Southern District of Florida
Press releases recorded for this federal judicial district.
Florida Man Indicted for Operating Sex Trafficking EnterpriseRead the Press Release
Defendant Allegedly Used Fraudulent Scheme to Import Foreign University Students in Furtherance of Prostitution and Erotic Massage Enterprise
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was charged late yesterday in an 11-count indictment in the Southern District of Florida with sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of aliens for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise.
According to allegations in the indictment and criminal complaint, Cooper recruited foreign students from Kazakhstan through the State Department’s Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States and advertise them to customers of his prostitution and erotic massage enterprise. As alleged in the indictment and complaint, Cooper recruited the foreign university students on false pretenses, knowing that no such yoga studio existed.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of sex trafficking, Cooper faces a mandatory minimum sentence of 15 years in prison. The wire fraud charges carry a statutory maximum sentence of 20 years in prison. Importing or attempting to import an alien for immoral purposes carries a statutory maximum sentence of 10 years in prison, and using a facility of interstate commerce to promote an unlawful activity carries a statutory maximum sentence of five years in prison.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, State Department’s Diplomatic Security Service, Miami-Dade Police Department and North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.
Jeffrey Cooper Indictment
Florida Man Indicted for Operating Sex Trafficking EnterpriseRead the Press Release
Jeffrey Jason Cooper, 46, of Miami Beach, Florida, was charged late yesterday in an 11-count indictment in the Southern District of Florida with sex trafficking and attempted sex trafficking by fraud, wire fraud, importation of aliens for prostitution or immoral purposes and use of a facility of interstate commerce to operate a prostitution enterprise.
According to allegations in the indictment and criminal complaint, Cooper recruited foreign students from Kazakhstan through the State Department’s Summer Work Travel Program, using false and fraudulent promises of clerical jobs in a fictitious yoga studio in order to bring the students into the United States and advertise them to customers of his prostitution and erotic massage enterprise. As alleged in the indictment and complaint, Cooper recruited the foreign university students on false pretenses, knowing that no such yoga studio existed.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of sex trafficking, Cooper faces a mandatory minimum sentence of 15 years in prison. The wire fraud charges carry a statutory maximum sentence of 20 years in prison. Importing or attempting to import an alien for immoral purposes carries a statutory maximum sentence of 10 years in prison, and using a facility of interstate commerce to promote an unlawful activity carries a statutory maximum sentence of five years in prison.
The case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, State Department’s Diplomatic Security Service, Miami-Dade Police Department and North Bay Village, Florida, Police Department. The case is being prosecuted by Assistant U.S. Attorney Seth M. Schlessinger of the Southern District of Florida and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
The Southern District of Florida was selected as one of six Phase I Anti-Trafficking Coordination Teams (ACTeams) through the interagency ACTeam Initiative of the Departments of Justice, Homeland Security and Labor. Designated ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative 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 on http://pacer.flsd.uscourts.gov
22 Defendants Charged Federally with Collectively Receiving over $13 Million from USDA by Fraudulently Trading Food Stamps for CashRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), Pam Bondi, Florida Attorney General, Jeff Atwater, Florida Chief Financial Officer, Mike Carroll, Secretary, Florida Department of Children and Families, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Regional Operations Center, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Miami Field Office, Juan J. Perez, Director, Miami Dade Police Department (MDPD), Rodolfo Llanes, Chief, Miami Police Department (MPD), Ric Bradshaw, Sheriff, and Palm Beach County Sheriff’s Office (PBSO), announce the filing of federal charges against 22 retail store owners or operators in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege that the retailers received more than $13 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores and vendors allegedly took illicit profits from the fraudulent transactions with food stamp recipients. In addition to the federal indictments, 6 individuals have been charged by the Office of Statewide Prosecution for their alleged receipt of additional illegal payments during the course of their participation in fraudulent food stamp schemes. This joint operation resulted in the largest combined financial fraud loss for a food stamp trafficking takedown in history.
“When individuals defraud governmental programs, they steal taxpayer funded benefits that are intended to feed the families and children in our communities who are most in need,” stated United States Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office and our federal law enforcement partners are committed to working with our state and local allies to investigate and prosecute individuals that commit fraudulent schemes for illicit personal financial gain.”
“These flea market retailers are charged with having taken advantage of a provision in the SNAP program designed to provide locally sourced fresh produce and meat to low income families who otherwise would likely have no option for such food items. Instead of operating within the confines of the rules and regulations for farmers' market vendors, these retailers created an illegal benefits exchange system that defrauded the American taxpayer and denied healthy foods to needy children and their families. Thousands of SNAP recipients are believed to have exchanged their EBT benefits for cash at the Opa-Locka Hialeah Flea Market. The flea market retailers, who are alleged to have orchestrated this trafficking scheme, pocketed millions in "fees" which they charged for converting food assistance benefits into cash. Any retailer who chooses to defraud taxpayers through such trafficking schemes will continue to be aggressively investigated and prosecuted by USDA-OIG and its law enforcement partners," stated Karen Citizen-Wilcox, Special Agent in Charge, USDA-OIG.
“Food stamp trafficking is a serious crime tantamount to stealing from the hardworking taxpayers in our state,” said Attorney General Bondi. “These retailers and operators thought they had devised the perfect scheme to steal from the government, but thanks to the great work by my Office of Statewide Prosecution, U.S. Attorney Wifredo A. Ferrer, and our local, state and federal law enforcement agencies, we have stopped the scheme, charged the defendants for their alleged conduct and will hold them accountable in a court of law.”
“To steal from public programs designed to help our neighbors in their greatest time of need is to steal from every taxpayer in Florida, and I’m glad to see that those who participate in the fraudulent schemes will be brought to justice,” said Chief Financial Officer Jeff Atwater. “This partnered investigation displays our shared commitment to aggressively fighting fraud in Florida, and our collective work continues.”
“Our department is committed to not only administering the food assistance program but also protecting its integrity so we can ensure Florida families have the resources they need to get them back on their feet,” said Mike Carroll, Secretary, Florida Department of Children and Families. “Today’s indictments demonstrate the strength of our partnerships and that any individuals stealing from the system will be brought to justice.”
“We utilize our very broad authorities and capabilities to partner with other agencies to disrupt and dismantle these criminal organizations to protect the taxpayer and intended recipients of the programs,” said Robert C. Hutchinson, Acting Special Agent in Charge of HSI Miami. “This is yet another example of the success of this teamwork.”
“Every Florida taxpayer is a potential victim in food stamp fraud cases.” said FDLE Commissioner Rick Swearingen. “I appreciate the work of our local, state and federal partners to bring these individuals to justice.”
City of Miami Police Department Chief Rodolfo Llanes, stated “Fraud affects all our communities in a negative manner. This case exemplified how EBT fraud is so prevalent in our jurisdiction. The Miami Police Department is very proud of its role in this case while working with our state and federal partners in order to bring this case to a successful conclusion.”
The Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, is a federally funded, national program established by the United States government to alleviate hunger and malnutrition among lower income families. The United States Department of Agriculture (USDA) administers SNAP through its agency, the Food and Nutrition Service (FNS). FNS is responsible for the authorization and disqualification of retail food establishments participating in the redemption of SNAP benefits.
In Florida, SNAP is administered by the State of Florida Department of Children and Families (DCF). DCF is responsible for overall program administration, as well as approving, denying or revoking assistance for recipients. FNS and the State of Florida share jointly in the cost of administering the SNAP. In 1998, DCF changed the format of SNAP benefits in Florida from a traditional paper coupon system to an Electronic Benefit Transfer (EBT) card system. Recipients use the EBT card, which contains an embedded magnetic strip, to purchase approved food items from participating retailers. Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale (POS) terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers bill the government in return for providing approved food items. SNAP retailers, including the defendants, receive instruction regarding the requirements and regulations of the food stamp program, such as that only eligible food items can be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
According to the indictments listed below, the defendants owned and/or operated stores in the Southern District of Florida that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program. The defendants allegedly exchanged EBT benefits for cash, in violation of the food stamp program rules. The defendants and/or their co-conspirators/employees swiped the recipient’s EBT card at a POS machine for an inflated amount, and paid the recipient, in cash, a reduced percentage of the value of food stamp benefits charged on the card. The defendants would realize a guaranteed, significant profit from each fraudulent transaction. In most situations, the recipient did not actually receive any food or eligible items in return for their food stamp benefits. As a result of unlawful cash transactions, the defendants fraudulently obtained more than $13 million dollars in EBT deposits for transactions in which the stores did not provide food.
1. United States v. Karla Rodriguez Diaz and Luis Marzo Machado, Case No. 16-20324-CR-Gayles
According to the indictment, Karla Rodriguez Diaz, 28, of Hialeah, owned a food stand business, Opa Locka Fruit and Produce Market, LLC (“Opa Locka Fruit and Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Diaz applied for, and obtained, authorization to participate in SNAP. Diaz was the sole authorized signatory on the company’s bank accounts. Luis Marzo Machado, 30, of Hialeah, is married to Diaz. Machado originally opened the business, but soon transferred ownership to Diaz, though he continued to work at the business. Between August 2014 and May 2016, Diaz and Machado were involved in a scheme in which they exchanged food stamp benefits for cash. From August 2014 through March 2016, Diaz and Machado fraudulently redeemed over $2,400,000 in EBT food stamp benefits.
2. United States v. Pedro Sanchez Barrero and Antonia Barrero, Case No. 16-2621-MJ-Simonton
According to the criminal complaint, Pedro Sanchez Barrero, 26, of Miami, Florida, the owner of a food stand business Pedro Produce, Inc. (“Pedro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Pedro Barrero applied for and obtained authorization to participate in SNAP. From March 2016 through May 2016, Pedro Barrero and Antonia Barrero, 48, of Miami, Florida, were involved in a scheme in which they exchanged food stamp benefits for cash and fraudulently redeemed approximately $2 million in EBT food stamp benefits.
3. United States v. Diocenila Castro, Case No. 16-20319-CR-Moreno
According to the indictment, Diocenila Castro, 49, of Miami, owned a food stand business, Castro Produce, Corp. (“Castro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Castro applied for and obtained authorization to participate in SNAP. Between November 2014 and May 2016, Castro was involved in a scheme in which she exchanged food stamp benefits for cash. From November 2014 through March 2016, Castro fraudulently redeemed over $1,500,000 in EBT food stamp benefits.
4. United States v. Matias Jose Ramirez and Jorge Saladrigas Milian, Case No. 16-20306-CR-Williams
According to the indictment, Matias Jose Ramirez, 37, of Miami and Jorge Saladrigas Milian, 56, of Opa-Locka, owned food stand businesses, Ramirez Produce, Corp. (“Ramirez Produce”) and Jorge Produce, Corp. (“Jorge Produce”), located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Ramirez and Milian applied for, and obtained, authorization to participate in SNAP. From at least as early as April 2014 and continuing through March 2016, Ramirez and Milian were involved in a scheme in which they exchanged food stamp benefits for cash. From April 2014 until March 2016, Ramirez and Milian fraudulently redeemed approximately $1.5 million in EBT food stamp benefits.
5. United States v. Reinaldo Arteaga and Luisdian Hernandez Gonzalez, Case No. 16-20307-CR-Middlebrooks
According to the indictment, Reinaldo Arteaga, 62, of Miami Gardens owned a produce stand, Arteaga Produce, Corp. (“Arteaga Produce”), located at 12705 NW 42nd Avenue, in Opa Locka, Florida. Arteaga applied for, and obtained, authorization to participate in SNAP. Between August 2014 and May 2016, Arteaga and Luisdian Hernandez Gonzalez, 22, of Miami, were involved in a scheme in which they illegally exchanged food stamp benefits for cash, by swiping EBT cards at Arteaga Produce. From August 2014 through March 2016, Arteaga and Gonzalez fraudulently redeemed over $1,200,000 in EBT food stamp benefits which were deposited into a bank account controlled by Arteaga.
Luisdian H. Gonzalez was also charged in Case No. 16-20321-CR-Gayles for his alleged involvement in a separate food stamp fraud scheme.
6. United States v. Zulfiqar Mithavayani and Jamal Al-Hawa, Case No. 16-20284-CR-Altonaga
According to the indictment, Zulfiqar Mithavayani, 51, of Miramar, owned a convenience store, ABC Food Market, located at 163 Northwest 14th Street in Miami, Florida. Mithavayani applied for and obtained authorization to participate in SNAP. Mithavayani and Jamal Al-Hawa, 60, of Davie, were involved in a scheme in which they illegally sold food stamp benefits in exchange for cash. Since March 2013, Mithavayani and Al-Hawa redeemed and caused to be redeemed over $1,100,000 in EBT food stamp benefits, over $1,000,000 more than the average convenience store in Florida during this period.
7. United States v. Maikel Manuel Riviaux, Case No. 16-20305-CR-Moore
According to the indictment, Maikel Manuel Riviaux, 42, of Hialeah, owned a seafood market, Pucho Fish Market, located at 2060 NW Opasar Locka Boulevard, in Opa Locka, Florida. Between December 2014 and May 2016, Riviaux and his co-conspirators were involved in a food stamp fraud scheme. From May 2015 through March 2016, Riviaux redeemed approximately $1,000,000 in EBT food stamp benefits which were deposited into bank accounts which he controlled. Riviaux and his co-conspirators used point of sale machines to swipe the recipient’s EBT cards at both Pucho Fish Market at 2060 NW Opa Locka Boulevard, in Opa Locka, Florida and at the Opa Locka Flea market located at 12705 NW 42nd Avenue in Opa Locka, Florida.
8. United States v. Jose Antonio Gonzalez and Noraida Pi Figueroa, Case No. 16-20304-CR-Gayles
According to the indictment, Jose Antonio Gonzalez, 45, of Miami Gardens owned a seafood delivery route business, Los Corticos Fish Corpation (“Los Corticos”), located at 3310 NW 171st Terrace, in Miami Gardens, Florida. Gonzalez applied for, and obtained, authorization to participate in SNAP. Between May 2015 and May 2016, Gonzalez and Noraida Pi Figueroa, 40, of Miami Gardens, were involved in a scheme in which they exchanged food stamp benefits for cash. From May 2015 through March 2016, Gonzalez and Figueroa fraudulently redeemed approximately $1,000,000 in EBT food stamp benefits.
9. United States v. Rafael Gonzalez Cuellar and Luis Casola Rojas, Case No. 16-20322-CR-Altonaga
According to the indictment, Rafael Gonzalez Cuellar, 54, of Opa Locka owned a food stand business, Cuellar Produce, Corp. (“Cuellar Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Cuellar applied for, and obtained, authorization to participate in SNAP. Between January 2015 and May 2016, Cuellar and Luis Casola Rojas, 43, of Hialeah, were involved in a scheme in which they exchanged food stamp benefits for cash. From January 2015 through March 2016, Cuellar fraudulently redeemed over $900,000 in EBT food stamp benefits.
