Southern District of Florida
Press releases recorded for this federal judicial district.
Two Mexican Nationals Charged with Conspiracy to Provide and Obtain Forced LaborRead the Press Release
Two Mexican nationals, who were working in the Homestead, Florida area and elsewhere, have been charged by indictment with participating in a conspiracy to provide and obtain forced labor.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Agustin Mendez-Vazquez, 43, and his son, Ever Mendez-Perez, 23, both originally of Mexico, were charged by indictment with one count of conspiracy to provide and obtain forced labor, in violation of Title 18, United States Code, Section 1594(b). Agustin Mendez-Vazquez was also charged with one count of providing and obtaining forced labor, in violation of Title 18, United States Code, Section 1589(a). If convicted, Agustin Mendez-Vazquez faces a statutory maximum term of imprisonment of 40 years. Ever Mendez-Perez faces a statutory maximum term of imprisonment of 20 years.
According to court records, Agustin Mendez-Vazquez and Ever Mendez-Perez, who work as unlicensed labor subcontractors on tomato farms in the Homestead area, utilized physical force, threats of physical force, threats of deportation, and debt bondage to maintain control over other migrant workers. Workers under the defendants’ control were beaten if they did not work every day; were subjected to harassment and abuse; and were required to relinquish large portions of their paychecks – sometimes their entire paychecks – to the Mendezes. The defendants are currently being held without bond pending trial.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
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.
Owner of Two Miami Clinics Sentenced to 82 Months for Health Care Fraud ChargesRead the Press Release
An owner of two fraudulent medical clinics in the Miami area was sentenced to 82 months in prison today for his role in a Medicare fraud scheme that caused more than $3 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 (HHS-OIG) Miami Regional Office made the announcement.
Carlos Medina, 56, of Miami, pleaded guilty before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida to one count of conspiracy to commit health care fraud in January 2016. In addition to his prison sentence, Judge Altonaga ordered Medina to forfeit $3,067,898.69.
According to admissions in the factual basis for his plea agreement, Medina was the owner of Doral Community Clinic Inc. and Advanced Medical of Doral Inc., however, other individuals served as the owners on the clinics’ corporate paperwork. Medina’s clinics purportedly provided medically necessary services to Medicare beneficiaries, but in reality the clinics charged cash kickbacks ranging from $100 to $200 in exchange for prescriptions for home health care services, and some of the beneficiaries who frequented the clinics did not meet Medicare’s criteria for the prescribed services, according to the factual basis. Some of the services prescribed by the medical professionals at Doral and Advanced Medical were never provided by the home health agencies to which the patients were referred, according to admissions in the factual basis.
The factual basis for the plea agreement states that Medina’s clinics sold prescriptions that were used to facilitate submission of false and fraudulent claims to Medicare by more than 20 home health agencies in the Miami area. Medicare paid more than $3 million in payments as a direct result of prescriptions sold by Doral and Advanced during a period of less than two years, according to the factual basis.
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 Jon M. Juenger 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 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.
North Miami Beach Resident Sentenced to 7 Years in Prison for Stolen Identity Tax and Unemployment Insurance Claims Fraud SchemesRead the Press Release
A North Miami Beach resident was sentenced to 84 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $585,070, for his participation in stolen identity tax and unemployment insurance claims fraud schemes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), William Hernandez, Chief, North Miami Beach Police Department (NMBPD), 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), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, and Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), made the announcement.
Elton Lloyd Bandoo, a/k/a “Ebdaiceman”, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, on February 6, 2015, law enforcement executed a federal search warrant at Bandoo's residence. While executing the search warrant, law enforcement seized several computers and external media devices that contained the personal identification information (PII) of approximately 27,000 victims. In addition, law enforcement discovered papers, including billing forms from a medical facility, handwritten lists of names, dates of birth, and Social Security numbers, and printed lists of names, dates of birth, and Social Security numbers, of approximately 1,400 individuals. Bandoo's fingerprints were discovered on the papers containing the victims' PII.
The IRS confirmed that the PII on which Bandoo's fingerprints were discovered was used to file fraudulent tax returns, many in the names of deceased individuals, seeking $1,073,112 in fraudulent refunds. Bandoo’s IP address was used to request $11,804 in unauthorized payments on nine fraudulent unemployment insurance claims.
In total, the amount of intended loss resulting from Bandoo’s fraudulent schemes is $14,826,443.
Mr. Ferrer commended the investigative efforts of IRS-CI, NMBPD, DOL-OIG, ICE-HSI, and ATF. This case was prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Guyanese National Convicted of Mortgage FraudRead the Press Release
A Guyanese national was convicted following a federal jury trial on charges stemming from his leadership and participation in an extensive mortgage fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ravindranauth “Ravi” Roopnarine, 56, of Guyana, was charged by indictment with conspiracy to commit wire fraud and mail fraud, in violation of Title 18, United States Code, Section 1349; mail fraud, in violation of Title 18, United States Code, Section 1341; and wire fraud in violation of Title 18, United States Code, Section 1343. On Friday, March 11, 2016, a twelve-person jury convicted Roopnarine on all three counts, after a four day trial presided over by United States District Judge Jose E. Martinez.
According to publicly filed documents and statements made in court, on December 9, 2010, a Fort Pierce federal grand jury indicted Roopnarine, Gergawattie “Kamla” Seecharan, Bhaardwaj “Deo” Seecharan and Linda Rovetto for their participation in a mortgage fraud scheme. Kamla Seecharan, Deo Seecharan and Rovetto previously pled guilty and were sentenced. Roopnarine in mid-2015 waived extradition and returned from Trinidad and Tobago to the Southern District of Florida.
According to the court documents, Roopnarine recruited and led his co-conspirators in a widespread mortgage fraud scheme involving more than 150 residential real estate properties in Indian River, Miami-Dade, and Orlando-Orange Counties. Roopnarine, along with Kamla Seecharan and her husband Deo Seecharan, conspired to solicit mainly Guyanese residents of Florida and other States to act as straw buyers on fraudulent mortgage loan applications. Approximately 80 individuals served as straw buyers of properties in Vero Lake Estates (VLE), in Indian River County, and other developments. This scheme resulted in the issuance of more than $50 million in fraudulent mortgage loans. The co-conspirators then used the proceeds to purchase additional properties, fund pre-existing fraudulent mortgage loans, and pay kickbacks to the straw buyers. In addition, Kamla Seecharan and Rovetto unlawfully diverted more than $3.5 million in mortgage loans from real estate closing escrow accounts to Raviworld New Homes, Inc., a company managed by Roopnarine and Deo Seecharan.
Kamla Seecharan pled guilty to participating in a conspiracy involving more than $50 million dollars in fraudulent mortgage loan funds, in violation of Title 18, United States Code, Sections 1341, 1343 and 1349. Deo Seecharan and Rovetto each pled guilty to participating in a conspiracy to commit bank fraud involving $3.5 million dollars in diverted real estate escrow funds, in violation of Title 18, United States Code, Sections 1349 and 1344.
U.S. District Judge Jose E. Martinez sentenced Kamla Seecharan and Deo Seecharan, to 121 months and 60 months, respectively, in prison, to be followed by five years of supervised release. In addition, Kamla Seecharan and Deo Seecharan were ordered to pay restitution, in the amount of $2,040,343.14 and $9,041,133.46, respectively. U.S. District Judge Martinez sentenced Rovetto to 42 months in prison.
Judge Martinez has set a sentencing hearing for Roopnarine on May 10, 2016, at 1:30 p.m. in the Fort Pierce U.S. Courthouse. Roopnarine faces a statutory maximum sentence of up to 30 years in prison and/or a $1,000,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI. Mr. Ferrer also thanked the State of Florida Office of Financial Regulation, Bureau of Finance, West Palm Beach Regional Office for their work on this investigation, and the United States Marshals Service for their assistance with the extradition and return of Roopnarine to Florida from Trinidad & Tobago. The case was prosecuted by Assistant U.S. Attorneys Theodore Cooperstein and James V. Hayes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Vero Beach Bank Robber Pleads GuiltyRead the Press Release
Tyler Scott Topolski, 20, of Vero Beach, pled guilty today before Chief United States Magistrate Judge Frank J. Lynch, Jr. in Ft. Pierce.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Deryl Loar, Sheriff, Indian River County Sheriff’s Office, and David E. Currey, Chief, Vero Beach Police Department, made the announcement.
Topolski pled guilty to an indictment charging him with bank robbery, in violation of Title 18, United States Code Section 2113(a). Sentencing is scheduled for June 3, 2016 before United States District Judge Kenneth A. Marra in Ft. Pierce. At sentencing, Topolski faces a possible maximum statutory sentence of 20 years in prison.
According to Court records, on November 6, 2015, at approximately 2:28 p.m., Topolski entered the Florida Community Bank, located at 4000 20th Street, Vero Beach, with a demand note, which read, “NO dye Paacs, I need All the 50’s & 100’s In the Bag! Fan the bills out first. Any restiance I will kill you & myself.” Topolski left with approximately $973.00 in cash. The note was later recovered in a nearby parking lot.
After Vero Beach Police Department detectives received information from the community, identifying Topolski from bank surveillance photographs, they obtained a South Carolina driver’s license in order to confirm his identity. Several bank witnesses positively identified Toploski from photographic lineups. As a result, the detectives obtained a State of Florida Arrest Warrant for Topolski and notified the Horry County Police Department in South Carolina. On November 7, 2015, Topolski was successfully captured, after he was located, hiding in his mother’s closet in Myrtle Beach, South Carolina. Topolski gave detectives a full confession, admitting that he had cut his facial hair, in order to conceal his identity.
Mr. Ferrer commended the investigative efforts of the FBI, Indian River County Sheriff’s Office, Vero Beach Police Department, and Horry County Sheriff’s Office in South Carolina for their work on this case. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Department of Veterans Affairs Nurse Sentenced to 60 months in prison for Altering and Falsifying VA Computer RecordsRead the Press Release
Enrique Martinez Mathews, a former Registered Nurse at Veteran Affairs (VA) Medical Center Miami, was sentenced on March 2, 2016, to 60 months in prison after previously pleading guilty to altering and falsifying VA Computer Records (obstruction and computer related fraud), in violation of Title 18, United States Code, Sections 1519 and 1030.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veteran Affairs, Office of Inspector General, Criminal Investigations Division (VA OIG), made the announcement.
According to the court record, Martinez interfered with an internal investigation at the VA Medical Center Miami. The internal investigation related to the death of a veteran in Martinez’s care. The internal investigation revealed that Martinez altered VA patient records of the veteran under his care, while the patient recovered in the Surgical Intensive Care Unit at the VA in Miami. The defendant’s actions caused appropriate medical treatment to be withheld from the veteran, who later passed away. Martinez then altered additional records in an attempt to conceal his actions.
U.S. Attorney Wifredo Ferrer stated, “Protecting our veterans is a national concern. Together with our partners at the Veterans Affairs Administration, the U.S. Attorney’s Office will identify for prosecution those individuals who compromise the personal information and potential safety and security of our citizens.”
Special Agent in Charge Monty Stokes said, “This investigation represents the VA OIG’s commitment to investigate obstruction as well as alterations of medical records that needlessly compromise veterans’ care and subject them to harm. We will continue to vigorously investigate employees whose actions corrupt the integrity of VA’s health care records relied upon by VA clinicians who treat our nation’s heroes.”
Mr. Ferrer commended the investigative efforts of the VA OIG. The case was prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
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.
Final Defendant Pleads Guilty in Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
The final defendant pled guilty in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Delany De-Leon Colon, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Emmanuel Avrilien, 23, of Miami, pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of theft of government money, in violation of Title 18, United States Code, Section 641. The defendant was remanded into custody after his guilty plea was accepted by the Court.
Co-defendants Andy Lamour, 22, Tamica Smith, 26, Marie Joseph, 25, and Gerrey Cherrelus, 22, all of Miami, each previously pled guilty to the same two charges, and Sandy Jean-Louis, 21, of Miami, previously pled guilty to the conspiracy charge. All of the co-defendants have been sentenced. As part of their plea agreements, Avrilien, Lamour, Smith, Joseph, Cherrelus and Jean-Louis agreed to pay restitution in the amounts of $98,481.00, $26,172.00, $17,395.00, $22.399.00, $13,242.00, and $28,561.63, respectively.
According to court documents, Lamour, Cherrelus and Jean-Louis were students at Miami Dade College; Avrilien, Lamour, Smith and Joseph were employees of a Target Store. From April 17, 2012 to January 24, 2013, the defendants participated in a tax fraud scheme where the defendants received fraudulently obtained tax refunds in their personal Higher One, Inc. and/or Citibank accounts. Avrilien paid the other defendants for allowing their accounts to receive the stolen tax refunds, and directed Lamour to recruit other Target Store employees and Miami Dade College students to participate in the scheme.
Court documents also state that Avrilien and unknown co-conspirators filed a total of 145 fraudulent tax returns which directed the tax refunds to be deposited into one of the other defendant’s accounts. After the tax refunds were deposited into a defendant’s account, that defendant withdrew the money from the account at ATMs or through counter withdrawals.
Sentencing for Avrilien is scheduled for May 19, 2016 at 10:30 a.m. before Chief Judge K. Michael Moore. At sentencing, the Avrilien faces up to five 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 the Identity Theft Tax Refund Strike Force, with special commendation to USPIS, IRS-CI, and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
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 Convicted for his Participation in a Fraudulent Jamaica Based Lottery SchemeRead the Press Release
A Broward County resident pled guilty today for his role 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.
Delroy Drummond, 26, of Broward County, pled guilty to conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349. Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas. At sentencing, Drummond faces a maximum statutory sentence of up to twenty years in prison.
According to documents and information presented in Court, beginning in or about April 2015, Drummond’s co-conspirators contacted elderly victims in the United States and falsely informed them that they had won a lottery. These co-conspirators told victims they had to pay several thousand dollars in taxes and fees in order to collect their purported lottery winnings. The co-conspirators then instructed the victims on how to send this money, and to whom, including directing that the funds be sent to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of the fraudulent scheme. At that time, Drummond was confronted with the fact that he was participating in a lottery scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who had been falsely told he/she had won a $2.5 million lottery prize. Drummond used fraudulent identification in order to receive these funds. In May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed he/she had won a lottery prize. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims located throughout the United States. As a result of the fraudulent scheme, the victims lost approximately $500,000.
Mr. Ferrer commended the investigative efforts of USPIS, Homeland Security Investigations, U.S. Marshal Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami Dade Police Department Economic Crimes Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Fumigation Company and Two Individuals Pled Guilty in Connection with Illegal Pesticide Application Resulting in Injuries to a MinorRead the Press Release
Sunland Pest Control Services, Inc. (Sunland), Grenale Williams, 53, of South Bay, and Canarie Deon Curry, 40, of Riviera Beach, pled guilty today in federal court in Fort Pierce before United States District Court Judge Jose E. Martinez in connection with the illegal application of a pesticide that resulted in injuries to a minor child.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Andy Castro, Acting Special Agent in Charge, United States Environmental Protection Agency (EPA), Criminal Investigation Division, Atlanta Area Office, made the announcement.
