation and teamwork,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  “Our agency stands ready and able to fully investigate allegations of this nature that impact DOD and the American taxpayers.”

In the Southern District of Florida, a total of 100 defendants were charged with offenses relating to their participation in various fraud schemes involving approximately $220 million in false billings for home health care, mental health services and pharmacy fraud.  Below are some of the cases included in the takedown:

A. MEDICARE PART D

1.  United States v. Edgardo Lobo, et al., Case No. 16-20334-CR-Lenard

Edgardo Lobo, 50, of Miami, the owner or operator of Oshun Pharmacy, Lycan Services, Accalia Crative and Formula Pharmaceuticals; Ileana Calvo, 51, of Miami, the president of Universal Healthcare; and Juan Carlos Acosta, 53, of Hialeah, president of Pharmmed Delivery, were charged with one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive health care kickbacks, and one count conspiracy to commit money laundering.  Additionally, Edgardo Lobo was charged with five counts of health care fraud, and seven counts of money laundering; Ileana Calvo was charged with two counts of money laundering; and Juan Carlos Acosta was charged with three counts of money laundering.  The charges stem from the defendants’ role in a $4.8 million pharmacy fraud scheme. 

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG.  This case is being prosecuted by DOJ Attorney Lisa Miller of the Criminal Division’s Fraud Section.

 

2.  United States v. Nereida Montejo, et al, Case No. 16-20400-CR-Scola

Nereida Montejo, 65, of Miami, owner and operator, Nerta Rodriguez, 73, of Miami, operator, and Carlos Hernandez, 64, of Miami, patient recruiter, all for New Pharmacy Discount, Corp., were charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks.  Montejo and Rodriguez were additionally charged with one count of conspiracy to commit health care fraud and wire fraud.  Montejo was also charged with nine counts of health care fraud, and four counts of payment of kickbacks in connection with a federal health care program.  The charges stem from each defendants’ alleged role in a $5.2 million scheme, whereby Montejo, as the owner and operator of New Pharmacy, paid kickbacks and bribes to patients and patient recruiters in order to bill both Medicare and Medicaid for medications that were not purchased.  

Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and the State of Florida Medicaid Fraud Control Unit. This case is being prosecuted by DOJ Attorney Stephen Cincotta of the Criminal Division’s Fraud Section.

 

3.  United States v. Arturo Rodriguez Sr, Case No. 16-20425-CR-Lenard

Arturo Rodriguez, 69, of Miami, owner and operator of Olympia Discount, Corp. was charged with conspiracy to commit health care fraud and wire fraud, and conspiracy to defraud the United States and pay health care kickbacks.  The charges stem from Rodriguez’s alleged role in a $2.6 million scheme, whereby Rodriguez, as the owner and operator of the Olympia Discount pharmacy, paid kickbacks and bribes to patients and patient recruiters in order to bill Medicare for medications that were not prescribed to patients, were not necessary, and were not purchased.  

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Stephen Cincotta of the Criminal Division’s Fraud Section.   

 

4.  United States v. Andy Armas, Case No. 16-20474-CR-Middlebrooks

Andy Armas, 34, of Miami, owner and operator of Millenium Pharmacy and Marlins Pharmacy, was charged with one count of conspiracy to commit health care fraud and wire fraud, four counts of health care fraud, and one count of conspiracy to defraud the United States and pay health care kickbacks.  The charges stem from Armas’s role in a $5.7 million scheme, whereby Armas, as the owner and operator of Millenium and Marlins pharmacies paid kickbacks and bribes to patients and patient recruiters in order to bill Medicare for medications that were not purchased. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Stephen Cincotta of the Criminal Division’s Fraud Section.   

 

5.  United States v. Niurka Fernandez and Roberto Alvarez, Case No. 16-20391-CR-Moreno

Niurka Fernandez, 54, of Miami, and Roberto Alvarez, 29, of Sweetwater, were charged with allegations that they participated in a health care fraud conspiracy involving two pharmacies, Calan Pharmacy and Best Pharmacy, both located in Miami.  According to the indictment, the scheme involved paying kickbacks to patient recruiters and Medicare beneficiaries, as well as billing Medicare for prescription drugs that were never in fact dispensed.  Both defendants were charged with conspiracy to commit health care fraud and wire fraud; conspiracy to commit money laundering; and substantive counts of money laundering.  Additionally, Fernandez was charged with five substantive counts of health care fraud.  In total, the indictment alleges a loss of over $16 million. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney L. Rush Atkinson of the Criminal Division’s Fraud Section.   

 

6.  United States v. Reinaldo Morey, et al., Case No. 16-20460-CR-Cooke

Reinaldo Morey, 50, and Niurka De La Caridad Morey, 50, both of Miami, were charged with conspiracy to commit health care fraud and health care fraud for using their pharmacy, Dalice Medical Equipment to bill Medicare for prescriptions that were never dispensed to the patients.  The loss to Medicare was over $3.4 million.                

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Elizabeth Young of the Criminal Division’s Fraud Section

 

7. United States v. Carlos Cardenas, Case No. 16-20480-CR-Gayles

Carlos Cardenas, 47, of Miami, a pharmacy owner, was charged with health care fraud.  The charges stem from Cardenas using his pharmacy, Nuestra Pharmacy, to bill Medicare for $730,000 in prescriptions that were never dispensed.               

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Elizabeth Young of the Criminal Division’s Fraud Section.  

 

8.  United States v. Marlenis Fernandez, Case No. 16-20486-CR-Moore

Marlenis Fernandez, 51, of Miami, owner of United Care Pharmacy, was charged with conspiracy to commit health care fraud.  The charges stem from Fernandez’s alleged role in a scheme to defraud Part D of the Medicare program by billing for more than $900,000 of prescription drugs that were never purchased, never provided and were not medically necessary.  As a result of the scheme, Medicare paid over $900,000 in fraudulent claims. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.   

9.  United States v. Gabriela Alegria, Case No. 16-20485-CR-Lenard

Gabriela Alegria, 43, of Miami, owner of GAC Investor Corporation, was charged with conspiracy to commit money laundering.  The charges stem from Alegria’s alleged involvement in a scheme in which the defendant established and maintained signature authority on business accounts that she used to launder over $700,000 in proceeds from a Medicare fraud scheme.            

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.   

 

10.  United States v. Anet Martinez Gonzalez, Case No. 16-20450-CR-Scola

Anet Martinez Gonzalez, 43, of Dania, was charged with conspiracy to commit health care fraud and wire fraud.  The Information alleges that Gonzalez was the manager of Calle Ocho Pharmacy in Miami.  The Information further alleges that Gonzalez submitted and caused the submission of false and fraudulent claims to Medicare and Medicare drug plan sponsors for prescription drugs that were not actually provided to Medicare beneficiaries.  As a result of these false and fraudulent claims, Medicare drug plan sponsors made payments funded by Medicare in the approximate amount of $273,757.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein.

11.  United States v. Jose Nunez, Case No. 16-20458-CR-Scola

Jose Nunez, 64, of Miami, was charged with conspiracy to commit money laundering, money laundering, and witness tampering.  The Indictment alleges that Nunez laundered approximately $196,500 in health care proceeds drawn from corporate accounts belonging to La Esperanza Pharmacy Discount, Inc.  The Indictment further alleges that Nunez knowingly attempted to and engaged in witness tampering by directing an individual to falsely state that the monies provided to him were a loan for the purchase of certain real estate, with the intent to hinder and prevent the communication to federal agents of the United States Department of Health and Human Services, Office of Inspector General, and the FBI, rather than illegal proceeds from health care fraud. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.

 

12.  United States v. Roslane Pichs, et al., Case No. 16-20479-CR-Ungaro         

Roslane Pichs, 41, Daniel Pichs Gonzalez, 64, and Raquel Castro, 63, all of Miami, were charged with conspiracy to commit health care fraud and wire fraud.   Pichs and Gonzalez were also charged with six counts of substantive health care fraud.  The Indictment alleges that Pichs, Gonzalez, and Castro submitted and caused the submission of fraudulent claims, via interstate wire, that falsely represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided to Medicare beneficiaries by the defendants’ businesses, Mazal Tov Pharmacy, Inc. and Angel’s Light Pharmacy & Discount.  As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors made payments funded by the Medicare Part D Program to the corporate bank accounts controlled by the three defendants in the approximate amount of $7,709,636.