Luis Casola Rojas was also charged in Case No. 16-20323-CR-Moore for his alleged involvement in a separate food stamp fraud scheme.
10. United States v. Katia Nunez Landerio, Case No. 16-20283-CR-Gayles
According to the indictment, Katia Nunez Landeiro, 35, of Miami, owned a food stand business, Katy Produce, Corp. (“Katy’s Produce”), located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Landeiro applied for, and obtained, authorization to participate in SNAP. Between July 2014 and March 2015, Landeiro was involved in a scheme in which she exchanged food stamp benefits for cash. Reyes fraudulently redeemed over $700,000 in EBT food stamp benefits.
11. United States v. Idaysi Landeiro Reyes and Javier Gallardo Gonzalez, Case No. 16-20309-CR-Scola
According to the indictment, Idaysi Landeiro Reyes, 47, of Miami Gardens, owned a food stand business, Landeiro Produce, Corp. (“Landeiro Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Reyes applied for and obtained authorization to participate in SNAP. Reyes and Javier Gallardo Gonzalez, 47, of Miami Gardens, were involved in a scheme in which they exchanged food stamp benefits for cash. From July 2015 through March 2016, Reyes fraudulently redeemed and caused to be redeemed over $600,000 in EBT food stamp benefits.
12. United States v. Nelson Chico and Luisdian H. Gonzalez, Case No. 16-20321-CR-Gayles
According to the seven-count indictment, Nelson Chico, 59, of Hialeah owned a produce stand, Rey Produce, Corp. (“Rey Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Chico applied for, and obtained, authorization to participate in SNAP. Between September 2014 and March 2016, Chico and Luisdian H. Hernandez, 22, of Hialeah, were involved in a scheme in which they exchanged food stamp benefits for cash, by swiping EBT cards at Rey Produce. From September 2014 until March 2016, Chico and Hernandez redeemed over $600,000 in EBT food stamp benefits which were deposited into a bank account that Chico controlled.
13. United States v. Fernando Fernandez Garcia, Case No. 16-20320-CR-Lenard
According to the indictment, Fernando Fernandez Garcia, 33, of Miami, owned a food stand business, Santa Cruz Shark Inc., (“Santa Cruz Shark”) located at 12704 NW 42nd Avenue, in Opa-Locka, Florida. Garcia applied for, and obtained, authorization to participate in SNAP. Between December 2014 and May 2016, Garcia was involved in a scheme in which he and his employees exchanged food stamp benefits for cash. From December 2014 through March 2016, Garcia fraudulently redeemed over $500,000 in EBT food stamp benefits.
14. United States v. Luis Casola Rojas, Case No. 16-20323-CR-Moore
According to the indictment, Luis Casola Rojas, 43, of Hialeah, owned a food stand business, Casola Produce, Corp. (“Casola Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Rojas applied for, and obtained, authorization to participate in SNAP. Between September 2015 and May 2016, Rojas was involved in a scheme in which he exchanged food stamp benefits for cash. From October 2015 through March 2016, Rojas fraudulently redeemed over $380,000 in EBT food stamp benefits.
15. United States v. Angelo Socarras, Case No. 16-20308-CR-Cooke
According to the indictment, Angelo Socarras, 37, of Hialeah, owned a food stand business, Angelo Produce, Corp. (“Angelo Produce”), located at 12705 NW 42nd Avenue, in Opa-Locka, Florida. Socarras applied for and obtained authorization to participate in SNAP. From October 2015 through March 2016, Socarras was involved in a scheme in which he exchanged food stamp benefits for cash and fraudulently redeemed approximately $190,000 in EBT food stamp benefits.
If convicted of the charged conduct, a defendant faces a possible maximum statutory sentence of 20 years’ imprisonment for conspiracy to commit wire fraud; 20 years’ imprisonment for wire fraud; and 5 years’ imprisonment for food stamp/EBT fraud.
U.S. Attorney Ferrer acknowledged the dedicated efforts of the Florida Attorney General, Florida Department of Children and Families, Florida Department of Financial Services to provide services to the community and identify for prosecution those individuals who compromise public benefits. Mr. Ferrer also commended the investigative efforts of USDA-OIG, PBSO and MPD, and expressed his gratitude to ICE-HSI, FDLE, U.S. Marshals Service, MDPD and the United States Coast Guard (District 7), for their assistance with the investigation and law enforcement operation. Mr. Ferrer recognized Assistant United States Attorneys Timothy J. Abraham, Miesha S. Darrough, Anne P. McNamara, Daya Nathan, Jonathan K. Osborne, Brian J. Shack, and Jonathan D. Stratton, who are prosecuting these cases.
A complaint or an indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Miami-Dade Resident Pleads Guilty in Stolen Identity Tax Fraud Scheme Involving Approximately 1,288 Debit Cards Containing More Than $1 Million in Tax RefundsRead the Press Release
A Miami-Dade County resident pled guilty for his participation in a stolen identity tax fraud scheme involving approximately 1,288 debit cards containing more than $1 million in tax refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), and John E. Brooks, Chief, Sunrise Police Department, made the announcement that Yasmany Lopez, 28, pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) on May 3, 2016.
The sentencing hearing is scheduled for July 8, 2016 before U.S. District Judge Beth Bloom. At sentencing, Lopez faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in early 2012, individuals in Colombia negotiated with a confidential source (CS) to rent an airplane that would be used to transport controlled substances from Colombia to Honduras. As part of these negotiations, the individuals arranged delivery of $500,000 to the CS as payment to use the airplane. The CS received an initial payment of $170,000, and defendant Lopez contacted the CS to arrange delivery of the remaining $330,000. After Lopez met with the CS, officers stopped Lopez in his car. Lopez gave consent to search the vehicle, and the officers located two boxes containing $330,000 in cash, approximately 197 Turbo Tax debit cards and 1,035 Green Dot debit cards each bearing different individual’s names, mail addressed to several different individuals, and ATM receipts.
During a subsequent search of Lopez’s residence, law enforcement found an additional 48 Turbo Tax debit cards, 8 Green Dot debit cards, and numerous Turbo Tax mailing envelopes and cardholder agreements. The IRS determined that the 245 Turbo Tax cards found between Lopez’s car and residence had been loaded with approximately $1,071,188 in federal income tax refunds. The IRS identified the tax returns associated with fifteen of the seized debit cards. The individuals named on these tax returns are all residents of Puerto Rico, but the individuals did not authorize anyone to file these tax returns or to use their personal information.
Lopez admitted that he removed cash from the debit cards at ATMs in exchange for a 2% commission. He also recruited individuals who allowed Lopez to use their mailing addresses to receive the debit cards, in exchange for $100 per card. A portion of the $330,000 he was to deliver to the CS came from the debit cards in his possession.
Mr. Ferrer commended the investigative efforts of IRS-CI, the DEA, and the Sunrise Police Department. The case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
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.
Panamanian National Arrested in Colombia for Money Laundering ConspiracyRead the Press Release
Nidal Ahmed Waked Hatum, a/k/a “Nidal Waked,” 46, of Panama, was arrested yesterday in Bogota, Colombia on a federal criminal indictment filed in United States District Court in the Southern District of Florida, charging him with participating in a conspiracy to launder money and bank fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
On March 24, 2015, an indictment was filed against Waked in the Southern District of Florida, charging two counts of conspiracy to commit money laundering, in violation of Title 18, United States Code Section 1956(h) and bank fraud, in violation of Title 18, United States Code Section 1344. Waked, a Panamanian national, is designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant money launderers and drug traffickers in the world.
According to the indictment, Waked conspired with others to engage in monetary transactions through financial institutions affecting foreign commerce, involving funds derived from illegal drug trafficking activities and fraud on a foreign bank, and with transporting funds into and out of the United States with the intent to promote fraud on a foreign bank. The indictment further charges that Waked conspired to conduct financial transactions involving the proceeds of unlawful activity, with the intent to disguise the nature, source, ownership, and control of those finds and charges that Waked conspired to transfer funds into and out of the United States knowing that the funds represented proceeds of drug trafficking and knowing that the transfer was designed in part to conceal and disguise the nature of those proceeds. Additionally, the indictment charges that Waked devised a scheme to defraud a bank through false representations designed to obtain a lower rate of interest on an open line of credit extended to him by a bank located in Miami, Florida. Waked misrepresented the nature of funds he was moving through an account in the Miami bank as being funds borrowed from a competing bank at a lower interest rate.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
U.S. Attorney Ferrer commended the investigative efforts of the DEA Homestead Resident Office and FBI and recognized the assistance provided by the Justice Department’s Office of International Affairs. The Panamanian authorities have been informed of this action and Panamanian and U.S. authorities will coordinate going forward. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Airgas Doral, Inc. Convicted of Hazmat Transportation and Permit ViolationsRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Marlies Gonzalez, Special Agent in Charge, Department of Transportation (DOT-OIG), Office of Inspector General, announced that Airgas Doral, Inc. (Airgas Doral) pled guilty today before United States District Judge Robert N. Scola, Jr., to a fourteen count criminal information, charging the corporation with willfully and recklessly violating the Hazardous Materials Transportation Act, Title 49, United States Code, Sections 5124(a), (c)-(d), based on its violations of hazardous materials regulations (HMR), and DOT Special Permit (SP) 11186. Under the terms of the plea agreement, Airgas Doral and the government agreed to recommend the imposition of a $7,000,000 fine ($500,000 per count of conviction) to be paid by Airgas Doral, and guaranteed by its corporate parent and 100% owner, Airgas, Inc. and that Airgas Doral be subject to a two year term of probation.
“The safe transport of hazardous materials is of paramount importance,” stated U.S. Attorney Wifredo Ferrer. “Working as partners, the U.S. Attorney’s Office and the Department of Transportation are committed to the prosecution of individuals and corporations that willfully and recklessly violate the hazardous materials laws, regulations, and permits which are in effect to protect the nation and our community from potential harm.”
"The guilty plea entered into today by Airgas Doral, resulting from the company’s violation of hazmat laws, regulations, and a special permit demonstrates that ensuring the safety of the Nation’s transportation systems remains a high priority for both the Office of Inspector General (OIG) and the Department of Transportation (DOT),” said Marlies T. Gonzalez, DOT-OIG regional Special Agent-in-Charge. “Working with our Pipeline and Hazardous Materials Safety Administration and prosecutorial colleagues, we will continue our efforts to enforce the hazardous materials laws against those who compromise the integrity of DOT’s hazmat safety program.”
According to the court record, Airgas Doral, a Delaware corporation, is a wholly owned subsidiary of Airgas, Inc. which is a leading U.S. distributor of industrial, medical and specialty gases and hard-goods, and is the successor in interest to the former Airgas South, Inc. (Airgas South), pertaining to the Miami fill plant business.
According to court documents, including the information and an agreed upon factual statement in support of the plea, between March 12, 2008 and May 14, 2008, the Miami fill plant then operated by Airgas South, made eight shipments of argon, cryogenic liquefied gas in intermodal portable tanks, or ISOs, covered by requirements of SP 11186 and the HMR, but failed to comply with HMR and SP 11186 requirements pertinent to transporting refrigerated liquefied gas, under pressure, in such containers, including: recording the applicability of SP 11186 on shipping papers; failing to provide carriers a copy of SP 11186; and failing to conduct physical inspections of ISOs, and to take and record required readings of the ISO’s pressure and ambient temperature, as well as required computations of travel time. Airgas South also failed to provide Miami fill plant hazmat employees and managers, required function specific training concerning their handling of the argon shipments in ISOs covered by SP 11186.
According to the court record, including the factual statement, the violations at the Miami fill plant were discovered when the means of containment of an ISO offered for transportation by Airgas South on May 14, 2008, failed, releasing argon gas in the hold of a vessel at Port Everglades. Three stevedores who entered the vessel’s hold were asphyxiated and died as a result of their exposure to argon gas in that confined space. Although other parties handled the ISO after it left the Miami fill plant, Airgas South was the shipper of record and offeror of the ISO for transportation, making it responsible for performing pre-transportation functions, including preparing shipping papers complying with the HMR and SP 11186 requirements, and certifying the hazmat was in proper condition for shipment. However, subsequent investigation revealed Miami fill plant hazmat employees and managers failed to perform required physical inspections of the ISOs, including a visual inspection of all emergency pressure relief devices for corrosion, distortion, or any damage or defect that could prevent normal operation, which resulted in Airgas South offering for transportation, an ISO which should not have been shipped, as it failed to meet the pre-transportation requirements of SP 11186 and the HMR necessary for legal shipment. Additionally, shipping papers accompanying the container failed to include a copy of SP 11186, as required, or to reference SP 11186, or include any notation of the tank’s pressure, ambient temperature, or computation of travel time. The investigation also revealed Airgas South hazmat employees and managers were unfamiliar with SP 11186 requirements, despite Airgas South, its corporate parent and related corporate group holding and operating under, in excess of 100 similar special permits, and having a training and compliance division intended to address training issues for all subsidiaries and members of the corporate group.
Judge Scola scheduled sentencing for May 26, 2016 at 9:00 a.m. At sentencing Airgas Doral faces a criminal fine of up to $7,000,000, or twice the gross pecuniary gain derived from the offense, or twice the gross pecuniary loss caused to any victims of the offense, whichever is greater; restitution; and up to 5 years of organizational probation.
Mr. Ferrer commended the investigative efforts of DOT-OIG, and the technical and support assistance provided by the DOT-Pipeline and Hazardous Materials Safety Administration (PHMSA). The case is being prosecuted by Assistant U.S. Attorney Jose A. Bonau of the Economic and Environmental Crimes Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Resident Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction - an explosive device – at a synagogue in Aventura, Florida.
Wifredo A. Ferrer, Unites States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
James Gonzalo Medina, 40, of Hollywood, Florida, is charged by criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2). If convicted, Medina faces a maximum sentence of life in prison.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS). Medina expressed anti-Semitic views and identified to the CHS the target of his attack, a Jewish synagogue in Aventura.
The complaint further alleges that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance and, once the FBI became involved, it worked to effectively mitigate any danger posed to the public.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Marc S. Anton of the Southern District of Florida, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man Charged for Attempt to Use Explosive DeviceRead the Press Release
James Gonzalo Medina, 40, of Hollywood, Florida, was charged Saturday by criminal complaint with attempting to use a weapon of mass destruction – an explosive device – at a synagogue in Aventura, Florida.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.