Sunland, Williams, and Curry, pled guilty for their involvement in the illegal application of sulfuryl fluoride (a pesticide), contrary to the label’s safety requirements, in violation of Title 7, United States Code, Section 136i(b)(1)(B). Sunland also pled guilty to making false statements in connection with the investigation, in violation of Title 18, United States Code, Section 1001. Williams and Curry face a statutory maximum sentence of up to one year in prison and a fine of up to $100,000, to be followed by and a period of supervised release. In addition, Sunland faces up to five years of probation and a $500,000 fine for the false statements conviction. Sentencing is scheduled for May 11, 2016 at 12:00 p.m. in Fort Pierce.
According to court documents, the federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) regulates the use of pesticides, including those designated for restricted use due to their potential adverse effects, including serious injury. Application of restricted use pesticides is limited to certified applicators or those under the direct supervision of certified applicators. Sulfuryl fluoride, a commonly used antimicrobial in structural fumigations for termites, is one such restricted use pesticide that is registered with the EPA. At the heart of the safe use of such pesticides is compliance with the product label, which includes the written, printed, or graphic matter associated with the pesticide. Under FIFRA, the label is the law, and strict compliance with it is critical to the safe application of the restricted use pesticide. Federal law also prohibits the making of material false statements in a matter within the jurisdiction of the EPA.
Court records and a joint factual statement indicate that in June 2015 residents contracted with Terminix for a home fumigation for termites under an existing warranty. Terminix, without warning or approval, subcontracted the job to Sunland. The fumigation occurred over a weekend and the residents returned to their home on Sunday, August 16, 2015 to find a clearance tag on the front door indicating that it was safe to enter. During the evening several family members became ill, and medical attention was sought for their nine year old son. It was determined that the family’s symptoms were consistent with pesticide poisoning.
A subsequent investigation revealed that contrary to the label requirements for use of the potentially deadly gas, the defendants failed, among other violations, to: provide the Fact Sheet for the pesticide being used; have the required number of properly trained personnel on site following the application of the pesticide; properly aerate the fumigated space; and conduct clearance testing with an approved and calibrated Low Fumigant Level Detection Device. In addition, a clearance tag was left at the premises indicating it was safe to enter when in fact the requisite procedures had not been completed. The family was falsely assured by Terminix and Sunland that the aeration and clearance requirements had been met. Additionally, Sunland representatives misrepresented the specific brand of pesticide that was used and indicated that the fumigation, aeration, and clearance of the home was in accordance with the law when in truth and fact, the defendants were not in compliance.
United States Attorney Wifredo A. Ferrer stated, “Federal regulations are in place to ensure that the public is protected. Individuals and corporations who knowingly side-step the safety protocols that have been instituted expose others to potentially dangerous consequences. The U.S. Attorney’s Office will continue to work with our law enforcement partners to hold those accountable who violate the law.”
“The preventable toxic poisoning of a young boy is a stark reminder of why pesticides must be used properly and responsibly,” said Andy Castro, Acting Special Agent in Charge of EPA’s criminal enforcement program in Florida. “EPA’s investigation revealed numerous FIFRA violations before, during, and after the defendants’ fumigated the victims’ home. These charges demonstrate that those who knowingly misuse pesticide products threaten the most vulnerable among us, and can expect to be prosecuted.”
Mr. Ferrer commended the investigative efforts of the EPA, the Florida Department of Agriculture and Consumer Services, Bureau of Pesticide and Incident Response, and the Florida Office of Agricultural Law Enforcement. The case was prosecuted by Special Assistant U.S. Attorney Jodi A. Mazer and Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Stuart Youth Pastor Pleads Guilty to Production and Distribution of Child PornographyRead the Press Release
Today, a former youth pastor pleaded guilty to the production and distribution of child pornography before Chief Magistrate Judge Frank J. Lynch, Jr., in Fort Pierce, Florida.
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 William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Jeffrey Brian Mobley, 24 of Ocala, formerly of Stuart, Florida pleaded guilty to an indictment, charging four counts of production of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2251(a) and (e) and two counts of distribution of visual depictions of sexual exploitation of minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). Mobley faces a mandatory minimum of 15 to 30 years’ imprisonment for the production counts and a mandatory minimum of 5 to 20 years’ imprisonment for the distribution offenses. Mobley is scheduled to be sentenced by U.S. District Judge Jose E. Martinez on May 9, 2016 at 1:30 p.m.
According to the court record, in September 2015, a suspicious conduct report was made to the Martin County Sheriff’s Office concerning a youth pastor, Jeffrey Brian Mobley, and a minor who was under his trust and care through a religious based youth program in Stuart, Florida. During the course of the investigation law enforcement learned that Mobley, while the youth pastor, engaged in sexual intercourse with a minor who was a participant in the church’s youth program. Using various forms of electronic communication, Mobley induced the minor to engage in sexual activity and produced sexually explicit images of their illicit relationship.
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 Martin County Sheriff’s Office for their work on this case. Mr. Ferrer also thanked the members of the United States Attorney’s Office for the Middle District of Florida for their assistance with this matter. The case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Convicted of Illegally Possessing a Firearm and AmmunitionRead the Press Release
A Broward County resident was convicted today by a jury in federal court for being a felon in possession of a firearm and ammunition.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Derek Danard Slade, 25, of Hollywood, was convicted, following a four-day jury trial before U.S. District Judge William P. Dimitrouleas, of being a felon in possession of a firearm and ammunition. Slade faces a maximum sentence of up to 10 years in federal prison for the crime of conviction. Slade is scheduled to be sentenced by Judge Dimitrouleas on May 20, 2016, at 1:45 p.m. in Fort Lauderdale.
According to evidence presented at trial, a deputy with the Broward County Sheriff’s Office observed a “hand-to-hand” narcotics transaction take place in a vehicle in the area of Dania Beach. In addition to Slade, the vehicle had three other occupants. After being stopped by law enforcement, Slade refused to show his hands to the deputies and kept them hidden under a hat. The other occupants of the vehicle complied with law enforcement’s directives. Once he finally complied with the deputy’s orders, Slade was handcuffed. After he was handcuffed, Slade broke away from the deputies and fled the scene on foot. Slade was eventually apprehended and deputies located, under the hat in the vehicle, a .380 caliber Beretta firearm, fully loaded with fourteen rounds of .380 caliber ammunition.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF and BSO. The case is being prosecuted by Assistant U.S. Attorneys Rosa Rodriguez-Mera and Randy Katz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced to Prison for Filing More Than $7 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, to be followed by three years of supervised release, for filing more than $7 million in false refund claims with the Internal Revenue Service.
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.
Efrain Galvez, 53, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2005 through 2008 federal income tax returns with the IRS claiming a total of $7,421,987 in fraudulent refunds. In the returns, Galvez falsely asserted that he was owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez, and withheld no such taxes on his behalf. Specifically, Galvez filed a 2007 amended tax return requesting a tax refund of $2,852,566 claiming that he received income from two county courts among other entities. Galvez attached Forms 1099-OID to the tax return, purportedly from the two courts, reflecting that the courts paid the amounts to the IRS on Galvez’s behalf as taxes. The filed 1099-OID forms contained false information. Neither court paid or owed income to Galvez or withheld taxes on his behalf. The amounts referenced in the court documents were in fact foreclosure judgments filed against Galvez for his failure to pay mortgages.
Court documents indicate that Galvez had previously filed legitimate tax returns that did not include fabricated income and withholding amounts and he knew that he had not received the income from the various entities reported on the fraudulent returns, the taxes claimed had not been withheld, and the 1099-OID forms were false.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
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.
Boca Raton Resident Sentenced for Impersonating a Federal OfficialRead the Press Release
Simon E. Zablah, 29, of Boca Raton, Florida, was sentenced by U.S. District Senior Judge Daniel Hurley in West Palm Beach to one year and a day in prison, to be followed by three years of supervised release, after pleading guilty to two counts of impersonating a federal official and one count of access device fraud. Zablah was also order to pay $3,500 in restitution.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigations (FBI), Miami Field Office, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS) Southeast Field Office, made the announcement.
According to documents and statements introduced in court, Zablah was stopped for speeding on April 8, 2015 by an officer of the Hollywood Police Department. During this traffic stop, Zablah presented a counterfeit identification card which falsely identified him as a Staff Sergeant assigned to United States Special Operations in order to get out of a $205 traffic ticket.
In April 2013, Zablah also falsely claimed to be a Sergeant First Class in the United Starts Army Reserve in order to obtain a job with a uniform supply company in Broward County. In August 2013, while working in the call center for this uniform supply company, Zablah obtained the credit card number of a customer which he then used to make six unauthorized charges totaling approximately $3,669. Zablah used the customer’s credit card to purchase items on the internet, including a personal computer, which were delivered to an address associated with the defendant in Fort Lauderdale.
Zablah admitted that in actuality he only served as a soldier in the United States Army for approximately two weeks in January 2005. Other that this brief service, Zablah has never been employed or otherwise associated with any branch of the military or law enforcement.
“The federal sentencing of Simon E. Zablah is a warning for others that the false impersonation of a member of the U.S. military or law enforcement will have legal consequences,” stated U.S. Attorney Wifredo A. Ferrer.
“Falsely claiming to be a federal official to obtain something of value can and does have serious consequences,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Law enforcement took note of Simon E. Zablah’s scam and now he has a federal conviction and a prison sentence as a result of his actions. Let this serve as a lesson to other would-be impersonators.”
“Today's sentencing sends a clear warning to anyone who would impersonate a U.S. military member and make false claims about military service for personal and monetary gain,” said Special Agent in Charge John F. Khin, Defense Criminal Investigative Service (DCIS) Southeast Field Office. “DCIS will continue to work tirelessly to investigate fraud, waste, and abuse involving the Department of Defense."
Mr. Ferrer commended the investigative efforts of the FBI, DCIS, Hollywood Florida Police Department, and U.S. Customs and Border Protection. The case was prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.
Operation Heat Wave Targets Florida Identity Theft, FraudRead the Press Release
The State Department’s Diplomatic Security Service Miami Field Office, working with multiple federal, state, and local enforcement authorities, has apprehended nine individuals suspected of passport fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Robert Grech, Special Agent in Charge of the State Department’s Diplomatic Security Service (DSS), Miami Field Office, made the announcement.
Operation Heat Wave, a Florida statewide law enforcement operation that resulted in the suspects’ apprehension was conducted from February 18, 2016 through February 26, 2016 and spanned from Key Largo to Jacksonville.
“The U.S. Attorney’s Office and our federal, state and local law enforcement partners will continue to investigate and identify for prosecution individuals who compromise our nation’s security through passport fraud,” stated U.S. Attorney Wifredo A. Ferrer.
“The apprehension of fugitives and suspects delivers a clear message that federal, state, and local law enforcement authorities will find and bring to justice any individuals who attempt to defraud the U.S. government,” said Robert Grech, Special Agent in Charge of the DSS Miami Field Office. “If you engage in passport or visa fraud or engage in other forms of identity theft, sooner or later we will track you down.”
Operation Heat Wave generated the filing of federal criminal charges, by complaint, information or indictment, against a total of nine individuals for passport and/or visa fraud offenses. Seven individuals were charged in the Southern District of Florida for making false statements in passport applications. Two additional individuals were charged in the Middle District of Florida for making false statements in applications for a passport.
If convicted, individuals charged with falsifying a passport application will face a maximum penalty of 10 years’ imprisonment, and up to a $250,000 fine.
The DSS Miami Field Office is responsible for eight southern states. DSS personnel from across the region and approximately 100 federal, state, and local law enforcement officers were among those involved in support of Operation Heat Wave.
DSS partnered with the U.S. Attorney’s Offices for the Southern and Middle Districts of Florida, along with the Department of Homeland Security (DHS) Enforcement and Removal Operations; DHS Homeland Security Investigations; U.S. Marshals Service; Florida Highway Patrol; Miami-Dade Police Department; and several other local law enforcement agencies.
Mr. Ferrer commended DSS for leading this operation, and thanked the U.S. Attorney’s Office for the Middle District of Florida and all participating agencies for their investigative efforts and assistance. The cases in the Southern District of Florida are being prosecuted by Assistant United States Attorneys Jennifer Keene, Theodore Cooperstein, Carmen Lineberger, Jonathan Stratton and Brian Shack.
An information, complaint and indictment are merely legal filings containing accusations 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.
Federal, State and Local Law Enforcement Agencies Announce Takedown of Marijuana and Cocaine DistributionRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office, (PBSO) announce the filing of federal charges against 9 defendants for their alleged participation in conspiracies to distribute controlled substances, specifically marijuana and cocaine, in and around Palm Beach County. The defendants have been charged in a single indictment in the matter of United States v. Herbert Grant, et. al., 16-CR-80030-Marra.
The federal indictment charges Herbert Grant, a/k/a “Earl Fleming,” a/k/a “Devon Breen,” a/k/a/ “Robert Breen,” a/k/a “Earl Flinn,” a/k/a “Dwayne,” 36, of Boynton Beach, Ricardo Simpson, a/k/a “Radio,” a/k/a “Ricky,” a/k/a “Tippa,” 39, of Boynton Beach, Gavin McLaren, 32, of West Palm Beach, Marvin Belton, a/k/a “Trinni,” a/k/a “Damian Henry,” 45, of Los Angeles, California, and Rohando Morris, a/k/a “Tampa Man,” 36, of Bradenton, for their alleged participation in a marijuana distribution conspiracy. The indictment also charges Grant, McLaren, Ricardo Mills, a/k/a “Tuggy,” 35, of Lauderhill, Lorenzo Walker, 34, of Royal Palm Beach, Erick Morgan, a/k/a “E,” 37, Riviera Beach, and Sheldon Ralph Turner, 34, of West Palm Beach for their alleged participation in a cocaine distribution conspiracy.
The indictment alleges that Grant, Simpson, McLaren, Belton, and Morris conspired to distribute marijuana from as early as July 2014 and continuing to March 2015, in Palm Beach County, in the Southern District of Florida, and other locations, and that Grant, McLaren, Mills, Walker, Morgan, and Turner conspired to distribute cocaine from as early as January of 2015 and continuing to April 28, 2015, in Palm Beach County and other locations, both conspiracies were committed in violation of Title 21, United States Code, Sections 841(a)(1) and 846.
In addition to the conspiracy charges, a number of defendants were also indicted for possession with intent to distribute marijuana, in various amounts, up to 100 kilograms or more, and cocaine, in various amounts, up to five hundred grams or more, in violation of Title 21, United States Code, Section 841(a)(1).
-
Herbert Grant was charged with possession with intent to distribute less than fifty kilograms of marijuana on October 25, December 8, and December 8-10 of 2014, and 50 kilograms or more of marijuana on December 7, 2014. Grant was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015, and less than 500 grams of cocaine on March 3, 2015 and April 28, 2015.
-
Rohando Morris was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014.
-
Ricardo Simpson was charged with possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2014, and less than 50 kilograms of marijuana on December 8, 2014.
-
Gavin McLaren was charged with attempted possession with intent to distribute 50 kilograms or more of marijuana on December 7, 2015. McLaren was also charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
-
Marvin Belton was charged with possession with intent to distribute marijuana from December 8, 2014 through December 10, 2014.