Mr. Ferrer commended the investigation efforts of HHS-OIG and ICE-HSI.  This case is being prosecuted by Assistant U.S. Attorney Roger Cruz.

 

13.  United States v. Alexis Avila, et al., Case No. 16-20471-CR-Altonaga

              

Alexis Avila, 39, Raiza Ruiz, 43, and Yis Fernandez, 36, all of Hialeah, were charged with conspiracy to commit health care fraud.  The Information alleges that Avila, Ruiz, and Fernandez submitted and caused the submission of claims, via interstate wire, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor, and had been provided by La Esperanza Pharmacy Discount, Inc., in Hialeah, to Medicare beneficiaries.  La Esperanza was purportedly a pharmacy that provided Medicare beneficiaries with various pharmaceutical items and services. As a result of such false and fraudulent claims, Medicare prescription drug plan sponsors, made payments funded by the Medicare Part D Program to the corporate bank accounts of La Esperanza in the approximate amount of $6,747,469.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Christopher Clark.

 

14.  United States v. Dora Josefa Robaina, Case No. 16-20490-CR-Bloom

Dora Josefa Robaina, 48, of North Bay Village, was charged with failure to appear, in violation of Title 18, United States Code, Section 3146.  In the case of United States v. Dora Josefa Robaina, Case No. 15-20799-CR-Middlebrooks, the defendant was previously sentenced to thirty three months in prison after she pled guilty to accessory after the fact in connection with her role in deceiving federal agents who attempted to arrest Antonio Hevia and Pedro Torres, two defendants who were involved in the submission of $16.7 in false claims to Medicare.  At the sentencing hearing, Robaina was ordered to surrender to the Bureau of Prisons on June 10, 2016 and she failed to do so.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG.  This case is being handled by Assistant U.S. Attorney James Hayes.

 

B.  HOME HEALTH

 

15.  United States v. Daylin Cabrera, et al, Case No. 16-20476-CR-Zloch

Daylin Cabrera, 33, the owner of a fraudulent physical therapy staffing company; Raciel Leon, 42, the office manager of a fraudulent home health care company; and Alex Lopez Huergo, 37, all of Miami, the owner of a fraudulent home health care company were charged with conspiracy to commit health care fraud and one count of conspiracy to pay and receive kickbacks.  Additionally, Cabrera was charged with two counts of health care fraud.  The charges stem from their role in a $2.5 million home health care fraud scheme. 

Mr. Ferrer commended the investigative efforts of FBI and HHS-OIG. This case is being prosecuted DOJ Attorneys Lisa Miller and Elizabeth Young of the Criminal Division’s Fraud Section.

 

16.  United States v. Jose Avila, M.D. and Michael Bahrami, M.D., Case No. 16-20471-CR-Altonaga

Jose Avila, 58, of Hallandale, and Michael Bahrami, 60, of Golden Beach, two medical doctors, were charged with conspiracy to defraud the United States and receive health care kickbacks.  Avila was also charged with one count of receiving health care kickbacks.  The charges stem from their involvement in a $57 million home health fraud scheme involving paying kickbacks to doctors and patient recruiters, and billing for services that were not necessary and/or not provided.  Avila was previously charged by Complaint with receiving kickbacks in connection with a federal health care program.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section.   

 

17.  United States v. Cynthia Vilches, Case No. 16-20466-CR-Moore

Cynthia Vilches, 47, of Miramar, owner of Healthy Choice Home Health, was charged with one count of conspiracy to commit health care fraud.  The charge arises from Vilches’ role in a $56 million home health fraud scheme involving paying kickbacks to doctors and patient recruiters, and billing for services that were not necessary and/or not provided. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section.  

 

18.  United States v. Reidy Gonzalez, et al., Case No. 16-20464-CR-Zloch

Reidy Gonzalez, 43, and Yelina Isabel Gonzalez, 44, both of Miami, were charged with one count of conspiracy to defraud the United States and pay health care kickbacks.  The charges stem from allegations that both defendants, who owned and controlled Dade-Kendall Home Healthcare Services, Inc., a home health agency in Miami, paid kickbacks to a patient recruiter in exchange for patients and billed Medicare for those patients. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney L. Rush Atkinson of the Criminal Division’s Fraud Section.   

 

19.  United States v. Mildrey Gonzalez, et al., Case No. 16-20461-CR-Martinez

Mildrey De La Caridad Gonzalez, 61, of Miami Beach, Milka Yarlin Alfaro, 39, of Miami Beach, Adriana Damas Jalil, 38, of Miami, and Luis Enrique Luzardo, 47, of Miami, were indicted on charges stemming from their respective roles in a scheme to defraud Medicare resulting in losses over $24 million.  The alleged scheme involved six home health agencies in the greater Miami area, all of which are alleged in the Indictment to have been owned and controlled by Gonzalez and Alfaro.  Gonzalez and Alfaro were charged with one count of conspiracy to commit health care fraud and wire fraud; seven counts of health care fraud; conspiracy to defraud the United States and pay and receive kickbacks in connection with a federal health care benefit program; conspiracy to commit money laundering, and substantive counts of money laundering.  Jalil was charged with one count of conspiracy to defraud the United States and pay and receive kickbacks in connection with a federal health care benefit program and three substantive counts of receiving kickbacks in in connection with a federal health care benefit program.  Luzardo was charged with one count of conspiracy to commit money laundering and two substantive counts of money laundering. 

          Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Trial Attorney L. Rush Atkinson of the Criminal Division’s Fraud Section.   

 

20.  United States v. Noemi Rodriguez, Case No. 16-20413-CR-Moreno

Noemi Rodriguez, 52, of Hialeah, President and Operator of US Care Network, Inc., was charged with conspiracy to defraud the United States and to solicit and receive kickbacks and four counts of soliciting and receiving kickbacks.  The charges arise from Rodriguez’s alleged involvement in recruiting patients and providing prescriptions for home health agencies in exchange for kickbacks.  

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Katherine Payerle of the Criminal Division’s Fraud Section.   
 

 

21.  United States v. Armando Salazar, Case No. 16-20379-CR-Moreno

Armando Salazar, 65, of Miami, President and Director of Monzon Medical Diagnostic Corp., was charged with conspiracy to defraud the United States and receive health care kickbacks, receiving kickbacks in connection with a federal health care program, and three counts of health care fraud.  The charges arise from Salazar’s alleged role in a $1.4 million scheme involving kickback payments for home health prescriptions. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Katherine Payerle of the Criminal Division’s Fraud Section.    

 

22.  United States v. Joanna Carpio and Leonie Dorce,             Case No. 16-20412-CR-Gayles

Joanna Carpio, 25, of Miami, clinic office manager, and Leonie Dorce, 71, of Miami Lakes, Advanced Registered Nurse Practitioner, at City Center Rehab Corp., were charged with conspiracy to commit health care fraud.  Carpio was also charged with conspiracy to defraud the United States and receive health care kickbacks.  The charges arise from Carpio and Dorce’s alleged role in a more than $36 million scheme involving payment of kickbacks for prescriptions and referrals for home health care and other medical services.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Katherine Payerle of the Criminal Division’s Fraud Section. 

 

23.  United States v. Francisco Correa Delgado, Case No. 16-20482-CR-Moreno

 

Francisco Correa Delgado, 46, of Hialeah, President and Director of the home health agency, H&E Home Care, Inc., was charged with four counts of health care fraud for his role in a $3.1 million scheme.  The charges arise from Delgado’s ownership of a home health agency that billed Medicare for home health services that were never prescribed by a licensed physician or provided to Medicare beneficiaries. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Katherine Payerle of the Criminal Division’s Fraud Section.  

 

24.  United States v. Dagoberto Morales, Case No. 16-20414-CR-Altonaga

Dagoberto Morales, 36, of Hialeah, President and Director of the home health agency, Samy Nursing Corp., Inc., was charged with four counts of health care fraud for his role in a $6 million scheme.  The charges arise from Morales’ ownership of a home health agency that allegedly billed Medicare for home health services that were never prescribed by a licensed physician or provided to Medicare beneficiaries.      