The arrest was the culmination of an undercover operation during which Medina was closely monitored by the South Florida Joint Terrorism Task Force (JTTF). The explosive device that he allegedly sought and attempted to use had been rendered inoperable by law enforcement and posed no threat to the public.
According to allegations contained in the complaint, in March 2016, Medina came to the attention of the FBI due to his conversations about attacking a synagogue in South Florida. The FBI was able to gauge Medina’s interest in the plot and collect evidence through the use of a confidential human source (CHS). Medina expressed anti-Semitic views and identified to the CHS the target of his attack, a Jewish synagogue in Aventura.
The complaint further alleges that Medina wanted to use an explosive device to commit the attack and engaged the CHS and an undercover FBI employee about the details of his planned criminal conduct. In preparation for the proposed attack, Medina studied the synagogue property to assess its vulnerabilities. On April 29, 2016, Medina took possession of an inert explosive device and was arrested while approaching the synagogue. Medina was under FBI surveillance and, once the FBI became involved, it worked to effectively mitigate any danger posed to the public.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty in a court of law. If convicted, Medina faces a maximum sentence of life in prison.
The case was investigated by the FBI’s Miami Division and the South Florida JTTF. The case is being prosecuted by Assistant U.S. Attorneys Karen E. Gilbert and Marc S. Anton of the Southern District of Florida, and Trial Attorney Taryn Meeks of the National Security Division’s Counterterrorism Section.
Medina Complaint
FastTrain Owner and Admissions Representative Sentenced to Prison for Federal Student Aid SchemeRead the Press Release
On May 2, 2016, Alejandro Amor, the owner of a Florida for-profit college called FastTrain, was sentenced to 97 months in prison by United States District Court Judge Joan A. Lenard, after having been convicted by a federal jury of orchestrating a conspiracy to steal government money and in fact stealing government money. FastTrain admissions representative Anthony Mincey was previously sentenced to 33 months in prison for his participation in the conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG) and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented at trial, starting in 2010, FastTrain admissions representatives, acting at the direction of Alejandro Amor, began recruiting potential students in low income neighborhoods in Miami-Dade, Broward, Hillsborough, Pinellas, and Duval Counties, where FastTrain’s seven campuses were located. When admissions representatives encountered potential students who were ineligible for federal student aid because they had not graduated from high school or earned a GED, the admissions representatives enrolled the potential students anyway, and coached them to lie on their applications to the United States Department of Education for federal student aid, including federal Pell Grants and Direct Loans. Often, FastTrain admissions representatives falsely promised the students they could earn their high school diplomas or GEDs at FastTrain and in some cases, FastTrain admissions representatives actually created fictitious high school diplomas on FastTrain computers. Six student witnesses identified Anthony Mincey as the admissions representative who had coached them to lie about their eligibility.
Once the applications for federal student aid had been processed, millions of dollars in Pell Grants and Direct Loans were disbursed to FastTrain bank accounts controlled by Alejandro Amor and his wife. Alejandro Amor used those funds to make payments on, among other things, his waterfront home, airplane, car, and yacht.
According to the testimony and evidence introduced at trial, Alejandro Amor routinely falsified student records, emails, policy memoranda, and reports of internal investigations to hide the actions of his admissions representatives and retain federal student aid on behalf of the ineligible students enrolled at FastTrain. In one instance, Alejandro Amor created a fictitious disciplinary record for an admissions representative who had been caught coaching students to lie about their eligibility, before sending that admissions representative back out onto the streets to continue recruiting.
Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. The case was prosecuted by Assistant United States Attorneys Amanda Perwin and Vanessa Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney’s Office for the Southern District of Florida is Committed to Reducing Recidivism through Reentry ProgramsRead the Press Release
The United States Attorney’s Office for the Southern District of Florida is committed to reducing recidivism and helping formerly incarcerated individuals contribute to their communities.
During National Reentry Week, Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, recognizes the collective efforts of the U.S. Attorney’s Office, U.S. District Court, U.S. Probation, the Federal Public Defenders Office, law enforcement and community stakeholders, to implement local reentry initiatives and support returning citizens.
“By coming together to help returning citizens reintegrate into society we are making our criminal justice system smarter, less expensive, and more effective,” stated U.S. Attorney Wifredo Ferrer. “Successful reentry initiatives that provide returning citizens with the tools, skills, and opportunities they need to succeed when they return to their communities will have tremendous implications for the safety of our neighborhoods, the health of our economy, and the strength of our neighborhoods. If we can reduce recidivism by helping motivated individuals successfully reenter society and become productive members of our communities, we can reduce crime in our streets.”
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons, and another 11.4 million individuals cycle through local jails. The long-term impact of a criminal record prevents many returning citizens from obtaining employment, housing, a quality education, adequate health care, personal identification and even financial credit. These often-crippling barriers can contribute to a cycle of incarceration that makes it difficult for even the most well intentioned individuals to continue on the right path and avoid reentering the criminal justice system. Within the Southern District of Florida comprehensive reentry reforms have been implemented to promote the successful reintegration of returning citizens and reduce recidivism. These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
This month, the Southern District of Florida launched its first ever Reentry Court, known as the Court-Assisted Re-Entry (CARE) Initiative. The CARE Initiative is a problem-solving, collaborative effort between U.S. District Court, the U.S. Probation Office, the U.S. Attorney’s Office and Federal Public Defender representatives, and a Department of Justice Re-Entry Specialist. The CARE Team’s mission is to: help those returning from prison to become productive members of society by providing coordination for job training and placement, housing assistance, educational support, and the medical, substance abuse and mental health referrals; promote community safety by reducing recidivism and victimization; and reduce taxpayer spending on incarceration. Through bi-monthly court sessions, the CARE Team assess each participants’ progress, address any issues with his or her reentry, decides whether wrap-around services can be provided, and determines appropriate rewards and/or sanctions.
In 2011, The United States Attorney’s Office established the Violence Reduction Partnership (VRP) to address violent crime, gang activity and firearms offenses that plague communities in the Southern District. The VRP employs a holistic, three-pronged approach to violence reduction – one focused not only on enforcement, but also on prevention and reentry. Utilizing this multi-faceted approach, the VRP aims to reduce crime and promote safer and more resilient communities.
As part of the reentry prong of the VRP, the U.S. Attorney’s Office, alongside the Federal Bureau of Prisons, U.S. Probation and non-profit service providers have conducted Reentry and Resource (“in-reach”) Meetings at the Federal Detention Center and Federal Correctional Institution in the Southern District. The meetings provide inmates preparing to be released from incarceration with the tools and information they need to navigate their successful reentry into society and reduce their risk of recidivism. Since 2013, more than 535 individuals have attended the meetings and received a Reentry Resource Guide. The most recent in-reach meeting was held this past Monday at the Federal Detention Center. Additionally, since 2012, the U.S. Attorney’s Office has been actively involved with Reentry Fairs at state correctional institutions and has connected with more than 3,261 inmates before their release.
The U.S. Attorney’s Office and our community partners also support the South Florida Reentry Center Hub, a traveling one-stop service center for returning citizens and their families. The Reentry Center Hub provides returning citizens with easy, centralized access to a variety of reentry services within their local communities. Since 2014, Reentry Center Hub events, held in Fort Pierce, Miami Gardens, Liberty City and Goulds, Florida, have reached more than 630 returning citizens and their families. On April 27, 2016, the Reentry Center Hub provided information and services to 120 individuals.
Additionally, the U.S. Attorney’s Office and the Florida Department of Corrections continue to host Job Preparedness Workshops for returning citizens. The workshops provide individuals with the information they need to seek, gain and maintain lawful employment. The curriculum focuses on a variety of areas, including the development of resume writing, application and interview skills. A workshop was held yesterday afternoon and since 2013 the workshops have offered services to 58 returning citizens.
The goal of the reentry initiatives is to build a safer, more equal and more inclusive America.
Additional information regarding the CARE and VRP initiatives is available at [email protected] or by calling (305) 961-9134.
Lake Worth Resident Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
A Lake Worth resident is charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Christopher Sharod Massena, 24, of Palm Beach County was indicted on one count of distribution of fentanyl resulting in death, four counts of distribution of heroin, and one count of possession with intent to distribute heroin. This morning, Massena was ordered held without bond following a pre-trial detention hearing. If convicted of the narcotics distribution resulting in death, Massena faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars. If convicted of the additional charges, Massena faces a maximum statutory term of 20 years’ imprisonment, to be followed by supervised release and a potential fine of up to $1 million dollars.
“Fentanyl is another dangerous face of the illegal narcotics trade,” stated U.S. Attorney Wifredo Ferrer. “It is a controlled substance that is up to 100 times stronger than morphine and can be lethal, even in very small doses. As a community, we must be vigilant and educate ourselves and others regarding the dangers associated with all drug abuse.”
“The DEA takes the illegal distribution of any illegal drug very seriously,” said DEA Special Agent in Charge A.D. Wright. “The recent spike in opiate sales which are resulting in deaths only heightens our commitment to continue our fight. The DEA is working very closely with our law enforcement partners in Palm Beach County and the United States Attorney’s Office to fully investigate and prosecute illicit drug trafficking activities to ensure that those responsible are held accountable for the consequences of their actions, especially when the sales result in the tragic death of another individual.”
According to the court record, on February 18, 2016, Massena distributed fentanyl, a Schedule II controlled substance, to a twenty-three year old man who died of acute fentanyl toxicity shortly after ingesting the substance. Thereafter, on four separate occasions, Massena distributed controlled substances, to wit, heroin and heroin mixed with fentanyl, to an undercover police officer. On April 21, 2016, Massena possessed heroin with the intent to distribute the narcotic.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, and WPBPD. Mr. Ferrer also thanked the Federal Bureau of Investigation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
An indictment is merely an allegation and a defendant is 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
Kissimmee Resident Convicted at Trial of Wire FraudRead the Press Release
On April 27, 2016, a Miami jury found a Kissimmee, Florida resident guilty of wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was convicted at trial of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Alcocer faces a maximum statutory sentence of 100 years in prison. Alcocer is scheduled to be sentenced by U.S. District Court Senior Judge Patricia A. Seitz on July 12, 2016.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and Vanessa S. Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Resident Charged for her Participation in a Fraudulent Jamaica Based Lottery SchemeRead the Press Release
A Broward County resident was charged criminally, for her involvement in a Jamaica based telemarketing fraud scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Elizabeth Gonzalez, 25, of Hollywood and Miami Gardens, is charged by criminal information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, Gonzalez faces a maximum statutory sentence of twenty years in prison as to each count.
According to the information, beginning in or about September 2015, Gonzalez’s co-conspirators are alleged to have contacted elderly victims in the United States and falsely informed them that they had won a lottery prize. The co-conspirators told victims they had to pay several thousand dollars in taxes and fees, in order to collect their purported lottery winnings. The co-conspirators then allegedly instructed the victims on how to send the money, and to whom, including sending wire transfers to Gonzalez. In December 2015 and January 2016, Gonzalez received nine separate wire transfers from various telemarketing lottery fraud victims in California, Connecticut, New York and North Carolina.
The defendant’s husband, Delroy Drummond, was previously convicted of conspiracy to commit wire and mail fraud for his role in a Jamaican based telemarking fraud scheme that involved some of the alleged victims of Gonzalez’s fraud scheme (Case No. 16-60023-CR-WPD). Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas.
Mr. Ferrer commended the investigative efforts of USPIS, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Marshals Service, Broward County Drug Task Force and the Miami-Dade Police Department Economic Crimes Bureau. This case is being prosecuted by Assistant United States Attorney Randy Katz.
An information is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty-Five Miami-Area Defendants Charged with Submitting $26 Million in False Claims to the Medicare Part D ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, United States Department of health and Human Services, Office of Inspector General (HHS-OIG), announce the filing of federal charges against 25 defendants in 3 separate cases, for their alleged participation in various schemes to defraud Medicare. The defendants are alleged to have collectively submitted approximately $26 million in false claims through the Medicare Part D program. This coordinated takedown is the result of the Medicare Fraud Strike Force.
“Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices jeopardize the integrity of the government benefit programs that countless citizens rely on for their well-being,” stated U.S. Attorney Wifredo Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will continue to pro-actively identify for prosecution the individuals who pay kick-backs for the unauthorized use of Medicare benefits for their own illicit financial gain.”
“These cases build on our recent efforts to focus on Medicare prescription drug benefit fraud, targeting those who take advantage of the fastest-growing component of the Medicare program,” said Assistant Attorney General Caldwell. “Working with our partners in the Medicare Fraud Strike Force, the Criminal Division uses cutting-edge data analysis techniques to identify emerging fraud schemes and to stay ahead of the criminal curve.”
“The actions of the FBI and our partners in the Medicare Fraud Strike Force have disrupted several health care fraud operations today,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Unfortunately, South Florida remains ground zero for these types of scams. As such, we will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
"A dangerous trend is fraudulent pharmacy billing for drugs," said Shimon R. Richmond Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "But exploitation of the Medicare prescription drug benefit will not be tolerated and suspects will face aggressive investigation and prosecution."
Today, U.S. Attorney Ferrer and members of the Medicare Fraud Strike Force, announce the results of their investigative efforts.
1. United States v. Antonio Hevia et. al, Case No. 16-20267-CR-Williams
This indictment charges 18 defendants for their participation in a scheme to defraud the Medicare Part D program through false claims from eight separate Miami-Dade area pharmacies. The defendants each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, substantive counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to defraud the United States and pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371. The indictment alleges that the fraud scheme was orchestrated by Pedro Torres, 43, of North Bay Village, and Antonio Hevia, 53, of Miami, who recruited individuals to be the owners of pharmacies in Miami-Dade County which were then used to submit false and fraudulent claims to the Medicare Part D program. Hevia and Torres allegedly controlled pharmacies that were used to facilitate the fraudulent scheme, including: Sun View Pharmacy, K.A.R. Pharmacy, Lola Pharmacy, Latin Quarters Drug Store, Lily and Rosy Pharmacy, Norton Pharmacy, Health Star Pharmacy and Supply, Ultra Medical Services, and OMG Pharmacy Discount. Torres and Hevia instructed the staff at the respective pharmacies to submit false and fraudulent claims for millions of dollars for prescription drugs that were not medically necessary and not provided to the Medicare Part D beneficiaries. Medicare beneficiaries were frequently referred to the pharmacies by patient recruiters, who received kickbacks for referring patients. The 18 co-conspirators are charged as owners and/or patient recruiters in the fraudulent scheme. As a result of the filing of false and fraudulent claims, Medicare made approximately $16.7 million in payments.
This case is being prosecuted by Assistant United States Attorney James Hayes.