-
Sheldon Ralph Turner was charged with possession with intent to distribute 500 grams or more of cocaine on February 25, 2015.
During the course of the investigation, law enforcement seized a significant amount of marijuana and cocaine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The federal indictment is being prosecuted by Assistant U.S. Attorney Brandy Brentari Galler.
If convicted in federal court, the defendants face the following possible statutory sentences: a mandatory minimum of five years and up to forty years in prison for the conspiracy to distribute more than 100 kilograms of marijuana and/or 500 grams or more of cocaine; twenty years in prison for the conspiracy to distribute and/or possession with intent to distribute 50 kilograms or more of marijuana and/or less than 500 grams of cocaine; and up to five years in prison for the conspiracy to distribute and/or possession with intent to distribute less than 50 kilograms of marijuana.
Mr. Ferrer commended the collaborative efforts of the OCDETF law enforcement agencies that assisted with this multi-faceted investigation, including the DEA, Palm Beach County Sheriff’s Office Narcotics Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI).
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov
-
Doctor Who Falsely Diagnosed Hundreds of Patients as Part of a Medicare Fraud Scheme Pleads GuiltyRead the Press Release
Dr. Isaac Kojo Anakwah Thompson, 57, of Delray Beach, pled guilty to one count of health care fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General William J. Baer, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
“The Medicare system relies on our nation’s doctors to diagnose and treat our Medicare beneficiaries,” stated U.S. Attorney Ferrer. “When doctors intentionally misdiagnose their patients for personal gain, they betray the trust of the Medicare system and the patients themselves. This case demonstrates our commitment to the investigation and prosecution of Medicare fraud, in all its varieties and against all groups of offenders.”
“Instead of using the Medicare Advantage program for its intended purpose, Isaac Kojo Anakwah Thompson, a medical doctor, sought to enrich himself by defrauding Medicare of millions of dollars through the submission of false diagnoses for hundreds of patients,” said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “The FBI will not relent in its pursuit of Medicare fraudsters – including greedy doctors.”
“When physicians cheat Medicare by misrepresenting the medical conditions of their patients, our agents will work with our law enforcement partners to hold these individuals accountable for their deceptive schemes,” said Special Agent in Charge Shimon R. Richmond, HHS Office of Inspector General.
According to the court record, including facts admitted during the plea hearing, Dr. Thompson engaged in a scheme to defraud the Medicare Advantage program, a voluntary system which allows Medicare beneficiaries to enroll in health insurance plans sponsored by private insurance companies. For each beneficiary who chooses to enroll in a Medicare Advantage plan, Medicare pays the sponsoring insurance company a fixed, or capitated, monthly fee. Medicare does not adjust the fee based on the cost of providing medical care to the beneficiary. Instead, Medicare adjusts the fee based on the beneficiary's medical conditions. As a result, Medicare generally pays a larger capitated fee for a beneficiary with more serious medical conditions than it does for a healthier beneficiary. Medicare determines a beneficiary's medical conditions in part using diagnoses submitted by the beneficiary's Medicare Advantage plan physician.
Dr. Thompson’s fraudulent conduct involved certain Medicare Advantage plans sponsored by Humana, Inc. These Humana plans operated as health maintenance organizations (HMOs) and each enrolled beneficiary selected a primary care physician (PCP) enrolled in Humana’s network. Before seeing a specialist, the beneficiary generally needed a referral from his or her PCP. Dr. Thompson was an internist who operated a medical clinic in Delray Beach and was a PCP in Humana’s HMO network. As such, a beneficiary enrolled in a Humana HMO Medicare Advantage plan could choose Dr. Thompson as the beneficiary’s PCP. Humana paid Dr. Thompson approximately 80% of the capitated fee for each beneficiary who had selected the defendant as his or her PCP.
Between 2006 and 2010, Dr. Thompson defrauded Medicare by diagnosing 387 Medicare Advantage beneficiaries with ankylosing spondylitis, a rare chronic inflammatory disease of the spine. Dr. Thompson reported these diagnoses to Humana, which in turn reported them to Medicare. As a result, Medicare paid approximately $2.1 million in excess capitation fees, approximately 80% of which went to the defendant. All or almost all of these ankylosing spondylitis diagnoses were false because in fact, the patients did not have the condition. Because the diagnoses were false, the defendant did not have any corresponding increase in his cost to treat the patients.
Sentencing is scheduled for May 18, 2016. At sentencing, the Dr. Thompson faces a maximum possible statutory sentence of 10 years in prison.
Mr. Ferrer and Mr. Baer commended the investigative efforts of the FBI and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Marc Osborne and Trial Attorney Paul Gallagher, United States Department of Justice, Antitrust Division.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Boca Raton Attorney Pleads Guilty to Tax EvasionRead the Press Release
A Boca Raton attorney pled guilty to evading the payment of approximately $1,501,724 in income tax due to the Internal Revenue Service (IRS) for calendar years 1997, 1999, 2001, 2002, and 2004 through 2007, by concealing his income, assets, and liabilities.
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.
William J. Reilly, 62, pled guilty to one count of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, Reilly was an attorney and member of the New York Bar who owned William J. Reilly, Esq. P.C., a law firm through which the defendant practiced securities law. The law firm operated in New York City until 1998, when Reilly moved his law practice to Boca Raton, Florida.
From 1992 through 1997, Reilly worked as the outside securities counsel for a corporation and was paid, in part, with options to purchase stock in the corporation. In 1997, Reilly exercised some of his stock options and then sold some of the shares for more than $1.6 million.
From October 1997 through January 1998, shortly after exercising his stock options, Reilly acquired significant assets, including two residences in Boca Raton, Florida, a residence in Chittenden, Vermont, and oceanfront property in Portsmouth, Rhode Island. Only one of these assets, a Boca Raton residence, was titled in Reilly’s name. On May 17, 1999, Reilly purchased a ten acre parcel of land located across the road from his Chittenden, Vermont home, and Reilly used a shell company to hold title to this land. The Portsmouth land, where Reilly began to construct a home, was also transferred to the name of a shell corporation. Reilly also purchased a 2001 Jaguar XJ8 and a 2002 Chevrolet Suburban in the name of a nominee.
From 2005 through 2010, Reilly used bank accounts for his law firm and the shell corporation to receive personal income, transfer funds into his personal accounts, and pay personal expenses directly, including his Visa credit card account, his children’s private school and college tuition, support his daughter’s equestrian business, make vehicle and mortgage payments, contribute to his son’s political campaign, and purchase more than $50,000 in tickets for sporting events and concerts. Reilly also caused clients and others who owed money to the defendant to pay monies to shell corporations controlled by Reilly or to pay Reilly’s personal expenses directly.
The defendant’s sentencing date has not yet been set. Reilly faces a maximum statutory sentence of five years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie D. Evans.
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 Pleads Guilty for his Participation in an Identity Theft Tax Fraud Scheme Involving the IRS “Get Transcript” ServiceRead the Press Release
A Miami resident pled guilty for his participation in an identity theft tax fraud scheme where he used stolen personal identification information (PII) to access the IRS “Get Transcript” service and obtain tax records of his identity theft victims.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Marvin Ricardo Herard, 26, of Miami, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343, one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). As part of the plea agreement, Herard agreed to restitution in the amount of $172,521. At sentencing, Herard faces a maximum statutory sentence of twenty years in prison for the wire fraud charge, 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, the IRS maintained a “Get Transcript” service that allowed an individual taxpayer to request and receive a transcript of their IRS tax records online, including line-by-line tax return information for prior years. To obtain access to the “Get Transcript” service, the user was required to create a user account and provide PII.
Log files from the “Get Transcript” service revealed that an email address controlled by defendant Herard attempted to access 38 different taxpayers’ accounts in “Get Transcript”, and had successfully accessed 22 accounts. Additionally, log files captured the IP addresses from which Herard’s email address was used to access the “Get Transcript” service. For the 2014 tax year, over 100 fraudulent tax returns, seeking over $500,000 in refunds, were filed from these IP addresses. The IRS paid out $172,521 in refunds on these fraudulent tax returns. Some of these fraudulent tax returns were for taxpayers whose information was accessed in the “Get Transcript” service using Herard’s email address.
Law enforcement obtained a federal search warrant for the contents of Herard’s email account. The email account contained over 1,150 unique pieces of PII, including names, dates of births, and Social Security numbers. In addition, there were hundreds of automated messages from the IRS “Get Transcript” service, indicating that Herard’s email account had been used to attempt to access numerous taxpayers’ accounts.
Herard is scheduled to be sentenced on May 10, 2016 at 9:30 a.m. before United States District Judge Darrin P. Gayles.
Mr. Ferrer commended the investigative efforts of TIGTA, IRS-CI, 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.
Miami Resident Charged with Orchestrating an Immigration Fraud SchemeRead the Press Release
A Miami-Dade woman is charged with stealing immigration application payments from her clients when she prepared at least 146 fraudulent petitions filed with United States Citizenship and Immigration Services.
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, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Josefa M. Siverio, 60, of Miami-Dade, is charged by indictment with five counts of mail fraud, in violation of Title 18, United States Code, Section 1341; and three counts of conversion of postal money orders, in violation of Title 18, United States Code, Section 500.
As alleged in the indictment, Siverio is an immigration consulting and services provider who prepared immigration petitions and applications for aliens seeking immigration benefits from the United States Citizenship and Immigration Services. Siverio is alleged to have prepared at least 146 fraudulent petitions and stolen checks and money orders entrusted to her to pay the fees associated with the petitions and applications for immigration benefits. It is alleged that Siverio’s clients provided her with blank checks and money orders for the application fees and Siverio made the checks and money orders payable to herself and deposited the checks and money orders into her own personal bank accounts.
Mr. Ferrer commended the investigative efforts of ICE-HSI and USCIS. This case is being prosecuted by Special Assistant U.S. Attorney Monica Beamer.
An indictment is merely an accusation and every defendant is presumed innocent until proven guilty.
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.
Justice Department Reaches Agreement with the City of Miami and the Miami Police Department to Implement Reforms on Officer-Involved ShootingsRead the Press Release
The Justice Department has reached a comprehensive settlement agreement with the city of Miami and the Miami Police Department (MPD) resolving the Justice Department’s investigation of officer-involved shootings by MPD officers, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division and U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement, which was approved by Miami’s city commission today and will go into effect when the agreement is signed by all parties, resolves claims stemming from the Justice Department’s investigation into officer-involved shootings by MPD officers, which was conducted under the Violent Crime Control and Law Enforcement Act of 1994. The investigation’s findings, issued in July 2013, identified a pattern or practice of excessive use of force through officer-involved shootings in violation of the Fourth Amendment of the Constitution.
The city’s compliance with the settlement will be monitored by an independent reviewer, former Tampa, Florida, Police Chief Jane Castor. Under the settlement agreement, the city will implement comprehensive reforms to ensure constitutional policing and support public trust. The settlement agreement is designed to minimize officer-involved shootings and to more effectively and quickly investigate officer-involved shootings that do occur, through measures that include:
- enhanced supervision of first-line officers;
- enhanced training, including de-escalation training;
- improvements to internal investigations of officer-involved shootings;
- a more stringent mechanism under which a shooting officer’s return to work is authorized; and
- a mechanism to ensure community participation in the monitoring process.
“This settlement represents a renewed commitment by the city of Miami and Chief Rodolfo Llanes to provide constitutional policing for Miami residents and to protect public safety through sustainable reform,” said Principal Deputy Assistant Attorney General Gupta. “The agreement will help to strengthen the relationship between the MPD and the communities they serve by improving accountability for officers who fire their weapons unlawfully, and provides for community participation in the enforcement of this agreement.”
“Today's agreement is the result of a joint effort between the Department of Justice and the City of Miami to ensure that the Miami Police Department continues its efforts to make our community safe while protecting the sacred Constitutional rights of all of our citizens,” said U.S. Attorney Ferrer. “Through oversight and communication, the agreement seeks to make permanent the positive changes that former Chief Orosa and Chief Llanes have made, and we applaud the City Commission’s vote.”
The settlement agreement builds upon important reforms implemented by the city since the Justice Department issued its findings, including:
- transfer of responsibility for criminal investigations of officer involved shootings from the MPD Homicide Unit to the Florida Department of Law Enforcement;
- downsizing of the Tactical Operations Section, which included some of the more aggressive specialized units; and
- creation of High-Liability Review Board to review problematic incidents.
The investigation was conducted by attorneys and staff from the Civil Rights Division’s Special Litigation Section and the Civil Division of the U. S. Attorney’s Office of the Southern District of Florida.
Brothers Convicted for their Participation in an Identity Theft SchemeRead the Press Release
Following a five-day trial before United States District Court Judge William P. Dimitrouleas, a jury convicted two brothers of all seven counts in the indictment for their participation in an identity theft 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 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.
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were each convicted of 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 five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendants were remanded into custody following their conviction.
According to evidence presented at trial, the defendants conspired to possess and did possess debit cards and over 1,600 Social Security numbers issued to other persons. To protect the stolen items in their possession, the defendants possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol. At trial, eight victims testified that they neither knew the defendants nor authorized them to possess their Social Security numbers and other personal information.
The defendants are scheduled to be sentenced by United States District Court Judge William P. Dimitrouleas on May 11, 2016.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Port St. Lucie Police Officer Pled Guilty to Child ExploitationRead the Press Release
A former police officer with the Port St. Lucie Police Department pled guilty yesterday to multiple federal child exploitation charges before United States District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
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, and John A. Bolduc, Chief, Port St. Lucie Police Department, made the announcement.
Michael Edwin Harding, 28, of Port St. Lucie, pleaded guilty to three counts of distributing material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(2), possession of material involving sexual exploitation of minors, in violation of Title 18, United States Code, Section 2252(a)(4)(B), attempt to coerce and entice a minor to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b), and producing child pornography, in violation of Title 18, United States Code, Section 2251(a)(e). Harding is facing a 5 year mandatory minimum term of imprisonment and a maximum of 20 years’ imprisonment, for each count of distribution of child pornography; a maximum of 20 years’ imprisonment for possessing child pornography; a mandatory minimum of 10 years’ imprisonment and a potential life sentence for the attempted enticement of a minor child to engage in sexual activity; and a 15 year mandatory minimum sentence of imprisonment and a maximum term of 30 years’ imprisonment for producing child pornography. In addition, Harding faces a lifetime term of supervised release and will be required to register as a sex offender.
According to filed documents and statements made in court, Harding distributed videos and still images involving the sexual exploitation of minors on three separate dates. Between July 23, 2015, and August 4, 2015, Michael Harding posted multiple images and videos to a chat room on a popular social media application. The still images and videos depicted minor children engaging in sexually explicit acts. The images posted to the chat room were discovered during a forensic examination of a cell phone owned by Harding.
During the execution of a search warrant at Harding’s house, agents with HSI located electronic devices and thumb drives containing hundreds of videos and still images depicting the sexual exploitation of minors. A large number of the images and videos depicted prepubescent minors engaging in sexual acts with adults.
Additionally, Harding attempted to coerce and entice a minor to engage in sexual activity over the internet. Chat messages recovered from Harding’s phone memorialized a conversation between the defendant and another individual, wherein they claimed to have custody of minor children whom they offered to exchange for their own sexual gratification.