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Angela Adams of the Criminal Division’s Fraud Section.  

 

25.  United States v. Dayami Martinez and Yadira Robertson, Case No. 16-20431-CR-Cooke 

Dayami Martinez, 41, of Miami, Director of Nursing for two home health agencies, and Yadira Robertson, 55, of Miramar, physical therapy assistant working for a therapy staffing company, were charged with conspiracy to commit health care fraud and wire fraud.  Martinez was also charged with two counts of false statements in connection with a federal health care program, and Robertson was charged with 10 counts of that crime.  The charges arise from their involvement in an $830,000 fraud scheme between the therapy staffing company, R.C. Therapy, and two home health agencies, Maya Home Health and Floridian Home Health.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section.   

 

26.  United States v. Elvis Hernandez, Case No. 16-20415-CR-Moore

Elvis Hernandez, 43, of Hialeah, President and Director of the home health agency, Global Nursing Association, Inc., was charged with three counts of health care fraud for his role in a $3.5 million scheme.  The charges arise from Hernandez’s ownership of a home health agency that allegedly billed Medicare for home health services that were never prescribed by a licensed physician or provided to Medicare beneficiaries. 

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Angela Adams of the Criminal Division’s Fraud Section.   

 

27.  United States v. Pavel Aguila, et al., Case No. 16-20478-CR-Williams

Pavel Aguila, 42, of Miami, Laura Perez, 48, of Miami, and Emilio Enriquez, 53, of Florida City, were charged with conspiracy to defraud the United States and substantive counts of receiving kickbacks in connection with a federal health care program.  The indictment alleges that Aguila, Perez, and Enriquez were patient recruiters who accepted kickbacks in return for referring Medicare beneficiaries to Casper Home Health, a Miami-Dade based home health agency

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Kevin Larsen.

 

28.  United States v. Carlos F. Valencia, et al., Case No. 16-20462-CR-Moreno

Carlos F. Valencia, 45, of Miami Lakes, Rosa M. Cabrera, 58, of Hialeah, Reynaldo Cubilla, 64, of Miami, Josefina Caridad Fornells, 77, of Miami, Epifania Gonzalez, 76, of Miami, Francisco Emilio Hernandez, 83, of Miami, Evelio Linares, 82, of Miami, Zoila Miranda, 59, of Miami, Jacinto Margarito Montenegro, 84, of Miami, Francisco Oramas, 82, of Miami, and Electo Pena, 65, of Miami, were charged with conspiracy to pay and receive health care kickbacks and substantive counts of paying and receiving kickbacks.  The Indictment alleges that Valencia was the owner of D’Val home health agency, a company that purportedly provided skilled nursing services to homebound Medicare beneficiaries. The Indictment alleges that Valencia paid kickbacks to patient recruiters who referred Medicare beneficiaries.  The Indictment further alleges that Medicare beneficiaries Hernandez, Linares, Miranda, Montenegro, Oramas, and Pena accepted kickbacks in return for agreeing to serve as patients for the home health agency.  The indictment alleges that these kickbacks ranged in amounts from $760 to $1,200.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Michael Nadler.

 

29.  United States v. Sulman Bonilla, Case No. 16-20401-CR-Dimitrouleas        

Sulman Bonilla, 46, of Miami, was charged with conspiracy to defraud the United States and pay health care kickbacks, and substantive counts of paying health care kickbacks.  The Indictment alleges that Bonilla paid kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to American Way Home Care, a Miami-Dade home health care agency.  The Indictment further alleges that Bonilla caused American Way Home Care to submit claims to Medicare for services purportedly provided to the recruited beneficiaries.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.

 

30.  United States v. Erika Bonilla, et al., Case No. 16-20402-CR-Lenard              

Erika Bonilla, 41, and Emmanuel Ventura, 48, both of Miami, were charged with conspiracy to defraud the United States and pay health care kickbacks, and substantive counts of paying health care kickbacks.  The Indictment alleges that Bonilla and Ventura paid kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to America Home Health, a Miami-Dade home health care agency.  The Indictment further alleges that Bonilla and Ventura caused America Home Health to submit claims to Medicare for services purportedly provided to the recruited beneficiaries.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Amanda Perwin.

 

C.  COMMUNITY MENTAL HEALTH

31.  United States v. Caridad Turner, Case No. 16-20443-CR-Altonaga

Caridad Turner, 43, of Miami, a clinical director of a now defunct partial hospitalization program a Greater Miami Behavioral Health, was charged with conspiracy to commit healthcare fraud.  The charges stem from the defendant’s role in a $60 million scheme to defraud the federal Medicare program.            

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Elizabeth Young of the Criminal Division’s Fraud Section.   

 

32.  United States v. Felix Lamelas, et al., Case No. 16-20453-CR-Zloch

Felix Lamelas, 60, of Miami, Dunia Ayala, 50, of Miami, Jose Ortiz, 58, of Hialeah, Hildara Urquiola, 77, of Pembroke Pines, and Marta Maggi, 80, of Pembroke Pines, were charged for their role in recruiting patients for the now defunct partial Hospitalization program at Greater Miami Behavioral Health.   All defendants were charged with conspiracy to pay and receive kickbacks in connection with a federal health care benefit program for their roles in a $60 million fraud scheme.           

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by DOJ Attorney Elizabeth Young of the Criminal Division’s Fraud Section.   

 

D.  MEDICARE PART C (MEDICARE ADVANTAGE)

 

33.  United States v. Ruth Aracelly Garcia, Case No. 16-20483-CR-Altonaga

                

Ruth Aracelly Garcia, 37, of Miami, a former office manager of Santiago Montoya, M.D., was charged with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States, and making false statements related to a health care matter.  The Indictment alleges that Garcia and her co-conspirators recruited Medicare beneficiaries residing in Nicaragua to enroll in Medicare Advantage plans, submitted plan enrollment requests on behalf of Medicare beneficiaries that falsely and fraudulently represented that the beneficiaries resided in the plans service area within Florida, and enrolled Medicare beneficiaries residing in Nicaragua into Florida Medicaid by falsely and fraudulently representing that the beneficiaries resided in the United States.

Mr. Ferrer commended the investigative efforts of the FBI, HHS-OIG and the State of Florida Medicaid Fraud Control Unit. This case is being prosecuted by Special Assistant U.S. Attorney Hagerenesh Simmons from the Florida Attorney General Office, Medicaid Fraud Control Unit.

 

E.  PRIVATE INSURANCE

 

34.  United States v. Rogelio Alonso, et al., Case No. 16-20457-CR-Williams

                

Rogelio Alonso, 49, Mercedes Alonso, 48, and Sheneider Telfort, 32, all of Miami, were charged with conspiracy to commit health care fraud and substantive counts of health care fraud. The Indictment alleges that Rogelio Alonso, Mercedes Alonso, Sheneider Telfort, and their co-conspirators submitted and caused the submission of false and fraudulent claims to private insurance plans, via interstate wire transmission, including Blue Cross Blue Shield (“BCBS”), Cigna, AvMed, and United Health Care (“UHC”), on behalf of various medical clinics seeking approximately $10,662,813 as reimbursement for injection treatments, physical therapy treatments, and other medical items and services which were neither ordered by a physician nor provided to a beneficiary as claimed.  As a result of such false and fraudulent claims, Rogelio Alonso, Mercedes Alonso, Sheneider Telfort, and their co-conspirators caused private insurance plans, including BCBS, Cigna, and UHC, to make payments to the medical clinics totaling approximately $2,253,322.

Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant United States Attorney Christopher Clark.  

 

F.  TRICARE

35.  United States v. Celep Simsir, et al., Case No. 16-20399-CR-Gayles

Celep Simsir, 35, and Sonsoles Simsir 39, both of Jacksonville, were charged with conspiracy to commit health care fraud and mail fraud, conspiracy to pay and receive health care kickbacks, substantive counts of health care fraud and the payment and receipt of kickbacks, in connection with a conspiracy to defraud TRICARE, a United States Department of Defense health insurance programs for military personnel and their dependents. Nigal Mitchell, 25, of Jacksonville, and Andrea Rivera-Lorenzo 28, of Puerto Rico, were charged with for receiving kickbacks in return for recruiting TRICARE beneficiaries to participate in the fraudulent scheme.           

