Southern District of Florida
Press releases recorded for this federal judicial district.
Former Plantation Bookkeeper Sentenced to Federal Prison for $9.8 Million Embezzlement SchemeRead the Press Release
MIAMI – A former bookkeeper from Plantation has been sentenced to 51 months in federal prison for orchestrating a multi-year embezzlement scheme that stole $9.8 million from her employer.
On September 15, Chief U.S. District Judge Cecilia M. Altonaga imposed the sentence on Hava Yfrah Austin, 58. The Court also ordered forfeiture and restitution. Austin previously pleaded guilty to wire fraud and filing a false income tax return, after failing to report the stolen funds on her return.
According to court records, Austin owned and operated Accounting Solutions Today, P.A., a bookkeeping and tax services business in Broward County. Austin was also the long-time bookkeeper for the victim company, where she had signature authority over its bank accounts.
From 2018 through April 2024, Austin embezzled approximately $9.8 million. Austin executed unauthorized wire transfers from the victim company’s accounts to her own business and used much of the stolen money to gamble at local casinos and through online gaming platforms.
To conceal her theft, Austin falsified accounting entries in the victim company’s ledgers, often creating fraudulent entries under fake but similar-sounding vendor names.
“This defendant betrayed the trust placed in her, stole nearly $10 million, and gambled it away,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “Our Office will hold accountable those who abuse positions of trust and conceal their crimes, and we will ensure victims see justice and restitution.”
“The IRS-CI enforces the nation’s tax laws with particular emphasis on cases where individuals abuse positions of trust and steal what belongs to others through fraudulent schemes designed to conceal their misconduct,” said Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI), Miami Field Office. “In this case, the defendant booked a one-way ticket overseas- but thanks to our complex financial investigation, the only one-way trip she’s taking is straight to prison.”
U.S. Attorney Reding Quiñones and Special Agent in Charge Gomez made the announcement.
IRS-CI investigated the case.
Assistant U.S. Attorney Jon Juenger prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20239.
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Former Financier Sentenced to Seven Years in Federal Prison for Defrauding Elderly Family Member of $8.4 MillionRead the Press Release
Miami – A former financier previously disciplined by the U.S. Securities & Exchange Commission has been sentenced to 84 months in federal prison for defrauding his elderly family member out of approximately $8.4 million.
Brett Thomas Graham, 61, was sentenced on September 16 by U.S. District Judge Donald M. Middlebrooks after pleading guilty to wire fraud.
According to court documents, Graham began assisting his widowed family member in 2017. Graham helped her retain a financial advisor in November 2018. The following year, the family member sold a New York townhouse for approximately $9 million. Within months, Graham began diverting money from her accounts into his own, using the stolen money to finance overseas vacations, luxury jewelry purchases, artwork, and other personal expenses.
In 2020, Graham obtained power of attorney over his family member’s finances, which obligated him to act in her best interest. Instead, Graham exploited that authority to continue his fraud. That December, Graham falsely claimed to the financial advisor that $250,000 was needed to cover the family member’s “higher medical & care expenses.” Graham spent the funds on himself. In November 2022, Graham requested an additional $400,000, citing “[a]mazing [investment] opps…” More than $300,000 of that money was spent on his credit card, art, travel, and rent.
Law enforcement was able to seize jewelry and art purchased with fraud proceeds for approximately $2 million.
“Exploiting an elderly family member to steal millions is unconscionable,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “We will hold fraudsters accountable and protect seniors from abuse.”
U.S. Attorney Reding Quiñones and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
FBI Miami investigated the case. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities & Exchange Commission.
Assistant U.S. Attorney Eli S. Rubin prosecuted the case. Assistant U.S. Attorney Sandra Demirci handled asset forfeiture.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20103.
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Executive of Miami-Based Seafood Wholesale Company Pleads Guilty to Price-Fixing ConspiracyRead the Press Release
Miami – The vice president of a Miami-based seafood wholesaler pleaded guilty on September 16 to conspiring with competitors to fix prices for the purchase of stone crab claws and spiny lobster in Florida.
According to documents filed with the court, Dennis Dopico, of Miami, was a vice president for a company that operated a seafood processing center that sold stone crab claws and spiny lobsters. Between 2023 and 2025, Dopico conspired with competing companies and their employees to suppress and eliminate competition by fixing the prices paid to fishermen for stone crab claws and spiny lobsters. This conspiracy deprived fishermen in Florida the benefits of competition, depressing the prices paid to fishermen for their harvests.
“Price fixing cheats fishermen, squeezes restaurants, and makes families pay more at the table,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “We will protect honest competition from the boat to the dinner table.”
“Criminal conspiracies to deprive hardworking Americans the right to earn a fair wage are untenable in a free society. As the defendant admits, his price fixing conspiracy unfairly took money out of the pockets of hardworking fishermen for years,” said Acting Deputy Assistant Attorney General Omeed Assefi of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will work tirelessly to ensure that hard working Americans are paid competitively for an honest day’s work.”
“This case highlights the serious consequences of undermining the integrity of our nation’s natural resource markets,” said Assistant Director Doug Ault, U.S. Fish and Wildlife Service, Office of Law Enforcement. “Price-fixing schemes not only disrupt fair competition but also threaten American businesses and the sustainability of our valuable fisheries. We remain committed to working with our federal partners to hold accountable those who exploit our natural resources for unlawful profit.”
Dopico and his co-conspirators exchanged text messages and calls in which they coordinated and agreed on the prices they would pay fishermen and would adjust the prices together as the respective harvest seasons progressed. For example, on Sept. 28, 2023, following communications with a co-conspirator about spiny lobster prices Dopico replied “[d]on’t show text to anyone[.] Confidential,” to which the co-conspirator responded, “I give you my word. We’re working together now not against each other[.]” Later, on Oct. 13, 2023, the same co-conspirator texted Dopico new stone crab claw prices. Dopico responded, “[l]et me know what you do. I am matching your prices. It’s the one we like the most.”
In the plea agreement, Dopico admitted that the volume of commerce attributable to him and related to the conspiracy was approximately $8 million.
Dopico pleaded guilty to one felony count of restraining trade by conspiring to fix prices, in violation of Section 1 of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The court set Dopico’s sentencing hearing for Jan. 5, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Fish and Wildlife Services is investigating this case.
The Antitrust Division’s Washington Criminal Section is prosecuting the case with the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20393.
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CEO of Georgia Company Convicted in International Bribery and Money Laundering SchemeRead the Press Release
Miami – A federal jury in Miami convicted a U.S. businessman on September 15 for his role in a nearly five-year long scheme to bribe Honduran government officials and to launder money to secure business for a Georgia-based manufacturer of law enforcement uniforms and accessories.
According to court documents and evidence presented at trial, Carl Alan Zaglin, 70, of Marietta, Georgia, agreed to pay bribes to Honduran officials in order to obtain and retain business with Comité Técnico del Fideicomiso para la Administración del Fondo de Protección y Seguridad Poblacional (TASA), a Honduran governmental entity that procured goods for the Honduran National Police and other Honduran security agencies.
“Bribery and money laundering schemes that funnel millions through our District to corrupt foreign officials will be met with the full force of federal law,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “This verdict sends a clear message: those who seek to buy influence abroad, distort fair competition, or launder dirty money through South Florida will be held accountable.”
“Instead of playing by the rules, Carl Zaglin unfairly sought to get ahead and enrich himself by paying bribes to Honduran officials,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Bribing government officials to win business undermines the rule of law and distorts competitive markets. Today’s verdict reaffirms the Criminal Division’s commitment to rooting out corruption and providing an equal playing field for American businesses.”
The trial evidence showed that, between March 2015 and November 2019, Zaglin, the owner and CEO of Atlanco LLC (Atlanco), orchestrated the payment of hundreds of thousands of dollars in bribes to Honduran officials — including former TASA Executive Director Francisco Roberto Cosenza Centeno (Cosenza) and former TASA Titular Director Juan Ramon Molina — in order to secure contracts with TASA worth more than $10 million. The bribes were paid through Aldo Nestor Marchena, a third-party intermediary then residing in Boca Raton, Florida, who received $2.5 million in payments pursuant to sham invoices authorized by Zaglin. In exchange for the bribes, Cosenza and other Honduran government officials assisted Zaglin, Marchena and others in obtaining contracts for the sale of uniforms and other goods for the Honduran National Police and securing payment on the contracts. Marchena, Cosenza, and Molina all previously pleaded guilty for their roles in the scheme.
To conceal the scheme, Zaglin, Marchena, Cosenza, and their co-conspirators used coded and oblique language like “commissions” and “fees” to refer to bribes and “Miami” to refer to Marchena, “the guys” and “the others” to refer to foreign officials, sham “Brokerage Agreements” falsely detailing legitimate services, and they communicated using personal email accounts and encrypted messaging applications. The conspirators laundered the bribes by moving funds from Atlanco to Marchena’s front company in the United States to accounts held for the benefit of Honduran officials in the United States, Belize, and elsewhere.
The jury convicted Zaglin of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, and one count of conspiracy to commit money laundering. He faces a maximum penalty of five years in prison on both the FCPA count and the FCPA conspiracy count, and a maximum penalty of 20 years in prison on the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Charges in the form of a criminal indictment against Zaglin, Marchena, and Cosenza were unsealed on Dec. 20, 2023. Marchena and Cosenza previously pleaded guilty to conspiracy to commit money laundering on June 5, 2025 and Aug. 13, 2025, respectively. Molina pleaded guilty to conspiracy to commit money laundering on Dec. 11, 2024.
The Homeland Security Investigations (HSI) Miami Field Office investigated the case. The Justice Department’s Office of International Affairs and authorities in Belize, Colombia, and Spain provided assistance with the investigation.
Trial Attorneys Peter L. Cooch and Clayton P. Solomon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eli S. Rubin for the Southern District of Florida are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
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Executive of Miami-Based Seafood Wholesale Company Pleads Guilty to Price-Fixing ConspiracyRead the Press Release
The vice president of a Miami-based seafood wholesaler pleaded guilty today to conspiring with competitors to fix prices for the purchase of stone crab claws and spiny lobster in Florida.
According to court documents filed in the U.S. District Court in Miami, Florida, Dennis Dopico, of Miami, was a vice president for a company that operated a seafood processing center that sold stone crab claws and spiny lobsters. Between 2023 and 2025, Dopico conspired with competing companies and their employees to suppress and eliminate competition by fixing the prices paid to fishermen for stone crab claws and spiny lobsters. This conspiracy deprived fishermen in Florida the benefits of competition, depressing the prices paid to fishermen for their harvests.
“Criminal conspiracies to deprive hardworking Americans the right to earn a fair wage are untenable in a free society. As the defendant admits, his price fixing conspiracy unfairly took money out of the pockets of hardworking fishermen for years,” said Acting Deputy Assistant Attorney General Omeed Assefi of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will work tirelessly to ensure that hard working Americans are paid competitively for an honest day’s work.”
“Price fixing cheats fishermen, squeezes restaurants, and makes families pay more at the table,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “We will protect honest competition from the boat to the dinner table.”
“This case highlights the serious consequences of undermining the integrity of our nation’s natural resource markets,” said Assistant Director Doug Ault, U.S. Fish and Wildlife Service, Office of Law Enforcement. “Price-fixing schemes not only disrupt fair competition but also threaten American businesses and the sustainability of our valuable fisheries. We remain committed to working with our federal partners to hold accountable those who exploit our natural resources for unlawful profit.”
Dopico and his co-conspirators exchanged text messages and calls in which they coordinated and agreed on the prices they would pay fishermen and would adjust the prices together as the respective harvest seasons progressed. For example, on Sept. 28, 2023, following communications with a co-conspirator about spiny lobster prices Dopico replied “[d]on’t show text to anyone[.] Confidential,” to which the co-conspirator responded, “I give you my word. We’re working together now not against each other[.]” Later, on Oct. 13, 2023, the same co-conspirator texted Dopico new stone crab claw prices. Dopico responded, “[l]et me know what you do. I am matching your prices. It’s the one we like the most.”
In the plea agreement filed today, Dopico admitted that the volume of commerce attributable to him and related to the conspiracy was approximately $8 million.
Dopico pleaded guilty to one felony count of restraining trade by conspiring to fix prices, in violation of Section 1 of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The court set Dopico’s sentencing hearing for Jan. 5, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Fish and Wildlife Services is investigating this case.
The Antitrust Division’s Washington Criminal Section is prosecuting the case with the assistance of the U.S. Attorney’s Office for the Southern District of Florida.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Nigerian National Sentenced to Prison for International Scheme that Defrauded Elderly U.S. VictimsRead the Press Release
MIAMI – A Nigerian national was sentenced on September 11 to 97 months in prison for his role in a transnational inheritance fraud scheme.
According to court documents, Ehis Lawrence Akhimie, 41, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States over the course of several years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died overseas years before. Akhimie and his co-conspirators told a series of lies to victims, including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and other payments to avoid questioning from government authorities. Akhimie and his co-conspirators collected money victims sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. Victims who sent money never received any purported inheritance funds. In pleading guilty, Akhimie admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.
“Schemes like this steal not only money but dignity from our seniors,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida (SDFL). “Our Office stands with victims, ensures their voices are heard, and will relentlessly pursue those who prey on them.”
“The Justice Department will continue to pursue, prosecute, and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This case is a testament to the critical role of international collaboration in tackling transnational crime. I want to thank our U.S. law enforcement partners, as well as those who assisted across the globe, including the National Crime Agency and Crown Prosecution Service of the United Kingdom, for their outstanding contributions to this case.”
“The U.S. Postal Inspection Service is committed to protecting American consumers from being defrauded by Transnational Criminal Organizations,” said Acting Postal Inspector in Charge Bladismir Rojo for the U.S. Postal Inspection Service (USPIS) Miami Division. “We have long partnered with the Department of Justice’s Consumer Protection Branch to deliver justice and we will continue to do so.”
“Defrauding the elderly and other vulnerable populations is a betrayal of not just trust but of humanity,” said Acting Special Agent in Charge Ray Rede for HSI Arizona. “HSI and our law enforcement partners commitment to investigate criminals who steal money sends a clear message: justice will prevail, and those who exploit others for personal gain will be held accountable. We thank all our partners who assisted in this investigation.”
Akhimie is the eighth defendant sentenced to prison in connection with the scheme. District Court Judge Kathleen M. Williams previously sentenced six additional defendants in a related case. On April 25, District Court Judge Roy K. Altman sentenced Okezie Bonaventure Ogbata, who was extradited from Portugal, to 97 months in prison for his role in the scheme, describing the defendant’s offense conduct as “an incredibly serious crime” and stating that it merited a substantial sentence because it was important “to stand up for the most vulnerable, for the least protected members of our society who have done absolutely nothing wrong.”
USPIS and HSI investigated the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the UK, Spain, and Portugal all provided critical assistance.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorneys Josh Rothman of the Civil Division’s Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20140.
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Michigan Man Sentenced to 20 Years in Prison for Child Exploitation OffensesRead the Press Release
Miami – A Farmington, Michigan man has been sentenced to 240 months in federal prison after pleading guilty to conspiring to distribute and distributing child sexual abuse material (CSAM) of children under the age of 13.
U.S. District Judge Donald M. Middlebrooks imposed the sentence on Ahmed Sultan Faraz, 30, on September 10.
According to court records, between September and October 2021, Faraz and five co-conspirators participated in a private chat room on a social networking application. Entry into the chatroom required participants to distribute CSAM of children under the age of 13. Once admitted, Faraz distributed CSAM and engaged in discussions with more than 50 other individuals about the sexual abuse of children. The children in the images and videos were as young as 4 years old.
In a post-Miranda interview, Faraz admitted to communicating online with five or six minors. Forensic evidence obtained from his electronic devices revealed that Faraz produced CSAM with at least two of these children and attempted to produce CSAM with a third.
In 2024, Faraz had a pending application to become a lawful permanent resident of the United States, which has since been denied.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office made the announcement.
HSI West Palm Beach and the Palm Beach County Sheriff’s Office investigated the case as part of a joint effort of the South Florida Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Alexandra Chase prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 25-cr-80036.
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Jackson Health Foundation Executive Pleads Guilty to Taking Kickbacks, Stealing Foundation Money to Buy Designer Handbags and Golf CartRead the Press Release
MIAMI – The former Chief Operating Officer (COO) of Jackson Health Foundation (Foundation) pleaded guilty on September 11 to embezzling millions of dollars from the nonprofit by submitting false invoices and taking kickbacks.
According to court documents, from 2014 through 2024, Charmaine Gatlin, 52, served as COO of the Foundation, which is the fundraising arm of Jackson Health System. During her tenure, Gatlin drew a base salary ranging from $185,000 and $290,000. Despite her compensation, in pleading guilty, Gatlin admitted that she defrauded the Foundation out of at least $4.3 million by directing funds to herself, her relatives, or unrelated entities, rather than to the Foundation or Jackson Health System.
For example, Gatlin approved approximately $2 million in invoices from a Georgia-based audiovisual company for services that were never provided. In return, the vendor paid Gatlin $1 million in kickbacks, which she used in part to pay her personal credit card bill. Gatlin coached the vendor on how to falsify invoices, including billing for audiovisual services that had already been donated to the Foundation. The vendor, Yergan Jones, pleaded guilty to conspiracy to commit wire fraud in connection with the scheme (25-cr-20312).