Harding also produced child pornography by using his cell phone to create a video depicting his sexual contact with a child under the age of 12. A thumbnail image from the video was located on Harding’s cell phone during a computer forensic examination.
Harding is scheduled to be sentenced on May 16, 2016, by U.S. District Court Judge Robin L. Rosenberg in Fort Pierce, Florida.
This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and child sex traffickers. Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973. For additional information regarding the initiative and resources, visit www.ice.gov.
Mr. Ferrer commended ICE-HSI for their investigative efforts and the Port St. Lucie Police Department for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorneys Daniel E. Funk and Russell R. Killinger.
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 Cay Clubs Chief Executive Officer Sentenced to 40 Years in Prison in Connection with $300 Million Dollar Scheme to Defraud InvestorsRead the Press Release
The former Cay Clubs Chief Executive Officer was sentenced to 40 years in prison, by United States District Judge Jose E. Martinez in Key West, for his participation in a $300 million dollar vacation rental 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), Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
Fred Davis Clark, Jr., a/k/a Dave Clark, 57, formerly of Monroe County, was convicted on December 11, 2015 after a five-week trial, of three counts of bank fraud, and three counts of making a false statement to a financial institution, all in connection with a $300 million dollar fraud scheme involving sales of vacation rental units. The scheme involved sales at Cay Clubs Resorts and Marinas (Cay Clubs), to approximately 1,400 investors in the Florida Keys and elsewhere. Clark also was convicted of obstruction of the U.S. Securities and Exchange Commission (SEC), in connection with the SEC’s efforts to investigate his conduct related to Cay Clubs. Clark was sentenced to 480 months’ imprisonment and the Court entered forfeiture money judgments against Clark, including in the amount of $303,800,000 for the bank fraud and $3,300,000 for the SEC obstruction. In addition, the Court ordered forfeiture of specific assets, located overseas, totaling approximately $2.6 million dollars.
U.S. Attorney Wifredo A. Ferrer stated, “Dave Clark was the leader and orchestrator of an elaborate fraud scheme, that deceived nearly 1,400 Cay Clubs investors and lenders, in order to reap millions of dollars for his own personal benefit. Today, Dave Clark was held accountable in a court of law, for his extensive deceit and the long-standing harm he caused to others.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “Promoters of Ponzi schemes prey upon trusting investors and then steal their hard earned money. Mr. Clark made a conscious decision to deceive others, and he benefitted personally at the expense of the citizens of the Keys and elsewhere. We are pleased with today’s sentence, as justice is served for those victims of Mr. Clark’s elaborate scheme.”
“In lieu of providing honest services to thousands of investors, Dave Clark decided to deceive and swindle them out of their hard earned money,” stated Timothy Mowery, Special Agent in Charge, FHFA-OIG. “Today he is being held accountable for his actions and being afforded the opportunity to reflect on his own character.”
According to evidence submitted in court, Clark was the Chief Executive Officer of Cay Clubs, which operated from 2004 through 2008 from offices in the Florida Keys and Clearwater. Cay Clubs marketed vacation rental units for 17 locations in Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs raised more than $300 million from investors by promising to develop dilapidated properties into luxury resorts, and promising investors an upfront “leaseback” payment of 15 to 20% of the sales price of the unit at the time of closing. Evidence at trial showed that, in reality, Cay Clubs never developed the properites it had promised to investors and it came to operate as a Ponzi scheme, using proceeds from sales to new investors to pay overdue obligations to earlier investors.
Evidence showed that by at least September 2006, Cay Clubs experienced serious financial difficulties. In order to meet Cay Clubs’ financial obligations and obtain funds for himself, evidence at trial showed that Clark engaged in a serious of fraudlent mortgage transactions totalling more than $20 million worth of bank loans. According to documents and testimony introduced at trial, during these sham transactions, Clark sold units Cay Clubs had acquired, to himself, while increasing the sales price. On paper, Clark sold the units to family members and certain insiders, while causing various lending institutions to fund the transactions. Clark directed his administrative assistant and his bookkeeper to forge signatures on loan documents and falsely notarize mortgage paperwork to make it appear that family members and other insiders listed on paperwork, were in fact executing the documents. In reality, Clark was providing the deposits and down payments, directing his subordinates to execute the loan documents, and then using the proceeds of the transactions to fund Cay Club’s operations and for his own personal benefit. The financial institutions that funded the fraudulently obtained loans were insured by the FDIC.
Evidence at trial showed that while Cay Clubs continued to experience significant financial difficulties, Clark lived a lavish lifestyle, extracting more than $22 million from the operations of Cay Clubs between 2005 and 2007. Clark also obtained a personal portfolio of properties he valued at $23 million but that were held in the names of other persons. Clark also used proceeds from the investor sales to purchase a gold mine, a coal reclamation project and a rum distillery for his personal benefit.
After the collapse of Cay Clubs, the SEC began an investigation into alleged securities fraud at Cay Clubs. According to evidence presented in court, Clark engaged in conduct aimed at thwarting the SEC’s investigation, including by concealing the location of assets under his control and providing false sworn testimony before the SEC in May 2011. In March 2013, after the SEC filed a civil fraud action against him, Clark transferred more than $2.5 million to accounts he controlled in Honduras. After these transfers, U.S. law enforcement and authorities in Honduras were able to abtain a court order freezing these funds.
Clark was expelled from Panama in June 2014, and returned to the United States by Panamanian authorities at the request of U.S. law enforcement in connection with the charges set forth in the indictment.
In related cases, former Cay Clubs executives Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida pleaded guilty to conspiracy to commit bank fraud, in connection with the scheme to defraud Cay Clubs investors. Graham, who was Director of Sales, was sentenced on March 30, 2015, and Stokes, who was the Director of Investor Relations, was sentenced on March 24, 2015. Each was sentenced to 60 months’ imprisonment, and was ordered to pay restitution of $163,530,377.21 to numerous individual and financial institution victims.
Mr. Ferrer commended the investigative efforts of the IRS-CI and FHFA-OIG, and the extensive assistance of the SEC’s Miami Regional Office. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy, Thomas A. Watts-FitzGerald and Alison Lehr, and Special Assistant U.S. Attorney Michael Padula. Mr. Ferrer also commended the efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Key West Regional Office, for its assistance with this matter.
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.
Palm Beach County Resident Convicted of Narcotics Trafficking and Unlawful Gun PossessionRead the Press Release
On February 11, 2016, following a four-day trial, a federal jury in West Palm Beach, Florida, convicted Kevin Raphael Bully of narcotics trafficking and unlawful possession of a firearm.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Agency (DEA), Miami Field Office, made the announcement.
This case stemmed from an investigation into the importation of Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” from China into the United States. In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of synthetic cathinones, specifically Flakka, DEA agents received information about suspected narcotics packages being delivered to Palm Beach County. DEA agents in London, England received information from the British authorities regarding multiple packages that were intercepted coming from a chemical company in Hong Kong, China. The Chinese based chemical company had been utilizing a shipping company to transport chemicals to buyers in the United States. The British authorities found approximately seven packages that contained a white crystallized substance which tested positive for the presence of α-PVP. DEA agents in London provided West Palm Beach agents with the packages’ address information and forwarded the deliveries. The local agents, including a law enforcement officer dressed as a DHL employee, delivered a package to the listed address. Kevin Raphael Bully, 26, of Palm Beach County, answered the door of the identified address and took possession of the package upon delivery.
During the course of the investigation, Bully’s cell phone was found to contain text messages discussing the importation and receipt of packages containing Flakka. In July of 2015, Bully was found at a hotel in Boca Raton, Florida, in possession of over 50 grams of heroin, 1,600 tablets of Zanax, a digital scale and packaging used for the distribution of narcotics.
At trial, Bully was found guilty of seven of the eight counts charged in a superseding indictment, to wit: conspiracy to possess with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 846; attempted possession with intent to distribute α-PVP, in violation of Title 21, United States Code, Section 841(a)(1); conspiracy to import α-PVP, in violation of Title 21, United States Code, Section 963; attempting to import α-PVP, in violation of Title 21, United States Code, Section 963; possession with intent to distribute heroin and Zanax, in violation of Title 21, United States Code, Section 841(a)(1); and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). Bully was found not guilty of possessing a firearm in furtherance of a violent or drug-trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Bully faces a maximum sentence of 20 years in prison on the drug importation and trafficking counts. He also faces a maximum sentence of 10 years in prison for the firearm offense.
“The manufacture, importation and sale of synthetic drugs such as ‘Flakka’ presents a danger to our citizens, since these illicit narcotics are being produced without regard to safety protocols and can have grave negative health effects upon human consumption,” said United States Attorney Ferrer. “Floridians can continue to be proud of the hard work and cooperation by federal, state and local law enforcement to identify, investigate, and prosecute the offenders who bring synthetic drugs into our communities.”
DEA Special Agent in Charge A.D. Wright stated, “The presence of Flakka in our communities is extremely dangerous. Because of the violent and uncontrollable effects it has when ingested, it threatens everyone’s safety and highly jeopardizes the community’s well-being. DEA, along with our law enforcement partners, will continue its commitment to the fight against synthetic drugs, particularly Flakka, by identifying and investigating its trafficking and distribution throughout the state of Florida.”
Mr. Ferrer commended the investigative efforts of the DEA and support of the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Sentenced for Her Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
A Palm Beach County resident was sentenced to prison for her participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.
Kelli Witherspoon McIntosh, 39, of Palm Beach County, was sentenced by U.S. Senior District Judge Daniel T. K. Hurley to 36 months in prison, followed by three years of supervised release (Case No. 14-CR-80158). McIntosh was also ordered to pay restitution in the amount of $775,242.91. In October 2015, McIntosh pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). McIntosh’s sentence includes a term of 12 months in prison for her participation in the conspiracy and a mandatory consecutive term of 24 months in prison, for the aggravated identity theft conviction.
Co-conspirators Latonia Verdell (Case No. 14-CR-80158) and Starling Willis (Case No. 15-CR-80119), both of Palm Beach County, were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2) and sentenced in January 2016.
Verdell was sentenced to 94 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81. Verdell’s sentence included a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction. In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.
Willis was sentenced to 33 months in prison, followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551. Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.
According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment. On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’ In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.
Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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 Staff Mentor at Florida Keys Children’s Shelter Sentenced to 380 Months’ Imprisonment for Child Sex TraffickingRead the Press Release
A former staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier, Florida, was sentenced today by United States District Judge Marcia G. Cooke to 380 months’ imprisonment, following his conviction for child sex trafficking.
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.
Following a three-week jury trial beginning on October 19, 2015, Ricky Jermaine Atkins, 29, of Key Largo, was convicted of conspiracy to engage in the sex trafficking of minors, in violation of Title 18, United States Code, Section 1594(c), as well as two counts of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1). The Court sentenced Atkins to concurrent terms of 380 months’ imprisonment as to each count, to be followed by a lifetime term of supervised release.
Atkins’ co-defendant, Sandra Simon, 24, of Homestead, previously pled guilty to one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591(a)(1). On November 20, 2015, Simon was sentenced to 136 months’ imprisonment.
According to evidence presented at trial, Atkins worked overnight shifts as a staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier for minor children. Atkins obtained two of the children living at the shelter, girls aged fifteen and sixteen, to be brought from Tavernier to a hotel in Cutler Bay, where Simon supervised their prostitution. On the night of August 15, 2014, Atkins personally transported the minor victims from Tavernier to Cutler Bay, where he left them with Simon. Earlier on that day, Simon had pled guilty in state court to procuring a minor for prostitution, and had received a sentence of probation.
Evidence presented at trial further established that Atkins subsequently collected money earned from the minor victims’ prostitution, and delivered to Simon a cellular phone and other items intended to facilitate the prostitution of the minor victims. Further evidence admitted at trial established that Atkins simultaneously prostituted an 18-year-old woman whom Atkins had met while the woman was a minor child living at the shelter.
Mr. Ferrer thanked the FBI’s Child Exploitation Task Force, the State Attorney’s Office Human Trafficking Task Force, the Monroe County Sherriff’s Office and the North Port Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Elina A. Rubin-Smith.
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.
Fort Pierce Resident and Three Time Convicted Felon Sentenced to 70 months in Prison for Possession of Sawed-off Shotgun and AmmunitionRead the Press Release
Ezra L. Ealy, 21, a convicted felon, was sentenced to 70 months in prison for possessing a sawed off shotgun and ammunition while on the streets of Fort Pierce by U.S. District Court Judge Kenneth A. Marra, sitting in Fort Pierce.
Wifredo A. Ferrer, U.S. 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 Diane Hobley-Burney, Chief, Fort Pierce Police Department (FTPPD), made the announcement.
Ealy, a Fort Pierce resident, was charged by indictment with being a felon in possession of a firearm and ammunition on July 13, 2015, in violation of Title 18, United States Code, Section 922(g)(1). Ealy faced a maximum statutory penalty of ten years in prison.
According to the allegations contained in court filings and detention hearing testimony, on July 13, 2015, an ATF Special Agent and a FTPPD Detective responded to a radio call of shots being fired by a large bearded male with a shotgun in the area of 31st & Avenue F in Fort Pierce, Florida. Upon arrival, the law enforcement officers observed Ealy, who fit the description, running away from the site of the call. During their pursuit, the agents observed Ealy stop, and open and close the lid of a recycling bin. Thereafter, agents recovered a sawed off Winchester 12 gauge shotgun in the trash bin. After his apprehension, agents recovered two (2) unspent Winchester shotgun shells from Ealy’s pocket, and one spent shotgun shell from the chamber of the shotgun. Fingerprints also linked Ealy to the shotgun.
This case was brought as part 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. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF and the Fort Pierce Police Department. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former President of the Broward Teachers Union Pleads Guilty to Defrauding the Broward County School Board and the Broward Teachers UnionRead the Press Release
On Friday, February 12, 2016, Patrick Santeramo, 68, of Dania Beach, Florida appeared in court in Fort Lauderdale, before U.S. District Court Judge William J. Zloch, and pleaded guilty to one count of mail fraud.
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.
According to court documents, Santeramo was the president of the Broward Teachers Union (BTU) from 2001 to 2011, and served as vice president of the BTU prior to that. The BTU and the School Board of Broward County negotiated a collective bargaining agreement in which the School Board of Broward County agreed to provide an annual payment of $80,000 to the BTU for the BTU’s Accountability Program, which was administered by the BTU.
The collective bargaining agreement required that all of the money provided by the School Board of Broward County for the Accountability Program be used to further the program’s goals “in such areas as training, release time for teachers working on accountability projects, guest speakers, etc.” The collective bargaining agreement also required the BTU to keep a written record of expenditures charged to the Accountability Program, and to make this information available to the School Board of Broward County.
Each year, defendant Santeramo would send a letter to the School Board of Broward County to explain how the money dedicated to the Accountability Program had been used during the previous school year. Subsequently, he would also send a letter to the School Board of Broward County requesting the next payment of $80,000 for the Accountability Program for the upcoming school year. As a result of the letters from Santeramo explaining the use of the funds that the School Board of Broward County provided for the Accountability Program, the School Board of Broward County would mail a check for $80,000 to the BTU.