2. United States v. Kenia Gonzalez et. al, Case No. 16-20268-CR-Seitz
Julio Espinosa Moret, 40, Kenia Gonzalez Fernandez, 41, Frank Dunier Perez, 39, and Luzbella Nunez de la Torre, 47, all of Miami, were charged by indictment with conspiracy to defraud the United States and pay and receive kickbacks in violation of Title 18, United States Code, Section 371, and the receipt of kickbacks in violation of Title 42 United States Code, Section 1320a-7b(b)(1)(A). The indictment alleges that the defendants solicited and received kickbacks and bribes to recruit Medicare beneficiaries and induce said Medicare beneficiaries to obtain prescriptions for pharmaceutical drugs to be used in conjunction with the submission of claims to the Medicare Part D Program through OMG Pharmacy Discount.
This case is being prosecuted by Department of Justice Trial Attorney Vasanth Sridharan.
3. United States v. Ronald Diaz, et al., Case No. 16-20251-CR-Cooke
Ronald Diaz, 28, Mercedes Maya, 30, and Gladys Cabrera, 28, all of Miami, each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud, in violation of Title 18,United States Code, Section 1349; health care fraud, in violation of Title 18,United States Code, Section 1347; and money laundering, in violation of Title 18,United States Code, Section 1957(a). The indictment alleges that Diaz is the named owner of pharmacies located in Miami-Dade County, specifically Total Pharmacy, New Life Community Pharmacy, La Botica Pharmacy, La Botica Pharmacy No 02, Solutions Drug Store, M & P Pharmacy, La Roca Pharmacy, Richard’s Pharmacy Discount, that purportedly provided prescription drugs to Medicare beneficiaries. Diaz, Maya, and Cabrera submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by these pharmacies to Medicare beneficiaries. As a result of these claims, Medicare prescription drug plan sponsors, through their pharmacy benefit managers, made approximately $10,428,019 in payments that were funded by the Medicare Part D program to the pharmacies.
This case is being prosecuted by Assistant United States Attorney Christopher Clark.
If convicted of the charged conduct, the defendants face a sentence of 20 years in prison if convicted of a violation of Title 18, United States Code, Section 1349, 10 years in prison if convicted of a violation of Title 18, United States Code, Section 1347, 10 years in prison if convicted of a violation of Title 18,United States Code, Section 1957(a); and 5 years in prison if convicted of a violation of Title 18, United States Code, Section 371 and Title 42 United States Code, Section 1320a-7b(b)(1)(A).
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 by the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In the Southern District of Florida, nearly 900 individuals have been charged for their involvement in more than $2.5 billion in fraudulent Medicare billings.
Part D prescription medicine coverage is the fastest-growing area of the Medicare program. Last year alone, over $120 billion was spent on the Medicare Part D program, up from $78 billion in 2010. Based on the U.S. Government Accountability Office estimates, as much as $10 billion of last year’s $120 billion in Medicare Part D spending may be fraudulent. The Department of Justice, along with its law enforcement partners, is committed to aggressively targeting Part D fraud.
Mr. Ferrer and AAG Caldwell commended the investigative efforts of the Medicare Fraud Strike Force, with special accommodation to the FBI and HHS-OIG. These cases are being prosecuted by the U.S. Attorney’s Office for the Southern District of Florida and the Fraud Section of the Justice Department’s Criminal Division.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://+pacer.flsd.uscourts.gov.
Miami Resident Sentenced to Prison for his Participation in an Identity Theft Tax Fraud Scheme Involving 172 Fraudulent Tax ReturnsRead the Press Release
A Miami resident was sentenced to 42 months in prison, to be followed by three years of supervised release for his participation in an identity theft tax fraud scheme involving the filing of 172 fraudulent tax returns.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Marvin John Janvier, 22, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
According to court documents, IRS-CI investigators noticed that 172 tax returns claiming refunds totaling $106,202 were filed from Janvier’s residential address from January 21, 2015 through April 25, 2015. Based on this information, a search warrant was executed at Janvier’s residence, and law enforcement found and seized evidence relating to identity theft and the filing of false tax returns, including numerous items containing personal identification information (PII), including names, dates of births, and social security numbers. Specifically, law enforcement found various hand-written notes containing names and addresses of various individuals and email addresses, lists of PII including hand-written notes containing names with numbers or dollar amounts next to the names, and medical and tax client records containing PII. In many of the cases where a number was written next to a name or next to PII, a fraudulent tax return was filed and the number represented the refund amount.
In addition, Janvier’s cellular telephone contained information that appeared on some of the fraudulent tax returns, including bank routing and account numbers, and photographs of Forms W-2 or incoming text messages containing wage and federal income tax withheld figures. Text messages and other conversations on the phone exchanged PII and discussed the filing of tax returns.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Florida Seafood Company Sentenced in Federal Court for Violating the Lacey Act for Falsely Labeling SalmonRead the Press Release
UpRiver Aquaculture, Inc., a/k/a “MKG Provisions, Inc. (MKG),” a Florida seafood company, located in Miami, Florida, was sentenced by U.S. District Court Judge Federico A. Moreno for falsely labeling salmon, in violation of the Lacey Act.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Tracy Dunn, Assistant Director, National Oceanic and Atmospheric Administration (NOAA), Office of Law Enforcement (OLE), made the announcement.
MKG previously pled guilty to a single count information, which charged the company with violating the Lacey Act by falsely labeling 286 cases of Chilean-imported farmed salmon as a “product of Scotland,” in violation of Title 16, United States Code, Sections 3372(d)(1) and 3373(d)(3)(A). The falsely labeling of fish, and other wildlife, is prohibited under the Lacey Act, 16 U.S.C. § 3372(d)(1). The Lacey Act, in pertinent part, makes it unlawful for a person to falsely identify any fish that has been, or is intended to be, imported, sold, purchased, or received from any foreign country or transported in interstate or foreign commerce. MKG was sentenced to three years of probation and ordered to pay a $50,000 fine. At sentencing, the court advised MKG’s General Manager, who appeared as the representative of the defendant, that the probationary period would also serve to provide oversight of the company’s implementation of a government-required compliance plan to prevent a recurrence of the offense.
According to court documents and information presented during the sentencing hearing in approximately December 2012, MKG received a shipment of approximately 286 cases of salmon at its Miami facility. The shipment was accurately identified in applicable business and importation related records supplied to MKG, as well as records generated internally by MKG, as a product of Chile and originating from Chile. MKG, acting through its employees and in connection with its business relationship with a client, St. James Smokehouse, Inc., processed, smoked, and repackaged the salmon into bags provided to MKG by St. James Smokehouse which identified the salmon as a product of Scotland. The falsely labeled salmon was intended for wholesale distribution and sale by St. James Smokehouse and was eventually sold to consumers through various retailers to which St. James Smokehouse had sold the salmon.
Mr. Ferrer commended the investigative efforts of the NOAA Office of Law Enforcement. This case was prosecuted by Assistant U.S. Attorney Peter Outerbridge.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Plantation Resident Sentenced to Prison for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
A Plantation resident was sentenced to 34 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $79,459 for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and W. Howard Harrison, Chief, Plantation Police Department, made the announcement.
Sean Lyons, 29, previously pled guilty to one count of possession of 15 or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, in May 2014, Lyons participated in a tax fraud scheme in which he received fraudulently obtained United States Department of Treasury tax refunds into accounts linked to prepaid debit cards over which the defendant had control. The tax refunds were filed in the names of other individuals, and the prepaid debit card accounts were registered using the names and Social Security numbers of those same individuals, without their knowledge and authority.
During the course of the scheme, Lyons had in his possession at least 73 prepaid debit cards that had been registered in the names and Social Security numbers of other individuals, without the individuals' knowledge or authority. Several of the debit cards had been funded through direct deposit with fraudulently obtained Treasury tax refunds.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Plantation Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former President of the Broward Teachers Union Sentenced to Prison for Mail FraudRead the Press Release
On April 22, 2016, Patrick Santeramo, 68, of Stuart, Florida was sentenced by United States District Judge William J. Zloch to 18 months’ imprisonment, to run consecutive to the sentence imposed in a parallel state case, for defrauding the Broward County School Board and Broward Teachers Union.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Rafiq Ahmad, Special Agent in Charge, Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations (DOL-OIG), made the announcement.
Santeramo previously pled guilty to one count of wire fraud. Santeramo was also ordered to serve a two year term of supervised release, upon his release from prison. He must also pay a $4,000 fine and was required to pay restitution in the amount of $93,800.
According to the factual proffer, in support of the defendant’s plea, Santeramo worked full-time for, and was the president of, the Broward Teachers Union (BTU) from 2001 to 2011. Santeramo resigned from BTU in June 2011.
For many years, dating back to at least the mid-1990s, the collective bargaining agreement between the BTU and the Broward County School Board required that the School Board provide funding for an “Accountability Program” designed to support and enrich the professionalism of Broward County public school teachers through training, release time for teachers working on accountability projects, guest speakers, etc. It also stated that the BTU would keep a written record of expenditures charged to this fund and make this information available to the district.
The BTU’s Accountability Program bank records demonstrated that money for the Accountability Program was being disbursed via monthly checks of $200-$300 made payable to Santeramo, as well three other BTU employees. During this fraudulent scheme, Santeramo received monthly payments totaling $34,500, and the other employees received monthly payments totaling $59,300. The three additional employees were also not entitled to receive the payments (the government did not allege that the three other employees were aware that these payments were unauthorized).
In order to justify the use of the money, Santeramo prepared, or had prepared for him, letters that were mailed to the School Board stating that the BTU had used the money from the previous year to defray the costs of having one of the employees released from regular school employment to support the Accountability Program. The letters never mentioned that Santeramo and the other three employees were receiving unauthorized monthly payments from the Accountability Program that they used for their own benefit and that were not related to any function that they performed for the Accountability Program. Nor did the letters itemize how the Accountability Program funds had been utilized. In addition, these unauthorized transactions were not disclosed to the BTU’s executive board members or to School Board officials.
Santeramo furthered this fraud by using the mail to request the disbursement of these funds to the BTU and to deceive the School Board, by alleging that these funds were being used solely for the release of the one employee who worked on the Accountability Program by conducting trainings and conferences as specified in the collective bargaining agreement.
Mr. Ferrer commended the investigative efforts of DOL-OIG. The case was prosecuted by Assistant U.S. Attorneys Harry C. Wallace, Jr. and Miesha Shonta Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Individuals Plead Guilty in Conspiracy to Defraud over Ten Federal AgenciesRead the Press Release
Brian J. Garrahan, 42, and Kelly A. Spillman 34, both of Delray Beach, Florida, pled guilty today for their participation in a conspiracy to defraud over ten federal agencies by issuing fraudulent bonds to insure government contracts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jerry Polk, Special Agent in Charge, United States Environmental Protection Agency, Office of the Inspector General (EPA-OIG), Atlanta Field Office, made the announcement.
Garrahan and Spillman each pled guilty, before U.S. District Judge Kenneth L. Ryskamp, to one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 371. The defendants are scheduled to be sentenced by U.S. District Judge Ryskamp on June 29, 2016 at 1:30 p.m. in West Palm Beach.
According to court documents, from approximately June 2008 through June 2013, Garrahan and Spillman conspired with each other and others to obtain payments from government contractors for issuing fraudulent bonds, that is, insurance, for large government contracts. The fraudulent bonds were individual surety bonds, usually signed by Garrahan and two other co-conspirators, a relative of Garrahan, and an individual who had prior experience with government bonds.
Individual surety bonds require collateral. The collateral used was land or cash or cash equivalent assets held in bank accounts. However, Garrahan and Spillman knew that the claims of ownership of land and the claims of possessing funds were false. In addition, the supporting documents related to these assets were fraudulent.
Garrahan and Spillman also knew that a co-conspirator, who was directing them, had a prior fraud conviction. They also knew that this was the reason his name was not included in any of the paperwork.
Garrahan, Spillman and their co-conspirators issued a large number of bonds dealing with over 100 contractors and at least 15 federal agencies, and other entities. Often contracts had “modifications,” that is, contract expansions, that led to more bonds being issued.
Over ten federal agencies reimbursed contractors over $4.3 million in bond fees for the fraudulent bonds issued by Garrahan, Spillman and their co-conspirators. The federal agencies included, among others:
a. The United States Army;
b. The United States Department of Energy;
c. The United States Environmental Protection Agency;
d. The United States Department of Housing and Urban Development;
e. The United States Department of State; and
f. The United States Department of Veterans Affairs.
Mr. Ferrer commended the investigative efforts of EPA-OIG and the U.S. Department of Veterans Affairs-OIG, together with the Criminal Investigation Command of the U.S. Army; U.S. Department of Defense-OIG, Defense Criminal Investigative Services; U.S. Department of Energy-OIG; General Services Administration-OIG; U.S. Department of Housing and Urban Development-OIG; and U.S. Department of State-OIG;. This case is being prosecuted by Assistant U.S. Attorney Ana Maria Martinez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Return Preparers Indicted for Preparing False Tax Returns for ClientsRead the Press Release
Three tax return preparers were charged in a 31-count indictment for unlawfully enriching themselves by submitting false federal income tax returns to the Internal Revenue Service (IRS) on behalf of their clients.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Devonne Herrington, her son, Lorenzo Wright, and Joyce Walker, were each charged with one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. Herrington was also charged with nine counts of assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2), and two counts of failure to file personal tax returns, in violation of Title 26, United States Code, Section 7203. Wright was also charged with fifteen counts of assisting in the preparation of false tax returns. Walker was also charged with two counts of assisting in the preparation of false tax returns, and two counts of filing false personal tax returns, in violation of Title 26, United States Code, Section 7206(1).
According to the indictment, Herrington established and operated a tax preparation business in Delray Beach, Florida, that was initially known as Devonne's LLC and later known as Wright's & Family LLC. Herrington hired tax preparers, including her son, Wright, and co-defendant Walker, to assist her with preparing tax returns for her clients. Herrington, Wright and Walker met with clients in person at the tax preparation office in order to conduct a cursory interview and collect required tax forms.
Although the clients did not claim to be eligible for, or provide documents in support of, certain tax credits or income deductions, the defendants prepared tax returns which falsely stated that the clients were eligible for such credits and deductions. The tax credits falsely claimed by the defendants included credits for first time home purchasers and education expenses. The income deductions falsely claimed by the defendants included deductions for business expenses and for being the head of household. These false and fraudulent credits and deductions reduced the clients' tax liability and increased their tax refunds.
The defendants claimed the false tax credits and deductions on IRS schedules and forms which were included in the clients' tax returns. Herrington, Wright, and Walker charged the clients extra fees for these additional fraudulent schedules. In most instances, the defendants did not review the returns with the clients prior to filing them with the IRS and did not provide copies of the returns to the clients.