Gatlin also directed a merchandise vendor to purchase luxury items for her from Louis Vuitton, Gucci, and Apple in exchange for keeping the Foundation’s business. Gatlin further misused restricted donations, such as approving $55,101 in Foundation funds to purchase 10,000 “first aid kits” falsely labeled as “trauma burn giveaways” from the same vendor.
In another instance, Gatlin submitted a false invoice to cover the purchase of a rose gold-colored golf cart, which she had delivered to her Weston home in September 2023.
A sentencing hearing is scheduled before U.S. District Judge Beth Bloom on November 25. Gatlin faces a maximum penalty of 20 years in prison.
U.S. Attorney Jason A. Reding Quinoñes for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
FBI Miami investigated the case, with valuable assistance from the Miami-Dade Sheriff’s Office.
Assistant U.S. Attorney Elizabeth Young is prosecuting the case. Assistant U.S. Attorney G. Raemy Charest-Turken is handling asset forfeiture.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. The case number is 25-cr-20220.
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Honduran National Pleads Guilty to Firearms and Immigration OffensesRead the Press Release
MIAMI – A Honduran national pleaded guilty on September 8 to possession of a firearm by an alien and illegal reentry after removal.
According to the facts admitted at the change of plea hearing, on February 25, law enforcement officers were monitoring the social media account of Gustavo Benitez Rodriguez, 22, after observing a post advertising a firearm for sale. Benitez Rodriguez, a native and citizen of Honduras without lawful status in the United States, later engaged in an online conversation with an individual he believed to be a purchaser to arrange the sale. Benitez Rodriguez’s prior arrest records also indicate ties to the Little Havana Taliban gang.
On February 28, officers executed a search warrant at Benitez Rodriguez’s residence. Inside his bedroom, were two firearms: a Stoeger STR 9mm firearm located in his dresser drawer near his passport and ID, and a Ruger ICS 9mm firearm hidden beneath his mattress. A 9mm magazine and 15 rounds of live Luger 9mm ammunition were also recovered.
Benitez Rodriguez had previously been removed from the United States on February 15, 2019, pursuant to a final order of removal. Benitez Rodriguez re-entered the United States without the required consent of the Attorney General or the Secretary of Homeland Security.
A sentencing hearing is scheduled before U.S. District Judge Beth Bloom on December 5. Benitez Rodriguez faces up to 15 years in prison, followed by up to three years of supervised release and a fine of up to $250,000.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Field Office Director Garrett Ripa of the U.S. Immigration and Customs Enforcement (ICE), Enforcement Removal Operations (ERO) Prosecutions Unit, Miami, made the announcement.
ICE-ERO Miami investigated the case with assistance from the City of Miami Police Department and the Miami-Dade Sheriff’s Office.
Special Assistant U.S. Attorney Melissa Roca Shaw is prosecuting the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20244.
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Fraud Charges Filed Against 12 Defendants in Phase II of Operation NightingaleRead the Press Release
MIAMI – In the latest development of Operation Nightingale—a scheme that created an illegal licensing and employment shortcut for aspiring nurses—fraud-related charges have been filed against 12 defendants for their roles in selling fraudulent nursing diplomas and transcripts.
In Phase I of Operation Nightingale, 30 defendants were charged and convicted by plea or at trial in 2023.
According to court records, the defendants conspired to sell false nursing credentials—diplomas and transcripts fraudulently obtained from Florida-based nursing schools—to aspiring Registered Nurse (RN) and Licensed Nurse Practioner/Vocational Nurse (LPN/VN) candidates. Purchasers of the bogus documents used them to qualify for the National Council Licensure Examination (NCLEX), commonly known as the nursing board exam. Candidates who passed the exam became eligible for licensure in various states, and once licensed, obtained employment as nurses across the United States.
The defendants, which include nursing school owners and employees, are charged with conspiracy to commit wire fraud. Their conduct involved multiple for-profit nursing schools in Florida, all of which have since closed. At one time, these schools were authorized to issue diplomas and transcripts to individuals pursuing RN and LPN/VN licensure. In total, the fraudulent schemes generated approximately 7,300 fake diplomas.
The charges highlight the purpose of a professional nursing licensure: protecting the public from harm by ensuring that only qualified and competent practitioners provide nursing care. Because nursing is a profession that, if practiced by unprepared or unqualified individuals, poses a serious risk to public health and safety, state boards of nursing establish standards for education, regulate licensure, and oversee compliance with training requirements.
The National Council of State Boards of Nursing (NCSBN), requires candidates seeking RN or LPN/VN licensure to graduate from a board-approved pre-licensure program and pass the NCLEX. The Nurse Licensure Compact—adopted by 43 states, including Florida—further ensures that nurses meet consistent standards for safe practice.
In Florida, the Board of Nursing regulates pre-licensure programs and enforces curriculum requirements under the Nurse Practice Act. To protect patients and ensure safe nursing care, the Board requires that all applicants for licensure as an RN or LPN/VN graduate from an approved program, or its equivalent, and provide official transcripts or equivalent documentation before being permitted to sit for the licensure examination.
Florida’s nursing programs must devote at least fifty percent of their curriculum to hands-on clinical training, in addition to academic coursework, for a practical nursing education program, an associate degree professional nursing program, or a professional diploma nursing education program.
Herline Lochard (Case No. 24-cr-60201-Singhal), 46, of Orange County, pleaded guilty to conspiracy to commit mail and wire fraud. Lochard served as the registered agent and/or manager of Center for Professional Training and Development Inc., located in Miami; Center for Professional Training Inc. located in North Miami; and Wheatland Institute Inc., located in Orlando. On July 31, Lochard was sentenced to 13 months in prison, followed by three years of supervised release.
Carleen Noreus (Case No. 25-cr-60039-Singhal), 51, of Broward County, is charged by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. According to the indictment, Noreus served as the president of Carleen Home Health School, Inc., located in Plantation, and Vice President of Carleen Home Health School II, Inc., located in West Palm Beach.
From January 2019 through September 2022, Noreus and her co-conspirators solicited and recruited individuals seeking nursing credentials and health care employment. Noreus and others created and distributed fraudulent transcripts and diplomas that falsely represented the recipients had completed the necessary coursework and clinical training at Carleen Home Health School or Carleen Home Health School II. In reality, the individuals had not completed the required education or training.
Co-conspirators used these false and fraudulent documents to obtain nursing licenses in various states, including California, Pennsylvania, and Florida. Under the Nurse Licensure Compact, individuals who secured multi-state licenses through the fraud were also authorized to practice in other compact states without additional licensing.
The fraudulent credentials were then used to obtain nursing jobs and benefits from unwitting health care providers across the United States. These employers hired and paid salaries, wages, and benefits based on the fraudulent qualifications.
Noreus is set for trial beginning December 1 in Ft. Lauderdale.
Patrick Buchanan (Case No. 25-cr-60163-Damian), 40, of Broward County, pleaded guilty to conspiracy to commit wire fraud. Buchanan was the owner, registered agent, and manager of Sigma Institute of Health Careers, Inc., located in Lauderhill. Sigma offered Practical Nursing and Associate of Science in Nursing programs.
Buchanan is scheduled to be sentenced on November 19.
Gilbert Hyppolite (Case No. 25-cr-60207-Dimitrouleas), 73, of Palm Beach County, is charged by indictment with conspiracy to commit wire fraud. Hyppolite was the owner of Techni-Pro Institute LLC, located in Boca Raton. Techni-Pro offered Practical Nursing, Associate of Science in Nursing, and Registered Nurse to Bachelor of Science in Nursing (RN to BSN) programs.
Irene Matthews (Case No. 25-cr-60209-Damian), 55, of Palm Beach County, is charged by indictment with conspiracy to commit wire fraud. Matthews was the registered agent and/or manager of Agape Academy of Sciences, LLC., located in Delray Beach. Agape offered Practical Nursing, Associate of Science in Nursing, and Bachelor of Science in Nursing programs.
Lemuel Pierre (Case No. 25-cr-60226-Damian), 56, of Broward County, is charged by indictment with conspiracy to commit wire fraud. Pierre was the owner of Med-Life Enterprise, Inc., located in Lauderdale Lakes, and founder of all Med-Life Institute locations. Med-Life Institute, doing business as Med-Life Institute Lauderdale Lakes, located in Lauderdale Lakes, offered Practical Nursing and Associate of Science in Nursing programs. Med-Life Institute, doing business as Med-Life Institute Kissimmee, located in Kissimmee, offered Practical Nursing and Associate of Science in Nursing programs. Med-Life Institute, doing business as Med-Life Institute Naples, located in Naples, offered Practical Nursing and Associate of Science in Nursing programs.
Joel Lubin (Case No. 25-cr-20391-Bloom), 51, of Miami-Dade County, is charged by information with conspiracy to commit wire fraud. Lubin was the registered agent and administrator of Ideal Professional Institute, Inc., located in Miami Gardens. Ideal offered Practical Nursing and Associate of Science in Nursing programs.
Jose Napoleon (Case No. 25-cr-60213-Martinez), 40, of Palm Beach County, is charged by information with conspiracy to commit wire fraud. Napoleon was the director of admissions for Azure College, Inc., located in Fort Lauderdale. Azure offered Practical Nursing, Associate of Science in Nursing, and Registered Nurse to Bachelor of Science in Nursing (RN to BSN) programs.
Victor Escalante Zerpa (Case No. 25-cr-60216-Smith), 68, of Miami-Dade County, is charged by information with conspiracy to commit wire fraud. Escalante Zerpa incorporated Academus University Corp, located in Coral Gables. Academus offered Pracical Nursing, Associate of Science in Nursing, Registered Nurse to Bachelor of Science in Nursing (RN to BSN) programs.
Cleophat Tanis (Case No. 25-cr-60212-Dimitrouleas), 58, of Collier County, is charged by information with conspiracy to commit wire fraud. Tanis was the co-owner and operator of Med-Life Institute, doing business as Med-Life Institute Naples, located in Naples. Med-Life Naples offered Practical Nursing and Associate of Science in Nursing programs.
Lonnette Blair (Case No. 25-cr-60215-Becerra), 51, of Camden County, New Jersey, is charged by information with conspiracy to commit wire fraud. Blair was the Chief Academic Officer of Carleen Home Health School II, Inc. Carleen Home Health School II offered Associate of Science in Nursing and Bachelor of Science in Nursing programs.
Stephanie Dorisca (Case No. 25-cr-60214-Moore), 57, of Broward County, is charged by information with conspiracy to commit wire fraud. Dorisca was the Head of Nursing at Techni-Pro Institute LLC. Techni-Pro offered Practical Nursing, Associate of Science in Nursing, and Registered Nurse to Bachelor of Science in Nursing (RN to BSN) programs.
As to the wire fraud conspiracy charges, the defendants face a statutory maximum of 20 years.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida; Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office; and Acting Special Agent in Charge Isaac Bledsoe of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG), Miami Regional Office, made the announcement.
FBI Miami and HHS-OIG Miami are investigating. Homeland Security Investigations Miami provided support.
Senior Litigation Counsel Christopher J. Clark is prosecuting the cases. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
If you have information to report regarding this case or any other case involving falsified medical degrees, please call the FBI hotline: (410) 277-6999.
An indictment is merely an accusation. All defendants are presumed innocent 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.
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CEO of Georgia Company Convicted in International Bribery and Money Laundering SchemeRead the Press Release
A federal jury in Miami, Florida, convicted a U.S. businessman today for his role in a nearly five-year long scheme to bribe Honduran government officials and to launder money to secure business for a Georgia-based manufacturer of law enforcement uniforms and accessories.
According to court documents and evidence presented at trial, Carl Alan Zaglin, 70, of Marietta, Georgia, agreed to pay bribes to Honduran officials in order to obtain and retain business with Comité Técnico del Fideicomiso para la Administración del Fondo de Protección y Seguridad Poblacional (TASA), a Honduran governmental entity that procured goods for the Honduran National Police and other Honduran security agencies.
“Instead of playing by the rules, Carl Zaglin unfairly sought to get ahead and enrich himself by paying bribes to Honduran officials,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Bribing government officials to win business undermines the rule of law and distorts competitive markets. Today’s verdict reaffirms the Criminal Division’s commitment to rooting out corruption and providing an equal playing field for American businesses.”
The trial evidence showed that, between March 2015 and November 2019, Zaglin, the owner and CEO of Atlanco LLC (Atlanco), orchestrated the payment of hundreds of thousands of dollars in bribes to Honduran officials — including former TASA Executive Director Francisco Roberto Cosenza Centeno (Cosenza) and former TASA Titular Director Juan Ramon Molina — in order to secure contracts with TASA worth more than $10 million. The bribes were paid through Aldo Nestor Marchena, a third-party intermediary then residing in Boca Raton, Florida, who received $2.5 million in payments pursuant to sham invoices authorized by Zaglin. In exchange for the bribes, Cosenza and other Honduran government officials assisted Zaglin, Marchena and others in obtaining contracts for the sale of uniforms and other goods for the Honduran National Police and securing payment on the contracts. Marchena, Cosenza, and Molina all previously pleaded guilty for their roles in the scheme.
To conceal the scheme, Zaglin, Marchena, Cosenza, and their co-conspirators used coded and oblique language like “commissions” and “fees” to refer to bribes and “Miami” to refer to Marchena, “the guys” and “the others” to refer to foreign officials, sham “Brokerage Agreements” falsely detailing legitimate services, and they communicated using personal email accounts and encrypted messaging applications. The conspirators laundered the bribes by moving funds from Atlanco to Marchena’s front company in the United States to accounts held for the benefit of Honduran officials in the United States, Belize, and elsewhere.
The jury convicted Zaglin of one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, and one count of conspiracy to commit money laundering. He faces a maximum penalty of five years in prison on both the FCPA count and the FCPA conspiracy count, and a maximum penalty of 20 years in prison on the money laundering conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Charges in the form of a criminal indictment against Zaglin, Marchena, and Cosenza were unsealed on Dec. 20, 2023. Marchena and Cosenza previously pleaded guilty to conspiracy to commit money laundering on June 5, 2025 and Aug. 13, 2025, respectively. Molina pleaded guilty to conspiracy to commit money laundering on Dec. 11, 2024.
The Homeland Security Investigations (HSI) Miami Field Office investigated the case. The Justice Department’s Office of International Affairs and authorities in Belize, Colombia, and Spain provided assistance with the investigation.
Trial Attorneys Peter L. Cooch and Clayton P. Solomon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eli S. Rubin for the Southern District of Florida are prosecuting the case.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Nigerian National Sentenced to Prison for International Scheme that Defrauded Elderly U.S. VictimsRead the Press Release
Note, the release has been updated to include a quote from the U.S. Attorney for the Southern District of Florida.
A Nigerian national was sentenced yesterday to 97 months in prison for his role in a transnational inheritance fraud scheme.
According to court documents, Ehis Lawrence Akhimie, 41, was a member of a group of fraudsters that sent personalized letters to elderly victims in the United States over the course of several years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died overseas years before. Akhimie and his co-conspirators told a series of lies to victims, including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and other payments to avoid questioning from government authorities. Akhimie and his co-conspirators collected money victims sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. Victims who sent money never received any purported inheritance funds. In pleading guilty, Akhimie admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.
“The Justice Department will continue to pursue, prosecute, and bring to justice transnational criminals responsible for defrauding U.S. consumers, wherever they are located,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This case is a testament to the critical role of international collaboration in tackling transnational crime. I want to thank our U.S. law enforcement partners, as well as those who assisted across the globe, including the National Crime Agency and Crown Prosecution Service of the United Kingdom, for their outstanding contributions to this case.”
“Schemes like this steal not only money but dignity from our seniors," said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. "Our Office stands with victims, ensures their voices are heard, and will relentlessly pursue those who prey on them.”
“The U.S. Postal Inspection Service is committed to protecting American consumers from being defrauded by Transnational Criminal Organizations,” said Acting Postal Inspector in Charge Bladismir Rojo for the U.S. Postal Inspection Service (USPIS) Miami Division. “We have long partnered with the Department of Justice’s Consumer Protection Branch to deliver justice and we will continue to do so.”
“Defrauding the elderly and other vulnerable populations is a betrayal of not just trust but of humanity,” said Acting Special Agent in Charge Ray Rede for HSI Arizona. “HSI and our law enforcement partners commitment to investigate criminals who steal money sends a clear message: justice will prevail, and those who exploit others for personal gain will be held accountable. We thank all our partners who assisted in this investigation.”
Akhimie is the eighth defendant sentenced to prison in connection with the scheme. District Court Judge Kathleen M. Williams for the Southern District of Florida previously sentenced six additional defendants in a related case. On April 25, the District Court Judge Roy K. Altman for the Southern District of Florida sentenced Okezie Bonaventure Ogbata, who was extradited from Portugal, to 97 months in prison for his role in the scheme, describing the defendants’ offense conduct as “an incredibly serious crime” and stating that it merited a substantial sentence because it was important “to stand up for the most vulnerable, for the least protected members of our society who have done absolutely nothing wrong.”
USPIS and HSI investigated the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the UK, Spain, and Portugal all provided critical assistance.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorneys Josh Rothman of the Civil Division’s Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at https://reportfraud.ftc.gov/ or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Guatemalan National Extradited to the United States to Face Federal Cocaine Conspiracy ChargesRead the Press Release
MIAMI – A Guatemalan national has been extradited to the United States to face charges in a cocaine trafficking conspiracy. Roberto Carlo Giron Hernandez, a/k/a “Gordo,” a/k/a “RC,” 49, is scheduled to make his initial appearance in federal court in Miami tomorrow.