The Indictment alleges that Celep Simsir and Sonsoles Simsir paid health care kickbacks to a doctor and a physician’s assistant in the Southern District of Florida in return for prescriptions for compounded medications which were not medically necessary. These medical professionals never examined or spoke with the patients.  These prescriptions were then filled at a pharmacy in the Southern District of Florida which submitted approximately $25,763,938 in false and fraudulent claims.  As a result of these claims, TRICARE made payments of $21,293,201 to the pharmacy. 

According to detention hearing testimony, during the course of affecting the arrest of Celep Simsir and Sonsoles Simsir, federal agents allegedly seized approximately $344,000 in cash, seven firearms, including an AR-15 rifle, a Lamborghini and a Porsche.  Agents also executed seizure warrants that resulted in the seizure of over $2 million.

Mr. Ferrer commended the investigative efforts of DCIS, USPIS-OIG, FDA-OCI, OPM-OIG and U.S. Army Criminal Investigative Command's, Major Procurement Fraud Unit.  This case is being prosecuted by Assistant U.S. Attorneys Daniel Bernstein and Evelyn B. Sheehan. 

 

If convicted of a charged offense, a defendant faces a possible maximum statutory sentence of five years in prison for conspiracy to defraud the United States by paying and receiving health care kickbacks, in violation of Title 18, United States Code, Section 371; five years in prison for payment and receipt of kickbacks in connection with a federal health care program, in violation of Title 42, United States Code, Section 1320a; twenty years in prison for mail or wire fraud, in violation of Title 18, United States Code, Section 1341; ten years in prison for health care fraud, in violation of Title 18, United States Code, Section 1347; twenty years for conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349; and twenty years for money laundering or conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations and since its inception in March 2007 has charged over 2,900 defendants who collectively have falsely billed the Medicare program for over $8.9 billion. 

A complaint, information or indictment is merely a charge, and defendants are presumed innocent until proven guilty.

To learn more about 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. 

 

 

 

 

 

 

 

 

 

 

A Homestead resident was sentenced to three years’ probation for illegally trafficking in marine life.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Tracy Dunn, Assistant Director Southeast Region, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, announced that Dan Q. Lin, 43, of Homestead, Florida, was sentenced today in Key West to three years’ probation for conspiring to violate the federal Lacey Act by transporting, selling, receiving, acquiring, and purchasing  a Florida spiny lobster, in violation of Title 16, United States Code, Sections 3372(a)(2)(A) and 3373(d)(1).

In a previous related matter, Eric Burman, 42, of Boca Raton was convicted of a similar charge and was ordered to serve a three year term of probation and to pay a fine of $250,000 in Case No. 14-10008-CR-KING.  According to statements in Court, Burman was President and the sole Director of a Florida corporation with its principal place of business in Pompano Beach, FL. Burman, through the business entity, was engaged in the wholesale commercial seafood industry, including the export of live Florida spiny lobster to the seafood market in China. At the same time, Lin was the Director and owner of a Florida corporation also located in the Pompano Beach area.

According to court documents, both defendants admitted, that during August and September 2010, they purchased spiny lobster from harvesters in Monroe County, Florida without creating and providing to the harvesters and the Florida Fish & Wildlife Conservation Commission, trip tickets reflecting the transaction.  Thereafter, Lin caused the lobster to be transported to Burman’s corporate business premises in Pompano Beach for packing and shipping.  Burman agreed to allow Lin to package, mark, and ship the spiny lobster under his corporate entity’s name and through his shipping agent. The lobster was transported from Pompano Beach to a commercial airfreight carrier at Miami International Airport and exported to Hong Kong, China. The charge against Lin identified a specific shipping transaction in August 2010 involving approximately 446 kilograms of illegally trafficked spiny lobster.

Mr. Ferrer commended the investigative efforts of NOAA’s Office of Law Enforcement and ICE-HSI, who participated in the development of this case.  This case was 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.

A tax service business owner was sentenced to 4 ½ years in prison for his participation in a stolen identity tax refund fraud scheme. 

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), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

Johny Wolf Jasmin, 32, of Boca Raton, was sentenced to 54 months in prison, followed by three years of supervised release as to Count 1 and one year of supervised release as to Count 10, and was ordered to pay joint and several restitution in the amount of $ 241,429. Jasmin 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, and one count of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 2.

According to court documents, Jasmin owned and operated a tax service business called Wolf Vision, Inc. located in Hollywood, Florida.  During the course of the investigation, law enforcement learned three separate Electronic Filing Identification Numbers (EFINs) were used to file false and fraudulent tax returns from Jasmin’s business.  One of those EFINs was assigned to co-defendant Carneisha Patrice Mitchell, 31, of Miami.  Based upon this information, law enforcement executed a search warrant at Jasmin’s business and recovered computers, thumb drives, prepaid debit cards, and numerous documents that contained over 2,100 names, dates of birth, and social security numbers that belonged to living and deceased individuals.

In fact, a review of Jasmin’s personal income tax for the 2014 tax year showed that Jasmin obtained the name, date of birth and social security number of a child who had passed away and later used that information to fraudulently claim the deceased child as one of his dependents. 

In addition, law enforcement learned that an IRS treasury tax refund check in the name of a deceased individual was deposited into Mitchell’s personal checking account.  Thereafter, Mitchell used the money from the IRS treasury check for her personal use. 

As a result of Jasmin and his co-conspirator’s fraudulent conduct, over 220 false and fraudulent federal income tax returns were filed with the IRS using stolen personal identifying information of living and deceased individuals.  Further, over $1.5 million in tax refunds were sought from the false and fraudulent income tax returns filed from Jasmin’s tax business.

Co-defendant Mitchell was sentenced to three years of probation, and was ordered to pay restitution in the amount of $ 9,437. The defendant previously pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2.

Mr. Ferrer commended the investigative efforts of FBI, IRS-CI and ICE-HSI.  This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.  

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

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Timoteo Reyes-Perez, 35, of Mexico, was sentenced by U.S. District Judge Kenneth A. Marra to 20 years in prison. 

Reyes-Perez previously pled guilty to sex trafficking of a minor, in violation of Title 18, United States Code, Sections 1591(a)(1) and (b)(2).  Reyes-Perez, who was originally charged by authorities in 2008, was a fugitive until last year, when he was extradited to the United States from Mexico.

According to court documents, Reyes-Perez met and married his victim in Mexico when she was 14 years old.  Soon after, Reyes-Perez smuggled her across the border into the United States and proceeded to transport her to New York, Atlanta, and finally, the Southern District of Florida.  Reyes-Perez prostituted the victim at brothels in multiple locations, including West Palm Beach.  At times, she was forced to have sex with up to 30 men per night.  Reyes-Perez kept the proceeds of her prostitution.  At sentencing, the victim spoke about how Reyes-Perez had forced her into prostitution against her will, using physical and sexual violence to ensure her compliance.  She also spoke about the lasting emotional and psychological damage she sustained.

Five other defendants who were also charged in the same indictment pled guilty to sex trafficking of a minor and were sentenced in 2009 to terms of imprisonment ranging from 60 to 160 months.

Mr. Ferrer commended the investigative efforts of ICE-HSI.  The case was prosecuted by Assistant U.S. Attorney Olivia S. Choe.

Human trafficking must stop. To report suspected human trafficking occurring in South Florida, please call the National Human Trafficking Resource Center Hotline at 1-888-373-7888.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Pembroke Pines, Florida couple was sentenced to prison for their role in a stolen identity tax refund fraud scheme, announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly Jackson of the Internal Revenue Service–Criminal Investigation (IRS-CI).

On June 16, U.S. District Judge Beth Bloom for the Southern District of Florida sentenced Rhonda Perry Gittens, 35, to serve 75 months in prison, followed by three years of supervised release.  Gittens’ boyfriend and co-conspirator, Walther Wilson Godfrey, 37, was previously sentenced on April 15 to serve 75 months in prison, followed by three years of supervised release.  Judge Bloom also ordered Godfrey and Gittens to pay $792,442 in restitution to the IRS.  Godfrey and Gittens pleaded guilty in January to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud.   