The indictment also states that Herrington did not file her personal income tax returns for calendar years 2010 and 2011. In addition, Walker filed her personal income tax returns for calendar years 2010 and 2011 containing false claims for the Education Expense Credit.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced to Prison for Unlawfully Possessing a Credit Card Skimmer and Using Another Individual’s Account InformationRead the Press Release
On April 18, 2016, Rolando Aguilar Conde, a resident of Miami, Florida, was sentenced to 36 months in prison, to be followed by three years of supervised release for unlawfully possessing a credit card skimmer and account information belonging to another individual.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Conde pled guilty on February 25, 2016 to one count of possession of device-making equipment, in violation of Title 18 United States Code, Sections 1029(a)(4) and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1).
According to court documents, on October 22, 2015, pursuant to a warrant, law enforcement searched Conde’s residence. During the search, law enforcement found twenty-nine (29) fraudulent cards embossed with the Conde’s name and containing account numbers of others persons. Within the defendant’s room, law enforcement found one of the fraudulent cards and a credit card skimming device.
An analysis of the credit card skimming device showed that it contained an account number that did not belong to Conde. The account number on the credit card skimming device matched the account number encoded on a fraudulent credit card that had been embossed with the defendant’s name and recovered from his residence. Bank records confirmed that the credit card was used to make two fraudulent charges, on September 26, 2015, at Sam Ash Music at the Dolphin Mall in Miami, Florida. Store records indicate Conde provided his name and address in connection with these fraudulent purchases.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Coral Springs Police Department. The case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Guilty of Receiving Child PornographyRead the Press Release
A Miami resident pled guilty to receiving child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Juan Perez, Director, Miami-Dade Police Department (MDPD), made the announcement.
On April 4, 2016, Kelly Lee Fisher, of Miami, pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2) and (b)(1). Fisher is scheduled to be sentenced on June 23, 2016 before United States Chief District Judge K. Michael Moore.
According to court documents, on February 16, 2016, law enforcement searched Fisher’s residence, pursuant to a federal warrant. During a search of Fisher’s bedroom, law enforcement found several electronic devices, a disconnected desk cable and an air conditioning vent with missing and partially removed screws. Law enforcement discovered that a Toshiba Satellite laptop had been secreted in the air conditioning vent. A preliminary forensic review of the laptop revealed hundreds of images of child pornography and child erotica.
A subsequent forensic analysis of the laptop revealed that the computer contained 20 videos and 3,903 picture files depicting minors engaged in sexually explicit conduct. Several of the children depicted in these videos and pictures are under twelve years of age. The forensic analysis further revealed that Fisher used GrabIt, a newsgroup client, to search for child pornography newsgroups. On February 11, 2016, Fisher received at least 11 movies containing child pornography through GrabIt.
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.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. The case is being prosecuted by Assistant United States Attorney Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Physician Sentenced to 108 Months in Prison for His Role in $30 Million Health Care Fraud SchemeRead the Press Release
A Miami physician was sentenced today to 108 months in prison for his role in a Medicare fraud scheme that caused approximately $30 million in losses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Lora to pay $30,278,542 in restitution and to forfeit the same amount. Lora pleaded guilty in February 2016 to one count of conspiracy to commit health care fraud and one count of conspiracy to defraud the United States, receive health care kickbacks and make false statements relating to health care matters.
According to admissions made as part of his plea agreement, Lora was the medical director of Merfi Corporation, a Miami-area clinic that employed physicians, physician assistants and other medical professionals. Lora admitted that in exchange for kickbacks and bribes, he and his co-conspirators wrote prescriptions for home health care and other services for Medicare beneficiaries that were not medically necessary or not provided. Lora and his co-conspirators also falsified patient records to make it appear as if the beneficiaries qualified for these services, he admitted.
Lora admitted that his and his co-conspirators’ actions caused multiple Miami-Dade home health care agencies and other providers to bill Medicare for services that were not medically necessary or not provided, and that Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, who was charged separately, was sentenced to nine years in prison for conspiracy to commit health care fraud.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Martin County Convicted Felons Sentenced to Prison for Possessing Firearms at Jensen Beach Indoor Firing RangeRead the Press Release
Two Martin County convicted felons were sentenced to prison for unlawfully possessing firearms and ammunition at an indoor firing range in Jensen Beach, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, David Dyess, Chief, Stuart Police (SPD), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Aldrick James Lott, 30, and John Robert Rucker, Jr., 46, both of Stuart, were sentenced to imprisonment by U.S. District Court Judge Robin L. Rosenberg on April 15, 2016. On January 20, 2016, Rucker pleaded guilty to being a felon in possession of firearms, in violation of Title 18, United States Code, Section 922(g)(1). Rucker was sentenced to 57 months in prison, to be followed by 3 years of supervised release. On January 26, 2016, Lott pleaded guilty to being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). Lott was sentenced to 185 months in prison, to be followed by 3 years of supervised release.
According to the court record, on November 7, 2015, Lott and Rucker, entered a gun shop and indoor shooting range in Jensen Beach, Florida. During their visit, Lott and Rucker were recorded on video surveillance shooting targets with multiple firearms, including a Glock 30 .45ACP caliber pistol, Smith and Wesson M&P40 .40 caliber pistol, and High-Point 9mm pistol. The Glock and Smith and Wesson pistols were left at the store for cleaning, examined by law enforcement and determined to have been stolen.
On December 1, 2015, federal and local law enforcement agencies executed three search warrants, on residences connected to Lott and Rucker. Law enforcement recovered the High-Point 9mm pistol, a second firearm, and various rounds of ammunition from one home connected to Lott. From a second residence connected to Lott, officers recovered a magazine and ammunition matching the Smith and Wesson M&P40 .40 caliber pistol. From a residence connected to Rucker, officers recovered narcotics.
Mr. Ferrer commended the investigative efforts of ATF, SPD, MCSO, Federal Bureau of Investigation, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Highlands County Man Sentenced to 30 Years in Prison for Distributing, Receiving and Possessing Child PornographyRead the Press Release
A resident of Highlands County, Florida was sentenced to 30 years in prison, by United States District Judge Robin L. Rosenberg, for distributing, receiving, and possessing images that depicted the sexual exploitation of minors.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Martin Jay Van Deurzen, 60, of Lake Placid, pleaded guilty on January 27, 2016, to two counts of distribution of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1); receipt of material containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1); and possession of matter containing visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252 (a)(4)(B) and (b)(2). On April 15, 2016, Van Deurzen was sentenced to the statutory maximum term of 240 months in prison for the distribution and receipt of visual depictions of sexual exploitation of minors, to be followed by the statutory maximum term of 120 months in prison for possession of visual depictions of sexual exploitation of minors. Upon completion of his prison term, Van Deurzen will be placed on supervised release for the remainder of his life and is ordered to register as a sex offender.
According to court documents and information disclosed during court proceedings, on March 6, 2015, an HSI Special Agent based in Delaware, using a computer connected to the Internet, utilized a publicly available P2P file sharing program and observed numerous files containing visual depictions of the sexual exploitation of minors. The agent was able to download 50 image files from an IP address assigned to Van Deurzen’s registered account in Lake Placid, Florida. On November 16, 2015, an HSI Taskforce Agent in Martin County discovered that an individual, determined to be Van Deurzen, was logged into the P2P network and engaged in a one-on-one chat, where he discussed the sharing of child pornography and his personal collection of the sexually explicit images. The agent observed numerous visual depictions of the sexual exploitation of minors in Van Deurzen’s shared folders and downloaded several of the files directly from the defendant’s computer.
On November 24, 2015, HSI agents executed a search warrant at Van Deurzen’s residence in Lake Placid. During the search Van Deurzen identified his Dell laptop computer, in the living room area, which was on and actively sharing pictures and videos depicting minors engaged in sexually explicit conduct. A forensic review of Van Deurzen’s computer revealed hundreds of thousands of pictures and videos depicting minors engaged in sexually explicit conduct. Many of the minors were prepubescent and under the age of 12 years of age, engaged in sexually explicit conduct, including sado-masochistic, bondage and bestiality. Also on Van Deurzen’s computer were images of the defendant sexually abusing a minor.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Residents Sentenced for Possession of Counterfeit Access Devices and Aggravated Identity TheftRead the Press Release
On April 11, 2016, Robert Diaz, a resident of Miami, Florida, was sentenced to 60 months in prison, to be followed by three years of supervised release. On April 12, 2016, Maritza Conde Moreno, a resident of Miami, Florida, was sentenced to 74 months in prison, to be followed by three years of supervised release.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Diaz and Moreno each plead guilty on January 28, 2016 to one count of conspiracy to commit access device fraud in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more counterfeit access devices, in violation of Title 18 United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, in or around August and September 2013, numerous unauthorized purchases were made using fraudulent credit cards at BJ’s Wholesale (BJ’s) in Hialeah Gardens, Florida. Surveillance video captured Diaz, among others, making these fraudulent purchases. On February 2, 2014, a BJ’s employee recognized Diaz in the store and notified the Hialeah Gardens Police Department. Officers arrived at the location and conducted a traffic stop, resulting in Diaz and Moreno being taken into custody. An inventory search was conducted of their vehicle and a bag containing 78 counterfeit credit cards and numerous receipts from BJ’s and Home Depot were found on the floorboard.
Beginning on or around April 2014 through on or around July 2014, at a Home Depot in Coral Springs, Florida, Diaz, Moreno, and co-defendant Jose Luis Conde Varela used counterfeit credit cards in self-checkout lines to make unauthorized purchases.
On October 22, 2015, law enforcement executed a search warrant at the residence of Diaz and Moreno and, pursuant to a complaint, arrested Diaz, Moreno and Varela. As a result of the search of the residence, law enforcement uncovered, among other things, over 4,993 stolen credit card numbers, 311 fraudulent credit cards and a credit card encoder. In addition, at the time of his arrest, Diaz was in possession of a flash drive with 484 stolen credit card numbers.
Co-Defendant Jose Luis Conde Varela pled guilty on February 23, 2016 to one count of conspiracy to commit access device fraud in violation of Title 18, United States Code, Section 1029(b)(2), one count of use of one or more unauthorized access devices to obtain anything of value aggregating $1,000 or more, in violation of Title 18 United States Code, Sections 1029(a)(2) and 2, and one count of Aggravated Identity Theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. Varela is scheduled to be sentenced on May 11, 2016.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Coral Springs Police Department. The case was prosecuted by Assistant United States Attorney Joshua S. Rothstein.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former U.S. Coast Guard Serviceman Sentenced to 235 Months in Prison for Production of Child PornographyRead the Press Release
A former United States Coast Guard serviceman was sentenced on Tuesday, April 12, 2016, to 235 months in prison by United States District Judge Jose E. Martinez for producing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Rear Admiral Scott Buschman, United States Coast Guard Seventh District, and Thomas E. Robarge, Special Agent in Charge, United States Coast Guard Investigative Service (CGIS) Southeast Region, made the announcement.
Drew Alexander Young, 24, of Key West, previously pled guilty to one count of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e). After his release from According to court documents and information disclosed during the court proceedings, CGIS investigators executed a military search authorization and searched Young’s Samsung Galaxy S5 cellular telephone as part of a sexual harassment investigation. Investigators found over twenty video files containing suspected child pornography in Young’s phone. Investigators also discovered a number of sexually explicit Kik Messenger chats between the defendant and girls as young as thirteen-years-old. Kik Messenger is a web-based instant messaging application. During their review of the Kik Messenger chats, investigators discovered chats in which Young repeatedly solicited and received sexually explicit pictures of the minor girls.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of CGIS. This case was prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendants Guilty of BP Fund Fraud ClaimsRead the Press Release
Father and daughter, who filed fraudulent claims against the Gulf Coast Claims Facility for lost income purportedly suffered as a result of the oil spill, pled guilty to mail fraud, in violation of Title 18, United States Code, Sections 1341and 2.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
On April 11, 2016, Caridad Rioseco Alejandrez, 50, of Key West, Florida, pled guilty for her involvement in the filing of a false claim in connection with the Deepwater Horizon explosion and pollution incident in the Gulf of Mexico in April 2010. Alejandrez faces a possible term of imprisonment of up to twenty years on the mail fraud charge, a criminal fine of up to $250,000 or twice the intended gain or loss caused by the relevant conduct, and a period of supervised release of up to five years. Additionally, Alejandrez may be ordered to make restitution to the identifiable victims of her crime. Alejandrez is scheduled to be sentenced before United States District Court Judge Jose E. Martinez on July 11, 2016, at 1:30 p.m., in Key West.
On April 12, 2016, Raul Rioseco, 73, of Stock Island, Florida, was sentenced to one year and a day in prison, in connection with his involvement in a similar false claim. Rioseco was also ordered to serve six months of house arrest and at three year term of supervised release, upon his release. Rioseco was further ordered to make restitution payments to the Deepwater Horizon Fund, the successor to the GCCF, in the amount of $144,606.57, which represented the money he unlawfully received from the GCCF and the amounts received by certain other individuals based on fraudulent documents Rioseco provided in support of other fraudulent claims. Additionally, Rioseco was ordered to surrender to the State of Florida and the federal government all his permits and licenses associated with commercial fishing activities.
According to court filings and proceedings, in June 2010, BP established the Gulf Coast Claims Facility (GCCF) for the purpose of administering and settling certain claims of individuals and businesses for costs, damages, and other losses incurred as a result of oil discharges due to the April 20, 2010, explosion and fire on the Deepwater Horizon, an oil exploration rig operating in the Gulf of Mexico. In August 2010, the GCCF began receiving and processing such claims of individuals and businesses for costs, damages, and other losses they had incurred as a result of the Deepwater Horizon incident, paying the claims from a $20 billion private Trust Fund established for that purpose.
Alejandrez and her father, Rioseco, filed fraudulent claims against the fund, in their own names, which resulted in them receiving $35,900 and $55,000, respectively, from the GCCF. The scheme to defraud the GCCF was carried out through mailings and through the use of the internet, to open the claims and to provide required forms and documentation, including employment verification letters and tax return documents. Alejandrez, produced and provided the documents to the GCCF, on behalf of herself and her father. The documents were materially false and fraudulent and claimed Alejandrez and Rioseco were adversely affected by the spill and lost income in the months following the incident, when this was not in fact, the truth.