According to court documents, Giron Hernandez is charged with conspiring to distribute cocaine knowing, intending, or having reasonable cause to believe that the cocaine would be imported into the United States. Guatemalan authorities arrested Giron Hernandez on February 3, pursuant to a provisional arrest warrant.
A federal grand jury in the Southern District of Florida returned a one-count indictment charging Giron Hernandez with conspiracy to distribute cocaine for importation into the United States. If convicted, Giron Hernandez faces a maximum sentence of life in prison.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and DEA Guatemala Country Attaché Aubree Fierro made the announcement.
DEA Miami Field Division and DEA Guatemala Country Office are investigating the case. The Department of Justice’s Office of International Affairs, Department of State, and the Guatemalan government provided valuable assistance in securing the arrest and extradition of Giron Hernandez.
Assistant U.S. Attorney Lynn Kirkpatrick is prosecuting the case.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
An indictment is merely an allegation. All defendants are presumed innocent 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20408.
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Serial Border Crosser from Honduras Sentenced to 27 Months in PrisonRead the Press Release
MIAMI – A Honduran national has been sentenced to 27 months in federal prison for illegally reentering the United States after multiple prior removals.
U.S. District Judge Jacqueline Becerra imposed the sentence, followed by three years of supervised release, after Marvin Wilton Max Ayala, 36, pleaded guilty.
According to court records, Max Ayala unlawfully reentered the United States for the fifth time. On April 1, law enforcement discovered Max Ayala after he was arrested for cocaine possession.
Max Ayala was previously removed from the United States on November 21, 2012; April 6, 2015; May 4, 2020; and August 5, 2021. During his prior unlawful stays in the country, Max Ayala was also convicted of other crimes, including an attempted forgery offense in Texas in 2021.
Following the completion of his federal prison sentence, Max Ayala will be removed from the United States.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Field Office Director Garrett Ripa of the U.S. Immigration and Customs Enforcement, Enforcement Removal Operations (ICE-ERO) Prosecutions Unit, Miami announced the sentence.
ICE-ERO investigated the case.
Special Assistant U.S. Attorney Melissa Roca Shaw 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20192.
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Nicaraguan National Sentenced to Five Years in Federal Prison for Illegal Reentry After RemovalRead the Press Release
MIAMI – A Nicaraguan national has been sentenced to five years in federal prison for illegally reentering the United States after being removed.
On August 26, Senior U.S. District Judge Paul C. Huck sentenced Marco Orlando Vado, 66, to 60 months in federal prison after he pleaded guilty to illegal reentry. The sentence will run consecutive to a 72-month term Vado received in June 2024 in Broward County for violating his probation in a drug trafficking case, following his guilty plea in Miami-Dade County to attempted sexual battery of a minor under 12.
According to court records, Vado was initially encountered by U.S. Immigration and Customs Enforcement (ICE) in November 2009 after learning he had been convicted in Broward County of trafficking more than 400 grams of cocaine and sentenced to six years of probation. On December 23, 2009, Vado was deported to Nicaragua.
Despite his removal, on April 22, 2022, Vado was again encountered in the United States after being arrested by the North Miami Beach Police Department for attempted sexual battery of a minor under 12.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Field Officer Director Garrett Ripa of the ICE Enforcement Removal Operations (ERO), Miami Field Office, made the announcement.
ICE/ERO Miami Field Office investigated the case.
Assistant U.S. Attorney Joseph A. Cooley prosecuted the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-60244.
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Margate Man Targeted Jewish and Black Americans Sentenced to 25 Years in Prison for Firearm OffensesRead the Press Release
MIAMI – A Margate man was sentenced yesterday to 25 years in federal prison for a series of firearm offenses and for amassing weapons, tactical gear, and attack plans targeting Jewish and Black Americans.
U.S. District Judge Rodney Smith sentenced John Kevin Lapinski, Jr., 41, to 300 months in prison. Lapinski previously pleaded guilty to possession of a firearm as a convicted felon, possession of a firearm by a person subject to a court order, possession of an unregistered silencer, and possession of body armor by a violent felon.
On October 31, 2024, Margate Police responded to a call of shots fired in a residential neighborhood. Officers determined Lapinski—legally barred from possessing firearms—was the shooter. Inside his residence, officers observed a shooting target depicting a Black male riddled with bullet holes. A subsequent search uncovered an arsenal: five firearms, more than 3,000 rounds of ammunition, firearm parts and accessories, two silencers, body armor, smoke grenades, a Ghillie suit, and tactical gear.
Officers also found maps of local schools, parks, and other community sites scrawled with racial slurs targeting Black and Jewish people, as well as a a “target list” naming “groups to attack” based on race and religion. The list included a Jewish member of Congress, local synagogues, Jewish-owned businesses, and other religious and ethnically identified sites.
Investigators further linked Lapinski to an August 2024 shooting in which the home and vehicle of a Jewish resident were riddled with bullets.
“This defendant stockpiled weapons, tactical gear, and detailed attack plans to terrorize Jewish and Black Americans in our communities. His intent was not abstract—it was written on his maps, his targets, and his so-called hit list. Thanks to the swift work of our law enforcement partners, his plan never became reality. Instead of carrying out acts of racist violence, he will spend the next quarter-century behind bars. Let this sentence serve as a warning: hate-fueled violence will be met with decisive federal prosecution. We will disrupt your plans, seize your weapons, and ensure you never endanger the people of this District again.” - U.S. Attorney Jason A. Reding Quiñones.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida; Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office; Acting Special Agent in Charge Gordon Mallory of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division; and Chief Jonathan Shaw of the Margate Police Department announced the sentence.
The ATF, FBI, and Margate Police Department investigated the case.Assistant U.S. Attorney Marc Anton 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-60224.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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Repeat Sex Offender from California Sentenced to Life in Prison for Child ExploitationRead the Press Release
MIAMI –A registered sex offender from Escondido, California, has been sentenced to life in federal prison for distributing child sexual abuse material (CSAM) and attempting to entice a minor to engage in sexual activity.
Michael Gordon Douglas, 48, was sentenced on August 25, 2025, by U.S. District Judge Aileen M. Cannon to life in prison, followed by a lifetime term of supervision as a sex offender. Douglas was also ordered to pay $25,000 in restitution. A federal jury convicted Douglas in May, following a five-day trial, of seven counts of CSAM distribution and one count of attempted enticement of a minor.
According to court records and evidence introduced during the trial, in 2023, Douglas communicated with an undercover agent who he believed was the mother of an eight-year-old girl. During the conversations, Douglas distributed CSAM to the undercover agent and arranged to meet the eight-year-old girl to have sex with her. On the day of a planned meeting in California, Douglas spotted law enforcement and attempted to flee in his vehicle. Agents stopped Douglas, and a female passenger jumped out screaming, “He’s got a grenade, he’s going to kill us!” Douglas then displayed what appeared to be a real grenade—later determined to be a replica—and engaged in a brief standoff with a SWAT team before being taken into custody.
Prior to his conviction in the instant case, Douglas was convicted in California in 2011 of distribution of matter depicting a minor in sexual conduct, possession of matter depicting a minor in sexual conduct, and attempt to distribute harmful matter to a minor.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Acting Special Agent in Charge Jose Figueroa of Homeland Security Investigations (HSI) Miami, and Special Agent in Charge Shawn S. Gibson of HSI San Diego announced the sentence.
The case was investigated by HSI agents located in West Palm Beach, Florida and Oceanside, California.
Assistant U.S. Attorneys Justin Chapman and Adam McMichael prosecuted the case.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-80219.
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Man Sentenced to 10 Years in Prison for Attempted Enticement of a Minor in Key WestRead the Press Release
MIAMI – A man has been sentenced to 120 months in federal prison for attempting to engage in sexual activity with a child after communicating online with an individual he believed to be a 13-year-old girl.
U.S. District Judge Darrin P. Gayles imposed the sentence on Clifford Frederic Lind, 41, who used the online alias “it is what it is.” Lind pleaded guilty in April to attempting to transfer obscene material to a minor and attempting to entice a minor.
According to court documents and statements made in court, between May 29 and June 4, 2024, Lind exchanged messages through a social media application and text with someone he believed was an underage girl. During those exchanges, which took place while Lind was in Key West, he sent sexually explicit images and videos of himself and requested images from the individual he believed to be a minor. Lind also discussed plans to meet the purported 13-year-old in person to engage in sexual activity, including details about picking her up and where they would stay.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement.
FBI Miami, Key West Resident Agency investigated the case. The Key West Police Department provided invaluable assistance.
Assistant United States Attorney Lindsey Maultasch prosecuted the case. Assistant United States Attorney Sara Klco is handling asset forfeiture.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Anyone with information relating to child sexual exploitation or abuse is encouraged to call the FBI at 1-800-CALL-FBI.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-10008.
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Louisiana Registered Sex Offender Sentenced to Life in Prison for Various Internet Sex Crimes Involving a Martin County MinorRead the Press Release
MIAMI – A registered sex offender from Destrehan, Louisiana, has been sentenced to life in federal prison, followed by a consecutive 10-year term, for multiple child exploitation crimes, including attempted enticement of a minor, attempted production of visual depictions involving sexual exploitation of a minor, receipt of visual depictions involving sexual exploitation of a minor, transfer of obscene material to a minor, and offense by a registered sex offender.
In addition to the prison sentence, Nicolas James Palmisano, 45, was ordered to serve 20 years of supervised release, upon release from custody, and to pay restitution. U.S. District Judge Jose E. Martinez imposed the sentence on August 25 after a federal jury found Palmisano guilty in May following a two-day trial.
According to court records and evidence introduced during the trial, in 2019, Palmisano was convicted in St. Charles Parish, Louisiana for sexual offenses involving a juvenile. Upon the completion of his four-year prison sentence, Palmisano registered as a sex offender with the St. Charles Parish Sheriff’s Office in the town in which he resided.
In May 2024, the Martin County Sheriff’s Office (MCSO) learned that a minor had images of sexually explicit activity on her cellular phone. An MCSO computer forensic examiner recovered messages, images, and recordings from the minor’s cellular phone that were sent from Palmisano’s cellular number. Despite acknowledging that the minor was 15 years old, Palmisano wrote thousands of sexually explicit messages and sent multiple sexually explicit images, as well as audio and video recordings, of himself between February 22 and May 6, 2024. Palmisano also solicited, and obtained, sexually explicit images from the minor.
In August 2024, members of the FBI and MCSO arrested Palmisano at the St. Charles Parish Sheriff’s Office, after he arrived for his annual Sexual Offender Registration review and update. Law enforcement executed a search warrant on Palmisano’s residence and recovered his cellular phone, which was found to contain the sexually explicit material that Palmisano and the minor exchanged.
FBI Fort Pierce investigated the case, with assistance from MCSO, FBI New Orleans, and St. Charles Parish Sheriff’s Office.
Fort Pierce Branch Managing Assistant U.S. Attorney Carmen M. Lineberger and Assistant U.S. Attorney Jessica Kahn Obenauf prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report online child sexual exploitation, visit https://report.cybertip.org/ or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children (NCMEC) in partnership with HSI and other law enforcement agencies.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-14044.
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Co-Founder of the Sinaloa Cartel, Ismael ‘El Mayo’ Zambada Garcia, Pleads Guilty to Engaging in a Continuing Criminal Enterprise and RacketeeringRead the Press Release
BROOKLYN – Ismael Zambada Garcia also known as El Mayo, 75, of Sinaloa, Mexico, pleaded guilty today to being a principal leader of a continuing criminal enterprise — the Sinaloa Cartel (the Cartel), one of the most violent and powerful drug trafficking organizations in the world — in addition to a Racketeer Influenced and Corrupt Organizations (RICO) charge.
Associated Press(AP)“This foreign terrorist committed horrific crimes against the American people — he will now pay for those crimes by spending the rest of his life behind bars in an American prison,” said Attorney General Pamela Bondi. “Today marks a crucial victory in President Trump’s ongoing fight to completely eliminate foreign terrorist organizations and protect American citizens from deadly drugs and violence.”
“After years of evading justice, Zambada Garcia has been brought to account,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida (SDFL). “With his conviction, his reign of violence and terror is over. He will never again direct a cartel that fueled addiction, spread violence, and tore apart families and communities on both sides of our border. This outcome was made possible by the tireless work of our law enforcement partners in the United States and abroad, whose courage and persistence dismantled the Sinaloa Cartel’s operations and delivered long-overdue justice to its victims.”
“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “El Mayo’s conviction is the latest milestone in the Department’s historic efforts to eliminate the harms wrought by cartels and bring their leaders to justice in American courtrooms. The Criminal Division and our partners will continue our relentless pursuit of these notorious criminal organizations to ensure that they are held accountable and to make our communities safer.”
“Today’s plea is a proud moment for the FBI and its partners as the founders of a notoriously violent drug trafficking organization, one that engages in an array of illegal activity including murder and corruption, face the consequences of their actions,” said FBI Director Kash Patel. “Our work does not end here. We will continue to relentlessly leverage everything at our disposal in our efforts to thwart the Sinaloa Cartel and put an end to their drug trafficking operations and the carnage that goes along with it.”
“Ismael ‘El Mayo’ Zambada led one of the world’s deadliest cartels, pumping fentanyl, cocaine, heroin, and meth into our communities,” said Administrator Terrance Cole of the Drug Enforcement Administration (DEA). “His guilty plea proves no cartel boss is beyond the reach of justice. By taking him down, we are protecting American families and cutting off a pipeline of poison. DEA and our partners will not stop until every cartel network is dismantled.”
“After years of painstaking work, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York secured a superseding indictment last year charging Ismael Zambada with fentanyl trafficking,” said Acting Immigration and Customs Enforcement Director Todd M. Lyons. “Now, one of the world’s most prolific and dangerous drug traffickers is going to face justice for the lives he’s stolen and the illicit profits he’s raked in. This is more than a win for HSI. It’s a win for the American people.”
“With today’s guilty pleas, ‘El Mayo’ Zambada Garcia and “El Chapo” Guzman, the two co-founders of the Sinaloa Cartel — one of the largest, most violent and most destructive cartels in history — will live out the rest of their days in U.S. federal prison cells without the possibility of parole,” said U.S. Attorney Joseph Nocella for the Eastern District of New York. “Zambada Garcia has now been held accountable for the tons of illegal narcotics, including cocaine and fentanyl, that he and his organization trafficked for decades, and the murders and other acts of violence committed in furtherance of that enterprise. Today’s guilty plea was possible because of the work of law enforcement personnel in the United States, Mexico and elsewhere. We hope that their hard work and the pleas can provide a measure of solace to the countless victims of Zambada Garcia’s narcotics trafficking and violence and their families.”
“For decades, the Western District of Texas has been on the front lines in the fight against the Sinaloa Cartel,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “Under Zambada Garcia’s leadership, the Sinaloa Cartel produced and trafficked thousands of kilograms of narcotics through our border, effectively infiltrating every city in our country, leading to thousands of deaths in our communities, imprisoning millions within the grey walls of addiction, and enriching himself in the process. Under Zambada Garcia’s leadership, the Sinaloa Cartel engaged in a years-long war with the Juarez Cartel, a war which directly affected not just the citizens of Juarez, Mexico, but also the citizens of El Paso, Texas, with multiple residents, including at least one U.S. citizen, being kidnapped, tortured, and killed by Sinaloa Cartel members. Now, like his co-conspirator El Chapo Guzman, Zambada Garcia will pay the price for a life of lawlessness, and using the ‘whole of government’ approach employed in this case, we will continue to systematically eradicate Mexican drug cartels and bring others to justice who enrich themselves to the detriment of Americans.”
Zambada Garcia was previously charged by indictments filed in the Eastern District of New York (EDNY), the Western District of Texas (WDTX), the District of Columbia, the Northern District of Illinois, the Southern District of California, and the Central District of California.
Today’s plea is the result of a joint prosecution by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division (NDDS).
Pursuant to a plea agreement, Zambada Garcia agreed to the transfer of the WDTX indictment for plea and sentencing in the Eastern District of New York. Zambada Garcia is thus being held accountable in the Eastern District of New York for the criminal conduct in both indictments. The remaining indictments will be dismissed at the time of sentencing.
The EDNY/SDFL/NDDS indictment charged Zambada Garcia with, among other things, being a principal leader of a continuing criminal enterprise from January 1989 through January 2024. The WDTX Indictment charged Zambada Garcia with, among other things, RICO conspiracy for his participation in money laundering, murder and drug conspiracies, and violations of state law for murder and kidnapping for conduct between Jan. 1, 2000, and April 11, 2012.
Zambada Garcia’s rise to power began with the Cartel’s inception and ended with his arrest in July 2024. Previously known as the Mexican Federation, the Cartel is a drug trafficking organization based in Sinaloa, Mexico, that since approximately the late 1980s has imported lethal quantities of narcotics — including, among others, cocaine, heroin, methamphetamine, and fentanyl — into the United States and laundered billions of dollars in drug proceeds back to Mexico.
