Southern District of Florida
Press releases recorded for this federal judicial district.
Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced U.S. Attorney Wifredo Ferrer of the Southern District of Florida, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Couple Plead Guilty in Stolen Identity Refund Fraud SchemeRead the Press Release
A Pembroke Pines, Florida, couple pleaded guilty for conspiring to use stolen identities to file fraudulent tax returns with the Internal Revenue Service (IRS), announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Special Agent in Charge Kelly R. Jackson of IRS-Criminal Investigation, Miami Field Office.
According to court documents, between July 2009 and August 2014, Walther Wilson Godfrey, 37; Rhonda Peggy Gittens, 35, and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Gittens owned and operated 2G Inc., a tax return preparation business and G&G Check Cashing Inc., a check cashing business, both of which were located in Pembroke Pines. Godfrey and Gittens obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization and used this information to file false income tax refund claims for 2009 through 2011. Gittens and Godfrey recruited a co-conspirator to obtain Electronic Filing Identification Numbers (EFINs) in his name that would be used to file the fraudulent income tax returns. In addition, Godfrey and Gittens directed Brown to set up companies and bank accounts in his name in order to negotiate the fraudulently obtained income tax refund checks. Godfrey and Gittens filed more than 700 fraudulent tax returns requesting more than $1.9 million in income tax refunds. In addition, Godfrey and Gittens possessed device-making equipment including an identification card printer, a credit card embosser, hologram stickers for driver’s licenses and credit cards and blank credit cards.
Godfrey and Gittens pleaded guilty to one count of a multi-object conspiracy to defraud the United States, commit wire fraud and commit aggravated identity theft, one count of aggravated identity theft and one count of access device fraud. Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge, a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge and a statutory maximum sentence of 15 years in prison and three years of supervised release for the access device fraud charge. Godfrey and Gittens must serve the two year sentence for aggravated identity theft in addition to any sentence the court imposes on the other charges. Each charge also carries a maximum fine of $250,000. The maximum statutory sentences are prescribed by Congress and are provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Ferrer commended special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Greg Tortella of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Coconut Grove Woman Indicted for Selling Counterfeit Merchandise out of her Residence, Bankruptcy Fraud, and Money LaunderingRead the Press Release
A Coconut Grove woman is charged with trafficking in counterfeit merchandise, bankruptcy fraud, and money laundering.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Tatiana F. Tascon, 40, of Coconut Grove, was charged by indictment with three counts of trafficking in counterfeit goods, in violation of Title 18, United States Code, Section 2320(a)(1); two counts of bankruptcy fraud, in violation of Title 18, United States Code, Sections 152(1) and 152(2); and forty-five counts of money laundering, in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i). The defendant had her initial appearance today before the U.S. Magistrate Judge Patrick A. White, in Miami.
As alleged in the indictment and other court documents, the defendant trafficked in counterfeit goods, including high-end designer handbags, wallets and watches, out of a showroom in her Coconut Grove residence. While trafficking in counterfeit goods, the defendant filed for and was ultimately granted Chapter 7 bankruptcy protection. In her bankruptcy filings the defendant failed to report that she had earned over $700,000 from her illicit counterfeit goods business. The defendant laundered the earnings from her illegal business through the bank accounts of third parties.
Mr. Ferrer commended the investigative efforts of ICE-HSI. This case is being prosecuted by Assistant U.S. Attorneys Robert J. Emery, Daya Nathan, and Eloisa Fernandez.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney’s Office for the Southern District of Florida Hosts Community Resilience Forum to Prevent and Combat CrimeRead the Press Release
This afternoon, the U.S. Attorney’s Office for the Southern District of Florida hosted a community resilience forum that enabled members of law enforcement, concerned citizens and dozens of local leaders to discuss the immeasurable importance of citizen and law enforcement collaboration, in order to combat crime.
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, Katherine Fernandez Rundle, Miami-Dade County State Attorney, Ari Sharpira, Assistant Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Juan Perez, Acting Director, Miami-Dade Police Department (MDPD), Rodolfo Llanes, Chief, City of Miami Police Department, and Kareem Shora, Senior Policy Advisor and Chief of Community Engagement, U.S. Department of Homeland Security, made the announcement.