Rioseco represented himself to the GCCF to be a commercial fisherman, when in fact he was retired and had not been an active fisherman for many years. A lobster boat, licenses, and permits in his name were in fact being used by others, and Rioseco suffered no loss of income or other adverse effect from the oil spill. Additionally, Rioseco admitted that he facilitated the filing of other false claims, in addition to his own fraudulent claims, by signing and providing notarized “Crewshare Statements” for at least five other individuals attesting that he had employed and paid wages to those persons as boat crewmembers during periods relevant to the GCCF claims process. The fraudulent statements were produced to support claims for compensation which were filed by Alejandrez with the GCCF, claiming approximately $89,000 for economic losses purported to have been suffered as a result of the Deepwater Horizon incident, despite the fact that none of the individuals were crewmembers aboard the vessel or had been fishing during the relevant time period. Additionally, according to the Florida Fish & Wildlife Conservation Commission, the oil spill had little if any effect on the Key West fishing industry, with commercial landings in 2010, the year of the spill, and every year since.
Alejandrez created false income tax returns which she provided to the GCCF in support of her claim that her tax and document preparation business, located on Stock Island, lost income after the oil spill because her customers, primarily fishermen operating out of Stock Island, could no longer afford her services. To maximize her compensation, Alejandrez significantly increased her claimed income on returns for 2008 and 2009, over the income actually reflected in the tax returns filed with the Internal Revenue Service for those years. Alejandrez provided similar false documentation in the support of claims for many other individuals. A U.S. Postal Service document analyst evaluated Alejandrez’ bank records and found that contrary to the sworn statements on her claim forms, her income had increased substantially after the oil spill. The United States advised the Court that records established an actual loss, due to the fraudulent claims, of approximately $500,000, and that the amounts claimed, although not all paid, approached $1.5 million.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, the Department of Commerce, National Oceanic and Atmospheric Administration, Office of Law Enforcement, the United States Coast Guard Investigative Service, U.S. Immigration and Customs Enforcements Homeland Security Investigations and the support provided by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Thomas Watts-FitzGerald, Deputy Chief of the Economic and Environmental Crimes Section.
Members of the public can report fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, including the 2010 Deepwater Horizon oil spill, to the National Center for Disaster Fraud (NCDF) by calling 877-NCDF-GCF (877-623-3423), sending a fax to (225) 334-4707, or emailing [email protected].
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Health Care Clinic Consultant and Biller Sentenced to 135 Months in Miami for Role in $63 Million Medicare Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller was sentenced to 135 months in prison and ordered to pay a $100,000 fine for her role in laundering money in connection with a $63 million health care fraud scheme involving a now-defunct Miami health provider.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Nery Cowan, 53, of Miami, was sentenced yesterday by U.S. District Judge Beth Bloom of the Southern District of Florida. Cowan pleaded guilty to one count of conspiracy to commit money laundering on Jan. 14, 2016.
As part of her guilty plea, Cowan admitted to serving as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) located in Miami, which purported to provide intensive treatment for the severely mentally ill. During the course of the scheme, Cowan directed and authorized the payment of kickbacks and bribes to patient brokers and others in exchange for Medicare beneficiary referrals, she admitted. Cowan also admitted that Greater Miami personnel routinely falsified medical records affiliated with these recruited Medicare beneficiaries to support false and fraudulent claims to Medicare. Cowan received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation, she admitted.
Cowan also admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. According to her plea, Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company.
On Nov. 30, 2015, Judge Bloom sentenced Butler and Mora to 16 years and nine years in prison, respectively, following their guilty pleas.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Health Care Clinic Consultant and Biller Sentenced to 135 Months in Miami for Role in $63 Million Medicare Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller was sentenced to 135 months in prison and ordered to pay a $100,000 fine for her role in laundering money in connection with a $63 million health care fraud scheme involving a now-defunct Miami health provider.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Nery Cowan, 53, of Miami, was sentenced yesterday by U.S. District Judge Beth Bloom of the Southern District of Florida. Cowan pleaded guilty to one count of conspiracy to commit money laundering on Jan. 14, 2016.
As part of her guilty plea, Cowan admitted to serving as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) located in Miami, which purported to provide intensive treatment for the severely mentally ill. During the course of the scheme, Cowan directed and authorized the payment of kickbacks and bribes to patient brokers and others in exchange for Medicare beneficiary referrals, she admitted. Cowan also admitted that Greater Miami personnel routinely falsified medical records affiliated with these recruited Medicare beneficiaries to support false and fraudulent claims to Medicare. Cowan received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation, she admitted.
Cowan also admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. According to her plea, Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company.
On Nov. 30, 2015, Judge Bloom sentenced Butler and Mora to 16 years and nine years in prison, respectively, following their guilty pleas.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorney Elizabeth Young of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Pain Medicine Associates and its Owners Agree to Pay over One Million Dollars to Resolve False Claims Act AllegationsRead the Press Release
Florida Pain Medicine Associates, Inc. and its owners, Drs. Bart Gatz, Alexis Renta, and Albert Rodriguez have agreed to pay $1.1 million to resolve allegations that they violated the False Claims Act by billing Medicare for medically unnecessary nerve conduction studies (NCS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
“When health care providers bill for medically unnecessary procedures, they compromise patient care and the integrity of the Medicare program, for their own financial interests” said U.S. Attorney Wifredo Ferrer. “The United States Attorney’s Office is dedicated to investigating and resolving claims of Medicare fraud that can jeopardize the health care system.”
“When health care businesses and their owners improperly boost their profits by billing Medicare for medically unnecessary procedures, its taxpayers and patients who are left with a hefty tab,” said HHS OIG Special Agent in Charge Shimon R. Richmond. “We are committed to uprooting such schemes and eliminating waste in Federal health care programs.”
The United States alleged that patient records indicated that a substantial percentage of the NCSs that were performed at Florida Pain Medicine Associates were medically unnecessary. The NCSs were often administered without an accompanying electromyography (EMG) test, thereby substantially decreasing the diagnostic value of the procedure. This was especially true where the NCS was the sole basis for performing an epidural steroid injection.
The settlement announced today resolves allegations originally brought by Rosa Gomez, who had worked in Florida Pain Medicine Associates billing department, under the qui tam, or whistleblower provisions of the False Claims Act, which permit private individuals to sue on behalf of the government of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigation. Gomez’s will receive $242,000.
Mr. Ferrer commended the investigative work of HHS-OIG. The investigation and settlement were handled by Assistant U.S. Attorney Franklin Monsour.
The case is captioned United States ex rel. Gomez v. Florida Pain Medicine Associates, Inc., et al., Case No. 13-80856 CIV (S.D. Fla.). The claims settled by the lawsuit are allegations only and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Puerto Rico Resident Sentenced to More Than 13 Years in Prison for Bank Fraud SchemeRead the Press Release
On April 4, 2016, Rosa E. Castrillón-Sánchez, a resident of Puerto Rico, was sentenced to 159 months in prison, to be followed by three years of supervised release, and was ordered to pay $5 million in restitution to victims affected by a scheme to defraud individuals and financial institutions on the island.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Pedro Gomez, Special Agent in Charge, United States Secret Service (USSS), Puerto Rico Office, Carlos Cases, Special Agent in Charge, Federal Bureau of Investigation (FBI), Puerto Rico Office, and Monsita Lecaroz, Assistant United States Trustee, Office of the United States Trustee, made the announcement.
Castrillón-Sánchez pled guilty on December 13, 2013 to one count of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028(a)(1).
According to court documents, Castrillón-Sánchez befriended individuals and falsely represented that she was the beneficiary to a Certificate of Deposit (“CD”) or trust for a large amount of money that was frozen at a local bank in Puerto Rico. Castrillón-Sánchez would request that an individual provide her with a sum of money or take out a personal loan to assist in the releasing of the funds – with full repayment promised as soon as the CD was unfrozen. As part of the scheme, Castrillón-Sánchez and other co-conspirators used false documents and lease agreements to obtain some of the loans and would distribute payments to individuals using Western Union wire transfers and money orders. From April 2005 to March 2010, Castrillón-Sánchez and her co-conspirators fraudulently induced over 90 individuals to loan the defendant over $5,000,000 in cash, based on false representations and promises that the individuals would be repaid in a short period of time.
Castrillón-Sánchez’s conspired with her mother Rosa Sanchez Mercado, Jorge Rivera Izquierdo, and others to use proceeds from the fraudulent scheme. Castrillón-Sánchez stored documents used to facilitate the scheme at the home she shared with Sanchez Mercado. Rivera Izquierdo assisted with the purchase of a Toyota Sequoia on September 13, 2008, using $40,000 of proceeds from the fraudulent scheme as down payment. On May 29, 2009, Rivera Izquierdo assisted with the purchase of a second vehicle, a BMW 335i, using $63,419.50 of proceeds from the scheme as payment for the vehicle.
Rivera Izquierdo was found guilty, at trial, of two counts of money laundering in connection with the purchase of the two vehicles using money derived from the fraudulent scheme. Rivera Izquierdo was sentenced on April 27, 2015 to 42 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $201,503.73.
Co-defendants Carmen Sosa Barreto, Luis Roriguez Barreto, Limarie Amalbert Birriell, Amarilys Pagan Estrella, and Noemi Delgado Alice previously pled guilty and were sentenced to probation.
Sanchez Mercado pled guilty on February 1, 2013 to one count of conspiracy to commit bank fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Sanchez Mercado is scheduled to be sentenced on May 3, 2016.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and FBI, and thanked the United States Trustee’s Office for its assistance. The case was prosecuted by Assistant United States Attorney H. Ron Davidson and Special Attorneys to the Attorney General Charles R. Walsh and Luke V. Cass.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Jamaican National Arrested in Broward and Charged in Connection with International Lottery Scheme Based in JamaicaRead the Press Release
A Jamaican national is charged in the Southern District of Florida with participating in an international telemarketing scheme based in Jamaica.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Delany De-Leon Colon, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Joseph C. Smith, 28, of Montego Bay, Jamaica was arrested in the Southern District of Florida for his role in a Jamaica based telemarketing fraud scheme. Smith is charged, by indictment with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, mail fraud, in violation of Title 18, United States Code, Section 1341 and wire fraud, in violation of Title 18 United States Code, Section 1343. Smith faces a statutory maximum sentence of 20 years in prison.
According to the indictment, beginning in or about June 2010, Smith’s co-conspirators are alleged to have contacted individual victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay between several hundred to several thousand dollars, in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Smith.
Mr. Ferrer commended the investigative efforts of USPIS, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Marshals Service, Broward County Drug Task Force and the Miami-Dade Police Department Economic Crimes Bureau. The case is being prosecuted by Assistant United States Attorney Bertha R. Mitrani.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Indiantown Resident Guilty of Being a Felon in Possession of a FirearmRead the Press Release
On April 8, 2016, a Fort Pierce jury found an Indiantown resident guilty of being a felon in possession of a firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Andrew Cunningham, III, 32, of Indiantown, Florida was convicted at trial, of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g). Cunningham faces a maximum statutory sentence of 10 years in prison. He is scheduled to be sentenced by U. S. District Court Senior Judge Paul Huck on June 17, 2016.
According to the court record, including testimony at trial, on May 4, 2015, MCSO Deputies responded to 911 calls reporting that Cunningham had broken a window at a cousin’s residence and threatened relatives after breaking another cousin’s truck window. During the early morning hours of May 5, 2015, Cunningham was brought to the Indiantown Emergency Medical Services (EMS) Station. Cunningham had been shot in the abdomen while outside his residence, but refused to name his shooter. During the course of the shooting investigation, law enforcement responded to Cunningham’s residence. MCSO deputies received consent to search the residence for evidence of the shooting and discovered Cunningham’s bloody jacket, with a bullet hole consistent with his gunshot injury, inside the defendant’s bedroom. In the pocket of the jacket, MCSO detectives found a Ruger .357 revolver, wrapped in a bandana. Cunningham was previously convicted of felony offenses and was prohibited from possessing a firearm.
This case is the result of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community.
Mr. Ferrer commends the investigative efforts of the ATF and MCSO for their work on this case. The case was prosecuted by Assistant U.S. Attorneys Carmen M. Lineberger and Daniel E. Funk.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Government Contractor Charged with Sex Trafficking and Sexually Exploiting Minors AbroadRead the Press Release
A government contractor is charged with sexually exploiting and trafficking in children, while working overseas.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Christopher Rennie Glenn, 36, of West Palm Beach, Florida is charged by superseding indictment with: two counts of conspiracy to commit sex trafficking by fraud and of a minor in violation of Title 18, United States Code, Section 1594(c); two counts of sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1591(a)(1); four counts of attempting to engage in sex trafficking by fraud and of a minor, in violation of Title 18, United States Code, Section 1594(a); one count of traveling overseas with the intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b); one count of sexually assaulting a minor, in violation of Title 18, United States Code, Section 2243(a); and one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(A). All of the charged conduct occurred outside of the United States, in either Iraq or Honduras, and largely while Glenn, a United States citizen, was working as a network system administrator contracted by the United States Department of Defense. Title 18, United States Code, Sections 1596, 3261, and 3271, provide for extraterritorial jurisdiction in the sex trafficking and child exploitation offenses charged.
Glenn is accused of engaging in an elaborate scheme to sexually exploit young girls in 2010 and from 2012 through 2014 in Honduras, where he had moved to work at the U.S. Army Southern Command’s Joint Task Force Bravo, in Soto Cano Air Base. The criminal complaint filed in August of 2015 claims that Glenn, with the aid of coconspirators, fraudulently recruited young girls living in rural villages to work as housekeepers at his home. In exchange, Glenn promised to pay a significant amount of money to the families. The government alleges that, shortly after the girls’ arrival to Glenn’s home in Honduras, he sexually assaulted the girls, or sought to “marry” the minors to engage in sexual acts with them. Some victims claim that Glenn gave them pills that made them sleepy and dizzy. Some pills seized by law enforcement from Glenn’s Honduras residence in March of 2014 were determined to be drugs that can be used as sedatives. At the detention hearing, the Government further alleged that Glenn had engaged in sexual acts with a minor female from Mexico and that, in 2005, he possessed electronic images of this sexual abuse in Iraq while working as a government contract worker. These images of child pornography were also recovered from Glenn’s residence in Honduras in 2014.
Glenn was initially arrested in February 2014, and charged in the Southern District of Florida with national-security and espionage related violations (Case No. 14-80031-CR-KAM(s)). In 2015, Glenn pled guilty to charges in that case and was sentenced to a ten-year term of imprisonment.
The child exploitation charges are the culmination of a two-year long investigation led by the FBI Miami Field Office’s Violent Crimes Against Children Squad. The case is being prosecuted by Special Prosecutions Assistant United States Attorneys Barbara A. Martinez, Olivia S. Choe, and Vanessa Singh Johannes, from the United States Attorney’s Office for the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendants Sentenced to Imprisonment in Extensive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Six defendants have been sentenced to terms of imprisonment for their participation in an extensive stolen identity tax refund fraud scheme involving the personal identifying information (PII) of more than 29,000 individuals. The defendants used the PII, including names, dates of birth, and Social Security numbers, to file thousands of fraudulent federal income tax returns with the IRS claiming, collectively, tens of millions of dollars in refunds.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Dexter Williams, Chief, City of Miramar Police Department, Steve Steinberg, Chief, Aventura Police Department, William Hernandez, Chief, North Miami Beach Police Department (NMBPD), and Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.