The Cartel’s operations initially focused on cocaine distribution based on cooperative arrangements and close coordination with South American sources of supply and distribution networks. This changed in the 2000s when the Colombians, seeing increased law enforcement activity, started to abandon their U.S. distribution businesses in favor of permitting Mexican traffickers to invest in cocaine shipments at wholesale prices, which those Mexican traffickers would then distribute in the United States. As a result, Mexican traffickers and the Cartel began to take a more integral role in moving cocaine from Colombia into and throughout the United States. Under Zambada Garcia’s leadership, the Cartel also recently branched out into the production and trafficking of fentanyl, including by purchasing fentanyl precursor chemicals from Chinese companies and producing many thousands of kilograms of fentanyl in laboratories both in rural areas and major cities in Mexico for distribution in the United States.
The Cartel’s distribution networks also have supported money laundering efforts that have delivered billions of dollars in illegal profits generated from drug sales in the United States back to the Cartel. Increased profits allowed the Cartel’s operations to grow a large-scale narcotics transportation network involving the use of land, air, and sea transportation assets, which eventually led to the Cartel shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States.
Zambada Garcia has devoted his efforts over decades to growing, increasing, and enhancing the power of the Cartel, and to growing his individual power and position in the Cartel after his partner El Chapo was captured in 2016. Under Zambada Garcia’s leadership, the Cartel regularly used brutal violence, intimidation, and murder to silence potential witnesses and dissuade law enforcement from performing its duties. Zambada Garcia has operated with impunity at the highest levels of the Mexican drug trafficking world while being assured of his continued success and safety from arrest through his payment of bribes to Mexican government officials and law enforcement officers. He controlled those corrupt officials and officers who protected his workers and drug shipments as his drugs were transported across Mexico and into the United States. Numerous witnesses have testified, including at the trials of El Chapo and corrupt former Mexican Secretary of Public Security Genaro García Luna, that corruption at all levels was necessary to allow the Zambada Garcia’s criminal enterprise to function so effectively at such a large scale: from local police officers who escorted the drugs through Mexico, to corrupt officials who informed the Cartel of military actions, thwarted capture operations, and consulted with the Cartel about proceedings and investigations against it.
Zambada Garcia’s sentencing is set for Jan. 13, 2026. Zambada Garcia will face a mandatory minimum term of life in prison for leading a continuing criminal enterprise, and a maximum sentence of life in prison on the RICO count. As part of the plea agreement, Zambada Garcia also agreed to the entry at sentencing of a $15 billion forfeiture money judgment.
FBI, HSI, and DEA investigated the case.
Trial Attorneys Jayce Born and Kirk Handrich are leading the prosecution for the Criminal Division’s Narcotic and Dangerous Drug Section, along with the Southern District of Florida’s International Narcotics and Money Laundering Section, and the Eastern District of New York’s International Narcotics and Money Laundering Section as part of the work of EDNY’s Transnational Criminal Organizations Strike Force. Assistant U.S. Attorneys Andrea Goldbarg and Monique Botero are leading the prosecution for the Southern District of Florida. Assistant U.S. Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, Lauren A. Bowman, and Rebecca M. Urquiola are leading the prosecution for the Eastern District of New York. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, and Southern District of California provided substantial assistance. Assistant U.S. Attorneys Antonio Franco and Kyle Myers are leading the prosecution for the Western District of Texas.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.nyed.uscourts.gov or at http://pacer.nyed.uscourts.gov, under case number 09-cr-466.
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Co-Founder of the Sinaloa Cartel, Ismael ‘El Mayo’ Zambada Garcia, Pleads Guilty to Engaging in a Continuing Criminal Enterprise and RacketeeringRead the Press Release
Ismael Zambada Garcia also known as El Mayo, 75, of Sinaloa, Mexico, pleaded guilty today to being a principal leader of a continuing criminal enterprise — the Sinaloa Cartel (the Cartel), one of the most violent and powerful drug trafficking organizations in the world — in addition to a Racketeer Influenced and Corrupt Organizations (RICO) charge.
“This foreign terrorist committed horrific crimes against the American people — he will now pay for those crimes by spending the rest of his life behind bars in an American prison,” said Attorney General Pamela Bondi. “Today marks a crucial victory in President Trump’s ongoing fight to completely eliminate foreign terrorist organizations and protect American citizens from deadly drugs and violence.”
“Today’s plea is a proud moment for the FBI and its partners as the founders of a notoriously violent drug trafficking organization, one that engages in an array of illegal activity including murder and corruption, face the consequences of their actions,” said FBI Director Kash Patel. “Our work does not end here. We will continue to relentlessly leverage everything at our disposal in our efforts to thwart the Sinaloa Cartel and put an end to their drug trafficking operations and the carnage that goes along with it.”
“Ismael ‘El Mayo’ Zambada led one of the world’s deadliest cartels, pumping fentanyl, cocaine, heroin, and meth into our communities,” said Administrator Terrance Cole of the Drug Enforcement Administration (DEA). “His guilty plea proves no cartel boss is beyond the reach of justice. By taking him down, we are protecting American families and cutting off a pipeline of poison. DEA and our partners will not stop until every cartel network is dismantled.”
“After years of painstaking work, Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New York secured a superseding indictment last year charging Ismael Zambada with fentanyl trafficking,” said Acting Immigration and Customs Enforcement Director Todd M. Lyons. “Now, one of the world’s most prolific and dangerous drug traffickers is going to face justice for the lives he’s stolen and the illicit profits he’s raked in. This is more than a win for HSI. It’s a win for the American people.”
“For decades, under El Mayo’s leadership, the Sinaloa Cartel made billions of dollars by importing poisonous drugs to the United States, flooding our streets with cocaine, heroin, and fentanyl,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “El Mayo’s conviction is the latest milestone in the Department’s historic efforts to eliminate the harms wrought by cartels and bring their leaders to justice in American courtrooms. The Criminal Division and our partners will continue our relentless pursuit of these notorious criminal organizations to ensure that they are held accountable and to make our communities safer.”
“With today’s guilty pleas, ‘El Mayo’ Zambada Garcia and “El Chapo” Guzman, the two co-founders of the Sinaloa Cartel — one of the largest, most violent and most destructive cartels in history — will live out the rest of their days in U.S. federal prison cells without the possibility of parole,” said U.S. Attorney Joseph Nocella for the Eastern District of New York (EDNY). “Zambada Garcia has now been held accountable for the tons of illegal narcotics, including cocaine and fentanyl, that he and his organization trafficked for decades, and the murders and other acts of violence committed in furtherance of that enterprise. Today’s guilty plea was possible because of the work of law enforcement personnel in the United States, Mexico and elsewhere. We hope that their hard work and the pleas can provide a measure of solace to the countless victims of Zambada Garcia’s narcotics trafficking and violence and their families.”
“After years of evading justice, Zambada Garcia has been brought to account,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida (SDFL). “With his conviction, his reign of violence and terror is over. He will never again direct a cartel that fueled addiction, spread violence, and tore apart families and communities on both sides of our border. This outcome was made possible by the tireless work of our law enforcement partners in the United States and abroad, whose courage and persistence dismantled the Sinaloa Cartel’s operations and delivered long-overdue justice to its victims.”
“For decades, the Western District of Texas has been on the front lines in the fight against the Sinaloa Cartel,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “Under Zambada Garcia’s leadership, the Sinaloa Cartel produced and trafficked thousands of kilograms of narcotics through our border, effectively infiltrating every city in our country, leading to thousands of deaths in our communities, imprisoning millions within the grey walls of addiction, and enriching himself in the process. Under Zambada Garcia’s leadership, the Sinaloa Cartel engaged in a years-long war with the Juarez Cartel, a war which directly affected not just the citizens of Juarez, Mexico, but also the citizens of El Paso, Texas, with multiple residents, including at least one U.S. citizen, being kidnapped, tortured, and killed by Sinaloa Cartel members. Now, like his co-conspirator El Chapo Guzman, Zambada Garcia will pay the price for a life of lawlessness, and using the ‘whole of government’ approach employed in this case, we will continue to systematically eradicate Mexican drug cartels and bring others to justice who enrich themselves to the detriment of Americans.”
Zambada Garcia was previously charged by indictments filed in the Eastern District of New York (EDNY), the Western District of Texas (WDTX), the District of Columbia, the Northern District of Illinois, the Southern District of California, and the Central District of California.
Today’s plea is the result of a joint prosecution by the U.S. Attorney’s Offices in Brooklyn and Miami and the Narcotic and Dangerous Drug Section of the Criminal Division (NDDS).
Pursuant to a plea agreement, Zambada Garcia agreed to the transfer of the WDTX indictment for plea and sentencing in the Eastern District of New York. Zambada Garcia is thus being held accountable in the Eastern District of New York for the criminal conduct in both indictments. The remaining indictments will be dismissed at the time of sentencing.
The EDNY/SDFL/NDDS indictment charged Zambada Garcia with, among other things, being a principal leader of a continuing criminal enterprise from January 1989 through January 2024. The WDTX Indictment charged Zambada Garcia with, among other things, RICO conspiracy for his participation in money laundering, murder and drug conspiracies, and violations of state law for murder and kidnapping for conduct between Jan. 1, 2000, and April 11, 2012.
Zambada Garcia’s rise to power began with the Cartel’s inception and ended with his arrest in July 2024. Previously known as the Mexican Federation, the Cartel is a drug trafficking organization based in Sinaloa, Mexico, that since approximately the late 1980s has imported lethal quantities of narcotics — including, among others, cocaine, heroin, methamphetamine, and fentanyl — into the United States and laundered billions of dollars in drug proceeds back to Mexico.
The Cartel’s operations initially focused on cocaine distribution based on cooperative arrangements and close coordination with South American sources of supply and distribution networks. This changed in the 2000s when the Colombians, seeing increased law enforcement activity, started to abandon their U.S. distribution businesses in favor of permitting Mexican traffickers to invest in cocaine shipments at wholesale prices, which those Mexican traffickers would then distribute in the United States. As a result, Mexican traffickers and the Cartel began to take a more integral role in moving cocaine from Colombia into and throughout the United States. Under Zambada Garcia’s leadership, the Cartel also recently branched out into the production and trafficking of fentanyl, including by purchasing fentanyl precursor chemicals from Chinese companies and producing many thousands of kilograms of fentanyl in laboratories both in rural areas and major cities in Mexico for distribution in the United States.
The Cartel’s distribution networks also have supported money laundering efforts that have delivered billions of dollars in illegal profits generated from drug sales in the United States back to the Cartel. Increased profits allowed the Cartel’s operations to grow a large-scale narcotics transportation network involving the use of land, air, and sea transportation assets, which eventually led to the Cartel shipping multi-ton quantities of cocaine from South America, through Central America and Mexico, and finally into the United States.
Zambada Garcia has devoted his efforts over decades to growing, increasing, and enhancing the power of the Cartel, and to growing his individual power and position in the Cartel after his partner El Chapo was captured in 2016. Under Zambada Garcia’s leadership, the Cartel regularly used brutal violence, intimidation, and murder to silence potential witnesses and dissuade law enforcement from performing its duties. Zambada Garcia has operated with impunity at the highest levels of the Mexican drug trafficking world while being assured of his continued success and safety from arrest through his payment of bribes to Mexican government officials and law enforcement officers. He controlled those corrupt officials and officers who protected his workers and drug shipments as his drugs were transported across Mexico and into the United States. Numerous witnesses have testified, including at the trials of El Chapo and corrupt former Mexican Secretary of Public Security Genaro García Luna, that corruption at all levels was necessary to allow the Zambada Garcia’s criminal enterprise to function so effectively at such a large scale: from local police officers who escorted the drugs through Mexico, to corrupt officials who informed the Cartel of military actions, thwarted capture operations, and consulted with the Cartel about proceedings and investigations against it.
Zambada Garcia’s sentencing is set for Jan. 13, 2026. Zambada Garcia will face a mandatory minimum term of life in prison for leading a continuing criminal enterprise, and a maximum sentence of life in prison on the RICO count. As part of the plea agreement, Zambada Garcia also agreed to the entry at sentencing of a $15 billion forfeiture money judgment.
FBI, HSI, and DEA investigated the case.
Trial Attorneys Jayce Born and Kirk Handrich are leading the prosecution for the Criminal Division’s Narcotic and Dangerous Drug Section, along with the Eastern District of New York’s International Narcotics and Money Laundering Section as part of the work of EDNY’s Transnational Criminal Organizations Strike Force and the Southern District of Florida’s International Narcotics and Money Laundering Section. Assistant U.S. Attorneys Francisco J. Navarro, Robert M. Pollack, Adam Amir, Lauren A. Bowman, and Rebecca M. Urquiola are leading the prosecution for the Eastern District of New York. Assistant U.S. Attorneys Andrea Goldbarg and Monique Botero are leading the prosecution for the Southern District of Florida. The U.S. Attorneys’ Offices for the Northern District of Illinois, Central District of California, and Southern District of California provided substantial assistance. Assistant U.S. Attorneys Antonio Franco and Kyle Myers are leading the prosecution for the Western District of Texas.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Former Miami Heat Security Employee Pleads Guilty to Selling Stolen MemorabiliaRead the Press Release
MIAMI – A former Miami Heat security officer pleaded guilty today in the Southern District of Florida to transporting and transferring stolen goods in interstate commerce.
According to the facts admitted at the change of plea hearing, Marcos Tomas Perez, 62, stole hundreds of game-worn jerseys and other valuable memorabilia belonging to the Miami Heat and sold them to online brokers. The items, which included rare jerseys, were worth millions of dollars.
Perez, a 25-year retired veteran of the City of Miami Police Department, was employed as a security officer with the Miami Heat from 2016 to 2021 and later worked as an NBA security employee from 2022 to 2025. During his tenure, Perez worked on the game-day security detail at the Kaseya Center, where he had access to a secured equipment room that stored hundreds of game-worn jerseys and other memorabilia set aside for a future Miami Heat museum.
During his employment, Perez stole more than 400 jerseys and other items from the secured equipment room and sold them through various online marketplaces. Perez sold more than 100 stolen items over a three-and-a-half-year period for approximately $1.9 million by shipping them across state lines, often at prices well below their market value. For example, Perez sold a game-worn LeBron James Miami Heat NBA Finals jersey for about $100,000. That same jersey was later sold at a Sotheby’s auction for $3.7 million.
On April 3, law enforcement executed a search warrant at Perez’s residence and recovered nearly 300 additional stolen game-worn jerseys and memorabilia, which the Miami Heat confirmed had been stolen from their facility.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement.
FBI Miami is investigating the case. USPIS Miami and Miami Police Department provided invaluable assistance.
Assistant U.S. Attorney Robert Moore is prosecuting the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20346.
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Two Chinese Nationals Charged in South Florida Gift Card Fraud SchemeRead the Press Release
MIAMI – A federal grand jury in Fort Pierce returned an indictment on August 14, charging two Chinese nationals in connection with a gift card fraud scheme affecting grocery stores throughout South Florida, including St. Lucie, Martin, Palm Beach, Broward, and Miami-Dade counties.
Cao Yuan Liu, 22, and Linghan Chen, 26, are charged with conspiracy and with possession of 15 or more counterfeit or unauthorized access devices.
According to court records, on December 16, 2024, Liu and Chen entered a grocery store and tampered with gift cards by removing them from the gift card aisle, cutting out or scratching off the PIN and identification numbers, and returning the compromised cards. Once an unsuspecting customer purchased and activated a card, Liu and Chen were able to access the funds.
The store’s surveillance system captured Liu and Chen driving away from the store in a black Bentley SUV with a New York license plate. The following day, law enforcement executed a search warrant at Liu and Chen’s residence, seizing numerous gift cards, including pieces the pair tried to flush down the toilet. A subsequent search of the Bentley SUV on December 23, 2024, uncovered additional gift cards.
Investigators have identified approximately 42 grocery stores across Florida that were targeted in the scheme.
If convicted, Liu and Chen each face up to 15 years imprisonment.
U.S. Attorney Jason Reding Quiñones for the Southern District of Florida and Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami made the announcement.
HSI Fort Pierce and Martin County Sheriff’s Office are investigating the case.
Managing Assistant U.S. Attorney Carmen M. Lineberger is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent 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, under case number 25-cr-14043.
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Mastermind of Payday Loan Scheme Receives over Seven Years in PrisonRead the Press Release
MIAMI – Efrain Betancourt, Jr., 36, a dual citizen of Colombia and the United States, was sentenced on August 14 to 87 months in prison by U.S. District Judge Darrin P. Gayles for orchestrating a scheme that defrauded more than 600 investors out of over $66 million.
Betancourt was the chief executive officer and sole owner of Sky Group USA, LLC (Sky Group), a purported payday loan business. From January 2016 through March 2020, Betancourt and his co-conspirators sold promissory notes to investors to raise money that would be used to fund Sky Group’s payday loan business.
Instead of using investor funds to support Sky Group’s payday loan business, Betancourt paid millions of dollars in undisclosed commissions to sales agents and funded a luxurious wedding at a chateau in France.
The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt related to the same investment fraud scheme. The SEC’s proceeding was resolved in July 2022.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of FBI Miami, and Commissioner Russell C. Weigel, III, of the Florida Office of Financial Regulation (OFR) made the announcement.
FBI Miami, the FBI’s South Florida Fraud Task Force, and OFR investigated the case. The SEC’s Miami Regional Office provided invaluable assistance.
Assistant U.S. Attorney Roger Cruz prosecuted the case. Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20399.