U.S. Attorney Ferrer stated: “This sentence should serve as a warning to anyone who seeks to commit tax fraud or identity theft that federal law enforcement resources will be marshalled against them to discover their crimes and bring them to justice.  We will continue to work tirelessly with all our law enforcement partners to prosecute those crimes.” 

“The sentences imposed by Judge Bloom reflect the serious harm caused by the defendants’ scheme to enrich themselves at the expense of the U.S. Treasury and their identity theft victims,” said Acting Assistant Attorney General Ciraolo.  “The defendants attempted to hide behind a veneer of corporate and nominee identities that ultimately provided no bar to the investigative efforts of our law enforcement partners.  Return preparers who seek to profit through false tax returns face harsh punishment and the result in this case should deter other individuals from engaging in similar schemes.”

“IRS Criminal Investigation (CI) will continue to investigate those who attempt to defraud our nation’s tax system, and we will continue to fight for the innocent victims whose identities are being used in these stolen identity tax refund fraud schemes,” stated Special Agent in Charge Jackson of IRS-CI.  “We are pleased with these sentences, as the defendants are being held accountable for attempting to steal more than $1.5 million from the IRS, possessing device-making equipment for driver’s licenses and credit cards, and recruiting another individual to participate in the crime.”

According to court documents and evidence presented at the sentencing hearing, between July 2009 and August 2014, Godfrey, Gittens and others conspired to defraud the United States by filing false federal income tax returns using stolen identities.  Gittens owned and operated 2G, Inc., a tax return preparation business, and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines.  Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization, to prepare and file false income tax refund claims for the years 2009 through 2011.  Godfrey and Gittens recruited a co-conspirator, Marc Brown, to put Electronic Filing Identification Numbers (EFINs) in his name through which fraudulent income tax returns would be filed.  In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name to negotiate the fraudulently obtained income tax refund checks.  Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.5 million in income tax refunds.  In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.   

U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-CI, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Florida Department of Health supervisor in Broward County was charged with accepting a bribe from home builders. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

The one-count Information charges Anthony Johnson, 58, of Tamarac, Florida, with extortion under color of official right, in violation of Title 18, United States Code, Section 1951.  Johnson is scheduled to appear in federal court on Friday, June 17, 2016, at 10:00 a.m. before U.S. Magistrate Judge Dave Lee Brannon in West Palm Beach, Florida.   

According to the Information, Johnson was an Environmental Supervisor at the Broward County office of the Florida Department of Health located in Fort Lauderdale, Florida.  Two individuals were building a home in Southwest Ranches, Florida, and the home builders sought to obtain a series of approvals, including permits for sewage and water from the Florida Department of Health.  On or about June 16, 2015, Johnson told one of the home builders that he would take care of the permits, “but you have to give me some money.”  On or about June 22, 2015, the home builders met Johnson at a counter in the Broward County office of the Florida Department of Health.  Johnson provided the homebuilders with approved permits for sewage and water.  Johnson then escorted the home builders to the elevator and entered the elevator with the home builders.  While in the elevator, the home builders provided the previously agreed-upon amount of $500 in U.S. currency to Johnson, which defendant Johnson placed in his pocket.

If convicted of the charges in the Information, Johnson faces a possible maximum statutory sentence of up to 20 years in prison. 

Mr. Ferrer commended the investigative efforts of the FBI.  The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.

An Information 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.

On June 10, 2016, a former Miami Beach resident pled guilty for his participation in a $207 million dollar mail fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement. 

John Utsick, 73, formerly of Miami Beach, Florida, pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341.  Utsick faces a maximum statutory sentence of 20 years in prison.  Utsick is scheduled to be sentenced by U.S. District Court Judge Cecilia M. Altonaga on August 23, 2016.           

According to the court record, Utsick was charged by superseding indictment with mail fraud related to his operation of two entertainment companies called The Entertainment Group Fund, Inc. (“TEGFI”) and Worldwide Entertainment, Inc. (“Worldwide) from approximately January 1996 through January 2006.  Utsick was extradited from Brazil to the Southern District of Florida in December 2014.

During the plea hearing, Utsick admitted that, from January 1996 through December 2005, he devised a scheme to defraud investors by making false representations regarding his concert promotion business.  Utsick represented to investors that he would use their money to invest in various concerts, tours, and other entertainment opportunities, and that the investors would receive the greater of guaranteed 10% returns or shares of profits from the various concert ventures.  Relying on those representations, individuals sent Utsick money to invest.  Utsick provided the investors with account balance statements, purporting to show investment profits -often in the range of 10% to 30% profit. 

Contrary to those representations, however, TEGFI and Worldwide lost money from 1995 through 2005, and by mid-2005, Utsick and his companies’ owed investors hundreds of millions of dollars.  Utsick knew that his companies were not profitable and that he could not compensate investors as promised based on the current earnings or the assets of the companies.  Nevertheless, Utsick invested millions of dollars of investor money in stock options trading.  Utsick did not disclose that he intended to use the investors’ money for that purpose, that the stock option trading had nothing to do with the regular activities of Utsick’s concert promotion business, and that he had lost the majority of the investors’ money through stock option trading.  Additionally, Utsick used some of the investor money for his own personal benefit and for the benefit of others, without permission or consent.

In total, based upon Utsick’s misrepresentations regarding the stability of his companies and the guaranteed return rates, the defendant obtained approximately $253,942,517 from approximately 2,928 individuals.  In 2006, at the time the court-appointed receiver took over to operate Utsick’s companies, the defendant had not reimbursed investors a total of $203,477,335.  Following the receivership and liquidated assets, the balance unpaid to the investors totaled $169,177,338.

Pursuant to Utsick’s plea agreement, the United States Attorney’s Office for the Southern District of Florida has agreed to recommend a sentence of 210 months in prison.  Utsick has agreed that the relevant loss value is $207,185,420 and has agreed to pay restitution in the amount of $169,177,338.  A final sentencing determination will be made by U.S. District Judge Altonaga.           

Mr. Ferrer commends the investigative efforts of the FBI.  The case is being prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and H. Ron Davidson.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

 

 

A Coconut Grove resident was sentenced to 24 months in prison, to be followed by two years of supervised release, by United States District Judge Donald M. Middlebrooks, following his conviction for trafficking in counterfeit merchandise, concealing assets, and laundering money. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.

Tatiana F. Tascon, 40, of Coconut Grove, previously pled guilty to trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1);  concealing assets, in violation of Title 18, United States Code, Sections 152(1) and 152(2); and money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i).   As part of Tascon’s sentence, the defendant agreed to forfeit $78,949.45, as well as two properties in Miami, Florida.   

According to court documents, Tascon trafficked in counterfeit goods, including high-end designer handbags, wallets and watches, out of a showroom in her Coconut Grove residence.  While trafficking in counterfeit goods, the defendant filed for and was ultimately granted Chapter 7 bankruptcy protection.  In her bankruptcy filings the defendant failed to report that she had earned over $700,000 from her illicit counterfeit goods business.  Tascon laundered the earnings from her illegal business through the bank accounts of third parties.

Mr. Ferrer commended the investigative efforts of ICE-HSI.  This case was prosecuted by Assistant U.S. Attorneys Robert J. Emery, Daya Nathan, and Eloisa Fernandez.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Miami-Dade County resident was convicted at trial yesterday of distributing and possessing child pornography.

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.

Anthony Daron Johnson, 43, of Miami-Dade, was convicted by United States District Judge Ursula Ungaro of distribution of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1), and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2).  Johnson is scheduled to be sentenced on September 2, 2016 at 1:30 p.m.

According to court documents and evidence presented at trial, between May 23, 2012 and September 21, 2014, Johnson used a peer-to-peer file-sharing program to download hundreds of child pornography files, including videos and still images.  On June 8, 2014, law enforcement downloaded one complete file and one partial file from Johnson, both of which contained images of minors engaged in sexually explicit conduct.  On November 20, 2014, law enforcement executed a federal search warrant at Johnson’s residence and recovered a computer containing two hundred still images and three videos of children engaged in sexually explicit conduct.        