After the BTU received the $80,000 payment from the School Board of Broward County, Santeramo authorized payments from the Accountability Program account for himself and three other employees of the BTU to which they were not entitled. In letters from Santeramo to the School Board of Broward County, Santeramo omitted that payments from the Accountability Program account had been made to him and the other employees. Consequently, Santeramo was responsible for the misappropriating more than $93,000 during the fraudulent scheme.
Sentencing is scheduled for April 22, 2016 at 11:00 a.m. before Judge Zloch.
Mr. Ferrer commended the investigative efforts of the Department of Labor, Office of Inspector General, Miami Field Office. The case is being prosecuted by Assistant U.S. Attorneys Miesha Darrough and Harry C. Wallace, Jr.
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.
Payroll Administrator Sentenced for Tax Evasion Scheme for Diverting Employees’ Wage Payments into her Personal Bank Account and Not Reporting the Money to the IRSRead the Press Release
A payroll administrator was sentenced to 42 months in prison, followed by three years of supervised release for her participation in a tax evasion scheme where she diverted employees’ wage payments into bank accounts under her control and failed to report the money as gross income to the Internal Revenue Service (IRS).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Rodolfo Llanes, Chief, Miami Police Department (MPD), made the announcement.
Marilyn McDaniel, 67, of Garner, North Carolina, previously pled guilty to one count of attempting to evade or defeat tax, in violation of Title 26, United States Code, Section 7201.
According to court documents, McDaniel was the payroll administrator for a company and her sole responsibility was to report the employee hours and pay to the company’s payroll service provider. In early 2010, a former employee contacted the company’s accountant regarding a letter from the IRS indicating that the individual worked at the company in 2008 and that the individual failed to pay taxes on that income. The company’s payroll records revealed that in 2008 there were wage payments being made to the employee, but the wage payments were not deposited into the employee’s account. Instead, the wages were deposited into McDaniel’s personal bank account.
In addition, the company’s payroll records also showed that McDaniel had submitted false wage reports on behalf of sixteen other former employees and that approximately $1.7 million in wage payments in the names of those former employees were diverted from the company’s bank accounts into accounts controlled by McDaniel and her daughter. The company’s employees did not give McDaniel permission to have checks issued in their names or have those checks deposited into her personal bank account.
McDaniel did not report or pay taxes on the stolen money that was diverted from the company into her and her daughter’s account, as she failed to file an individual tax return with the IRS for calendar year 2009. In total, McDaniel’s total tax due and owing is $547,792.14.
Mr. Ferrer commended the investigative efforts of IRS-CI, Miami Police Department and Miami-Dade State Attorney’s Office. 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.
Five Defendants Sentenced in Extensive Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Five defendants were sentenced for their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Ronald Jerome Scriven was sentenced to 108 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $7,521,485. Danesa Latoya Webb was sentenced to 54 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $3,271,603. The defendants each 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 misusing Social Security numbers, in violation of Title 42, United States Code, Section 408(a)(8), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
On January 28, 2016, co-defendant Walter Waitus Pressley was sentenced to 31 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,361,326. Michael Dwight Brown, a/k/a “Big Mike,” was sentenced to 24 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $340,976. On February 2, 2016, Fritznel Jacques, a/k/a “Glacier,” was sentenced to 18 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $493,733. 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.
According to court documents, Scriven created nine business entities, seven of which were tax preparation businesses using his name, the names of co-conspirators, or the names of individuals whose identities were stolen. Scriven, Webb and others obtained electronic filing identification numbers (EFINs) from the IRS for the seven tax preparation businesses for the purpose of electronically submitting false tax returns. Scriven, Webb and Pressley recruited taxpayers and obtained their personal identifying information (PII), such as their names and Social Security numbers, for the purpose of submitting false tax returns to the IRS. Scriven and Webb also used the PII of living and deceased individuals for the same fraudulent purpose. Tax preparers’ fees and other fees totaling $700,000 were deducted from the tax refunds and were deposited into bank accounts controlled by the co-conspirators.
Scriven and Webb printed refund checks in the names of taxpayers whose names and Social Security numbers were used to file the false tax returns. Some of the co-conspirators accompanied taxpayers, whose identities they had used to file false tax returns, to cash the refund checks and would then demand a substantial portion of the proceeds obtained from those cashed checks.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
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 Pleads Guilty for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 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 (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida 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 the factual basis of the 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 Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, 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 of the Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart is prosecuting 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.
Miami Physician Pleads Guilty for Role in $20 Million Health Care Fraud SchemeRead the Press Release
A Miami physician pleaded guilty today for his role in a Medicare fraud scheme that caused more than $20 million in losses.
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 Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Henry Lora, 51, of Miami, pleaded guilty before U.S. District Judge Federico A. Moreno of the Southern District of Florida 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 the factual basis of the 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 Medicare made payments on these fraudulent claims.
In March 2014, Isabel Medina, the owner of Merfi, 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 of the Southern District of Florida. Fraud Section Trial Attorney A. Brendan Stewart is prosecuting 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.
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.
Bahamian Man Sentenced to 60 Months in Prison for Alien SmugglingRead the Press Release
A Bahamian man was sentenced to 60 months in prison by U.S. District Judge Kenneth A. Marra in West Palm Beach, following his second conviction for alien smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Department of Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Detric Demetris Butler, 32, of Bahamas, was sentenced on February 5, 2016, following his conviction for one count of transporting aliens into the United States, in violation of Title 8, United States Code, Section 1324(a), as well as one count of failure to heave to a vessel, in violation of Title 18, United States Code, Section 2237.
According to court documents, Butler was at the wheel of a boat from the Bahamas during the night of September 8, 2015, four miles off the Florida coast in the early morning hours opposite St. Lucie County. With Butler in the boat were 20 other passengers, all unauthorized aliens from Haiti and the Bahamas. Two of the aliens aboard were unaccompanied minors. Upon approach by a U.S. Coast Guard cutter, Butler took the helm and attempted to flee and evade the intercepting U.S. vessel. After Butler ignored hailing and a warning shot fired across the bow, the Coast Guard stopped Butler’s vessel with a shotgun blast into the engine of his boat.
Butler was previously convicted of alien smuggling, in 2013, and had been sentenced to three years (36 months) in prison.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the assistance of the U.S. Coast Guard. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
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.
Husband and Wife Sentenced to Prison for Running a Tax Fraud SchemeRead the Press Release
Raul Sosa and Maura Sosa were sentenced to terms of imprisonment of 78 months and 48 months, respectively, by United States District Court Chief Judge K. Michael Moore, following their convictions by a Miami jury for criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service. Judge Moore also ordered the defendants to pay $1,488,213.85 in restitution and serve three years of supervised release following their release from prison.
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.
The defendants were convicted on November 10, 2015, following a six-day trial before Judge Moore. According to evidence presented at trial, starting in 2003, the defendants, who are married to one another, operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah. After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler. On some occasions, the defendants would resell whole cars, without stripping them.
The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns. Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.
From 2004 through 2008, the defendants’ business had sales of over $28.6 million. However, the defendants reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period. Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000.
The court found that after the defendants learned they were under investigation, they caused the filing false amended tax returns in an attempt to minimize the seriousness of their tax offenses. Based upon this conduct, Judge Moore enhanced the sentences of both defendants for obstruction of justice.
U.S. Attorney Ferrer stated, “Our tax system depends upon taxpayers honestly meeting their obligations. When people, like the defendants sentenced in this case, file false tax returns and fail to pay the taxes they owe, they cheat the entire community out of monies to which they are rightfully owed. Our office will continue to hold tax offenders accountable for their crimes in a court of law.”
IRS-CI Special Agent in Charge Kelly R. Jackson stated, “In this scheme, the defendants underreported their income to avoid paying taxes to the IRS. As we are in the beginning of tax filing season, let me warn others contemplating similar conduct not to be tempted by greed. We are all responsible to report all of our income and file correct and accurate tax returns. Today’s sentencing is an important victory for America’s taxpayers who play by the rules and have no tolerance for those who shun their tax responsibilities.”
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant United States Attorneys Michael Davis and John Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Palm Beach County Residents Sentenced for Their Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
Two Palm Beach County residents were sentenced to prison for their participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA OIG), made the announcement.
Latonia Verdell, 40, of Palm Beach County (Case No. 14-CR-80158), and Starling Willis, 32, of West Palm Beach (Case No. 15-CR-80119), were each sentenced to a term of imprisonment by U.S. Senior District Judge Daniel T. K. Hurley, for their participation in a stolen identity tax fraud conspiracy. Verdell and Willis were previously convicted of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Verdell was also convicted of being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2).
Verdell was sentenced to a total of 94 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $947,296.81. Verdell’s sentence includes a concurrent term of 70 months in prison for each count of conviction for theft of government money, felon in possession, and unauthorized access devices; and a concurrent sentence of 5 years in prison for the false statement conviction. In addition, Verdell was sentenced to a mandatory term of 24 months in prison, to run consecutive to all other sentences, for the aggravated identity theft conviction.
Willis was sentenced to a total of 33 months in prison, to be followed by three years of supervised release, and ordered jointly and severally liable for restitution, with Verdell, in the amount of $32,4551. Willis was sentenced to 9 months in prison for the conspiracy, to be followed by a mandatory consecutive term of 24 months in prison for the aggravated identity theft conviction.
According to court documents and the defendants’ testimony during the sentencing hearings, Verdell, Willis and co-defendant Kelli Witherspoon McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). The PII was used to file fraudulent on-line income tax returns, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
Court documents also indicate that on September 1, 2010, while Verdell was receiving unauthorized income from the filing of fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment. On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also referred to as ‘food stamps.’ In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.
Court documents also indicate that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Kelli Witherspoon McIntosh is scheduled to be sentenced on February 16, 2016 in West Palm Beach by U.S. Senior District Judge Hurley.
Mr. Ferrer commended the investigative efforts of the IRS-CI, HUD-OIG, and USDA OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
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 Men Convicted of Illegally Possessing a Firearm, After Shooting at a Miami-Dade Police OfficerRead the Press Release
Two Miami-Dade residents were convicted by a jury in federal court for being felons in possession of a firearm, after they shot at a police officer with an AK-47 rifle.
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 Division, and Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Theodist Grimes, III, 27, and Wendell Trenell Clark, 25, both of Miami, were convicted after a nine-day trial before U.S. District Judge Joan Lenard for being felons in possession of a firearm.
According to evidence presented at trial, on April 22, 2015, Grimes and Clark, both convicted felons, along with a third male, entered a convenience store in Miami to confront two men they believed had stolen their friend's gun. After the initial confrontation, the defendants went back to their car to arm themselves with two handguns and an AK-47 rifle. Customers called 911 and Miami-Dade police officers responded.
The first officer on the scene testified that he immediately saw Grimes with a Glock handgun and grabbed him. After a brief struggle, Grimes jumped out of his shorts and sprinted away in his underwear, all of which was captured on the store surveillance video. Clark then pulled the get-away car around to pick up Grimes and led police on a high-speed chase. Unable to elude the pursuing officers, Clark maneuvered the car so that Grimes could lean out the window and open fire with the AK-47 rifle on the Miami-Dade robbery detective who was chasing them. The detective, who is also assigned as an ATF Task Force Officer, testified that Grimes fired eight to ten rounds at the detective’s car, and that he was able to pull his car out of the line of fire.
Clark and Grimes continued to flee and, after crashing their car into a pick-up truck, ran away on foot. A nearby resident watched from inside his home as Grimes jumped over the fence in his yard and discarded the AK-47 rifle in a trash can on his property. This resident then immediately ran into the street, flagged down a police officer and showed the officer where the rifle was abandoned. A perimeter was set up and aviation helped track the defendants, who were located and arrested shortly thereafter.
Grimes and Clark are currently scheduled to be sentenced on April 13, 2016.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. Mr. Ferrer also thanked the City of Miami Police Department and Miami Beach Police Department for their assistance and cooperation in this matter. This case was prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough and Deputy Chief Michael Thakur.
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.
Pagans Motorcycle Club Members Sentenced for Firearms ViolationsRead the Press Release
Two additional members of the Pagans Motorcycle Club (PMC) were sentenced yesterday by United States District Judge Donald L. Graham in Fort Pierce, after being convicted of firearms charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, A. Lee Bentley, III, United States Attorney for the Middle District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paul Wysopal, Special Agent in Charge, Federal Bureau of Investigation (FBI), Tampa Field Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Regina Lombardo, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tampa Field Division, J. Michelle Morris, Chief, Sebastian Police Department, Diane Hobley-Burney, Chief of Police, Fort Pierce Police Department, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, Ben Johnson, Sheriff, Volusia County Sheriff’s Office, and Ronald Wright, Chief, South Daytona Police Department, made the announcement.
Richard Todd Badali, 53, of Casselberry, Florida was previously found guilty by a jury of the unlawful sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). Badali was sentenced to 18 months in federal prison, to be followed by two years of supervised release.
Thomas Richard Laakmann, 60, of Orange City, Florida, was previously found guilty by a jury of sale of a firearm to a convicted felon, in violation of Title 18, United States Code, Section 922(d)(1), and possession of a firearm by a person convicted of misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9). Laakmann was sentenced to 12 months in federal prison, to be followed by two years of supervised release.
According to statements made in court and documents filed in the case, Badali was a ranking member of the PMC and in charge of all PMC members in Florida. Laakmann was a rank-in-file member of the PMC. Pursuant to the sentencing order, Badali and Laakkmann are also prohibited from associating with members and associates of the PMC while on supervised release.
The sentencing of Badali and Laakkmann concludes a multi-jurisdictional law enforcement investigation into the illicit conduct of PMC members that spanned a number of years. During the course of the investigation, the FBI was able to infiltrate the PMC operating in Florida and documented the unlawful distribution of narcotics and firearms. According to court records, much of the criminal conduct, including the firearms offenses committed by Badali and Laakmann, took place at a former PMC club house in Sebastian, Florida. Other unlawful transactions occurred in Miami, Ft. Lauderdale, Fort Pierce, Stuart, and Daytona Beach. During the course of the undercover operation, law enforcement purchased 24 firearms from PMC members and their associates. Many of the illegal firearms sellers had prior criminal convictions. In addition, many of the recovered firearms were determined to be stolen or had obliterated serial numbers. In addition, controlled substances, including cocaine, prescription pills and marijuana were also purchased from the targets during the course of the undercover investigation.
In addition to Badali and Laakkmann, eight other individuals previously pleaded guilty and have been sentenced for their participation in narcotics and firearms offenses related to this investigation, including: William Tendrich, 40, of Fort Pierce, was sentenced to 15 years’ imprisonment for firearms offenses; Anthony Posadas, 67, of Fort Pierce, was sentenced to 18 months’ imprisonment for firearms offenses; Michael Clancy, 58, of Vero Beach, was sentenced to 2 years’ imprisonment for narcotics (cocaine) offense; Jorge Duquen, 53, of Miami, was sentenced to 10 months’ imprisonment for a narcotics (cocaine) offense; Hector Garcia, 62, of Miami, was sentenced to 18 months’ imprisonment for a narcotics (cocaine) offense; Michael Carter, 62, of New Smyrna Beach, was sentenced to 51 months’ imprisonment for firearms offenses; Robert Klimkowski, 61, of Melbourne, was sentenced to 1 year of probation for narcotics offenses; and Thomas Close, 60, of Sebastian, was sentenced to 15 years’ imprisonment for a firearm offense.