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Sean Kingston and Mother Sentenced to Federal Prison for $1 Million Fraud SchemeRead the Press Release
MIAMI – Kisean Paul Anderson aka Sean Kingston, 35, was sentenced today to 42 months in federal prison by U.S. District Judge David S. Leibowitz, following his conviction by a federal jury on charges of conspiracy to commit wire fraud and wire fraud. Anderson participated in a scheme to defraud luxury merchandise vendors of more than $1 million in property, including a bulletproof Escalade, high-end watches, and a 232-inch LED television.
On July 23, Anderson’s mother, Janice Eleanor Turner, 62, was sentenced to five years in federal prison for her role in the scheme.
According to evidence presented at trial, between April 2023 and March 2024, Anderson contacted victims through a social media platform to arrange the purchase of high-end merchandise. After negotiating deals, Anderson invited sellers to one or more of his luxury homes in Broward County. During these meetings, Anderson used his celebrity status to gain his victims’ trust—offering to feature their products on social media or name-dropping high profile celebrities as potential referral clients.
When payment was due, Anderson or Turner sent the victims fake wire receipts, obtained by Turner, as purported proof of payment. In reality, no funds were ever transferred from legitimate accounts. Most victims were never paid; others received payment after filing lawsuits or involving law enforcement.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, and Sheriff Gregory Tony of the Broward Sheriff’s Office (BSO) made the announcement.
USSS Miami and BSO investigated the case.
Assistant U.S. Attorneys Marc Anton and Trevor Jones 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-60126.
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Miami Man Sentenced to More Than Eight Years in Prison for Distributing Child Sexual Abuse MaterialRead the Press Release
MIAMI – A Miami man has been sentenced to 97 months in federal prison for distributing child sexual abuse material (CSAM). U.S. District Judge Robin L. Rosenberg imposed the sentence on Andre Alexander Pino, 45, who pleaded guilty earlier this year.
According to court records, beginning in May 2023, Pino used a mobile messaging application to communicate with an individual he believed was a woman with a three-year-old son. During these communications, Pino encouraged the woman to sexually abuse her notional son and provided step-by-step instructions on how to do so.
In January 2024, Pino sent multiple videos depicting child sexual abuse to a chatroom on the messaging application that included the individual he believed was a woman with a three-year-old son.
On February 26, Homeland Security Investigations (HSI) executed a search warrant at Pino’s residence. Agents recovered a mobile phone containing multiple videos of CSAM.
As part of his sentence, Pino agreed to pay $5,000 in restitution to a victim depicted in the material he distributed.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and acting Special Agent in Charge Jose R. Figueroa of HSI Miami made the announcement.
HSI West Palm Beach and HSI Miami investigated the case.
Assistant U.S. Attorneys Katie Sadlo and Justin Chapman prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-80035.
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Italian National Sentenced to over 26 Years in Prison for International Child Exploitation and Money LaunderingRead the Press Release
MIAMI – An Italian national has been sentenced to 320 months in federal prison for using social media and online payments to entice minor victims in the United States and around the world to produce and send him sexually explicit images of themselves.
U.S. District Judge Roy K. Altman imposed the sentence on Marco Pagano, 41, following his guilty plea on February 25 to charges of child exploitation and international promotional money laundering.
According to court documents and statements made in court, Pagano engaged in illegal online exchanges with multiple minor victims, including four victims between the ages of 14 and 16 living in the United Kingdom. Pagano used online payment systems to pay those minor victims to create sexually explicit photographs and videos and send them to him through a social media application. For the four minor victims living in the United Kingdom, Pagano used his online payment accounts more than 180 times to send thousands of dollars from the United States. More broadly, Pagano’s online accounts revealed more than one thousand payments made in small denominations to victims across the world.
In addition to his prison sentence, Pagano was ordered to serve 15 years of supervised release. The court will determine restitution at a later date.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement.
FBI Miami investigated the case.
Assistant U.S. Attorney Zachary A. Keller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Anyone with information relating to child sexual exploitation or abuse is encouraged to call the FBI at 1-800-CALL-FBI.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20360.
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Fort Pierce Drug Dealer Sentenced to Eight Years in Federal PrisonRead the Press Release
MIAMI – A Fort Pierce man has been sentenced to 96 months in federal prison for drug trafficking. U.S. District Judge Aileen M. Cannon imposed the sentence on Derron Nathaniel Johnson, 28, following his guilty plea to distribution of fentanyl and cocaine.
According to the facts admitted at the change of plea hearing, Johnson conducted two separate drug sales in Fort Pierce: on July 6, 2022, he sold 13.92 grams of fentanyl; and on August 19, 2022, he sold 84.1 grams of cocaine.
U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Richard Del Toro Jr. of the Saint Lucie County Sheriff’s Office (SLCSO) made the announcement.
DEA Miami Field Division and SLCSO investigated the case. Okeechobee County Sheriff’s Office provided invaluable assistance.
Assistant U.S. Attorney Michael D. Porter prosecuted the case.
According to the DEA’s National Drug Threat Assessment, synthetic drugs, such as fentanyl, are poisoning our nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida.
For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx; https://www.cdc.gov/opioids/basics/fentanyl.html#; and https://www.dea.gov/factsheets/fentanyl.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-14003.
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Jason A. Reding Quiñones Sworn in as United States Attorney for the Southern District of FloridaRead the Press Release
WASHINGTON – Following his nomination by President Donald J. Trump and confirmation by the United States Senate, Jason A. Reding Quiñones was sworn in today as the United States Attorney for the Southern District of Florida. The oath of office was administered by Attorney General Pam Bondi. The Honorable Reding Quiñones is the first confirmed U.S. Attorney of President Trump’s second administration.
As United States Attorney, Reding Quiñones will lead the third-largest U.S. Attorney’s Office in the nation, overseeing the prosecution of a broad array of federal criminal offenses and the litigation of civil matters in which the United States has a legal interest. The Southern District of Florida spans more than 15,000 square miles, encompassing the counties of Miami-Dade, Broward, Monroe, Palm Beach, Martin, St. Lucie, Indian River, Okeechobee, and Highlands, and stretching from Key West to Sebastian and west to Sebring.
“As the son of a Cuban political refugee and a proud Miami native, I am deeply honored by the trust and confidence that President Trump, Attorney General Bondi, and the United States Senate have placed in me. As the United States Attorney for the Southern District of Florida, I will work tirelessly to protect the American people, restore impartial justice, and defend the rule of law without fear or favor.”
Prior to his appointment, Hon. Reding Quiñones served as a state court trial judge in Miami-Dade County presiding over civil and criminal domestic violence cases. He previously served as a national security official in the Department of Justice’s National Security Division, focusing on counterterrorism, and served as a federal prosecutor in both the Eastern District of Virginia and the Southern District of Florida.
A decorated 22-year veteran of the United States military, Hon. Reding Quiñones has served in the U.S. Army and the U.S. Air Force as a cavalry scout, infantry officer, logistics officer, and judge advocate (military lawyer). He continues to serve as a reserve lieutenant colonel, providing legal counsel on national security and counterterrorism matters to the Commander, U.S. Central Command.
The Honorable Reding Quiñones earned a Bachelor of Arts in Anthropology, with a minor in Military Sciences, from the University of Florida, and a Juris Doctor from Florida International University College of Law.
He succeeds Hayden P. O’Byrne, a career prosecutor who has led the office since January 2025. “Mr. O’Byrne is a patriot who has faithfully served this community for many years. I thank him for his leadership and look forward to building on his successes,” said U.S. Attorney Reding Quiñones.
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United Kingdom Citizen Sentenced to over 15 Years in Prison for Enticement of a MinorRead the Press Release
MIAMI – A citizen of the United Kingdom was sentenced in federal court after pleading guilty to enticement of a minor to engage in sexual activity.
Chief U.S. District Judge Cecilia M. Altonaga ordered Jack Edward Coles, 40, to serve 188 months in federal prison, followed by 20 years of supervised release.
According to court records, in October 2024, Coles met a 14-year-old boy through a dating app. Coles arranged for an Uber to pick up the minor victim from his residence and bring him to the hotel where Coles was staying. Upon the minor victim’s arrival, Coles engaged in sexual acts with him. Coles later attempted to arrange additional meetings with the minor victim in October and November 2024, and again in February 2025. In November 2024, Coles also enticed the minor victim to send him sexually explicit photographs.
United States Attorney Hayden P. O’Byrne and Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami made the announcement.
HSI Miami investigated the case with assistance from the City of Miami Police Department and the State Attorney’s Office, Criminal Investigation Division.
Assistant United States Attorney Dwayne Williams prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20073.
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Owner and Captain of Scuba Charter Vessel Sentenced to over Eight Years in Prison for Seaman’s Manslaughter and FraudRead the Press Release
MIAMI –The owner and captain of a scuba charter vessel has been sentenced to more than eight years in prison after a federal jury found him guilty in March 2025 of seaman’s manslaughter (both as the vessel’s owner and captain), lying to the U.S. Coast Guard, and fraudulently obtaining Covid-19 pandemic relief funds.
U.S. District Judge Aileen M. Cannon sentenced Dustin Sean McCabe, 50, to 100 months in prison—above the advisory Sentencing Guidelines—citing McCabe’s reckless conduct and the horrific circumstances and nature of the victim’s death.
In early March 2020, McCabe purchased a 48-foot vessel, named it Southern Comfort, and falsely claimed on Coast Guard forms that it would be used for recreational purposes. Instead, McCabe intended to operate the Southern Comfort to run paid scuba charters, refitting it himself for commercial use.
On March 28, 2020, McCabe took paying passengers on a scuba trip aboard the Southern Comfort. During the trip’s two dives, the Southern Comfort experienced significant mechanical malfunctions, including one propeller unexpectedly engaging, loss of steering, and the vessel running aground. In one incident, the port-side propeller activated while the vessel was in neutral during a diver pickup, pulling a diver toward the propeller before the diver narrowly escaped injury.
Despite these dangerous malfunctions, McCabe operated another paid scuba trip the very next day without reporting the prior day’s incidents to the Coast Guard, warning passengers of what had happened the day before, or repairing the vessel.
During this second trip, the same propeller malfunction occurred as the victim and her spouse were boarding from the water. The propeller pulled the victim and her spouse into it, killing her. Following the fatality, McCabe was prohibited from operating the Southern Comfort.
Months later, McCabe applied for two Paycheck Protection Program (PPP) loans, a federal relief program designed to help small businesses survive the economic impact of the pandemic. To secure the loans (and later their forgiveness), McCabe falsely claimed that his scuba charter business was still operational and submitted fraudulent payroll information and tax documents to obtain the funds and secure loan forgiveness.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Josh W. Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office made the announcement.
CGIS Southeast Field Office investigated the case, with assistance from U.S. Coast Guard Marine Safety Detachment Lake Worth and the Florida Fish and Wildlife Conservation Commission Office of Law Enforcement.
Assistant U.S. Attorney Zachary A. Keller, U.S. Coast Guard Special Assistant U.S. Attorney Tanner Stiehl, and Assistant U.S. Attorney Jacob Koffsky 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 under case number 24-CR-80103.
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Marathon Man Charged with Seaman’s ManslaughterRead the Press Release
MIAMI – A federal grand jury has returned an indictment charging Daniel Gavin Couch, 52, with one count of seaman’s manslaughter.
According to the indictment, Couch was employed as a captain by Lighthouse Parasail, Inc., in Monroe County, Florida, and operated a commercial parasailing vessel, the M/V AIRBORNE, on the company’s behalf. The AIRBORNE was an inspected commercial vessel regulated by the U.S. Coast Guard and primarily used for parasailing charters.
On May 30, 2022, Couch engaged in misconduct, negligence, or inattention to his duties as captain, causing the death of a passenger.
If convicted, Couch faces up to 10 years in federal prison.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Josh W. Packer of the Coast Guard Investigative Service (CGIS) Southeast Field Office made the announcement.
CGIS Southeast Field Office investigated the case, with assistance from U.S. Coast Guard Marine Safety Detachment Lake Worth and the Florida Fish and Wildlife Conservation Commission Office of Law Enforcement.
Assistant U.S. Attorney Zachary A. Keller and Coast Guard Special Assistant U.S. Attorney Tanner Stiehl are prosecuting the case.
An indictment contains mere allegations, and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 24-CR-10036.
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Florida Men Plead Guilty to Alien Smuggling Conspiracy Involving 69 AliensRead the Press Release
MIAMI – Two Miami men have pleaded guilty to federal charges for their roles in a conspiracy to smuggle aliens into the United States by sea.
According to court documents and statements made in court, between July 2024 and March 2025, Ezequiel Perez Benitez, 37, and Miguel Avoy, 36, participated in at least three alien smuggling ventures.
As part of the conspiracy, “go-fast” boats would travel from Miami-Dade County to the territorial waters of the Bahamas. During each return trip to the United States, the boats were intercepted in United States waters by U.S. Customs and Border Protection Air and Marine Operations (CBP-AMO) and the U.S. Coast Guard (USCG). Overall, the conspiracy involved 69 aliens of various nationalities, including China and Ecuador.
The conspiracy also involved the transportation of aliens within the United States after they had entered the country unlawfully. A third co-defendant, Baisheng An, a Chinese national, pleaded guilty on June 9 to charges related to conspiracy and the transportation of aliens. An was arrested by Homeland Security Investigations (HSI) in during an investigative operation targeting the human smuggling network.
All aliens interdicted at sea were either prosecuted for illegal reentry into the United States, returned to their country of departure, in this case the Bahamas, or turned over to Immigration and Customs Enforcement (ICE), for further immigration proceedings.
Several additional co-conspirators have been charged in separate, related cases.
Avoy was sentenced to 24 months in prison for his role in the conspiracy. Perez is scheduled to be sentenced on October 30 at 10:30 a.m. in Miami. He faces up to 10 years in prison, followed by up to three years of supervised release and a fine of up to $250,000.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida and Acting Special Agent in Charge Jose R. Figueroa of HSI, Miami Field Office, made the announcement.
HSI Miami investigated the case with assistance from CBP-AMO and USCG, Southeast Coast Guard District.
Special Assistant United States Attorney Tanner Stiehl is prosecuting the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-10027.
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Man in Possession of Loaded Semi-Automatic Rifle at Palm Beach International Airport Makes Initial Appearance in Federal CourtRead the Press Release
MIAMI – Michael Jeffrey Rodrigues, 41, made his initial appearance in federal court today on a criminal complaint charging him with possession of a firearm by a convicted felon.
According to the complaint, on August 5, Rodrigues parked a rental car in an employee lot at Palm Beach International Airport, where it remained for approximately two hours. During that time, Rodrigues was seen entering and exiting the car multiple times. At one point, Rodrigues walked toward the airport gates carrying a large black case and returned to the car around 7:00 am, still in possession of the case.
Deputies from the Palm Beach County Sheriff’s Office made contact with Rodrigues and observed a set of throwing knives inside the case. A database check revealed that the car had been rented, and Rodrigues stated that his father had rented it. Rodrigues authorized deputies to search the car for the rental agreement. Inside the glove compartment, deputies found a loaded magazine. Next to the glove compartment, concealed under a towel, they found a loaded Smith & Wesson M&P-15 rifle along with two additional magazines.
Rodrigues has prior felony convictions in Martin County, Florida. On June 20, 2022, Rodrigues was convicted in Martin County, Florida of Grand Theft of a Motor Vehicle and Introduction of Contraband into a Correctional Facility—both felony offenses under Florida law.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office made the announcement.
FBI Miami and the Palm Beach County Sheriff’s Office are investigating the case.
Assistant United States Attorney Marc Osborne is prosecuting the case.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at https://www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 25-mj-08427.
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Three People Sentenced to Prison for Distributing Methamphetamine, Fentanyl and NitazenesRead the Press Release
MIAMI – Three South Florida residents have been sentenced to federal prison for distributing methamphetamine, fentanyl and nitazenes, after pleading guilty to a charge of conspiring to distribute fentanyl and N-Pyrrolidino Protonitazene.
On July 30, Josue David Balaguer, 35, of Hollywood, Florida, was sentenced to 141 months in federal prison. On July 31, Marcos Geovanny Beltre Olivo, 39, of Hollywood, Florida, was sentenced to 141 months in federal prison. And on August 1, 2025, Joel Medina, 36, of Hollywood, Florida, was sentenced to 48 months in federal prison.
Beginning in early 2024, the defendants conspired amongst themselves and with others to distribute pressed pills through the mail for on-line, open web and dark web, drug distributors. The pills were distributed throughout the United States. The pressed pills were marketed as pharmaceuticals, but contained nitazenes, fentanyl, and methamphetamine, among other controlled substances. On September 11, 2024, agents executed a residential search warrant and recovered hundreds of thousands of pressed pills, a pill press, a packaging machine, and numerous mailing supplies.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami, Acting Inspector in Charge Bladismir Rojo of the U.S. Postal Inspection Service (USPIS), Miami Division, Special Agent in Charge Jonathan Ulrich, U.S. Postal Service Office of Inspector General (USPS OIG), Acting Special Agent in Charge Maximillian Pagano of the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office made the announcement.
FBI Miami, DEA Miami, HSI Miami, USPIS Miami, USPS-OIG, FDA-OCI, and PBSO investigated the case.
Assistant U.S. Attorney Daniel E. Funk prosecuted the case.