Law enforcement strives to combat internal and external national security threats, violent crime, firearms trafficking, gangs, illegal firearms purchases, gun violence, hate crimes, and acts of intimidation. It is the duty of all law enforcement personnel to protect the community from danger. Community policing is an avenue by which law enforcement can work toward crime prevention and detection. However, law enforcement’s ability to thwart, identify and prosecute these pervasive crimes requires community collaboration. It is imperative that the community report criminal activity to law enforcement, take a stance against violence and illegal gun possession, and protect themselves from potential harm by strengthening the security of their person, residence and places of worship. A community’s resilience depends on the fused forces of our federal, state and local law enforcement partners and the voices of our citizens.
In order to continue this important dialogue and allow for substantive problem solving sessions, the U.S. Attorney’s Office will host future community resilience forums.
Mr. Ferrer commends the collective efforts of the State Attorney’s Office, FBI, ATF, MDPD, City of Miami Police Department, U.S. Department of Homeland Security, concerned citizens, and local leaders to combat criminal conduct and support the resilience of our communities. To learn more about the partnership to combat violence and support community initiatives, please contact (305) 961-9134 or visit [email protected].
Palm Beach County Resident Sentenced to Prison Following Wire Fraud and Criminal Contempt ConvictionsRead the Press Release
A Palm Beach County man was sentenced yesterday to 27 months in federal prison, following his wire fraud and criminal contempt convictions.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Danny Banks, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, of Palm Beach County, was sentenced by United States District Judge Robin L. Rosenberg in Fort Pierce, following his prior plea of guilty to telemarketing wire fraud, in violation of Title 18, United States Code, Section 1343 and contempt of court, in violation of Title 18, United States Code, Section 401(3).
According to statements made in court and documents filed in the case, Ortiz committed online and telemarketing fraud in the form of fraudulent foreign exchange (forex) investment scams, via the internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering returns of 10% per month on forex contracts and currency trades. Ortiz represented that investor funds would be kept in individual investor accounts for his clients, but they were in fact aggregated and commingled. The defendant invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money Ortiz diverted for his own personal use.
To attract investors, Ortiz established internet websites. In July 2008, Ortiz set up “forexisgreatfor.me,” on which he falsely claimed to have over thirty years in forex trading experience, as well as that he was registered with the Securities and Exchange Commission. In October 2009, Ortiz also established the website “forexfuturestrader.com,” again falsely claiming to provide daily updates accessible online for individualized investor accounts, as well as promising 100% returns within 12 months.
Ortiz misappropriated at least $232,000 by, for example, using the funds for personal shopping at retail department stores, travel, resort hotels, restaurants, utility bills, personal credit cards and car payments, and by sending, or having some customers send their funds directly, to Ortiz’s wife and her business, who also did not use those funds for forex trading. Between 2008-2011, Ortiz solicited and accepted investments from clients, placed the monies in accounts he personally controlled, invested some of it in losing forex trades, and used the remainder for personal purchases. Ortiz created false account statements, purporting to show the clients that they were making profits on imaginary forex contracts placed for them by Ortiz. When customers tried to recover all or part of their monies, usually in accordance with withdrawal provisions of a written contract which Ortiz had them sign, they regularly met evasion or delay from Ortiz.
The Commodity Futures Trading Commission (CFTC) investigated Ortiz, and filed a civil enforcement action against him in the Southern District of Florida in February 2011. The CFTC sought Court orders directing rescission of the investment contracts and return to the investors of all their monies. Chief United States District Judge K. Michael Moore signed a permanent injunction against Ortiz on June 30, 2011, directing Ortiz to return the investors’ money and rescind all the investment contracts. The injunction also forbade Ortiz from soliciting or accepting funds from any future investors.