Harlan Decoste, a/k/a “Money King,” a/k/a “Moneyking_111,” 27, of Miramar, was sentenced to a total of 234 months in prison, to be followed by 3 years of supervised release, and was ordered to pay joint and several restitution in the amount of $28,211,434. Kerby Luma, a/k/a "Money Makin Kerb," 26, of Miramar, was sentenced to a total of 132 months in prison, to be followed by 3 years of supervised release, and was ordered to pay joint and several restitution in the amount of $28,211,434. Frantz Decoste, a/k/a "Gripe_111," 21, of Miramar, was sentenced to a total of 54 months in prison, to be followed by 3 years of supervised release, and was ordered to pay joint and several restitution in the amount of $28,211,434. Francis Jeudy, a/k/a "Money Makin Rab," a/k/a "Brizzleon111," 26, of Miramar, was sentenced to a total of 116 months in prison, to be followed by 3 years of supervised release, and was ordered to pay joint and several restitution in the amount of $28,211,434. Andy Cherrelus, a/k/a "Risktakers111," 24, of Miami, was sentenced to 94 months in prison, to be followed by 3 years of supervised release, and was ordered to pay joint and several restitution in the amount of $10,000,000. Each of the defendants previously pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, one count of conspiracy to possess fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(b)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(1)(a). Frantz Decoste and Jeudy also pled guilty to one count of possession of stolen mail, in violation of Title 18, United States Code, Section 1708.
In a separate sentencing hearing, Chad Davis, a/k/a "Chadillac," a/k/a "Chadillac 305," 29, of Miami, was sentenced to 4 months in prison, to be followed by three years of supervised release. Davis previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3).
“During the course of this stolen identity tax refund scheme, the defendants targeted our U.S. taxpayers and the IRS by unlawfully possessing and using personal information to submit tens of millions of dollars in fraudulent tax refund claims,” said U.S. Attorney Wifredo Ferrer. “The prosecution of those who attempt to steal our tax dollars will continue to remain a top priority for the U.S. Attorney’s Office and our law enforcement partners.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “This is one of the largest stolen identity tax refund fraud schemes prosecuted in the United States. These defendants perpetuated an elaborate scheme driven by insatiable greed and a blatant disregard for the integrity of the United States tax system. This case is another example of IRS-CI’s commitment to investigate individuals who participate in stolen identity tax refund fraud and hold them accountable for their actions.”
“We continue to utilize our vast resources to disrupt and dismantle these criminal organizations,” stated Robert C. Hutchinson, Special Agent in Charge, ICE's Homeland Security Investigations.
"We work together with the common goal of making our communities safer," said Delany De Leon Colon, Acting Inspector In Charge, U.S. Postal Inspection Service, Miami Division. "We will continue to work collaboratively to take criminals off our streets."
“The Department of Labor Office of Inspector General is committed to working with our Identity Theft Strike Force partners to combat fraud involving the unemployment insurance program in the Southern District of Florida and other affected areas. This collaborative effort has been an invaluable tool in bringing the perpetrators of these crimes to justice,” stated Rafiq Ahmad, Special Agent in Charge of the Atlanta Regional Office of the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
“A great example of local and federal agencies working together to remove from our streets those who seek fraudulent financial gain by stealing identity information from honest citizens,” said Carlos A. Canino, Special Agent in Charge, ATF.
“This massive stolen identity scheme impacted thousands of victims and fraudulently claimed tens of millions of dollars in IRS refunds,” said George L. Piro, Special Agent in Charge, FBI Miami. “The investigation highlights the necessary and extensive cooperation by numerous law enforcement agencies that brought these fraudsters to justice. I commend these agencies for their commitment to investigate cyber intrusions that rob citizens of their identities.”
According to court documents, while officers from the Miramar Police Department were investigating an armed home invasion that occurred at a home occupied by Harlan Decoste, Frantz Decoste, Luma, and Jeudy, in the Silver Falls Subdivision in Miramar, they discovered evidence of narcotics activity within the home. As a result, officers obtained a state court search warrant for the residence.
While officers were searching the home pursuant to the state court warrant, they found evidence of fraud related activity in various bedrooms and common areas, consisting of approximately 500 debit cards issued in other persons’ names, one ledger/notebook that contained PII, one ledger/notebook that contained information related to tax returns, five United States income tax refund checks in other persons’ names, and various tax return documentation in other persons’ names. In addition, the officers seized approximately 10 computers and 3 USB drives. There were also significant amounts of United States currency, jewelry, expensive shoes and clothing, and other valuable items in the home.
Federal Agents obtained a search warrant to review the electronic and other evidence recovered from the residence. A forensic review of those items revealed that the computers contained over 29,000 individual pieces of PII. Some of the PII appeared in photographs of computer screens (screenshots) from a medical center. The screenshots each contained approximately twelve patient names, dates of birth, and Social Security numbers. The PII was also contained in rich text format document files. Many of the rich text document files contained the PII from the patient screenshots, along with additional user-inputted information such as the victims’ true addresses, fictitious addresses associated with tax returns, account numbers, IRS filing personal identification numbers, and refund amounts.
Further analysis revealed that the defendants filed and caused to be filed numerous fraudulent federal tax returns claiming, collectively, tens of millions of dollars associated with the PII recovered from the residence. The defendants provided payment instructions on the tax returns, directing the IRS to transfer the tax refunds to various accounts in other persons' names that the defendants and their co-conspirators controlled. The defendants then withdrew the unlawfully obtained tax proceeds for their personal use and to further the fraud scheme.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, USPIS, DOL-OIG, ATF, FBI Miami Cyber Task Force, as well as the Miramar, Aventura, North Miami Beach and Fort Lauderdale Police Departments. The case was prosecuted by Assistant United States Attorney Brooke Watson.
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.
Patient Recruiter and Staffing Company Employee Convicted of $2 Million Home Health Care Fraud SchemeRead the Press Release
A patient recruiter for several Miami-area home health agencies was convicted today for his role in a fraud and kickback scheme that resulted in the submission of millions of dollars in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Carlos Rodriguez Nerey, 45, of Miami, was convicted after trial of one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of receiving health care kickbacks.
According to evidence presented at trial, Nerey claimed to work at a staffing company called Sweet Life Staffing Inc. but was in fact a patient recruiter for D&D&D Home Health Inc. (D&D&D) and Mercy Home Care, Inc. (Mercy), two fraudulent home health care agencies in Miami. Evidence at trial demonstrated that Nerey worked for a number of fraudulent home health care companies in Miami before he began accepting kickbacks from D&D&D and Mercy. The defendant created a shell company for the purpose of accepting kickbacks from Mercy and D&D&D and received approximately $250,000 as a result of his role in the scheme, evidence at trial showed.
The evidence introduced at trial showed that Medicare paid more than $2 million to D&D&D and Mercy for those claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Fraud Section Trial Attorneys Lisa H. Miller and Elizabeth W. Young are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Foreign National Pleads Guilty in Mail Fraud SchemeRead the Press Release
A foreign national pled guilty to orchestrating an international mail fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Delany De-Leon Colon, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Cristian Mariano Pardo, 30, and Jorge Gabriel Barca, 33, both of Buenos Aires, Argentina, were indicted in West Palm Beach on a single count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341 and fifteen counts of mail fraud, in violation of Title 18, United States Code, Sections 1349. Barca has not been arrested and remains a fugitive. Pardo pled guilty to the conspiracy to commit mail fraud and a single count of mail fraud. Pardo faces up to 20 years in prison on each of the two counts of conviction, plus $250,000 in fines and mandatory restitution as to each charge.
According to the indictment and court records, between September 2008 and September 2015, Pardo and Barca operated telemarketing call centers or “boiler rooms,” in Argentina that targeted Spanish-speaking consumers residing in the United States. The defendants obtained the names of these consumers from lead lists which they had purchased in Argentina. The lists included names of consumers who had previously made online or direct mail purchases of various items, including items sold on Spanish language television, such as English classes.
The telemarketers, acting at the direction of the defendants, would call Spanish-speaking U.S. residents to tell them that they would be receiving a small parcel in the mail that the consumers had ordered. The callers would state that if the consumers failed to pay for the cost on delivery (C.O.D.) package – typically a charge of $500 - they would be subject to lawsuits, expensive attorney’s fees and court costs, arrest, deportation, and/or have their credit ruined.
In truth, these consumers had not ordered any merchandise, and only paid the $500 demanded for the C.O.D. because of the numerous threats made by the boiler room callers.
When consumers refused delivery of a package sent by the defendants’ companies, they frequently were contacted again by the Argentinian telemarketers, who often identified themselves as attorneys. The callers reiterated that the consumers had agreed to receive the products and pay for them, and again threatened the consumers if they refused to accept the packages, including threats of lawsuits, expensive court and attorney’s fees, arrest, deportation, and that the consumer’s credit would be ruined.
As a result of these threats, numerous consumers paid an average of $500 for products of nominal value that they in fact had never ordered, fearing the consequences of failing to do so. In order to avoid detection and the filing of consumer complaints, Pardo and Barca changed the names of their companies frequently, and at one point moved the operation from West Palm Beach to Los Angeles, CA. During the course of the conspiracy, Pardo and Barca, through their companies, collected proceeds from the targeted consumers of over $1 million.
Mr. Ferrer commended the investigative efforts of USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Five Defendants Sentenced for their Participation in a Stolen Identity Tax Refund Fraud SchemeRead the Press Release
The last of five defendants involved in a stolen identity tax refund scheme have been sentenced in United States District Court.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to court documents, from January 2014, through April 2014, defendants, John Mackenley Cesar, a/k/a “Cesar,” 26, of Miami, Lawrence Bernadel, a/k/a “Bernadel,” 22, of Tallahassee, Chedlor Dorilus, a/k/a “Dorilus,” 22, of Hollywood, Lubens Inalien, a/k/a “Lubaby,” a/k/a “Inalien,” 29, of Fort Lauderdale, and Ariel Ronet Walker, a/k/a “Walker,” 22, of Tallahassee, used the same Electronic Filing Identification Number (“EFIN”) at residences located in Broward County and Leon County, Florida, to file approximately 158 fraudulent tax returns with the IRS using stolen personal identifying information (“PII”) that belonged to other individuals. In order to receive the tax refunds from those fraudulent tax returns, the defendants arranged to have the tax refunds deposited onto pre-paid debit cards, including pre-paid debit cards from H & R Block. Once the tax refunds were deposited onto the pre-paid debit cards, the funds were used to purchase personal items or were withdrawn from ATMs in Broward County and elsewhere.
During the search of the residences used by the defendants to facilitate the fraudulent scheme, law enforcement recovered over 1,800 names, dates of birth, and Social Security numbers belonging to other individuals. The total intended loss amount from the unauthorized tax filings and PII recovered from the residences was between $1 million and $2.5 million dollars.
Cesar, Bernadel and Dorilus pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286; and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. Walker pleaded guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Inalien pleaded guilty to one count of misprision of a felony, in violation of Title 18, United States Code, Section 4.
On August 14, 2015, Dorilus was sentenced to 70 months in prison, to be followed by three years of supervised release. On December 11, 2015, Inalien was sentenced to 8 months in prison, to be followed by one year of supervised release. On January 22, 2016, Walker was sentenced to 5 years’ probation. On March 23, 2016, Cesar was sentenced to 58 months in prison, to be followed by three years of supervised release. On March 30, 2016, Bernadel was sentenced to 42 months in prison, to be followed by three years of supervised release. Cesar, Bernadel, Dorilus and Inalien were also ordered to pay joint and several restitution in the amount of $580,584. Walker was ordered to pay restitution in the amount of $124,631.
Mr. Ferrer commended the investigative efforts of the Stolen Identity Refund Fraud Task Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Citizen Residing in Mexico Pleads Guilty to Mailing Threatening Communications Containing a White Powdery SubstanceRead the Press Release
John Milton Nagel, 47, pled guilty to three counts of mailing threatening communications from a foreign country, in violation of Title 18, United States Code, Section 877. At sentencing, Nagel faces a maximum statutory sentence of up to five years in prison, three years of supervised release, and a $250,000 fine on each count. Sentencing has been scheduled for May 26, 2016 at 2 p.m. before U.S. District Judge Jose E. Martinez.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to court documents, between September 1, 2015 and September 18, 2015, Nagel entered the Mexico City main post office located at Palacio Postal, Avenida Tacuba No. 1, Centro Historico, Delegacion Cuachtemoc, 06002 Mexico City, Mexico, and knowingly deposited for mailing thirty-seven (37) envelopes all addressed to prominent United States political figures and business leaders, each containing a threatening letter and a white powdery substance. A sample of the powder, removed from within the suspect letters, was thereafter sent to both Mexican and U.S. laboratories for analysis and ultimately revealed that the contents were bicarbonate.
The first page of each letter read “FREE SAMPLE OF EXECUTIVE TOOTH POWDER - ACTIVATES WITH HYDROGEN PEROXIDE. DO NOT SWALLOW! H2O2 MAY BE POISONOUS IF SWALLOWED DON'T PANIC, EVACUATE OR CALL 911…or there will be consequences...Mathew 13:49.” According to the King James version of the Bible, Matthew 13:49 states: “So shall it be at the end of the world: the angels shall come forth, and sever the wicked from among the just.”
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Ricardo A. Del Toro.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Service Business Owner and Co-Defendant Pled Guilty for Their Participation in a Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A tax service business owner and co-defendant pled guilty for their participation in a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Johny Wolf Jasmin, 32, of Boca Raton, pled guilty to one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286, and one count of aggravated identity theft in violation of Title 18, United States Code, Sections 1028A and 2. Carneisha Patrice Mitchell, 31, of Miami, pled guilty to one count of theft of government funds, in violation of Title 18, United States Code, Sections 641 and 2. At sentencing, the defendants each face up to ten years in prison for the conspiracy and theft of government money charges. Jasmin also faces a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, Jasmin owned and operated a tax service business called Wolf Vision, Inc. at an address located in Hollywood, Florida. During the course of the investigation, law enforcement learned three separate Electronic Filing Identification Numbers (EFINs) were used to file false and fraudulent tax returns from Jasmin’s business. One of those EFINs was assigned to Mitchell. Based upon this information, law enforcement executed a search warrant at Jasmin’s business and recovered computers, thumb drives, prepaid debit cards, and numerous documents that contained over 2,100 names, dates of birth, and social security numbers that belonged to living and deceased individuals.