According to the DEA’s National Drug Threat Assessment, nitazenes are synthetic opioids, like fentanyl, but some nitazenes can match or surpass the potency of fentanyl. Different nitazenes have been appearing in fentanyl mixtures in the United States since 2019. When combined with fentanyl, the effects of both drugs are heightened, which significantly increases the chance of a fatal drug poisoning.
Synthetic drugs such as fentanyl are poisoning the nation. Fentanyl has proven to be a deadly poison that does not discriminate. Its victims include every gender, race, age, and economic background, and its debilitating effects are the same across all demographics. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. Just one fentanyl pill can kill, as noted in DEA’s One Pill Can Kill campaign. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (CDC), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. In 2022, more than 5,622 people died from overdoses involving fentanyl and fentanyl analogs in Florida.
For more information visit: https://www.fdle.state.fl.us/MEC/Publications-and-Forms/Documents/Drugs-in-Deceased-Persons/2022-Annual-Drug-Report-FINAL-(1).aspx; https://www.cdc.gov/opioids/basics/fentanyl.html#; and https://www.dea.gov/factsheets/fentanyl.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-80112.
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Justice Department Files Two Civil Forfeiture Actions to Recover Nearly $11 Million in Health Care Fraud ProceedsRead the Press Release
MIAMI – The United States has filed civil forfeiture complaints in the Southern District of Florida against two purported durable medical equipment (DME) companies accused of fraudulently billing Medicare more than $33 million combined.
According to allegations in the complaints, Vida Med Center LLC and Med-Union Medical Center, Inc., both enrolled Medicare providers, submitted false and fraudulent claims for DME that were medically unnecessary and not provided as represented.
Vida Med submitted $14,110,820.00 in claims to Medicare and received $8,759,036.68 in reimbursements. Med-Union submitted $19,044,516.07 in Medicare claims and received $14,167,792.92 in payments. Notably, all of Med-Union’s paid Medicare claims were based on prescriptions issued by a single provider. The civil forfeiture actions seek to recover $967,760.37 and $10,014,325.40, respectively, in proceeds from the fraudulently obtained taxpayer dollars.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Acting Special Agent in Charge Jesus Barranco of the U.S. Department of Health and Human Services, Office of Inspector General, (HHS-OIG), Miami Regional Office; and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
FBI Miami and HHS-OIG are investigating the cases.
Assistant U.S. Attorneys Marx P. Calderón and Joshua Paster for the Southern District of Florida are prosecuting these civil actions.
A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards a judgment in favor of the United States.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case numbers 25-cv-23345 and 25-cv-23340.
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Former Miami Heat Security Employee Charged for Selling Stolen MemorabiliaRead the Press Release
MIAMI – A former employee of the Miami Heat made his initial appearance in federal court today on a one-count information charging him with transporting and transferring stolen goods in interstate commerce.
According to the charging document, Marcos Thomas Perez, 62, of Miami, is accused of stealing millions of dollars’ worth of Miami Heat game-worn jerseys and other valuable memorabilia, which he later sold to online brokers.
Perez, a 25-year retired veteran of the City of Miami Police Department, was employed as a security officer with the Miami Heat from 2016 to 2021 and later worked as an NBA security employee from 2022 to 2025. During his tenure, Perez worked on the game-day security detail at the Kaseya Center, where he was among a limited number of trusted individuals with access to a secured equipment room. This equipment room stored hundreds of game-worn jerseys and other memorabilia that the organization intended to display in a future Miami Heat museum.
During his employment, Perez accessed the equipment room multiple times to steal over 400 game-worn jerseys and other items, which he then sold to various online marketplaces. Over a three-year period, Perez sold over 100 stolen items for approximately $2 million and shipped them across state lines, often for prices well below their market value. As an example, Perez sold a game-worn LeBron James Miami Heat NBA Finals jersey for approximately $100,000. That same jersey later sold at a Sotheby’s auction for $3.7 million.
On April 3, law enforcement executed a search warrant at Perez’s residence and seized nearly 300 additional stolen game-worn jerseys and memorabilia. The Miami Heat confirmed that these items had been stolen from their facility.
United States Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Brett D. Skiles of the FBI, Miami Field Office made the announcement.
FBI Miami is investigating the case. The United States Postal Inspection Service - Miami and Miami Police Department provided invaluable assistance.
Assistant United States Attorney Robert Moore is prosecuting the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20346.
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Q Link Wireless LLC and Issa Asad to Pay More than $110M in Global Resolution to Resolve Criminal Charges and False Claims Act AllegationsRead the Press Release
MIAMI – Q Link Wireless LLC (Q Link) and its owner, Issa Asad (Asad), located in Dania Beach, Florida, have agreed to pay $110,637,057 to resolve criminal charges and civil allegations that they violated the False Claims Act by submitting false claims to the Federal Communications Commission’s (FCC’s) Lifeline Program. The Lifeline Program, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs.
Eligible Telecommunications Carriers (ETCs), such as Q Link, receive monthly federal payments for providing discounted phone services to qualified consumers who must use their Lifeline phones at least once every 30 days. In order to qualify for Lifeline payments, ETCs certify their compliance with Lifeline rules, including the requirement to de-enroll and to stop submitting claims for customers that are not using their Lifeline phones.
The settlement resolves allegations that Q Link and Asad received monthly federal payments from the Lifeline Program that they were not entitled to through a scheme directed by Asad. The United States alleged that Q Link, Asad, and others conspired to knowingly submit and caused to be submitted false and fraudulent claims to Lifeline for customers who were not using their cellphones consistent with FCC usage regulations, including customers who did not possess activated phones. The United States also alleged that Q Link and Asad understood that Q Link was required to de-enroll and stop seeking payment for customers who were not using their phones consistent with the FCC’s usage rules. The United States further alleged that Q Link, Asad, and others, in order to deceive the FCC and in order to continue billing for Q Link’s customers, manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. The United States also alleged that, in order to obscure Q Link’s and Asad’s actions, Q Link provided false and fabricated records to the FCC purporting to show cellphone usage for customers who were not using their cellphones including for some cellphones that were actually in the FCC’s possession at the time. As a result of this alleged conduct, Q Link received approximately $38,438,541 in improper Lifeline payments between February 2018 and October 2019. Under the civil settlement, Q Link’s and Asad’s payment of the criminal restitution they owe related to the Lifeline Program will be credited toward the amount due under the civil settlement.
“When individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools,” said U.S. Attorney Hayden O’Byrne for the Southern District of Florida. “This settlement addresses the integrity of the Lifeline Program, an important program that helps low-income Americans connect to people and information, a modern-day necessity.”
“The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and claim federal funds to which they are not entitled,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to preventing fraud against important FCC subsidy programs like Lifeline.”
“The FCC takes very seriously any instance of misuse of public funds and misrepresentation. Protecting taxpayer dollars from waste, fraud, and abuse is central to our work,” said FCC Chairman Brendan Carr. “I thank our partners at the Justice Department and the tireless teams at the FCC – including the Office of General Counsel and Office of Inspector General – for their relentless pursuit of this matter.”
“FCC OIG is committed to vigorously protecting FCC’s low-income subsidy programs and legitimate customers from telecommunications providers who use deceptive practices to perpetrate fraud,” said FCC Inspector General Fara Damelin. “We appreciate the dedication and outstanding work of our investigative team, our law enforcement partners at DOJ, and our FCC colleagues, in particular OGC, who together strengthen the integrity of FCC programs and ensure that bad actors are held accountable.”
As part of a global resolution, Q Link and Asad entered into criminal plea agreements with the U.S. Attorney’s Office for the Southern District of Florida. On Oct. 15, 2024, Q Link and Asad pled guilty to conspiring to commit wire fraud and theft of government funds and defrauding the United States, related to the conduct at issue in today’s civil settlement. Asad also pled guilty to money laundering arising from conduct not related to the civil investigation. Q Link and Asad were sentenced by United States District Judge Rodolfo A. Ruiz, II on July 24. In connection with the criminal resolution, Q Link and Asad further agreed to not participate in any program administered by the FCC and agree to cooperate in transitioning its Lifeline customers to other ETCs.
The civil False Claims Act resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Southern District of Florida, and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, with assistance from the FCC’s Office of Inspector General and the FCC’s Office of General Counsel.
The civil False Claims Act investigation was handled by Assistant United States Attorney Rosaline Chan and former Assistant United States Attorney Christopher Cheek for the Southern District of Florida, as well as Trial Attorney David M. Sobotkin, and former Assistant U.S. Attorney Miriam L. Alinikoff.
The claims resolved by the settlement are allegations only and there has been no determination of civil liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20363.
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Q Link Wireless LLC and Issa Asad to Pay More than $110M in Global Resolution to Resolve Criminal Charges and False Claims Act AllegationsRead the Press Release
Q Link Wireless LLC (Q Link) and its owner, Issa Asad (Asad), located in Dania Beach, Florida, have agreed to pay $110,637,057 to resolve criminal charges and civil allegations that they violated the False Claims Act by submitting false claims to the Federal Communications Commission’s (FCC’s) Lifeline Program. The Lifeline Program, created by Congress in the Telecommunications Act of 1996, provides nearly $2 billion each year to assist low-income consumers with their telecommunications needs.
Eligible Telecommunications Carriers (ETCs), such as Q Link, receive monthly federal payments for providing discounted phone services to qualified consumers who must use their Lifeline phones at least once every 30 days. In order to qualify for Lifeline payments, ETCs certify their compliance with Lifeline rules, including the requirement to de-enroll and to stop submitting claims for customers that are not using their Lifeline phones.
The settlement resolves allegations that Q Link and Asad received monthly federal payments from the Lifeline Program that they were not entitled to through a scheme directed by Asad. The United States alleged that Q Link, Asad, and others conspired to knowingly submit and caused to be submitted false and fraudulent claims to Lifeline for customers who were not using their cellphones consistent with FCC usage regulations, including customers who did not possess activated phones. The United States also alleged that Q Link and Asad understood that Q Link was required to de-enroll and stop seeking payment for customers who were not using their phones consistent with the FCC’s usage rules. The United States further alleged that Q Link, Asad, and others, in order to deceive the FCC and in order to continue billing for Q Link’s customers, manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. The United States also alleged that, in order to obscure Q Link’s and Asad’s actions, Q Link provided false and fabricated records to the FCC purporting to show cellphone usage for customers who were not using their cellphones including for some cellphones that were actually in the FCC’s possession at the time. As a result of this alleged conduct, Q Link received approximately $38,438,541 in improper Lifeline payments between February 2018 and October 2019. Under the civil settlement, Q Link’s and Asad’s payment of the criminal restitution they owe related to the Lifeline Program will be credited toward the amount due under the civil settlement.
“The Justice Department will take action where companies and individuals knowingly violate the rules of federal programs and claim federal funds to which they are not entitled,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to preventing fraud against important FCC subsidy programs like Lifeline.”
“The FCC takes very seriously any instance of misuse of public funds and misrepresentation. Protecting taxpayer dollars from waste, fraud, and abuse is central to our work,” said FCC Chairman Brendan Carr. “I thank our partners at the Justice Department and the tireless teams at the FCC – including the Office of General Counsel and Office of Inspector General – for their relentless pursuit of this matter.”
“When individuals and corporations target programs that serve vulnerable populations to line their own pockets with millions, our office stands ready to investigate and pursue those allegations using all appropriate civil enforcement tools,” said U.S. Attorney Hayden O’Byrne for the Southern District of Florida. “This settlement addresses the integrity of the Lifeline Program, an important program that helps low-income Americans connect to people and information, a modern-day necessity.”
“FCC OIG is committed to vigorously protecting FCC’s low-income subsidy programs and legitimate customers from telecommunications providers who use deceptive practices to perpetrate fraud,” said FCC Inspector General Fara Damelin. “We appreciate the dedication and outstanding work of our investigative team, our law enforcement partners at DOJ, and our FCC colleagues, in particular OGC, who together strengthen the integrity of FCC programs and ensure that bad actors are held accountable.”
As part of a global resolution, Q Link and Asad entered into criminal plea agreements with the U.S. Attorney’s Office for the Southern District of Florida. On Oct. 15, 2024, Q Link and Asad pled guilty to conspiring to commit wire fraud and theft of government funds and defrauding the United States, related to the conduct at issue in today’s civil settlement. Asad also pled guilty to money laundering arising from conduct not related to the civil investigation. Q Link and Asad were sentenced by United States District Judge Rodolfo A. Ruiz, II on July 24. In connection with the criminal resolution, Q Link and Asad further agreed to not participate in any program administered by the FCC and agree to cooperate in transitioning its Lifeline customers to other ETCs.
The civil False Claims Act resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Southern District of Florida, with assistance from the FCC’s Office of Inspector General and the FCC’s Office of General Counsel.
The civil False Claims Act investigation was handled by Trial Attorney David M. Sobotkin, Assistant United States Attorney Rosaline Chan, and former Assistant U.S. Attorneys Miriam L. Alinikoff and Christopher Cheek for the Southern District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of civil liability.
Florida Woman Sentenced to Prison for Conspiring with Family Members to Hide more than $90M from the IRSRead the Press Release
MIAMI – A Florida woman, and dual U.S. and Colombian citizen, was sentenced on Friday to 30 months in prison for conspiring to defraud the United States by, among other things, concealing tens of millions of dollars in undeclared foreign financial accounts, filing false tax returns, and evading taxes.
The following is according to court documents: between 2010 and 2022, Gilda Rosenberg, 60, of Golden Beach, conspired with two family members to conceal from the IRS more than $90 million in assets and income held in undeclared bank accounts in Andorra, Israel, Panama, and Switzerland.
Rosenberg’s family had maintained offshore accounts since the 1970s. By the late 1990s, Rosenberg — who was identified as an owner and an authorized signer on some of the accounts — knew that she and her family members had not disclosed their ownership of these foreign financial accounts to the U.S. government and that they had not paid any taxes on the income earned from the assets in those accounts as was required by law.
Starting in the early 2000s, the family consolidated their assets at accounts with Credit Suisse in Switzerland and the United Kingdom. Family members told Credit Suisse employees that they were U.S. persons and seeking to hide their assets from U.S. authorities. The assets remained at Credit Suisse until 2013, when Credit Suisse closed the accounts because the family members were U.S. persons.
When Credit Suisse closed their accounts, the family moved their assets, which were typically titled in the names of nominee entities, to new accounts located at Bank Leumi in Israel, Union Bancaire Privée (UBP) and PKB Privat Bank SA in Switzerland, and an Andorran bank. Rosenberg was documented as the beneficial owner of accounts at UBP and the Andorran bank. She also signed false account opening documents that claimed she was a Colombian citizen and not a U.S. citizen.
Rosenberg, as well as her relatives, did not file Reports of Foreign Bank and Financial Accounts (FBARS) disclosing their foreign financial accounts, as they were required to do. In addition, Rosenberg and her relatives continued to file false tax returns that omitted income generated by their offshore assets.
In or about 2017, as part of a scheme to continue to evade their U.S. tax and reporting obligations, Rosenberg and the family members divided the family’s assets and signed documents to make it appear that Rosenberg and a relative gifted the offshore assets to another relative after he had renounced his U.S. citizenship. Rosenberg and her relatives then tried to covertly transfer assets to Rosenberg in the United States and to conceal their ongoing and historical tax evasion. To do so, Rosenberg and her relatives, among other things, created fake loan and investment documents to make it appear that transfers to and from Rosenberg were loans and business investments.
From 2010 through 2017, Rosenberg filed false tax returns that did not report income she earned from assets in the account she concealed at UBP. For the 2009 through 2017 tax years, unreported income belonging to Rosenberg and two of her co-conspirators totaled more than $5.5 million, causing a tax loss of $1,927,342. Prior to her sentencing, Rosenberg had agreed to pay $1,927,342 in restitution to the IRS. She had also agreed to pay interest on the restitution. Separately, Rosenberg’s plea agreement required her to agree to pay a penalty of $5,857,045.50 to the IRS to resolve her civil liability for failing to file an FBAR.
Rosenberg previously pleaded guilty in the Eastern District of Texas to an information charging her with conspiracy to commit wire fraud related to a scheme to defraud the Army and Air Force Exchange Service by making and presenting false reports in order to avoid fully paying contractually required commissions. See United States v. Rosenberg, 4:24-cr-00062-ALM-AGD (E.D. Tex.).
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and made the announcement.
IRS Criminal Investigation’s International Tax & Financial Crimes Unit investigated the case. The Justice Department’s Office of International Affairs provided critical assistance in obtaining important evidence.
Assistant U.S. Attorney Ana Maria Martinez for the Southern District of Florida and Senior Litigation Counsel Mark Daly, as well as Trial Attorney Marissa Brodney of the Tax Division, 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20005.
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Florida Woman Sentenced to Prison for Conspiring with Family Members to Hide more than $90M from the IRSRead the Press Release
A Florida woman, and dual U.S. and Colombian citizen, was sentenced on Friday to 30 months in prison for conspiring to defraud the United States by, among other things, concealing tens of millions of dollars in undeclared foreign financial accounts, filing false tax returns, and evading taxes.
The following is according to court documents: between 2010 and 2022, Gilda Rosenberg, of Golden Beach, conspired with two family members to conceal from the IRS more than $90 million in assets and income held in undeclared bank accounts in Andorra, Israel, Panama, and Switzerland.