Mr. Ferrer commended the investigative efforts of the FBI, ATF, Sebastian Police Department, Fort Pierce Police Department, St. Lucie County Sheriff’s Office, Martin County Sheriff’s Office, Volusia County Sheriff’s Office, and South Daytona Police Department. These cases were prosecuted by Assistant United States Attorneys for the Southern District of Florida Russell R. Killinger and Adam McMichael, Special Assistant United States Attorney Southern District of Florida Ryan L. Butler, and Assistant United States Attorney for the Middle District of Florida Bruce Ambrose.
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.
Fort Pierce Resident Ordered to Pay $5,000 Fine for Violation of the Manatee Zone RestrictionsRead the Press Release
A Fort Pierce resident was sentenced today to one year of probation and ordered to pay a $5,000.00 fine by Chief United States Magistrate Judge Frank J. Lynch. Jr., for violating manatee zone speed restrictions.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Jason Riley, Deputy Resident Agent in Charge, U.S. Fish and Wildlife Service (FWS), made the announcement.
Christopher Michael McManus, 37, of Fort Pierce, previously pled guilty to one count of engaging in a waterborne activity contrary to law, in violation of Title 16, United States Code, Section 1583(a)(1)(G). McManus’s court ordered fine will be forwarded to the Lacey Act Reward Account to support wildlife conservation activities.
According to court documents and information disclosed during the court proceedings, on July 3, 2015, McManus was observed at the west shoreline of the Indian River, in the Intracoastal Waterway, in St. Lucie County, operating his boat within the clearly posted slow speed minimum wake manatee protection zone. McManus was operating his boat on plane and creating an excessive wake. McManus had numerous prior convictions for violating fish and wildlife regulations.
Mr. Ferrer commended the investigative efforts of the U.S. Fish and Wildlife Service. This case was prosecuted by Assistant United States Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Doral Public Service Aide and Two Tow Truck Drivers Arrested for Participating in Bribery SchemeRead the Press Release
A former Doral Police Department Public Service Aide and two tow truck drivers were arrested for participating in a bribery scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Donald W. De Lucca, Chief, Doral Police Department (DPD), made the announcement.
Former DPD Pubic Service Aide (PSA) Leonardo Mayi, 36, and two tow truck operators Andreo Cambria, 51, and Roberto Dominguez, 31, were arrested pursuant to a federal criminal complaint charging each defendant with conspiracy and corruption charges related to their participation in a pirate towing scheme.
According to the allegations contained in court filings, Cambria offered to pay PSA Mayi cash in return for Mayi misusing his official position to corruptly steer business to Cambria and Dominguez. During the course of the corruption scheme, Mayi would permit Cambria and Dominguez to circumvent Doral’s rotational wrecker system and approach stranded drivers at accident scenes to illegally solicit their business. When Cambria or Dominguez was successful, they would tow the disabled vehicles to garages which would, in turn, pay cash kickbacks to Cambria and Dominguez. For his part, Mayi was paid approximately $100 per successfully towed vehicle. As a result of their participation in the scheme, between February 2013 and February 2014, the conspirators generated thousands of dollars of illicit business and Mayi himself received at least $5,000 in bribes.
PSA Mayi submitted his resignation with the Doral Police Department. Before resigning, Mayi had been with the department since 2008.
Each of the defendants are charged with conspiracy to commit an offense against the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of Mayi’s honest services and accepting bribes in connection with Mayi’s duties with the DPD, an agency that receives federal funding, all in violation of Title 18, United States Code, Section 371. Each defendant is exposed to a maximum sentence of five years’ imprisonment, to be followed by three years supervised release, and up to a $250,000 fine.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Public Corruption Task Force and the Doral Police Department. This case is being prosecuted by Assistant United States Attorney Anthony W. Lacosta.
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 Violence Reduction Partnership Results in the Prosecution of 55 Drug Traffickers, Illegal Firearms Dealers and Convicted Felons Targeting Our Local CommunitiesRead the Press Release
Federal, state and local law enforcement officials today announced the filing of federal charges against 55 defendants in five separate cases for their alleged participation in varied criminal conduct, including armed drug trafficking, narcotics conspiracies, illegal firearms sales and firearms violations by convicted felons. The charges are the result of initiatives which stem from the Violence Reduction Partnership (VRP), launched by the U.S. Attorney’s Office in 2011. Through a collaborative partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties.
The law enforcement mission is to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.
The agencies and departments announcing today’s federal cases are each dedicated members of VRP, included: U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge Carlos A. Canino for the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Miami Field Division, Special Agent in Charge A.D. Wright for the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Acting Director Juan Perez for the Miami-Dade Police Department (MDPD), Chief Rodolfo Llanes for the City of Miami Police Department (MPD), Chief Antonio G. Brooklen for the Miami Gardens Police Department (MGPD), Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office, Sheriff Scott Israel for the Broward Sheriff’s Office (BSO), Chief Dan Guistino for the Pembroke Pines Police Department, Special Agent in Charge Troy Walker for the Florida Department of Law Enforcement’s (FDLE) Miami Regional Operations Center, Sheriff Ric Bradshaw, for the Palm Beach County Sheriff’s Office (PBSO) and Chief William Hernandez for the North Miami Beach Police Department (NMBPD).
“Today, we have cast a wide net in our ongoing efforts to prosecute the violent offenders, narcotics traffickers and convicted felons who continue to prey on our local communities,” said U.S. Attorney Ferrer. “Our innovative investigative techniques continue to support the identification and apprehension of those who violate the law. Together, the dedicated law enforcement officers, community leaders and concerned citizens who support the Violence Reduction Partnership are taking back our neighborhoods that are plagued by illegal firearms, illicit drugs and crime.”
“The streets are safer and the good people of Miami can sleep a little easier knowing that these armed drug dealers are locked up and their days of peddling cocaine, heroin and dealing violence in our community are over,” said Special Agent in Charge Canino. “Taking armed violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in Florida. I commend the agents and officers who repeatedly risked their lives to remove these violent criminals from poisoning our community. I wish to recognize federal and state law enforcement partners and especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed violent offenders.”
“Through the use of electronic intercepts, law enforcement authorities were able to identify participants in the drug trafficking conspiracy who were located in multiple states and abroad,” said Special Agent in Charge Wright. “DEA remains committed to combatting drug trafficking through our joint efforts with our law enforcement partners.”
“The serious charges these individuals face and the dangerous weapons seized during this investigation demonstrate an egregious and sustained disregard for the law and the safety of our community,” said Acting Director Perez. “I am very proud of the efforts of our detectives and the Violence Reduction Partnership with our federal, state and local allies. This continued collaboration is crucial in a time when we see a prevalence of gun violence in our communities. While the unfortunate correlation between narcotics trafficking and violence is renowned, so is our commitment to stop these acts from occurring.”
“The City of Miami Police Department has proudly teamed with several local and federal agencies, including the U.S. Attorney’s Office for the South District of Florida, to bring to an end an elaborate network responsible for drug trafficking in our community,” said Chief Llanes. “The collaborative efforts of all agencies involved have not only proven that law enforcement’s resolve is active and present in our neighborhoods, but equally apparent is the investigative strength obtained through an unified effort to bring an end to drug trafficking and violence on our streets. It is with great pleasure that we stand along all the agencies present today making a commitment to work together to continue our stand against organized crime and drug trafficking in the South Florida.”
“FDLE is proud to take part in this collaborative effort to make Miami-Dade, Broward and Palm Beach Counties safer,” said Special Agent in Charge Walker “We are dedicated to the Violence Reduction Partnership and look forward to many future initiatives that will further this positive impact on our community.”
“These criminals traversed counties and states in search of opportunities to further their illegal enterprises,” said Sheriff Israel. “The fact that working together law enforcement has identified more than 50 targets shows the commitment and dedication we all have to our residents and the betterment of our communities.”
Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announced the most recent results of the VRP initiatives impacting areas throughout the Southern District of Florida, including West Little River, Liberty City, Hialeah, West Miami, Kendall and Miami Gardens.
1. United States v. Hiosbani Garcia, et. al.,
Case No. 16-20038-CR-LENARD
On Jan. 21, 2016, 32 individuals were charged by indictment for their alleged participation in interlocking drug trafficking conspiracies in Miami-Dade County, Florida, primarily the neighborhoods of West Little River, Florida, and Liberty City Florida.
Charged in the 16 count indictment are Hiosbani Garcia aka Hioba, 43, of Miami, Florida, Reinaldo Gomez-Garcia aka Jacobo aka Papi, 33, of Miami, Francisco Garcia aka ‘Frank, 27, of Miami, Luis Prieto Jr. aka Lou, 37, of Miami, Darlene Ondina Mendoza, 32, Miami, Michael Leon Thomas aka Poochie, aka Ghost, 39, of Pembroke Pines, Florida, Arturo Triana, 48, of Miami, Jose Turino, 50, of Kendall, Florida, Emilio Quinones aka Toqui, 30, of Hialeah, Florida, Aldo Cabreja-Olivera aka Pacheco, 43, of Miami, Yubisnel Rolando Rodriguez-Montoya, 34, of Miami, Argelis Casanova-Consuegra, 40, of Miami, Yosvani Alarcon-Esteves, 39, of Hialeah, Jose Mena Callejas, 38, of Miami, Calvin Roger Pearce II, 29, of Miami Gardens, Florida, Richard London, 33, of Miami Gardens, Rickey Lee Pryor Jr., 27, of Miami, Essence Sinque Clervil aka E-Class, 30, of Miami, Wayne Thomas Jr. aka Boobie, 40, of North Miami, Florida, Kenneth Desmond Wright II aka Suge, 36, of Pembroke Pines, Melina Elina Pierre-Louis, 29, of Miami, Harry Kwame Figgers aka Jit, 37, of Miami, Nancy Sue Hechavarria, 27, of Miami, Samuel Lee Wooden, 30, of Fort Pierce, Florida, Bernard Franklin Tucker, 60, of Miami, Damon Lamont McWilliams, 49, of Miami, Joaquin Rodriguez, 60, of Miami, Guillermo Horta-Alvarez, 70, of Miami, Raul Rodriguez, 51, of Miami, Isaac James McCullough, 44, of Miami, Luis Manuel Zafora, 50, of Pembroke Pines, and Alan Kirschman, 62, of Pompano Beach, Florida.
According to allegations contained in court documents, law enforcement began investigating Michael Thomas, a suspected crack-cocaine trafficker operating in Liberty City and West Little River, in the fall of 2014. During the course of the initial investigation, undercover officers purchased approximately 12 ounces of crack cocaine and three firearms from Michael Thomas and his associates. Following the undercover purchases, communications intercepted over court-authorized wiretaps and the parallel law enforcement surveillance operations, uncovered a vast drug trafficking network in South Florida that spanned from multi-kilogram cocaine suppliers down to local crack-cocaine distributors and their associates. Hiosbani Garcia and Gomez-Garcia were identified as two of Michael Thomas’ suppliers. The investigation also identified convicted felons who unlawfully possessed firearms and ammunition, individuals who possessed firearms during the course of drug transactions and individuals who illegally sold firearms.
2. United States v. Joel Diaz Fernandez, et al.
Case No. 16-20050-CR-GAYLES
On Jan. 26, 2016, 20 individuals were indicted for their alleged participation in a Miami based heroin trafficking network that extends from Miami Dade, Broward, and Palm Beach Counties, as well as other United States cities including Atlanta, Georgia, Huntsville, Alabama, Chicago, Illinois, and Dallas, Texas, into Mexico.
Charged in the twelve count indictment are Joel Diaz-Fernandez aka Joe, 47, of Mexico, Crecencio Silverio aka “Chencho,” 35, of Norcross, Georgia, Margarita Barragan-Velez, 27, of Norcross, Georgia, Marco Antonio Zagal-Garcia aka Toño, 27, of Mexico, William Muñoz aka Guillermo, 43, of Chicago, Jehu Aguilar-Hernandez, 34, of Atlanta, Israel Garcia-Gasper, 23, of Atlanta, Sean William Watkins, 43, of Miami, Francisco Quezada Del Pilar aka Frank, of Mexico, Rafael Vega-Diaz aka Rafa, 40, of Mexico, Shelton Lamar Edden aka Twin, 32, of Miami, Jermaine Daniels aka Maine, 30, of Miami Gardens, Morris Ulysses Moore aka “Garbage,” 43, of Miami Gardens, Brett Tyler Ayers aka Ty, 30, of Huntsville, Darrel Prenell Gibbs, aka G, 50, of Orlando, Florida, Jerry Lee Johnson aka Bruh, 29, of Fort Myers, Florida, Victor Lawrence Drayton aka Old School, 54, of Miami, Jethro Pitts aka Uncle Jeth, 67, of Miami, Morris Perez Brown aka Mo, 43, of Miami Gardens, and Tiffany Ebony Knights, 33, of Decatur, Georgia.
According to allegations contained in court filings, beginning in approximately March of 2015, law enforcement began investigating Moore, a local heroin distributor. Over the next three months, law enforcement allegedly conducted seven undercover purchases, for a total of approximately 250 grams of heroin, directly from Moore. The investigation identified Watkins as Moore’s narcotics supplier and wiretaps were initiated on Watkins’ phones. Through wiretap intercepts, law enforcement determined that Watkins negotiated directly with contacts in Mexico for kilograms of heroin, valued at approximately $65,000 per kilogram. Diaz-Fernandez was a primary source of heroin for Watkins. A number of Mexico-based associates supplied Watkins and worked with Diaz-Fernandez’s heroin trafficking network. The heroin was often routed through Atlanta, where Watkins and other associates would purchase the heroin and transport it to Miami for distribution throughout South Florida. Watkins would then break down the heroin and sell smaller quantities to other distributors, who would then distribute the narcotics throughout Miami and elsewhere including Huntsville, Fort Myers and Orlando.
3. United States v. Wayne Cox,
Case No. 16-20034-CR-GAYLES
On Jan. 19, 2016, Wayne Cox, 56, of Miami Gardens, was charged in a five count indictment with unlawfully engaging in the business of dealing in firearms, being a felon in possession of a firearm and knowingly selling the firearms to a convicted felon.
4. United States v. Timothy Nathaniel Brown,
Case No. 16-20033-CR-MORENO
On Jan. 19, 2016, Timothy Brown, 37, of Liberty City, was charged with being a felon in possession of a firearm and ammunition.
5. United States v. Antonio Rossello
Case No. 16-2068-MJ-WHITE
On Jan. 20, 2016, Antonio Rossello, 41, of West Palm Beach, Florida, was charged by complaint with unlicensed dealing in firearms, unlawful possession of a machinegun, possession of an unregistered firearm, the unlawful transfer of a firearm and the unlawful making of a firearm. According to court documents, between on or about Oct. 29, 2015, and Jan. 8, 2016, Rossello, engaged in the repeated, unlawful sale of firearms (including fully-automatic machine guns) and ammunition.