Mr. Ferrer commended the investigative efforts of the FBI.  This case was prosecuted by Assistant U.S. Attorneys Joshua Rothstein and Jonathan Kobrinski.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.

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 Inspector General Michael McCarthy of EXIM Bank made the announcement.

Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol.  Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering. 

Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred.  These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices.  Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices. 

Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM.  Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted.  The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.

Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia.  Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme. 

The EXIM Office of Inspector General investigated the case.  Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud Section prosecuted the case.

A Miami man was sentenced today to 12 years in prison for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM Bank) out of more than $11 million.

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 Inspector General Michael McCarthy of EXIM Bank made the announcement.

Guillermo A. Sanchez-Badia, 61, was sentenced today by U.S. District Judge Joan A. Lenard of the Southern District of Florida, who also sentenced Sanchez-Badia to three years of supervised release and ordered him to forfeit $41,924,418 and pay $11,503,068 in restitution, joint with co-conspirators Isabel C. Sanchez and Gustavo Girol.  Sanchez-Badia pleaded guilty on March 21, 2016, to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering. 

Sanchez-Badia admitted that from 2007 through 2012, he and his co-conspirators utilized companies that they controlled to create fictitious invoices for sales of merchandise that never occurred.  These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices.  Sanchez-Badia admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices. 

Sanchez-Badia admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM.  Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez-Badia and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, he admitted.  The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing losses of more than $9 million to the lenders and $2 million to the United States.

Five other individuals have been convicted for their roles in this scheme: Sanchez, 36, and Giral, 38, both of Miami, who await sentencing; and Freddy Moreno-Beltran, 43, of Bogota, Colombia.  Ricardo Beato, 62, of Miami, and Jorge Amad, 48, of Miramar, Florida, were separately charged, pleaded guilty and have been sentenced for their roles in the scheme. 

The EXIM Office of Inspector General investigated the case.  Trial Attorney William Bowne and Senior Litigation Counsel Patrick Donley of the Criminal Division’s Fraud 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

A California resident was convicted by a Southern District of Florida jury of conspiring to export and cause the export to the People’s Republic of China of fighter jet engines, an unmanned aerial vehicle, commonly known as a drone, and related technical data, in violation of the Arms Export Control Act.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and John Khin, Special Agent in Charge, Department of Defense, Defense Criminal Investigative Service (DCIS), made the announcement.

Wenxia Man a/k/a “Wency Man,” age 45, of San Diego, California, was convicted at trial of conspiring to export and cause the export of defense articles without the required license, in violation of Title 22, United States Code, Section 2778.  She faces a statutory maximum penalty of 20 years in prison.  Sentencing is scheduled for August 19, 2016 at 2:00 p.m., before Judge Beth Bloom in Miami.

The evidence at trial established that between approximately March 2011 and June 2013, Man conspired with Xinsheng Zhang, who was located in the People’s Republic of 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 HSI undercover 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.

“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” stated U.S. Attorney Wifredo Ferrer.  “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.    

"Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data," said Assistant Attorney General Carlin.  "Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so.  I would like to thank the many members of law enforcement whose tireless efforts led to this verdict."

“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said HSI Acting Special Agent in Charge Robert C. Hutchinson.

“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge John F. Khin, DCIS. “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”

Mr. Ferrer commended the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida.  The case is being prosecuted by Assistant United States Attorney Michael Walleisa and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control 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

Wenxia Man, aka Wency Man, 45, of San Diego, was convicted today by a federal jury in the Southern District of Florida of 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 conviction was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Special Agent in Charge Robert C. Hutchinson 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).

“Man was convicted of conspiring to evade U.S. export laws by agreeing to illegally acquire and send to China fighter jet engines, a highly sophisticated military drone and related technical data,” said Assistant Attorney General Carlin.  “Circumventing U.S. laws designed to safeguard our most sensitive materials serves to undermine our national security interests and we will aggressively pursue those who try to do so.  I would like to thank the many members of law enforcement whose tireless efforts led to this verdict.”

“Protecting our nation from the illegal movement of technology and defense articles is a top national security concern,” said U.S. Attorney Ferrer.  “In the interests of our national defense, the U.S. Attorney’s Office and our law enforcement partners will continue to target for criminal prosecution those who attempt to unlawfully procure military equipment, munitions, tools and materials.”

“ICE-HSI works very closely with numerous domestic and international partners to deny prohibited recipients access to restricted arms, munitions, weapons and controlled technologies,” said Acting Special Agent in Charge Hutchinson.

“Today’s conviction of Wenxia Man demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our partner agencies to ensure that those intent on harming our national security are brought to justice,” said Special Agent in Charge Khin.  “The nation’s security relies upon our military possessing the most sophisticated technology and weapon systems in the world while simultaneously preventing these items from finding their way into the hands of our adversaries.”

Man was convicted at trial 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 HSI undercover 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.

Man faces a statutory maximum penalty of 20 years in prison.  Sentencing is scheduled for Aug. 19, 2016, at 2:00 p.m. before U.S. District Judge Beth Bloom of the Southern District of Florida.

Assistant Attorney General Carlin joined U.S. Attorney Ferrer in commending the investigative efforts of the ICE-HSI Counter Proliferation Unit and DCIS offices in Fort Lauderdale, Florida.

The case is being prosecuted by Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida and Thea D. R. Kendler of the National Security Division’s Counterintelligence and Export Control Section.

A tax return preparer pled guilty to filing false tax returns with the Internal Revenue Service (IRS).

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.

Erica Antoinette Hollingsworth, 37, of Opa Locka, 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 between $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.

Sentencing is scheduled for August 3, 2016 before U.S. District Judge Jose E. Martinez.  At sentencing, Hollingsworth faces a maximum statutory sentence of three years in prison.

Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne. 

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.

Following a two-day trial before United States District Court Judge Donald M. Middlebrooks, a jury convicted a Jensen Beach resident for her participation in a stolen identity tax fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.

Micheline Eppolito, 29, of Jensen Beach, was convicted of one count of possessing fifteen or more unauthorized access devices, affecting interstate commerce, in violation of Title 18, United States Code, Section 1029(a)(3), and five counts of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).

According to evidence presented at trial, Eppolito worked at Treasure Coast Lexus car dealership on US 1 in Fort Pierce. Eppolito accessed and printed 44 automobile printouts, from a database shared by automobile dealerships, which contained 68 customers’ personal identifying information from a work computer located in her office. The defendant then sold the printouts to Patrick J. Ward [Case No. 14-CR-14006].  Ward paid Eppolito approximately $80 worth of oxycodone pills for the printouts.

According to court documents, a prison cell mate of Ward’s was interested in buying any Social Security numbers that Ward could come across to be used to prepare false tax returns. Ward admitted that he bought all the notebooks and papers to resell for profit. 

On January 20, 2015, Ward was sentenced to 70 months in prison, to be followed by three years of supervised release. Ward previously pled guilty to one count of possessing fifteen or more access devices and one count of aggravated identity theft.

Eppolito is scheduled to be sentenced by United States District Court Judge Donald M. Middlebrooks on August 18, 2016.  At sentencing, Eppolito faces up to ten years in prison for the access devices charge, and two years’ imprisonment, consecutive to any other prison term, for each of the aggravated identity theft charges.

Mr. Ferrer commended the investigative efforts of IRS-CI and thanked the St. Lucie County Sheriff’s Office for their assistance.  The case is being prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and Courtney L. Coker.

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

Tyler Scott Topolski, 20, of Vero Beach, was sentenced today by United States District Court Judge Kenneth A. Marra, in Ft. Pierce, to 33 months’ incarceration, to be followed by three years of supervised release.  Topolski previously pled guilty to bank robbery.

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, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and David E. Currey, Chief, Vero Beach Police Department, made the announcement. 

According to Court records, on November 6, 2015, at approximately 2:28 p.m., Topolski entered the Florida Community Bank, located at 4000 20th Street, Vero Beach, with a demand note, which read, “NO dye Paacs, I need All the 50’s & 100’s In the Bag! Fan the bills out first. Any restiance I will kill you & myself.”  Topolski left with approximately $973.00 in cash.  The note was later recovered in a nearby parking lot. 