Rosenberg’s family had maintained offshore accounts since the 1970s. By the late 1990s, Rosenberg — who was identified as an owner and an authorized signer on some of the accounts — knew that she and her family members had not disclosed their ownership of these foreign financial accounts to the U.S. government and that they had not paid any taxes on the income earned from the assets in those accounts as was required by law.
Starting in the early 2000s, the family consolidated their assets at accounts with Credit Suisse in Switzerland and the United Kingdom. Family members told Credit Suisse employees that they were U.S. persons and seeking to hide their assets from U.S. authorities. The assets remained at Credit Suisse until 2013, when Credit Suisse closed the accounts because the family members were U.S. persons.
When Credit Suisse closed their accounts, the family moved their assets, which were typically titled in the names of nominee entities, to new accounts located at Bank Leumi in Israel, Union Bancaire Privée (UBP) and PKB Privat Bank SA in Switzerland, and an Andorran bank. Rosenberg was documented as the beneficial owner of accounts at UBP and the Andorran bank. She also signed false account opening documents that claimed she was a Colombian citizen and not a U.S. citizen.
Rosenberg, as well as her relatives, did not file Reports of Foreign Bank and Financial Accounts (FBARS) disclosing their foreign financial accounts, as they were required to do. In addition, Rosenberg and her relatives continued to file false tax returns that omitted income generated by their offshore assets.
In or about 2017, as part of a scheme to continue to evade their U.S. tax and reporting obligations, Rosenberg and the family members divided the family’s assets and signed documents to make it appear that Rosenberg and a relative gifted the offshore assets to another relative after he had renounced his U.S. citizenship. Rosenberg and her relatives then tried to covertly transfer assets to Rosenberg in the United States and to conceal their ongoing and historical tax evasion. To do so, Rosenberg and her relatives, among other things, created fake loan and investment documents to make it appear that transfers to and from Rosenberg were loans and business investments.
From 2010 through 2017, Rosenberg filed false tax returns that did not report income she earned from assets in the account she concealed at UBP. For the 2009 through 2017 tax years, unreported income belonging to Rosenberg and two of her co-conspirators totaled more than $5.5 million, causing a tax loss of $1,927,342. Prior to her sentencing, Rosenberg had agreed to pay $1,927,342 in restitution to the IRS. She had also agreed to pay interest on the restitution. Separately, Rosenberg’s plea agreement required her to agree to pay a penalty of $5,857,045.50 to the IRS to resolve her civil liability for failing to file an FBAR.
Rosenberg previously pleaded guilty in the Eastern District of Texas to an information charging her with conspiracy to commit wire fraud related to a scheme to defraud the Army and Air Force Exchange Service by making and presenting false reports in order to avoid fully paying contractually required commissions. See United States v. Rosenberg, 4:24-cr-00062-ALM-AGD (E.D. Tex.).
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida made the announcement.
IRS Criminal Investigation’s International Tax & Financial Crimes Unit investigated the case. The Justice Department’s Office of International Affairs provided critical assistance in obtaining important evidence.
Senior Litigation Counsel Mark Daly and Trial Attorney Marissa Brodney of the Tax Division, as well as Assistant U.S. Attorney Ana Maria Martinez for the Southern District of Florida, prosecuted the case.
South Florida Telecom Company and its CEO Pay $128 Million and CEO is Sentenced to 5 Years for Massive Government Program FraudRead the Press Release
MIAMI –Issa Asad, 51, of Southwest Ranches, Florida, and Q Link Wireless LLC, of Dania Beach, Florida, were sentenced yesterday for conspiring to defraud and commit offenses against the United States in connection with a years-long scheme to steal over $100 million from a celebrated federal program providing discounted phone service to people in need. Asad, Q Link’s CEO, was also sentenced for laundering money from a separate scheme to defraud a different federal program meant to aid individuals and businesses hurt by the Covid-19 pandemic.
Asad and Q Link were each sentenced on Count 1 of an Information, which charged them with conspiring to commit wire fraud and to steal government money, and also with conspiring to defraud the United States, Asad was also sentenced on Count 2 of the Information, which charges him with money laundering.
Asad received a sentence of 60 months’ imprisonment. Q Link agreed to pay a forfeiture money judgment of over $109 million. Asad and Q Link also agreed to jointly paid $109,637,057 in restitution to the Federal Communications Commission (FCC). Asad separately paid $1,758,339.25 in restitution to the United States Small Business Association, and paid a forfeiture judgment against him of $17,484,118.00. The paid financial penalties and restitution totaled over $128 million.
"Issa Asad and his company, Q Link Wireless, deliberately scammed two vital government programs aimed at supporting people and companies in economic distress, wrongfully diverting hundreds of millions of dollars for their personal benefit and gain, all while impeding the government's capacity to assist those who genuinely required the help," stated U.S. Attorney Hayden P. O’ Byrne for the Southern District of Florida. "These outcomes underscore our resolve to make sure that those who mastermind corporate fraud schemes face personal consequences.”
“IRS Criminal Investigation special agents are specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed,” said Executive Special Agent in Charge Kareem Carterof the Internal Revenue Service - Criminal Investigation (IRS-CI), Washington, D.C. Field Office. “This was a brazen scheme of staggering proportions. Mr. Asad prioritized his own greed, stealing $100 million from taxpayers. Today’s sentencing sends a clear message that our Global Illicit Financial Team and our law enforcement partners remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means.”
“Q Link and Asad stole funds from a key FCC program meant to serve low-income households,” said Inspector General Fara Damelin of the FCC, Office of Inspector General (FCC-OIG). “This sentencing sends an important message that egregious criminal misconduct against FCC programs will not go unanswered. FCC OIG investigators and their law enforcement partners at DOJ, IRS, SIGPR, and USPIS, did an outstanding job on this investigation, and we thank FCC for its assistance. FCC OIG is dedicated to stopping waste, fraud, and abuse, and will continue to vigorously pursue investigations against wrongdoers who defraud FCC programs and victimize our most vulnerable populations.”
“Issa Asad used the cover of a legitimate business to line his pockets at the expense of taxpayers and vulnerable communities,” said Acting Inspector in Charge Bladismir Rojo of the U.S. Postal Inspection Service (USPIS), Miami Division. “Today’s sentencing reinforces our commitment to protecting our communities and government programs from abuse.”
According to court records, the case arose out of the Asad and Q Link’s scheme to defraud the FCC’s Lifeline program. Lifeline makes basic communications services more affordable for low-income consumers. It provides subscribers a deep discount on qualifying monthly cellphone service, broadband Internet service, or bundled voice-broadband packages purchased from participating telecommunications providers. The discount helps ensure that low-income consumers can afford 21st century connectivity services and the access they provide to jobs, healthcare, and educational resources.
Asad and Q Link agreed that they purposefully conspired to defraud this program. Specifically, beginning as early as 2012 and continuing through at least 2021, Q Link, directed by Asad, cheated the Lifeline program by making repeated false claims for reimbursement, taking and retaining Lifeline funds that it was not entitled to receive, providing false information about its Lifeline customers, and deceiving the FCC about its compliance with program rules. Asad directed these illegal activities and conspired with others to commit the fraud.
Among other things, according to court records, the Asad and Q Link engaged in multiple tricks designed to mislead the FCC about how many people were actually using Q Link’s Lifeline phones, and to prevent customers who did not want the phones from ending their relationship with Q Link (which would have prevented Q Link from billing the program for them). Asad and Q Link manufactured non-existent cellphone activity and engaged in coercive marketing techniques to get people to remain Q Link customers. On one occasion, for example, Asad and Q Link devised the following automated script to be played for Q Link customers: “Hello, your Medicaid, Food Stamp and Lifeline benefits are about to get cancelled. To avoid cancelation of these benefits, press 1 now to indicate that you wish to remain enrolled in these government programs. Press 2 if you wish to speak to a representative about your government benefits. To opt out of any future calls, press 3.” The Asad and Q Link used this false and threatening script to coerce customers into accepting Lifeline services. In another recorded call in which a similar script was deployed, a customer, who called to cancel due to a non-working cellphone, asked the Q Link customer service representative, “Do you want me to throw it in the garbage?” The representative instructed the customer to “Just make sure you continue to use the device at least once every 30 days.”
Upon learning that the FCC was investigating their Lifeline billing, Asad and Q Link created and provided false records to the FCC to conceal the scam and to continue collecting reimbursement. As part of this plan, Asad and Q Link, with the help of others, simply manufactured cellphone activity on behalf of Q Link customers who were not using their cellphones. At no point did Q Link amend past Lifeline claims for customers who were not using their cellphones or return any of the Lifeline payments. Asad and Q Link, together with their co-conspirators, caused a $109,637,057 loss to the FCC. Asad admitted that he sent over $50 million in Lifeline funds to bank accounts he and his family member controlled in Jordan.
Meanwhile, Asad defrauded another federal government program, the Paycheck Protection Program (PPP), by making false statements about Q Link’s business. Congress created the PPP during the Covid-19 pandemic to authorize forgivable loans to small businesses for job retention and certain other expenses. Asad, in Q Link’s name, executed a fraudulent scheme to obtain, and keep, PPP proceeds. To further the scheme, Asad made false statements about Q Link’s business, including a false claim that Q Link’s Lifeline reimbursements substantially decreased because of the pandemic. Asad then, in 2021, engaged in an unlawful financial transaction involving approximately $389,000 of those proceeds. Asad spent PPP loan proceeds on a Land Rover payment, his personal Amex card, jewelry, and personal property taxes.
Resolution of this matter makes this the largest criminal matter involving the FCC and the largest criminal plea deal in the history of Southern District of Florida.
U.S. Attorney O’ Byrne, acting Inspector in Charge Rojo, Executive Special Agent in Charge Carter, and Inspector General Damelin, made the announcement.
The FCC-OIG, USPIS, IRS-CI’s Global Illicit Financial Team, and Special Inspector General for Pandemic Recovery (SIGPR), investigated the case.
Assistant U.S. Attorneys Elizabeth Young and John Shipley prosecuted the case.
Assistant U.S. Attorneys Joshua Pastor and Mitch Hyman are handling asset forfeiture.
Assistant U.S. Attorney Danielle Croke is handling restitution.
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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20363.
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Operation Grayskull Culminates in Lengthy Sentences for Managers of Dark Web Site Dedicated to Sexual Abuse of ChildrenRead the Press Release
Operation Grayskull Eradicated Four Dark Web Child Abuse Sites and Led to the Convictions of 18 Offenders to Date, Who Have Collectively Received More than 300 Years in Prison
MIAMI – Today, the Justice Department announced the results of Operation Grayskull, a highly successful joint effort between the Department of Justice and the FBI that resulted in the dismantling of four dark web sites dedicated to images and videos containing child sexual abuse material (CSAM). To date, the operation has led to the convictions of 18 offenders, including a Minnesota man who was sentenced yesterday to 250 months in prison and lifetime supervised release for his involvement with one of these dark web sites. He was also ordered to pay $23,000 in restitution.
“Yesterday’s sentencing reaffirms our steadfast commitment to protecting our children, the most vulnerable among us, from those who exploit and harm them through the despicable trade in child sexual abuse material,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Thomas Peter Katsampes and his co-conspirators ran some of the darkweb’s most heinous networks, enabling horrific crimes against innocent victims, but Operation Grayskull has shut these sites down and delivered justice. We applaud the FBI and our international partners for their tireless work, and let this be a clear warning: we will relentlessly pursue and prosecute anyone engaged in such atrocities, no matter how they attempt to cover their tracks.”
“Today’s announcement sends a clear warning to those who exploit and abuse children: you will not find safe haven, even on the dark web,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These offenders thought that they could act without consequences, but they were wrong. Thanks to the relentless determination of our prosecutors and law enforcement partners we have exposed these perpetrators for who they are, eliminated their websites and brought justice to countless victims.”
“This operation represents one of the most significant strikes ever made against online child exploitation networks,” said FBI Director Kash Patel. “We’ve not only dismantled dangerous platforms on the dark web, but we’ve also brought key perpetrators to justice and delivered a powerful message: you cannot hide behind anonymity to harm children.”
Thomas Peter Katsampes, 52, of Eagan, Minnesota, pleaded guilty to conspiracy to advertise and conspiracy to distribute child pornography on Feb. 27. According to court documents, Katsampes joined a dark web site dedicated to CSAM in 2022, advertised and distributed CSAM over the website, including CSAM depicting prepubescent children, and eventually worked his way up to a staff position on the web site, which, among other things, involved moderating the site, enforcing the site’s rules for posting CSAM, and advising the site’s users about how to post CSAM.
In addition to Katsampes, eight individuals have been convicted and sentenced in the Southern District of Florida for their involvement in running the primary site targeted by Operation Grayskull.
DefendantResidenceCase StatusSelwyn David RosensteinBoynton Beach, FloridaPleaded guilty to conspiracy to advertise child pornography, five counts of advertisement of child pornography, and possession of child pornography.
Sentenced on Dec. 12, 2022, to 28 years in prison and ordered to pay $80,500 in restitution to victims of his offense.
Matthew Branden GarrelRaleigh, North CarolinaPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 1, 2023, to 20 years and 10 months in prison and ordered to pay $158,500 in restitution to victims of his offense.
Robert Preston BoylesClarksville, TennesseePleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 15, 2023, to 23 years and four months in prison and ordered to pay $7,500 in restitution to victims of his offense.
Gregory Malcolm GoodSilver Springs, NevadaPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 22, 2023, to 25 years and 10 months in prison and ordered to pay $93,500 in restitution to victims of his offense.
William Michael SpearmanMadison, AlabamaPleaded guilty to engaging in a child exploitation enterprise.
Sentenced on Jan. 23, 2024, to life in prison and ordered to pay $123,400 in restitution to victims of his offense.
Joseph Addison MartinTahuya, WashingtonPleaded guilty to engaging in a child exploitation enterprise.
Sentenced on April 18, 2024, to 42 years in prison and ordered to pay $174,500 in restitution to victims of his offense.
Joseph Robert StewartMilton, WashingtonPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on April 18, 2024, to 23 years and 9 months in prison and ordered to pay $19,500 in restitution to victims of his offense.
Keith David McIntoshGrand Rapids, MichiganPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography, both as a person with a prior conviction for possession of child pornography.
Sentenced on Dec. 19, 2024, to 55 years in prison.
The website’s leaders advertised and distributed CSAM, promulgated rules for the website, enforced the rules by banning or scolding users who violated them, held staff meetings, recruited members to serve as staff members, recommended users for promotion, edited and deleted user posts, praised individuals for participating in and contributing to the website, kept records of CSAM posts made by individual members, and paid for and maintained the website servers, among other things.
Operation Grayskull resulted in the dismantling of a total of four sites dedicated to images and videos depicting child sexual abuse. These websites were some of the most egregious on the dark web, and they included sections specifically dedicated to infants and toddlers, as well as depictions of violence, sadism, and torture. The websites also contained detailed advice on how to avoid detection by law enforcement – for example, by using sophisticated technologies.
In other judicial districts around the country, nine additional individuals have been convicted for their involvement with these websites, including the following:
Charles Hand, of Aberdeen, Maryland, was prosecuted in the District of Maryland and was sentenced to 14 years in federal prison;
Michael Ibarra, of Wenatchee, Washington, was prosecuted in the Eastern District of Washington and was sentenced to 12 years in prison;
Clay Trimble, of Fordyce, Arkansas, was prosecuted in the Eastern District of Arkansas and was sentenced to 18 years in prison;
David Craig, of Houston, Texas, was prosecuted in the Southern District of Texas and was sentenced to nine years in prison;
Robert Rella of Chesapeake, Virginia, was prosecuted in the Eastern District of Virginia and was sentenced to five years and eight months in prison;
Samuel Hicks, of Fort Wayne, Indiana, was prosecuted in the Northern District of Indiana and was sentenced to 16 years in prison;
Richard Smith of Dallas, Texas, was prosecuted in the Eastern District of Texas and was sentenced to 14 years in prison;
Patrick Harrison, of Grand Rapids, Michigan, was prosecuted in the Western District of Michigan and was sentenced to five years and ten months in prison.
Thomas Gailus, of Webbers Falls, Oklahoma, was prosecuted in the Eastern District of Oklahoma, and his sentencing is pending.
Two other individuals in the United States died before being charged for their involvement with the websites. The operation also resulted in arrests in the United Kingdom, the Netherlands, Italy, Germany, Estonia, Belgium, and South Africa.
The FBI’s Child Exploitation Operational Unit and Miami Field Office, West Palm Beach Resident Agency investigated the cases.
Former Assistant U.S. Attorney Gregory Schiller of the Southern District of Florida, Acting Deputy Chief Kyle P. Reynolds, and Trial Attorney William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) coordinated the operation and prosecuted the defendants in the Southern District of Florida.
Substantial assistance for the cases prosected in the Southern District of Florida was provided by FBI Field Offices and Resident Agencies in Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; Madison, Wisconsin; Tacoma, Washington; Grand Rapids, Michigan; and Minneapolis, Minnesota; CEOS’s High Technology Investigative Unit; and the U.S. Attorney’s Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, Western District of Wisconsin, Western District of Washington, Western District of Michigan, and District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-80053.
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Operation Grayskull Culminates in Lengthy Sentences for Managers of Dark Web Site Dedicated to Sexual Abuse of ChildrenRead the Press Release
Today, the Justice Department announced the results of Operation Grayskull, a highly successful joint effort between the Department of Justice and the FBI that resulted in the dismantling of four dark web sites dedicated to images and videos containing child sexual abuse material (CSAM). To date, the operation has led to the convictions of 18 offenders, including a Minnesota man who was sentenced yesterday to 250 months in prison and lifetime supervised release for his involvement with one of these dark web sites. He was also ordered to pay $23,000 in restitution.