During the course of the above referenced investigations, law enforcement seized 23 firearms and approximately 506 rounds of ammunition, approximately 10 kilograms of powder cocaine, approximately nine kilograms of heroin and approximately 500 grams of crack-cocaine.
If convicted, the defendants face the following maximum possible statutory sentences for their charged offenses: up to life in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for possessing a firearm in furtherance of drug trafficking, up to 10 years in prison for the unlawful transfer or making of firearms, up to five years in prison for unlicensed dealing in firearms; up to 10 years in prison for unlawful possession of a machinegun; up to 10 years in prison for an unregistered firearm; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to life in prison for possession of controlled substances with the intent to distribute.
U.S. Attorney Ferrer thanked the law enforcement agencies, community leaders and social service providers involved in the VRP, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF). U.S. Attorney Ferrer also commended the investigative efforts of ATF, DEA, U.S. Marshals Service’s Fugitive Task Force, MDPD, MPD, Miami Gardens Police Department, FBI, BSO, Pembroke Pines Police Department, FDLE, Palm Beach County Sherriff’s Office and NMBPD. These cases are being prosecuted by Assistant U.S. Attorneys Seth Schlessinger and Cristina Moreno.
An indictment or complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
U.S. Attorney’s Office Violence Reduction Partnership Results in the Prosecution of 55 Drug Traffickers, Illegal Firearms Dealers and Convicted Felons Targeting Our Local CommunitiesRead the Press Release
Federal, state and local law enforcement officials today announced the filing of federal charges against 55 defendants in five separate cases for their alleged participation in varied criminal conduct, including armed drug trafficking, narcotics conspiracies, illegal firearms sales and firearms violations by convicted felons. The charges are the result of initiatives which stem from the Violence Reduction Partnership (VRP), launched by the U.S. Attorney’s Office in 2011. Through a collaborative partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties.
The law enforcement mission is to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.
The agencies and departments announcing today’s federal cases are each dedicated members of VRP, included: U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, Special Agent in Charge Carlos A. Canino for the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Miami Field Division, Special Agent in Charge A.D. Wright for the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division, U.S. Marshal Amos Rojas Jr. for the United States Marshals Service’s (USMS) Regional Fugitive Task Force, Acting Director Juan Perez for the Miami-Dade Police Department (MDPD), Chief Rodolfo Llanes for the City of Miami Police Department (MPD), Chief Antonio G. Brooklen for the Miami Gardens Police Department (MGPD), Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office, Sheriff Scott Israel for the Broward Sheriff’s Office (BSO), Chief Dan Guistino for the Pembroke Pines Police Department, Special Agent in Charge Troy Walker for the Florida Department of Law Enforcement’s (FDLE) Miami Regional Operations Center, Sheriff Ric Bradshaw, for the Palm Beach County Sheriff’s Office (PBSO) and Chief William Hernandez for the North Miami Beach Police Department (NMBPD).
“Today, we have cast a wide net in our ongoing efforts to prosecute the violent offenders, narcotics traffickers and convicted felons who continue to prey on our local communities,” said U.S. Attorney Ferrer. “Our innovative investigative techniques continue to support the identification and apprehension of those who violate the law. Together, the dedicated law enforcement officers, community leaders and concerned citizens who support the Violence Reduction Partnership are taking back our neighborhoods that are plagued by illegal firearms, illicit drugs and crime.”
“The streets are safer and the good people of Miami can sleep a little easier knowing that these armed drug dealers are locked up and their days of peddling cocaine, heroin and dealing violence in our community are over,” said Special Agent in Charge Canino. “Taking armed violent criminals off the streets and putting them behind bars has always been a focus of ATF and our enforcement mission in Florida. I commend the agents and officers who repeatedly risked their lives to remove these violent criminals from poisoning our community. I wish to recognize federal and state law enforcement partners and especially the leadership of U.S. Attorney Wifredo A. Ferrer and his office in the relentless prosecution of armed violent offenders.”
“Through the use of electronic intercepts, law enforcement authorities were able to identify participants in the drug trafficking conspiracy who were located in multiple states and abroad,” said Special Agent in Charge Wright. “DEA remains committed to combatting drug trafficking through our joint efforts with our law enforcement partners.”
“The serious charges these individuals face and the dangerous weapons seized during this investigation demonstrate an egregious and sustained disregard for the law and the safety of our community,” said Acting Director Perez “I am very proud of the efforts of our detectives and the Violence Reduction Partnership with our federal, state and local allies. This continued collaboration is crucial in a time when we see a prevalence of gun violence in our communities. While the unfortunate correlation between narcotics trafficking and violence is renowned, so is our commitment to stop these acts from occurring.”
“The City of Miami Police Department has proudly teamed with several local and federal agencies, including the U.S. Attorney’s Office for the South District of Florida, to bring to an end an elaborate network responsible for drug trafficking in our community,” said Chief Llanes. “The collaborative efforts of all agencies involved have not only proven that law enforcement’s resolve is active and present in our neighborhoods, but equally apparent is the investigative strength obtained through an unified effort to bring an end to drug trafficking and violence on our streets. It is with great pleasure that we stand along all the agencies present today making a commitment to work together to continue our stand against organized crime and drug trafficking in the South Florida.”
“FDLE is proud to take part in this collaborative effort to make Miami-Dade, Broward and Palm Beach Counties safer,” said Special Agent in Charge Walker “We are dedicated to the Violence Reduction Partnership and look forward to many future initiatives that will further this positive impact on our community.”
“These criminals traversed counties and states in search of opportunities to further their illegal enterprises,” said Sheriff Israel. “The fact that working together law enforcement has identified more than 50 targets shows the commitment and dedication we all have to our residents and the betterment of our communities.”
Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announced the most recent results of the VRP initiatives impacting areas throughout the Southern District of Florida, includingWest Little River, Liberty City, Hialeah, West Miami, Kendall and Miami Gardens.
1. United States v. Hiosbani Garcia, et. al.,
Case No. 16-20038-CR-LENARDOn Jan. 21, 2016, 32 individuals were charged by indictment for their alleged participation in interlocking drug trafficking conspiracies in Miami-Dade County, Florida, primarily the neighborhoods of West Little River, Florida, and Liberty City Florida.
Charged in the 16 count indictment are Hiosbani Garcia aka Hioba, 43, of Miami, Florida, Reinaldo Gomez-Garcia aka Jacobo aka Papi, 33, of Miami, Francisco Garcia aka ‘Frank, 27, of Miami, Luis Prieto Jr. aka Lou, 37, of Miami, Darlene Ondina Mendoza, 32, Miami, Michael Leon Thomas aka Poochie, aka Ghost, 39, of Pembroke Pines, Florida, Arturo Triana, 48, of Miami, Jose Turino, 50, of Kendall, Florida, Emilio Quinones aka Toqui, 30, of Hialeah, Florida, Aldo Cabreja-Olivera aka Pacheco, 43, of Miami, Yubisnel Rolando Rodriguez-Montoya, 34, of Miami, Argelis Casanova-Consuegra, 40, of Miami, Yosvani Alarcon-Esteves, 39, of Hialeah, Jose Mena Callejas, 38, of Miami, Calvin Roger Pearce II, 29, of Miami Gardens, Florida, Richard London, 33, of Miami Gardens, Rickey Lee Pryor Jr., 27, of Miami, Essence Sinque Clervil aka E-Class, 30, of Miami, Wayne Thomas Jr. aka Boobie, 40, of North Miami, Florida, Kenneth Desmond Wright II aka Suge, 36, of Pembroke Pines, Melina Elina Pierre-Louis, 29, of Miami, Harry Kwame Figgers aka Jit, 37, of Miami, Nancy Sue Hechavarria, 27, of Miami, Samuel Lee Wooden, 30, of Fort Pierce, Florida, Bernard Franklin Tucker, 60, of Miami, Damon Lamont McWilliams, 49, of Miami, Joaquin Rodriguez, 60, of Miami, Guillermo Horta-Alvarez, 70, of Miami, Raul Rodriguez, 51, of Miami, Isaac James McCullough, 44, of Miami, Luis Manuel Zafora, 50, of Pembroke Pines, and Alan Kirschman, 62, of Pompano Beach, Florida.
According to allegations contained in court documents, law enforcement began investigating Michael Thomas, a suspected crack-cocaine trafficker operating in Liberty City and West Little River, in the fall of 2014. During the course of the initial investigation, undercover officers purchased approximately 12 ounces of crack cocaine and three firearms from Michael Thomas and his associates. Following the undercover purchases, communications intercepted over court-authorized wiretaps and the parallel law enforcement surveillance operations, uncovered a vast drug trafficking network in South Florida that spanned from multi-kilogram cocaine suppliers down to local crack-cocaine distributors and their associates. Hiosbani Garcia and Gomez-Garcia were identified as two of Michael Thomas’ suppliers. The investigation also identified convicted felons who unlawfully possessed firearms and ammunition, individuals who possessed firearms during the course of drug transactions and individuals who illegally sold firearms.
2. United States v. Joel Diaz Fernandez, et al.
Case. No. 16-20050-CR-GAYLESOn Jan. 26, 2016, 20 individuals were indicted for their alleged participation in a Miami based heroin trafficking network that extends from Miami Dade, Broward, and Palm Beach Counties, as well as other United States cities including Atlanta, Georgia, Huntsville, Alabama, Chicago, Illinois, and Dallas, Texas, into Mexico.
Charged in the twelve count indictment are Joel Diaz-Fernandez aka Joe, 47, of Mexico, Crecencio Silverio aka “Chencho,” 35, of Norcross, Georgia, Margarita Barragan-Velez, 27, of Norcross, Georgia, Marco Antonio Zagal-Garcia aka Toño, 27, of Mexico, William Muñoz aka Guillermo, 43, of Chicago, Jehu Aguilar-Hernandez, 34, of Atlanta, Israel Garcia-Gasper, 23, of Atlanta, Sean William Watkins, 43, of Miami, Francisco Quezada Del Pilar aka Frank, of Mexico, Rafael Vega-Diaz aka Rafa, 40, of Mexico, Shelton Lamar Edden aka Twin, 32, of Miami, Jermaine Daniels aka Maine, 30, of Miami Gardens, Morris Ulysses Moore aka “Garbage,” 43, of Miami Gardens, Brett Tyler Ayers aka Ty, 30, of Huntsville, Darrel Prenell Gibbs, aka G, 50, of Orlando, Florida, Jerry Lee Johnson aka Bruh, 29, of Fort Myers, Florida, Victor Lawrence Drayton aka Old School, 54, of Miami, Jethro Pitts aka Uncle Jeth, 67, of Miami, Morris Perez Brown aka Mo, 43, of Miami Gardens, and Tiffany Ebony Knights, 33, of Decatur, Georgia.
According to allegations contained in court filings, beginning in approximately March of 2015, law enforcement began investigating Moore, a local heroin distributor. Over the next three months, law enforcement allegedly conducted seven undercover purchases, for a total of approximately 250 grams of heroin, directly from Moore. The investigation identified Watkins as Moore’s narcotics supplier and wiretaps were initiated on Watkins’ phones. Through wiretap intercepts, law enforcement determined that Watkins negotiated directly with contacts in Mexico for kilograms of heroin, valued at approximately $65,000 per kilogram. Diaz-Fernandez was a primary source of heroin for Watkins. A number of Mexico-based associates supplied Watkins and worked with Diaz-Fernandez’s heroin trafficking network. The heroin was often routed through Atlanta, where Watkins and other associates would purchase the heroin and transport it to Miami for distribution throughout South Florida. Watkins would then break down the heroin and sell smaller quantities to other distributors, who would then distribute the narcotics throughout Miami and elsewhere including Huntsville, Fort Myers and Orlando.
3. United States v. Wayne Cox,
Case No. 16-20034-CR-GAYLESOn Jan. 19, 2016, Wayne Cox, 56, of Miami Gardens, was charged in a five count indictment with unlawfully engaging in the business of dealing in firearms, being a felon in possession of a firearm and knowingly selling the firearms to a convicted felon.
4. United States v. Timothy Nathaniel Brown,
Case. No. 16-20033-CR-MORENOOn Jan. 19, 2016, Timothy Brown, 37, of Liberty City, was charged with being a felon in possession of a firearm and ammunition.
5. United States v. Antonio Rossello
Case. No. 16-2068-MJ- WHITEOn Jan. 20, 2016, Antonio Rossello, 41, of West Palm Beach, Florida, was charged by complaint with unlicensed dealing in firearms, unlawful possession of a machinegun, possession of an unregistered firearm, the unlawful transfer of a firearm and the unlawful making of a firearm. According to court documents, between on or about Oct. 29, 2015, and Jan. 8, 2016, Rossello, engaged in the repeated, unlawful sale of firearms (including fully-automatic machine guns) and ammunition.
During the course of the above referenced investigations, law enforcement seized 23 firearms and approximately 506 rounds of ammunition, approximately 10 kilograms of powder cocaine, approximately nine kilograms of heroin and approximately 500 grams of crack-cocaine.
If convicted, the defendants face the following maximum possible statutory sentences for their charged offenses: up to life in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for possessing a firearm in furtherance of drug trafficking, up to 10 years in prison for the unlawful transfer or making of firearms, up to five years in prison for unlicensed dealing in firearms; up to 10 years in prison for unlawful possession of a machinegun; up to 10 years in prison for an unregistered firearm; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to life in prison for possession of controlled substances with the intent to distribute.
U.S. Attorney Ferrer thanked the law enforcement agencies, community leaders and social service providers involved in the VRP, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF). U.S. Attorney Ferrer also commended the investigative efforts of ATF, DEA, U.S. Marshals Service’s Fugitive Task Force, MDPD, MPD, Miami Gardens Police Department, FBI, BSO, Pembroke Pines Police Department, FDLE, Palm Beach County Sherriff’s Office and NMBPD. These cases are being prosecuted by Assistant U.S. Attorneys Seth Schlessinger and Cristina Moreno.
An indictment or complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the U.S. 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.
Six Defendants Plead Guilty in Extensive Stolen Identity Tax Refund Fraud Scheme Involving Tens of Thousands of Individuals’ Personal Identifying InformationRead the Press Release
Six defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme involving tens of thousands of individuals’ personal identifying information (PII). 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 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, Kerby Luma, a/k/a "Money Makin Kerb," 26, Frantz Decoste, a/k/a "Gripe_111," 21, Francis Jeudy, a/k/a "Money Makin Rab," a/k/a "Brizzleon111," 26, all of Miramar, and Andy Cherrelus, a/k/a "Risktakers111," 24, of Miami, each 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. Chad Davis, a/k/a "Chadillac," a/k/a "Chadillac 305," 29, of Miami, 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).
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 PII of tens of thousands of individuals. 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 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 thousands of fraudulent tax returns claiming 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.
The defendants each face a maximum of ten years imprisonment for each of the conspiracy to defraud the government and access device charges, a maximum of five years imprisonment for the conspiracy to possess access devices, a maximum of five years imprisonment for possession of stolen mail, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
The defendants are scheduled to be sentenced on April 5, 2016, before Judge Dimitrouleas in Fort Lauderdale.
Mr. Ferrer commended the investigative efforts of the IRS-CI, ICE-HSI, USPIS, DOL-OIG, ATF, FBI Miami Cyber Task Force, as well as the Miramar, Aventura, and North Miami Beach Police Departments. The case is being 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.