In fact, a review of Jasmin’s personal income tax for the 2014 tax year showed that Jasmin obtained the name, date of birth and social security number of a child who had passed away and later used that information to fraudulently claim the deceased child as one of his dependents.
In addition, law enforcement learned that an IRS treasury tax refund check in the name of a deceased individual was deposited into Mitchell’s personal checking account. Thereafter, Mitchell used the money from the IRS treasury check for her personal use.
As a result of Jasmin and his co-conspirator’s fraudulent conduct, over 220 false and fraudulent federal income tax returns were filed with the IRS using stolen personal identifying information (PII) of living and deceased individuals. Further, over $550,000 in tax refunds were sought from the false and fraudulent income tax returns filed from Jasmin’s tax business.
Sentencing for both defendants is scheduled for June 3, 2016 before U.S. District Judge William J. Zloch.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident Sentenced to Prison for Stolen Identity Tax Fraud SchemeRead the Press Release
A Miami resident was sentenced to 34 months in prison, followed by three years of supervised release for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Ronel Junior Lamour, 25, previously pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.
Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders. On two separate occasions, Lamour deposited these USPS money orders into a bank account.
Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Leaders of Colombian Drug Trafficking Organization Sentenced to Two Decades in PrisonRead the Press Release
Two leaders of Colombia’s largest and most influential BACRIM (banda criminal or criminal group), CLAN USUGA (formerly referred to as Los Urabeños), were sentenced to 20 and 24 year prison terms for their involvement in a cocaine trafficking conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, made the announcement.
On June 4, 2015, nine defendants, including Oscar David Pulgarin-Ganan, a/k/a “Niño,” a/k/a “Coroso,” and Ramiro Caro-Pineda, a/k/a “Nolasco,” a/k/a “Hugo” were charged in a single-count Indictment, in the Southern District of Florida, for their participation in large-scale drug trafficking organization based out of Colombia (Case No. 15cr20403). Pulgarin-Ganan and Caro-Pineda conspired to traffic large amounts of cocaine from Colombia, through Central America, with the eventual destination being the United States, in violation of Title 21, United States Code, Sections 959 and 960. Pulgarin-Ganan and Caro-Pineda pled guilty to the indictment and were respectively sentenced, in 2016, to 240 and 284 months’ imprisonment.
Pulgarin-Ganan and Caro-Pineda were top-level members of the CLAN USUGA drug trafficking organization. Caro-Pineda oversaw transportation and shipments of all loads owned, controlled, or protected by the criminal group. Pulgarin-Ganan was an owner, manager, and investor in loads with other high-level members of the drug trafficking organization. Pulgarin-Ganan managed multi-ton loads being sent by airplane and go-fast vessels to Central American and eventually being imported into the United States. In addition, Pulgarin-Ganan was in charge of coordinating all CLAN USUGA cocaine loads that arrived in Central America, with the final eventual destination being the United States.
Caro-Pineda was also indicted in the Middle District of Florida, Eastern District of Texas, and Eastern District of New York and pled guilty to each indictment.
These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA. Mr. Ferrer also recognized the U.S. Attorney’s Offices in the Middle District of Florida, Eastern District of Texas, and Eastern District of New York for their collective assistance with the prosecution of CLAN USUGA leaders and high-ranking members. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
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.
Leaders of Colombian Drug Trafficking Organization Sentenced to Nineteen Years in PrisonRead the Press Release
Two Colombian nationals were each sentenced to more than 19 years in prison for their involvement in an international cocaine trafficking conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, made the announcement.
On July 20, 2010, German Bustos-Alarcon a/k/a “Puma” and Rafael Alvarez-Pineda a/k/a “Chepe,” were charged in a single-count indictment in the Southern District of Florida for their participation in large-scale drug trafficking organization based out of Colombia (Case No. 10cr20554). Bustos-Alarcon and Alvarez-Pineda conspired to traffic large amounts of cocaine from Colombia, through Central America, with the eventual destination being the United States, in violation of Title 21, United States Code, Sections 959 and 960. On March 23, 2015, German Bustos-Alarcon was extradited from Colombia to the Southern District of Florida. On April 29, 2015, Alvarez-Pineda was also extradited from Colombia to the Southern District of Florida. Bustos-Alarcon and Alvarez-Pineda each pled guilty to the indictment and were sentenced to 235 months’ imprisonment.
Bustos-Alarcon and Alvarez-Pineda were members of the Autodefensas Unidas de Colombia (AUC) and were principal lieutenants of AUC Leader Ramiro Vanoy-Murrillo a/k/a “Cuco Vanoy” (Case No. 99-CR-6153-KMM). After the AUC leaders were extradited from Colombia to the United States in May 2008, Bustos-Alarcon and Alvarez-Pineda moved into leadership roles in the area of Caucasia, Colombia. Bustos-Alarcon and Alvarez-Pineda formed a drug trafficking alliance with Colombia’s largest and most influential BACRIM (banda criminal or criminal group), CLAN USUGA (formerly referred to as Los Urabeños). Bustos-Alarcon and Alvarez-Pineda purchased cocaine from laboratories and sold it to members of the CLAN USUGA, who then transported the narcotics to Central America and eventually on to the United States.
These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the investigative efforts of the DEA. This case is being prosecuted by Assistant U.S. Attorney Michael B. Nadler.
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.
President of Miami-Based Transportation Company Sentenced to 60 Months in Prison for Role in $70 Million Health Care Fraud SchemeRead the Press Release
The president of a transportation company based in Miami was sentenced today to 60 months in prison for his role in a health care fraud scheme involving three mental health centers that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.
Damian Mayol, 45, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida, who also ordered Mayol to pay $26,808,841 in restitution and to forfeit the same amount. In January 2016, Mayol was convicted of conspiracy to pay health care kickbacks after a five-day trial.
According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc. and, along with his co-conspirators, used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day).
The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries. On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients, according to trial evidence. Trial evidence demonstrated that patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare. Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims, the evidence showed.
In December 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso were sentenced to prison terms ranging from 28 months to 120 months on related charges.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
President of Miami-Based Transportation Company Sentenced to 60 Months in Prison for Role in $70 Million Health Care Fraud SchemeRead the Press Release
The president of a transportation company based in Miami was sentenced today to 60 months in prison for his role in a health care fraud scheme involving three mental health centers that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.
Damian Mayol, 45, of Miami, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida, who also ordered Mayol to pay $26,808,841 in restitution and to forfeit the same amount. In January 2016, Mayol was convicted of conspiracy to pay health care kickbacks after a five-day trial.
According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc. and, along with his co-conspirators, used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day).
The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries. On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients, according to trial evidence. Trial evidence demonstrated that patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare. Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims, the evidence showed.
In December 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso were sentenced to prison terms ranging from 28 months to 120 months on related charges.
The FBI investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Convicted for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
Following a three-day trial before United States District Court Judge Kenneth A. Marra, a jury convicted a Lauderhill resident for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jean Daniel Julien, of Lauderhill, was convicted of one count of conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, and one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to evidence presented at trial, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.” Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account. Julien then deposited a $55,000 starter check written on the D.H. account into a business account opened by Julien’s wife. During the next two days, most of the $55,000 was withdrawn from the account.
Julien is scheduled to be sentenced by United States District Court Judge Kenneth A. Marra on June 10, 2016. At sentencing, Julien faces up to thirty years in prison for the conspiracy charge, and up to ten years in prison for the theft of government money charge.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney William Zloch.
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.
Martin County Man Convicted of Bank and Mail FraudRead the Press Release
A Martin County man was convicted yesterday, following a federal jury trial, on charges stemming from his harassment of police officers and the obstruction of civil lawsuits, during the course of extensive bank and mail fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Mark Alan Yoder, 55, of Hobe Sound, was charged by indictment with five counts of bank fraud, in violation of Title 18, United States Code, Section 1344; and four counts of mail fraud, in violation of Title 18, United States Code, Section 1341. Yoder was convicted on all counts of the indictment and faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine. A sentencing date has not yet been scheduled. Sentencing will be imposed by Senior United States District Judge Paul C. Huck in Fort Pierce.
According to trial testimony and court documents, Yoder carried out bank and mail fraud schemes. On October 18, 2010, Yoder received a traffic citation, for driving without a seat belt, from a Tequesta Police Department Officer. Yoder objected to the ticket, demanded to speak to a supervisor and denied the officer had any authority for the stop. The officer’s supervisor arrived on the scene to provide assistance. Beginning in the months following the traffic stop and into early 2011, Yoder sent, by mail, a succession of fraudulent formal demands and notices, claiming the two police officers and the Tequesta Police Department each owed him $150,000 in damages. Yoder also sent similar demands for large damage payments to officers and executives of the bank that was foreclosing upon his home. Not long after the final judgment of foreclosure was entered in the state court, Yoder filed a fraudulent mechanic’s lien against the bank’s property, falsely claiming that he was owed thousands of dollars for his maintenance of the home prior to the foreclosure. Yoder renewed the fraudulent mechanic’s lien, with successive filings, in 2014 and 2015.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the Martin County Sheriff’s Office, the Tequesta Police Department, and the Office of the Clerk of the Circuit Court for Martin County, Florida, for their assistance with this investigation. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and Kerry Baron.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man pleaded guilty yesterday for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM) out of more than $11 million.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector General Michael McCarthy of EXIM made the announcement.
Guillermo A. Sanchez-Badia, 61, pled guilty before U.S. District Judge Joan A. Lenard of the Southern District of Florida in Miami to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering. Sentencing is scheduled for June 3 before Judge Lenard.
According to admissions made as part of his plea agreement, from 2007 through 2012, Sanchez and his co-conspirators utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices, according to the plea. Sanchez admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, Sanchez admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing more than $11 million dollars in losses to the lenders and the United States, according to the plea.
Five other individuals have been convicted for their roles in this scheme. Isabel C. Sanchez, 36, of Miami, the daughter of Sanchez-Badia, and Gustavo Giral, 38, of Miami, who were charged in the same indictment as Sanchez-Badia, pleaded guilty on Feb. 26, 2016, for their participation in this scheme to defraud, and will be sentenced on May 13, 2016. Isabel Sanchez created the false sales and shipping documents and arranged for the transfer of criminal proceeds through over 50 bank accounts. Giral assisted in circulating the fraudulent documents and in converting loan proceeds to currency, facilitating the money-laundering concealment by making the source of funds more difficult to trace. Freddy Moreno-Beltran, 43, of Bogota, Colombia; Ricardo Beato, 62, of Miami; and Jorge Amad, 48, of Miramar, Florida, were separately charged and have each pleaded guilty for their roles in the scheme. According to admissions in their plea agreements, Moreno-Beltran owned Clientric, a company in Colombia, which purportedly purchased goods from companies that the defendants controlled. Beato and Amad owned Approach Technologies International, a company offering call center software. The conspirators admitted that they told the EXIM that Approach Technologies International had sold more than $1 million in American manufactured software and equipment to Clientric, which was false, in order to obtain an EXIM-guaranteed loan. Moreno-Beltran and Beato were each sentenced to 12 months and one day in prison and ordered to pay $1,951,643.05 in restitution.
Ultimately, the EXIM-guaranteed loan defaulted, causing a loss to the United States of nearly $2 million.
The EXIM Office of Inspector General investigated the case, and Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Man Pleads Guilty to Multimillion-Dollar Scheme to Defraud Commercial Lenders and U.S. Export-Import BankRead the Press Release
A Miami man pleaded guilty today for his role in a scheme to defraud two commercial lenders and the Export-Import Bank of the United States (EXIM) out of more than $11 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Inspector General Michael McCarthy of EXIM made the announcement.
Guillermo A. Sanchez-Badia, 61, pleaded today before U.S. District Judge Joan A. Lenard of the Southern District of Florida in Miami to one count of conspiracy to commit wire fraud, one count of wire fraud and one count of conspiracy to commit money laundering. Sentencing is scheduled for June 3 before Judge Lenard.
According to admissions made as part of his plea agreement, from 2007 through 2012, Sanchez and his co-conspirators utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred. These invoices were sold to two Miami-area commercial lenders in a process called “factoring,” which allowed the conspirators to receive cash for approximately 90 percent of the value of the merchandise listed on the fake invoices, according to the plea. Sanchez admitted that, in order to continue the scheme, he and his co-conspirators created additional fictitious invoices, transferred the funds they received through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the new proceeds to pay off prior factored invoices.
Sanchez admitted that when the Miami lenders refused to extend further credit, he and his co-conspirators created false invoices and shipping documents to obtain a loan guaranteed by the EXIM. Rather than acquiring, selling and shipping American manufactured goods as required for an EXIM guaranteed loan, Sanchez and his co-conspirators used the loan proceeds to pay off earlier factored invoices, thereby extending the scheme, and kept the balance of the loan proceeds for themselves, Sanchez admitted. The factoring loans and the EXIM-guaranteed loan ultimately defaulted, causing more than $11 million dollars in losses to the lenders and the United States, according to the plea.
Five other individuals have been convicted for their roles in this scheme. Isabel C. Sanchez, 36, of Miami, the daughter of Sanchez-Badia, and Gustavo Giral, 38, of Miami, who were charged in the same indictment as Sanchez-Badia, pleaded guilty on Feb. 26, 2016, for their participation in this scheme to defraud, and will be sentenced on May 13, 2016. Isabel Sanchez created the false sales and shipping documents and arranged for the transfer of criminal proceeds through over 50 bank accounts. Giral assisted in circulating the fraudulent documents and in converting loan proceeds to currency, facilitating the money-laundering concealment by making the source of funds more difficult to trace. Freddy Moreno-Beltran, 43, of Bogota, Colombia; Ricardo Beato, 62, of Miami; and Jorge Amad, 48, of Miramar, Florida, were separately charged and have each pleaded guilty for their roles in the scheme. According to admissions in their plea agreements, Moreno-Beltran owned Clientric, a company in Colombia, which purportedly purchased goods from companies that the defendants controlled. Beato and Amad owned Approach Technologies International, a company offering call center software. The conspirators admitted that they told the EXIM that Approach Technologies International had sold more than $1 million in American manufactured software and equipment to Clientric, which was false, in order to obtain an EXIM-guaranteed loan. Moreno-Beltran and Beato were each sentenced to 12 months and one day in prison and ordered to pay $1,951,643.05 in restitution.
Ultimately, the EXIM-guaranteed loan defaulted, causing a loss to the United States of nearly $2 million.
The EXIM Office of Inspector General investigated the case, and Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section prosecuted the case.