“Today’s announcement sends a clear warning to those who exploit and abuse children: you will not find safe haven, even on the dark web,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These offenders thought that they could act without consequences, but they were wrong. Thanks to the relentless determination of our prosecutors and law enforcement partners we have exposed these perpetrators for who they are, eliminated their websites and brought justice to countless victims.”
“This operation represents one of the most significant strikes ever made against online child exploitation networks,” said FBI Director Kash Patel. “We’ve not only dismantled dangerous platforms on the dark web, but we’ve also brought key perpetrators to justice and delivered a powerful message: you cannot hide behind anonymity to harm children.”
“Yesterday’s sentencing reaffirms our steadfast commitment to protecting our children, the most vulnerable among us, from those who exploit and harm them through the despicable trade in child sexual abuse material,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Thomas Peter Katsampes and his co-conspirators ran some of the darkweb’s most heinous networks, enabling horrific crimes against innocent victims, but Operation Grayskull has shut these sites down and delivered justice. We applaud the FBI and our international partners for their tireless work, and let this be a clear warning: we will relentlessly pursue and prosecute anyone engaged in such atrocities, no matter how they attempt to cover their tracks.”
Thomas Peter Katsampes, 52, of Eagan, Minnesota, pleaded guilty to conspiracy to advertise and conspiracy to distribute child pornography on Feb. 27. According to court documents, Katsampes joined a dark web site dedicated to CSAM in 2022, advertised and distributed CSAM over the website, including CSAM depicting prepubescent children, and eventually worked his way up to a staff position on the web site, which, among other things, involved moderating the site, enforcing the site’s rules for posting CSAM, and advising the site’s users about how to post CSAM.
In addition to Katsampes, eight individuals have been convicted and sentenced in the Southern District of Florida for their involvement in running the primary site targeted by Operation Grayskull.
DefendantResidenceCase StatusSelwyn David RosensteinBoynton Beach, FloridaPleaded guilty to conspiracy to advertise child pornography, five counts of advertisement of child pornography, and possession of child pornography.
Sentenced on Dec. 12, 2022, to 28 years in prison and ordered to pay $80,500 in restitution to victims of his offense.
Matthew Branden GarrellRaleigh, North CarolinaPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 1, 2023, to 20 years and 10 months in prison and ordered to pay $158,500 in restitution to victims of his offense.
Robert Preston BoylesClarksville, TennesseePleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 15, 2023, to 23 years and four months in prison and ordered to pay $7,500 in restitution to victims of his offense.
Gregory Malcolm GoodSilver Springs, NevadaPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on Aug. 22, 2023, to 25 years and 10 months in prison and ordered to pay $93,500 in restitution to victims of his offense.
William Michael SpearmanMadison, AlabamaPleaded guilty to engaging in a child exploitation enterprise.
Sentenced on Jan. 23, 2024, to life in prison and ordered to pay $123,400 in restitution to victims of his offense.
Joseph Addison MartinTahuya, WashingtonPleaded guilty to engaging in a child exploitation enterprise.
Sentenced on April 18, 2024, to 42 years in prison and ordered to pay $174,500 in restitution to victims of his offense.
Joseph Robert StewartMilton, WashingtonPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography.
Sentenced on April 18, 2024, to 23 years and 9 months in prison and ordered to pay $19,500 in restitution to victims of his offense.
Keith David McIntoshGrand Rapids, MichiganPleaded guilty to conspiracy to advertise child pornography and conspiracy to distribute child pornography, both as a person with a prior conviction for possession of child pornography.
Sentenced on Dec. 19, 2024, to 55 years in prison.
The website’s leaders advertised and distributed CSAM, promulgated rules for the website, enforced the rules by banning or scolding users who violated them, held staff meetings, recruited members to serve as staff members, recommended users for promotion, edited and deleted user posts, praised individuals for participating in and contributing to the website, kept records of CSAM posts made by individual members, and paid for and maintained the website servers, among other things.
Operation Grayskull resulted in the dismantling of a total of four sites dedicated to images and videos depicting child sexual abuse. These websites were some of the most egregious on the dark web, and they included sections specifically dedicated to infants and toddlers, as well as depictions of violence, sadism, and torture. The websites also contained detailed advice on how to avoid detection by law enforcement – for example, by using sophisticated technologies.
In other judicial districts around the country, nine additional individuals have been convicted for their involvement with these websites, including the following:
- Charles Hand, of Aberdeen, Maryland, was prosecuted in the District of Maryland and was sentenced to 14 years in federal prison;
- Michael Ibarra, of Wenatchee, Washington, was prosecuted in the Eastern District of Washington and was sentenced to 12 years in prison;
- Clay Trimble, of Fordyce, Arkansas, was prosecuted in the Eastern District of Arkansas and was sentenced to 18 years in prison;
- David Craig, of Houston, Texas, was prosecuted in the Southern District of Texas and was sentenced to nine years in prison;
- Robert Rella of Chesapeake, Virginia, was prosecuted in the Eastern District of Virginia and was sentenced to five years and eight months in prison;
- Samuel Hicks, of Fort Wayne, Indiana, was prosecuted in the Northern District of Indiana and was sentenced to 16 years in prison;
- Richard Smith of Dallas, Texas, was prosecuted in the Eastern District of Texas and was sentenced to 14 years in prison;
- Patrick Harrison, of Grand Rapids, Michigan, was prosecuted in the Western District of Michigan and was sentenced to five years and ten months in prison.
- Thomas Gailus, of Webbers Falls, Oklahoma, was prosecuted in the Eastern District of Oklahoma, and his sentencing is pending.
Two other individuals in the United States died before being charged for their involvement with the websites. The operation also resulted in arrests in the United Kingdom, the Netherlands, Italy, Germany, Estonia, Belgium, and South Africa.
The FBI’s Child Exploitation Operational Unit and Miami Field Office, West Palm Beach Resident Agency investigated the cases.
Acting Deputy Chief Kyle P. Reynolds and Trial Attorney William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and former Assistant U.S. Attorney Gregory Schiller of the Southern District of Florida coordinated the operation and prosecuted the defendants in the Southern District of Florida.
Substantial assistance for the cases prosected in the Southern District of Florida was provided by FBI Field Offices and Resident Agencies in Huntsville, Alabama; Reno, Nevada; Clarksville, Tennessee; Raleigh, North Carolina; Madison, Wisconsin; Tacoma, Washington; Grand Rapids, Michigan; and Minneapolis, Minnesota; CEOS’s High Technology Investigative Unit; and the U.S. Attorney’s Offices for the Northern District of Alabama, District of Nevada, Middle District of Tennessee, Eastern District of North Carolina, Western District of Wisconsin, Western District of Washington, Western District of Michigan, and District of Minnesota.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Miami-Dade Sheriff’s Office Deputy Charged with Receipt and Production of Child Sexual Abuse MaterialRead the Press Release
MIAMI – Carle Miranda Blum, 51, a sworn uniformed deputy with the Miami-Dade Sheriff’s Office, was arrested today following the filing of a federal complaint charging her with receipt of visual depictions involving the sexual exploitation of minors and production of visual depictions involving the sexual exploitation of minors.
According to the complaint, Blum received multiple videos and images of the victim, who was 17 years old at the time, engaged in sexually explicit conduct. In the spring of 2025, Blum traveled to Atlanta, Georgia, where she recorded multiple videos of herself engaging in sex acts with the then-minor victim.
The charge of production of visual depictions involving the sexual exploitation of minors carries a mandatory-minimum of 15 years in prison and a statutory maximum of up to 30 years. The charge of receipt of visual depictions involving the sexual exploitation of minors carries a mandatory-minimum of 5 years in prison and a statutory maximum of up to 20 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Hayden P. O’Byrne and Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement. The Miami-Dade Sheriff’s Office provided assistance in the investigation. The United States Attorney’s Office for the Northern District of Georgia and FBI Atlanta assisted in Blum’s apprehension and arrest.
Assistant U.S. Attorney Ilana R. Malkin and Major Crimes Deputy Chief Assistant U.S. Attorney Lauren Astigarraga are prosecuting the case.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate better, 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.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence with the National Hotline is confidential, and you may request assistance or report a tip anonymously.
“To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the HSI and other law enforcement agencies.”
To learn more about the National Resource Hotline, visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking, visit www.justice.gov/humantrafficking.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl.
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 at http://pacer.flsd.uscourts.gov, under case number 24-mj-02786.
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Florida Man Sentenced for Decades-Long Scheme to Defraud the IRSRead the Press Release
Defendant Hid Millions in Swiss Accounts and Lied to the IRS During AuditMIAMI – A Miami man was sentenced yesterday to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.
The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.
Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.
Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.
In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.
Shortly after Rotta changed the account documentation, the IRS audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.
The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.
In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.
In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.
In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.
U.S. Attorney Hayden O’Byrne for the Southern District of Florida, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.
Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.
Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, Senior Litigation Counsels Sean Beaty and Mark Daly, and Trial Attorney William Montague, as well as former Trial Attorney Patrick Elwell of the Tax Division, prosecuted the case.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 24-cr-20113.
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Florida Man Sentenced for Decades-Long Scheme to Defraud the IRSRead the Press Release
A Miami man was sentenced today to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.
The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.
Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.
Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.
In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.
Shortly after Rotta changed the account documentation, the IRS audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.
The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.
In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.
In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.
In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Hayden O’Byrne for the Southern District of Florida, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.
Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.
Senior Litigation Counsels Sean Beaty and Mark Daly, Trial Attorney William Montague, and former Trial Attorney Patrick Elwell of the Tax Division, as well as Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, prosecuted the case.
Conspiracy Ringleader of $78 million Diverted Prescription Drug Operation Sentenced to Fourteen Years in PrisonRead the Press Release
MIAMI – Stephen Costa, 40, was sentenced to fourteen years in prison after pleading guilty to his leadership role in a conspiracy that distributed thousands of bottles of diverted pharmaceutical drugs, many intended for HIV and cancer patients, into the legitimate supply chain around the United States.
According to court documents, Costa was the architect of a scheme, which resulted in the prosecution of 20 defendants in a series of superseding indictments issued between 2019 and 2024. The conspiracy originated in early 2013, when Costa began acquiring licensed pharmaceutical wholesale companies using the names of recruited associates, and established new corporations to distribute the drugs he acquired. Several of Costa’s accomplices were individuals he had previously conspired with in a similar scheme based in New York and others he had known from other businesses or high school.
Once Costa had control of these companies, he purchased diverted drugs from suppliers he had worked with before and directed his co-conspirators on how to price, market, sell, and distribute the drugs. These diverted drugs were ultimately funneled to legitimate pharmacies around the country.
Costa continued to expand the Miami-based conspiracy even after his conviction in the New York scheme. Before reporting to prison to serve his sentence, Costa facilitated the introduction of his primary supplier of diverted pharmaceuticals to a co-conspirator to perpetuate the operation during his imprisonment. Costa received several payments from the proceeds of his co-conspirator’s continuing operation.
In total, approximately $78 million worth of diverted drugs were sold to unsuspecting patients, believing their medications had been shipped directly from legitimate manufacturers—not purchased on the streets and repackaged under false labeling. The criminal operation was shut down in May 2019 through a joint effort by the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), and FBI Miami.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of FBI Miami, and Acting Special Agent in Charge Maximillian Pagano of the FDA-OCI Miami Field Office made the announcement.
Assistant U.S. Attorney Frank Tamen prosecuted the case.
Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 19-cr-20674.
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Fort Lauderdale Investment Advisor Arrested on Federal Wire Fraud and Money Laundering Charges in Multi-Million-Dollar Ponzi Scheme Targeting Venezuelan InvestorsRead the Press Release
MIAMI – Federal authorities have arrested Andrew Hamilton Jacobus, 64, of Fort Lauderdale, on charges of wire fraud and money laundering stemming from a years-long scheme that defrauded international investors — primarily Venezuelan nationals — of more than $94 million.
According to an indictment in U.S. District Court for the Southern District of Florida, Jacobus falsely portrayed himself as a seasoned financial advisor managing legitimate investment portfolios, while instead misappropriating investor funds for personal use and to pay returns to earlier investors — in classic Ponzi fashion.
Between 2019 and 2023, Jacobus allegedly solicited funds through entities under his control, including Kronus Financial Corporation, and Finser International, promising access to secure investment products and high-yield returns. Federal prosecutors allege Jacobus forged account statements, falsified documentation, and diverted client funds to luxury personal expenditures and unrelated business ventures.
Jacobus was taken into custody by federal agents without incident in Fort Lauderdale. He made his initial appearance in federal court. If convicted, Jacobus faces up to 20 years in prison for each count of wire fraud and money laundering, in addition to forfeiture of assets and restitution.
U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
The case is being prosecuted by Assistant U.S. Attorney Robert F. Moore.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 25-cr-20309.
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Thirteenth Defendant Pleads Guilty in Transnational Scheme to Defraud U.S. ConsumersRead the Press Release
MIAMI – A Peruvian national pleaded guilty yesterday for his participation in transnational mail and wire fraud schemes that targeted vulnerable United States consumers.
According to court documents, David Cornejo Fernandez, 36, of Lima, Peru, facilitated fraud schemes that stole millions of dollars from Spanish-speaking victims across the United States. Cornejo provided Internet-based telephone lines, caller-ID spoofing services, and recording capabilities to a network of fraudulent call centers based in Peru. Relying on Cornejo’s services, those call centers defrauded and extorted thousands of Spanish-speaking victims by falsely threatening them with court proceedings, fines, and other consequences. Cornejo further provided the call centers with the technology – and, at times, the training – to convincingly impersonate federal agents, police officers, attorneys, court personnel, and other government officials in order to extort payments from victims. Cornejo was extradited from Peru in November 2024 to face charges related to the scheme.
Cornejo is the 13th defendant to be convicted in connection with a $15 million transnational fraud scheme that defrauded and threatened Spanish-speaking U.S. consumers. These fraudsters falsely claimed the victims would suffer severe legal, financial and other consequences if they did not pay for English-language products. Collectively, the scheme was responsible for defrauding more than 30,000 United States consumers, many of whom were vulnerable.
"This guilty plea marks another important victory in our relentless pursuit of transnational fraudsters who impersonate U.S. government officials to exploit vulnerable Spanish-speaking communities across the United States," said U.S. Attorney Hayden P. O'Byrne for the Southern District of Florida. "David Cornejo Fernandez enabled a sophisticated network of call centers that used technology to impersonate government officials, instill fear, and steal millions from hardworking individuals. Today's outcome sends a clear message: we will work hand-in-hand with our international partners to dismantle these schemes, extradite those responsible, and ensure they face justice in U.S. courts, no matter how far they try to hide.”
“The Department of Justice is committed to protecting vulnerable U.S. consumers from fraud, especially schemes carried out by criminals impersonating U.S. government officials,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Those who target American consumers from abroad will be identified, prosecuted, and held accountable for their crimes. We thank the Republic of Peru for their assistance in arresting and extraditing this defendant and others involved in these scams.”
“The defendant thought he could hide behind borders and phone lines, but the Postal Inspection Service is relentless when it comes to protecting American consumers,” said Acting Inspector in Charge Bladismir Rojo, U.S. Postal Inspection Service, Miami Division. “Setting up fake call centers to harass and intimidate innocent victims, Cornejo and his co-conspirators, crafted a campaign of fear designed to rob people of not only their savings but their peace of mind. If you target Americans, no matter where you are in the world we will find you.”
In pleading guilty, Cornejo admitted that he provided his co-conspirators with the technology to manipulate the phone numbers on victims’ caller IDs, which enabled them to place threatening calls that appeared to be coming from U.S. federal agencies, court officials or law enforcement agencies. Cornejo also placed recordings on his co-conspirators’ inbound phone lines that appeared to be recordings from actual U.S. courts, police departments and federal agencies. These recordings enhanced the apparent legitimacy of the threatening calls and were used to extort payments from vulnerable consumers in the Southern District of Florida and across the United States. Cornejo also regularly replaced telephone numbers that victims reported as fraudulent, thus enabling his co-conspirators to continue with the fraudulent scheme.
Yesterday, Cornejo pleaded guilty to conspiracy to commit mail and wire fraud. A sentencing hearing is scheduled before the Senior U.S. District Judge Robert N. Scola in Miami on Sep. 25. Cornejo faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hayden P. O'Byrne for the Southern District of Florida, Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division, and Acting Inspector in Charge Bladismir Rojo, U.S. Postal Inspection Service, Miami Division, made the announcement.
USPIS and the Consumer Protection Branch investigated the case.
Senior Trial Attorney and Transnational Criminal Litigation Coordinator Phil Toomajian and Trial Attorney Carolyn Rice of the Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Annika Miranda for the Southern District of Florida is handling asset forfeiture. The Justice Department’s Office of International Affairs, U.S. Attorney’s Office for the Southern District of Florida, State Department’s Diplomatic Security Service, U.S. Marshals Service, Peruvian National Prosecutor General’s Office and Peruvian National Police provided critical assistance.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
You may find a copy of this press release (and any updates) 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 at http://pacer.flsd.uscourts.gov, under case number 23-cr-20055.
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