Florida Residents Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Two Miami, Florida residents were sentenced to prison for their role in a stolen identity tax refund fraud scheme, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service (IRS) Criminal Investigation announced yesterday.
Roland Alexis, 34, was sentenced yesterday to 42 months in prison followed by three years of supervised release. Alexis’s co-conspirator, Jim Joseph, 31, was previously sentenced to 42 months in prison followed by three years of supervised release on Jan. 20.
“Identity theft and filing false tax returns are serious crimes that inflict tremendous damage on innocent victims,” said Acting Assistant Attorney General Ciraolo. “We will continue to work with our federal and state law enforcement partners to aggressively investigate and prosecute these crimes and, where appropriate, seek the maximum sentence available to punish the perpetrators, deter others from engaging in such behavior, and seek justice for the victims.”
According to the indictment and information disclosed in court proceedings, Joseph and Alexis conspired to file more than 860 false income tax returns claiming more than $1 million in refunds from the IRS. Alexis’s conduct resulted in a tax loss of $1.8 million; Joseph’s conduct resulted in a tax loss of $1.2 million. Joseph and Alexis each pleaded guilty in November 2015 to one count of a multi-object conspiracy to defraud the IRS, commit wire fraud and commit aggravated identity theft, as well as one count of aggravated identity theft.
Between 2007 and July 2014, Joseph, Alexis and others filed false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. Much of the stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to obtain Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed. In late 2009, Alexis and Joseph, along with a co-conspirator, formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file fraudulent tax returns.
In addition to the prison term, U.S. District Judge William Zloch for the Southern District of Florida ordered Joseph to pay $1,225,686.12 in restitution to the IRS. Alexis was also ordered to pay $1,805,332.71 in restitution, forfeit two single family owned properties in Miami and $369,776.18 in proceeds held in a bank account.
U.S. Attorney Ferrer, Acting Assistant Attorney General Ciraolo and Special Agent in Charge Jackson commended special agents of IRS Criminal Investigation and Homeland Security Investigations, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who 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.
Broward County Resident Charged for Participation in Stolen Identity and Tax Fraud Schemes Involving at Least 652 IdentitiesRead the Press Release
A Broward resident was charged for her participation in stolen identity and tax fraud schemes involving at least 652 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Dwayne Flournoy, Chief, Hallandale Beach Police Department (HBPD), made the announcement.
Laveisha Dorray Charles-Coldros, 30, of Miramar, Florida, was charged with one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). If convicted, Charles-Coldros faces a maximum of ten years in prison for each of the access device charges, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
According to court documents, during a vehicle search where Charles-Coldros was the sole occupant, a Hallandale Beach Police Department officer found mail addressed to numerous individuals and a large duffel bag with multiple pieces of paper and notebooks that contained the names, dates of birth, and Social Security numbers of approximately 652 different individuals.
IRS-CI Special Agents interviewed numerous individuals whose PII was found in the duffel bag. The individuals did not authorize Charles-Coldros to have their names, date of births, and Social Security numbers in her possession, and did not authorize a tax return be filed in their names. Another individual did not authorize Charles-Coldros to have a debit card in his/her name.
Mr. Ferrer commended the investigative efforts of IRS-CI, United States Secret Service, and the Hallandale Beach Police Department, and thanked Federal Protective Service for its assistance in this matter. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
An indictment is merely an allegation, and every 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.
Miami Man Sentenced for Synthetic Drug Distribution and Firearm ConvictionsRead the Press Release
Jean Baptiste Joseph, 26, of Miami, was sentenced last week by United States District Judge Federico A. Moreno to 55 years in prison, following his trial convictions for possession with intent to distribute more than 1 kilogram of ethylone, in violation of Title 21, United States Code, Section 841; possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c).
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 Division, Antonio Brooklen, Chief, Miami Gardens Police Department, and Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), made the announcement.
According to trial evidence and court documents, on June 5, 2015, a U.S. Marshals Task Force went to a residence in Miami Gardens, Florida, to arrest Joseph in connection with a separate criminal investigation. The U.S. Marshals took Joseph into custody in his bedroom and, as he was being arrested, they saw in plain view, a loaded AK-47 pistol in the open closet and two Ziploc bags containing more than 1 kilogram of ethylone, a synthetic narcotic, on a television stand.
The Miami Gardens Police Department’s subsequent investigation revealed that, in addition to the assault rifle and ethylone, Joseph also possessed a Ziploc bag with 70 grams of marijuana, a 100-round drum magazine (loaded with 65 AK-47 rounds of ammunition), a high capacity 9 mm magazine, two boxes of 9 mm ammunition, empty pill capsules, empty baggies with marijuana logos, a boot stuffed with money, a digital scale, and Joseph’s passport, Social Security card and Florida identification card.
During recorded phone calls following his arrest, Joseph told his associates that he was caught in his bedroom with his “stick,” which referred to his AK-47, and his “work,” which referred to the narcotics.
Mr. Ferrer commended the efforts of ATF, USMS, and the Miami Gardens Police Department in the investigation and prosecution of this case. This case was prosecuted by Assistant U.S. Attorneys Jonathan Osborne and Michael Thakur.
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
Fort Pierce Resident Sentenced to 75 Months in Prison for Receipt and Possession of Child PornographyRead the Press Release
A Fort Pierce resident was sentenced today to 75 months in prison by United States District Judge Robin L. Rosenberg for receiving and possessing child pornography.
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, and Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, made the announcement.
Richard Joseph Ahearn, 56, of Fort Pierce previously pled guilty to one count of receiving child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), and one count of possessing child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). After his release from incarceration, Ahearn will be placed on supervised release for 10 years and will have to register as a sex offender.
According to court documents and information disclosed during the court proceedings, Yahoo! reported to the National Center for Missing and Exploited Children (NMEC) several suspected child pornography images that had been uploaded to a Flickr account. The email account and the internet protocol (IP) address associated with that account were connected to a physical address in Fort Pierce, determined to be Ahearn’s residence. The St. Lucie County Sheriff’s Office obtained state search warrants for the Flickr account and associated email accounts. Examination of those accounts revealed sexually explicit online chats with minors. It was also determined that Ahearn was employed as an Information Technology Professional with the St. Lucie County Tax Collector’s Office. After ICE-HSI joined the investigation, a federal search warrant was obtained for Ahearn’s residence and any electronic devices found therein. A subsequent search of Ahearn’s computer revealed images of sexually explicit conduct involving minors (child pornography).
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 ICE-HSI and the St. Lucie County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Daniel E. Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
West Palm Beach Brothers Sentenced to Prison and Ordered to Forfeit Property Following Mail Fraud and Money Laundering ConvictionsRead the Press Release
West Palm Beach brothers Janio Vico and Jharildan Vico were sentenced to 108 months in federal prison, the forfeiture of $1.87 million and restitution in the amount of $1.92 million, following their mail fraud and money laundering convictions.
Wifredo 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.
Janio Vico, 32, and Jharildan Vico, 34, both of West Palm Beach, were sentenced by United States District Judge Robin L. Rosenberg in West Palm Beach, following their trial before a jury resulting in guilty verdicts on the 16-count indictment charging conspiracy to commit mail fraud and mail fraud, in violation of Title 18 United States Code, Sections 1349 and 1341; as well as conspiracy to commit money laundering and money laundering, in violation of Title 18, United States Code, Sections 1956(h) and 1957.
According to statements made in court and documents filed in the case, the Vicos established and operated an unlicensed health care clinic known as V & V Rehabilitation Center, Inc., originally located in Lantana and moved to West Palm Beach, for the purpose of defrauding at least 15 automobile insurance companies by submitting claims for personal injury protection (PIP). During a 20 month period, beginning December 2009, through at least October 4, 2011, the brothers received approximately $1.87 million in payments from automobile insurers for relying upon these fraudulent claims that were, in part, based upon staged accidents, real accidents resulting in no injuries, false documents submitted for non-existent treatment, and claims made through an unlicensed clinic. The scheme came about because the Vico brothers were paying claimants to appear at their clinic known as V & V Rehabilitation Center. Much of the money received from the insurance companies was diverted to the brothers’ accounts for their personal use.
Janio Vico and Jharildan Vico each used a portion of the more than $1.2 million transferred from the clinic accounts to accounts they controlled for their personal use to buy residential property, amongst other things.
The Vico brothers claimed that formerly licensed chiropractor co-conspirator, Jennifer Adams, was the owner of V & V Rehabilitation Center Inc., in order to avoid obtaining a license and evade the scrutiny of the Florida Department of Health. The evidence at trial showed that Janio Vico and Jharildan Vico were the true owners of the clinic which was unlicensed during time period charged. According to State of Florida laws, because the Vico brothers were the true owners and did not get a license in their names, the clinic was unlicensed and the claims to insurance companies were illegal.
During the course of the fraud, the Vico brothers purchased at least two residences using moneys obtained through their fraud. After a hearing to determine whether forfeiture of money and properties should occur in this case, the court entered a preliminary order of forfeiture as part of their sentences that requires that both Janio Vico and Jharildan Vico forfeit $1.87 million together with residences at 610 Cresta Circle, West Palm Beach and 669 Pacific Grove Drive, Unit #3, West Palm Beach.
This prosecution was the latest in the ongoing investigation of clinics established in the Palm Beaches to fraudulently bill automobile insurance companies for PIP claims in Operation Sledgehammer. As a result of that investigation, more than 100 individuals have been prosecuted for similar offenses. PIP provides $10,000 of insurance to individuals injured during automobile accidents in Florida regardless of blame, relying upon truthful submission of diagnosis, treatment orders and actual treatment documents provided to the insurance companies. Each time fraudulent claims are submitted, the price of automobile insurance is affected, resulting in higher premiums.
Mr. Ferrer commended the investigative efforts of the FBI and the assistance of the National Insurance Crime Bureau. This case was prosecuted by Assistant United States Attorney Ellen Cohen.
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.
Broward Resident Arrested in Connection with Jamaica Based Lottery ScamRead the Press Release
A Broward County resident was arrested and charged in a criminal complaint in connection with a Jamaica based lottery scam.
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, announce the arrest of Delroy Drummond, 25, of Broward County, for his role in a Jamaica based telemarketing fraud scheme. Drummond had his initial appearance today in federal court and his pre-trial detention hearing is scheduled on Thursday, January 28, 2016 at 10:30 a.m. before U.S. Magistrate Judge Lurana S. Snow.
More specifically, the complaint charges Drummond with 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. If convicted, Drummond faces a maximum statutory sentence of twenty years in prison.
According to the criminal complaint, beginning in or about April 2015, Drummond’s co-conspirators are alleged to have contacted elderly victims in the United States and falsely informed them that they had won a lottery. According to the complaint, 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 this money, and to whom, including to Drummond.
In September 2013, Drummond was contacted in Miami, Florida, by law enforcement regarding a package, which was sent through the mail, containing money from a victim of this fraud. At that time, Drummond was confronted with the fact that he was participating in a lottery fraud scheme and was warned by law enforcement to stop receiving money from victims of telemarketing fraud.
In April 2015, Drummond obtained money wired to him under a fictitious name from a victim who was falsely told they had won a $2.5 million lottery prize. Drummond, according to the criminal complaint, further used a fraudulent identification in order to receive these funds. Moreover, in May 2015, Drummond obtained money wired to him under a fictitious name from another victim who was falsely informed they had won a lottery prize. After receiving the money, Drummond was approached by a police officer and fled through the inside of the retail store, pushing carts and an individual out of his way. Between April 2015 and December 2015, Drummond received numerous packages containing money via the United States Mail, Federal Express, and United Parcel Service from multiple victims throughout the United States.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Marshals Service, Broward Sheriff’s Office Narcotics Interdiction Task Force and the Miami-Dade Police Department Economic Crimes Unit. The case is being prosecuted by Assistant United States Attorney Randy Katz.
A criminal complaint is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
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.
Owner and Manager of Three Miami-Area Home Health Agencies Convicted in $57 Million Health Care Fraud SchemeRead the Press Release
The owner and manager of three Miami-area home health agencies was convicted late yesterday for his role in a health care fraud scheme that resulted in the submission of 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 Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Khaled Elbeblawy, 39, of Miramar, Florida, was convicted after trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, Elbeblawy was the manager of Willsand Home Health Agency Inc. and the owner of JEM Home Health Care LLC and Healthy Choice Home Health Services Inc., all of which were home health agencies in Miami-Dade County. The evidence showed that between January 2006 and May 2013, Elbeblawy and his co-conspirators used the three companies to submit approximately $57 million in false and fraudulent claims to Medicare that were based on services that were not medically necessary, were not actually provided and were for patients who were procured through the payment of kickbacks to doctors and patient recruiters.
The evidence introduced at trial showed that Medicare paid approximately $40 million on 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. Assistant Chief Nicholas Surmacz and Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section are prosecuting the case, and former Trial Attorney Andrew Warren assisted in the prosecution.
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.
Former Miami Dade Police Officer Pleads Guilty to Accepting BribesRead the Press Release
A former uniformed police officer with the Miami Dade County Police Department pled guilty today to accepting bribes in furtherance of an illegal pirate towing scheme.
Wifredo A. Ferrer, U.S. 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, Acting Director, Miami-Dade Police Department (MDPD), made the announcement.
Yuri Millan, pleaded guilty to participating in a conspiracy against the laws of the United States, that is, engaging in a wire fraud scheme resulting in the deprivation of his honest services and accepting bribes in connection with his official duties at MDPD, an agency that receives federal funding, in violation of Title 18, United States Code, Section 371. Millan’s codefendants, Oriel Ugardes, and Jose Guim, previously pled guilty to the same charge on January 13, 2016.
According to the court record, including documents filed in support of the defendants’ guilty pleas, between December 2013 and May 2014, Millan accepted bribes from Ugardes and Guim in exchange for Millan secretly using his position as a police officer to assist their towing businesses. Millan would provide Ugardes and Guim information regarding and access to MDPD accident scenes, where Ugardes and Guim would illegally solicit stranded drivers for business. In January 2014, after MDPD switched to an encrypted radio communication system, Millan agreed to rent his MDPD radio to Ugardes and Guim so that they could listen to encrypted police communications in an effort to locate accidents before their competitors. Millan’s misconduct resulted in Ugardes and Guim illicitly acquiring more than $5,000 worth of business.
The plot was uncovered through the use of recordings by confidential informants, wire intercepts on Ugardes’s telephone, and the seizure of Millan’s police radio from Ugardes after investigators watched Ugardes pick the radio up from Millan’s residence. In their own separate plea agreements, Ugardes and Guim also admitted paying thousands of dollars of bribes to Millan and another former MDPD employee, Public Service Aide Elina Rodriguez.
Millan, Ugardes, and Guim are scheduled to be sentenced on April 14, 2016, in front of U.S. District Court Judge Darrin P. Gayles. Each defendant faces a maximum sentence of 5 years’ imprisonment and 3 years’ supervised release. The court may also impose a maximum fine of $250,000.
In December 2015, Rodriguez pled guilty to related federal conspiracy charges before U.S. District Court Judge Ursula Ungaro. Rodriguez is scheduled to be sentenced in that case on February 22, 2016.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
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