After Vero Beach Police Department detectives received information from the community, identifying Topolski from bank surveillance photographs, they obtained a South Carolina driver’s license in order to confirm his identity.  Several bank witnesses positively identified Toploski from photographic lineups.  As a result, the detectives obtained a State of Florida Arrest Warrant for Topolski and notified the Horry County Police Department in South Carolina.  On November 7, 2015, Topolski was successfully captured, after he was located, hiding in his mother’s closet in Myrtle Beach, South Carolina.  Topolski gave detectives a full confession, admitting that he had cut his facial hair, in order to conceal his identity.

Mr. Ferrer commended the investigative efforts of the FBI, Indian River County Sheriff’s Office, Vero Beach Police Department, and Horry County Sheriff’s Office in South Carolina for their work on this case.  The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Palm Beach County resident Kevin Raphael Bully, 26, was sentenced to 262 months in prison by United States District Judge Robin L. Rosenberg following his conviction at trial of being a felon in possession of a firearm, conspiring to import and distribute Alpha PVP (a/k/a “Flakka”), and distributing heroin and Xanax. 

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Agency (DEA), Miami Field Office, made the announcement.

This case stemmed from an investigation into the importation of Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” from China into the United States.  In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of synthetic cathinones, specifically Flakka, DEA agents received information about suspected narcotics packages being delivered to Palm Beach County.  DEA agents in London, England received information from the British authorities regarding multiple packages that were intercepted coming from a chemical company in Hong Kong, China.  The Chinese based chemical company had been utilizing a shipping company to transport chemicals to buyers in the United States.  The British authorities found approximately seven packages that contained a white crystallized substance which tested positive for the presence of α-PVP.  DEA agents in London provided West Palm Beach agents with the packages’ address information and forwarded the deliveries.    The local agents, including a law enforcement officer dressed as a DHL employee, delivered a package to the listed address.  Bully answered the door of the identified address and took possession of the package upon delivery. 

During the course of the investigation, Bully’s cell phone was found to contain text messages discussing the importation and receipt of packages containing Flakka.  In July of 2015, Bully was found at a hotel in Boca Raton, Florida, in possession of over 50 grams of heroin, 1,600 tablets of Xanax, a digital scale and packaging used for the distribution of narcotics.       

Mr. Ferrer commended the investigative efforts of the DEA and support of the United States Marshals Service.  The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

John Milton Nagel, 47, was sentenced by United States District Judge Jose E. Martinez to one year and one day in prison, to be followed by three years of supervised release, after having previously pled guilty to three counts of mailing threatening communications from a foreign country, in violation of Title 18, United States Code, Section 877.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

According to court documents, between September 1, 2015 and September 18, 2015, John Nagel entered the Mexico City main post office located at Palacio Postal, Avenida Tacuba No. 1, Centro Historico, Delegacion Cuachtemoc, 06002 Mexico City, Mexico, and knowingly deposited for mailing thirty-seven (37) envelopes all addressed to prominent U.S. political figures and business leaders, each containing a threatening letter and a white powdery like substance.  A sample of the powder removed from within the suspect letters was thereafter sent to both Mexican and U.S. laboratories for analysis, which ultimately revealed that the contents were bicarbonate.  Nagel was identified and apprehended in Mexico by Mexican Postal employees and ultimately deported to the United States to stand trial.                                                        

The first page of each letter read “FREE SAMPLE OF EXECUTIVE TOOTH POWDER - ACTIVATES WITH HYDROGEN PEROXIDE.  DO NOT SWALLOW!  H2O2 MAY BE POISONOUS IF SWALLOWED DON’T PANIC, EVACUATE OR CALL 911…or there will be consequences...Mathew 13:49.”  According to the King James version of the Bible, Matthew 13:49 states: “So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just.” 

Mr. Ferrer commended the investigative efforts of the FBI.  The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Ricardo A. Del Toro.

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.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, Paul C. May, Sheriff, Okeechobee County Sheriff’s Office (OSO), and John J. Burke, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Fort Myers Regional Operation Center-Sebring Field Office, announce the sentencing of Steven Lee Oakes, a/k/a “Wildman,” 59, of Davenport, the leader in a methamphetamine distribution network involving fifteen co-conspirators that operated in and around Okeechobee and Highlands Counties.  Each of the fifteen defendants pled guilty to various narcotics trafficking offenses, in the matter of United States v. Steven Lee Oakes, et al., 15-CR-14046. 

United States District Judge Jose E. Martinez sentenced Oakes to 300 months in prison, to be followed by five years of supervised release.  Oakes was the last of the defendants to be sentenced, as part of a coordinated law enforcement effort to combat the methamphetamine epidemic.  The co-conspirators were previously sentenced to the following terms of imprisonment:

• Steven Lee Oakes300 months

• Jetta Lyn Frake 70 months

• Lacy Junior Locklear188 months

• Stephen Patrick Hall, Jr.190 months

• Daniel John Alsdorf96 months

• James “Buddy” Carter87 months

• Teresa Lee Green90 months

• Tanner Lynn Carter48 months

• Felisha Michelle Leitner70 months

• David Allen Sparks60 months

• Jamie Lea Hewitt121 months

• Jessica Marie Bell65 months

• Vickie Lynn Johnson90 months

• Travis Wayne Carr70 months

• Timothy Dale Reid70 months

United States Attorney Wifredo A. Ferrer stated, “Steven Lee Oakes and his organization poisoned our communities with illicit drugs.  Mr. Oakes was held accountable in a court of law for infecting our local neighborhoods with his narcotics trafficking enterprise.  However, the prosecution of Oakes and his conspirators has not put an end to this problem.  The unlawful distribution of methamphetamines continues to pose a risk to our communities at alarming rates.  The U.S. Attorney’s Office and our federal, state and local law enforcement partners are committed to identifying for prosecution those who place the public’s safety and quality-of-life in jeopardy.”

DEA Special Agent in Charge A.D. Wright stated, “These convicted drug traffickers rightfully deserved the sentences they received.  Justice was served for the residents of Okeechobee County.  Methamphetamine is a poison.  Those who were selling this poison in their neighborhoods can no longer continue to do so.  The DEA is proud to work with our law enforcement partners in achieving such outstanding results.  Our partnership is a strong and unstoppable force to be reckoned with.”

Sheriff Paul C. May, Okeechobee County, stated, “The defendants brought large amounts of methamphetamines into Okeechobee County and surrounding areas.  With the help of our federal, state and local law enforcement partners, the defendants were brought to justice and a dent was placed in the illegal trafficking of methamphetamines, in and around our county.  We will continue to work with our allies to identify for prosecution those who bring illicit narcotics into our communities.”

FDLE Special Agent in Charge John J. Burke stated “FDLE remains committed to combatting the problem of illicit narcotics throughout our state. We welcome the opportunity to partner with federal and local agencies to ensure that those who seek to poison our population to feed their own greed find no safe haven in Florida. This operation is a credit to the agencies who investigated as well as the prosecutors who guided the case to this successful conclusion.”

The federal indictment was prosecuted by Assistant U.S. Attorney Courtney L. Coker and Special Assistant United States Attorney Ryan L. Butler.   

This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

Mr. Ferrer commended the collaborative efforts of the U.S. Attorney’s Office for the Middle District of Florida and the Okeechobee County Office of the State Attorney.   Mr. Ferrer thanked the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Okeechobee County Sheriff’s Office Narcotics Task Force, FDLE’s Fort Myers Regional Operations Center Sebring Field Office, Highlands County Sheriff’s Office, the Okeechobee Police Department, Glades County Sheriff’s Office, Saint Lucie County Sheriff’s Office, Fort Pierce Police Department, the Fort Pierce Offices of the United States Marshals Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HIS), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Port Saint Lucie Police Department, Martin County Sheriff’s Office, United States Border Patrol, and Indian River County Sheriff’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

A Miami-Dade County resident was sentenced to prison today for attempting to coerce and entice a minor to engage in sexual activity and for attempting to transfer obscene material to a minor.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement. 

Gerald D. Jenkins, 59, of Homestead, Florida, was sentenced to 120 months’ imprisonment, to be followed by 20 years of supervised release.  Jenkins previously pled guilty to one count of attempting to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and two counts of attempting to transfer obscene material to a minor, in violation of Title 18, United States Code, Section 1470.

According to court documents, on September 29, 2015, law enforcement, while acting in an undercover capacity, responded to Jenkins’ advertisement on an online chat, soliciting sexual contact.  Law enforcement, posing as the father of a thirteen-year-old female (identified as “Mia”) responded to the defendant’s online advertisement via email.  During the conversation between the defendant and law enforcement, Jenkins professed his interest in having sexual contact with the thirteen-year-old.

During communications on November 2, 2015, Jenkins stated that he was willing to purchase intimate clothing for “Mia” and to pay $1,000 in exchange for being able to have sexual contact with the minor.  

On November 4, 2015, Jenkins requested the minor’s email address so that he could contact her directly.  Later that day, Jenkins sent an email to the account he believed belonged to the thirteen-year-old and expressed his desire to have sexual contact with the minor.  Jenkins also sent the minor a sexually explicit photograph. 

On November 11, 2015, Jenkins emailed “Mia,” who was actually an undercover law enforcement officer posing as the thirteen-year-old, and provided graphic detail of his sexual desires and sent additional sexually explicit photographs. 

Thereafter, Jenkins continued to have contact with the individuals he believed were the minor and her father, regarding his interest in engaging in sexual contact with the thirteen-year-old.

Mr. Ferrer commended the investigative efforts of ICE-HSI.  The case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

Appellate Division Deputy Chief Amit Agarwal of the U.S. Attorney’s Office in the Southern District of Florida was one of 160 recipients recognized by Deputy Attorney General Sally Yates and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 32nd annual Director’s Awards Ceremony today in Washington D.C.

The Southern District of Florida was one of 33 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

In her prepared remarks, Deputy Attorney General Yates said, “The achievements being recognized today reflect the breadth of the department’s responsibilities, and some of our most significant challenges.  From dismantling dangerous gangs, drug cartels and human trafficking operations to tackling political corruption, white collar crimes, and international terrorism, these awardees have taken on our toughest cases.  And the citizens of our country are safer because of their work.”

“We honor the truly talented and dedicated legal and administrative personnel in the 94 U.S. Attorneys’ offices and our law enforcement partners who everyday touch lives in our communities, protect the American people, and work to ensure the fair and impartial administration of justice,” said Director Wilkinson. 

Mr. Agarwal was honored today for his superior performance as an Assistant United States Attorney in the Appellate Division.  He was recognized for leading the government’s efforts in response to the adverse decision in United States v. Davis, a case of national importance dealing with the scope of Fourth Amendment protections for historical cell-site records.  Through his Herculean efforts, Mr. Agarwal convinced the 11th Circuit to set the case for en banc review and set forth the government’s position in a well-researched en banc brief.  He also argued the case to the en banc court, which resulted in a published decision favorable to the government.

Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, stated, “Amit Agarwal exhibits the kind of intellectualism, professionalism, mentorship and enthusiasm that is worthy of special recognition.  He is a legal scholar whose tireless dedication to public service has enhanced the communities in which he has built his professional career.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

A Broward County resident was sentenced to prison today for his role in a Jamaica based telemarketing fraud scheme.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Raymond Moss, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.

Delroy Drummond, 25, of Hollywood and Miami Gardens, was sentenced to 41 months’ imprisonment, to be followed by three years of supervised release.  Drummond was also ordered to pay $421,411 in restitution for his role in a Jamaica based lottery fraud scheme.  Drummond previously pled guilty to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. 

According to documents and information presented in court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery.  These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.

In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme.  At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.

In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize.  Drummond used fraudulent identification in order to receive these funds.  In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize.  Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States. 

Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit.  The case was prosecuted by Assistant United States Attorney Randy Katz.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov

The owner and president of a Miami-area consulting and staffing company was sentenced today to 60 months in prison for his role in a $2.3 million Medicare fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Carlos Rodriguez Nerey, 45, of Miami, the owner and president of Nerey Professional Services Inc., was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida.  In addition to imposing the prison term, Judge Gayles ordered Nerey to pay $2,366,736 in restitution.   On April 1, 2016, following a one-week jury trial, Nerey was convicted of one count of receiving kickbacks in connection with a Federal Health Care Program and one count of conspiracy to defraud the United States and pay health care kickbacks.

According to evidence presented at trial, from October 2014 to September 2015, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services according to Medicare rules and regulations.  His acts contributed to the submission of $2 million in fraudulent claims to Medicare as well as their subsequent payment on those fraudulent claims, according to trial evidence. 

The FBI and HHS-OIG investigated this 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 of the Southern District of Florida.  Fraud Section Trial Attorneys Lisa Miller and Elizabeth Young prosecuted the case. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 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. 

The owner and president of a Miami-area consulting and staffing company was sentenced today to 60 months in prison for his role in a $2.3 million Medicare 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’s (HHS-OIG) Miami Regional Office, made the announcement.

Carlos Rodriguez Nerey, 45, of Miami, the owner and president of Nerey Professional Services Inc., was sentenced by U.S. District Judge Darrin P. Gayles of the Southern District of Florida.  In addition to imposing the prison term, Judge Gayles ordered Nerey to pay $2,366,736 in restitution.   On April 1, 2016, following a one-week jury trial, Nerey was convicted of one count of receiving kickbacks in connection with a Federal Health Care Program and one count of conspiracy to defraud the United States and pay health care kickbacks.

According to evidence presented at trial, from October 2014 to September 2015, Nerey was involved in a conspiracy to accept kickbacks in return for referring Medicare beneficiaries to Mercy Home Care Inc. and D&D&D Home Health Care Inc. to serve as patients, including those who did not qualify for home health care services according to Medicare rules and regulations.  His acts contributed to the submission of $2 million in fraudulent claims to Medicare as well as their subsequent payment on those fraudulent claims, according to trial evidence. 

The FBI and HHS-OIG investigated this 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 of the Southern District of Florida.  Fraud Section Trial Attorneys Lisa Miller and Elizabeth Young prosecuted the case. 

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 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

A Lake Worth resident pled guilty for his participation in a mail fraud scheme involving rental property takeovers.

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), and Sean Scheller, Chief, Town of Lantana, made the announcement.

Miguel Tilus, 54, of Lake Worth, pled guilty to mail fraud, in violation of Title 18, United States Code, Sections 1341 and conspiracy to commit mail fraud, in violation of United States Code, Section 1349.  Tilus faces up to 20 years’ imprisonment on each of the mail fraud and conspiracy counts and restitution of over $105,000.  Tilus is scheduled to be sentenced on August 11, 2016 at 9:00 a.m., before United States District Judge Robin L. Rosenberg.  Co-conspirators Kesner Joaseus, 46, of Wellington, and Wadno Dorneau, 36, of West Palm Beach, are scheduled for trial on August 8, 2016.

According to court documents, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes.  This company operates as HavenBrook Homes.  From November 2014 through January 2016, Dorneau, Joaseus and Tilus conspired, using the similar company name “RHA Two, LLC,” to illegally take possession of and rent the residences lawfully owned by HavenBrook Homes by assuming the legitimate company’s identity. 

In order to accomplish this, the co-conspirators identified and monitored the status of homes being renovated by HavenBrook Homes.  When construction was nearing completion, Joaseus would remove the lockbox from a targeted home and call a locksmith to change the locks on the home.  Immediately after having the locks changed, sometimes within hours, the defendants placed signs in high traffic areas advertising a home for rent and posting one of several prepaid cell phone numbers.

According to court documents, including the plea agreement and proffer, Tilus admitted that numerous times, he arranged to meet prospective tenants at the property, present bogus leases with a counterfeit “HavenBrook Homes” logo, and collect thousands of dollars in money orders or cash, purportedly for security deposits and rent for the houses.  Tilus and the other defendants always used aliases when dealing with the tenants.  In this manner, the defendants collected purported lease payments from dozens of tenants of houses owned by HavenBrook Homes which the defendants had no right to possess.

HavenBrook Homes has confirmed that at least 80 homes owned by them have been fraudulently taken over in this manner, resulting in fraud losses of rental income that could exceed $100,000 per month for all of 2015.

Mr. Ferrer commended the investigative efforts of the ICE-HSI and the Lantana Police Department.  This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen. 

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.