During July and August 2011, Ortiz nonetheless continued to solicit and accept funds from investors. In particular, he met with and took $2,800 from a retired Air Force employee living in Odessa, Texas. Twice in September 2011, Ortiz emailed the investor false account statements purporting to show gains and profits from forex trades. The CFTC filed a motion for civil contempt against Ortiz for his failure to abide by the permanent injunction. On June 4, 2012, Chief Judge Moore held an evidentiary hearing on the civil contempt motion, at which Ortiz appeared pro se. Following the hearing, the CFTC filed a joint proposed agreed order (which the Court approved and entered on June 6, 2012) setting forth a timetable for Ortiz to submit a sworn accounting and repayment of monies, no later than August 6, 2012. On August 6, 2012, Ortiz filed a document with the Court, stating that he had received the $2,800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
Mr. Ferrer commended the investigative efforts of the CFTC, FDLE, FBI, and the Palm Beach County Sheriff’s Office. 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.
Miami Resident Pleads Guilty in Stolen Identity Tax Fraud SchemeRead the Press Release
A Miami resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Ronel Junior Lamour, 25, pled guilty to one count of possession of fifteen or more counterfeit access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2. At sentencing, Lamour faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, in 2013, Lamour used names, dates of birth and Social Security numbers of other people to file 2012 tax returns. As part of the scheme, Lamour set up bank accounts using unauthorized debit cards in the names of the filers and had the refunds wired into the accounts.
Court documents state that Lamour also fraudulently used debit card account numbers, issued to other persons, to purchase United States Postal Service (USPS) money orders. On two separate occasions, Lamour deposited these USPS money orders into a bank account.
Federal law enforcement conducted an electronic search of Lamour’s cell phone pursuant to a warrant. The phone contained copies of passports, driver’s licenses and Social Security cards of over fifty (50) individuals. This information was forwarded to the IRS Scheme Development Center and twenty-five (25) of those individuals were found to have had false 2012 tax returns filed in their names.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Man Indicted for Fraudulently Collecting Murdered Father’s Retirement BenefitsRead the Press Release
A Palm Beach County man is charged with fraudulently using his father’s identity to collect unauthorized Social Security and pension retirement benefits, knowing of his father’s unreported murder.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Sheriff Ric. L. Bradshaw, Palm Beach County Sheriff's Office (PBSO), Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), 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.
Jason Henry Davis, 37, of West Palm Beach, Florida, was charged with eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343; one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a); twelve counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A; and two counts of making a false statement to a government agency, in violation of Title 18, United States Code, Section 1001. The defendant had his initial appearance earlier today, January 20, 2016 before the Honorable United States Magistrate Judge William Matthewman, in West Palm Beach. He is scheduled for a pretrial detention hearing on January 27, 2016.
As alleged in the indictment, on April 18, 2013, the skeletal remains of Henry T. Davis, Jr., the father of defendant Jason Davis, were found in the backyard of the Lantana, Florida residence where Henry Davis had lived with the defendant and his ex-wife, Jason Davis’ mother. The indictment alleges that Jason Davis was present when his father was murdered, as early as 2008, and failed to report his death to the authorities. Jason Davis then assumed his father’s identity in order to collect approximately $1,500 in monthly Social Security and HUD funded pension retirement benefits. The defendant also failed to report his receipt of these funds to the Department of Agriculture in order to fraudulently obtain food assistance benefits. As a result of his fraudulent scheme, the defendant collected approximately $120,000 in federally-funded benefits which he was not personally qualified to receive.
Mr. Ferrer commended the investigative efforts of the Palm Beach County Sheriff’s Office Homicide Unit and Public Assistance Fraud Task Force, SSA-OIG, HUD-OIG, and USDA-OIG. This case is being prosecuted by Assistant U.S. Attorneys Carolyn Bell and Adam McMichael.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A 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 Broward County Residents Pled Guilty for their Involvement in a Stolen Identity Tax Fraud SchemeRead the Press Release
Two Broward County residents pled guilty for their involvement in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Stacy A. Gaines, 39, and Nicaya T. Cooper, 35, both of Tamarac, each pled guilty to one count of mail fraud conspiracy, in violation of Title 18, United States Code, Section 1349. As part of their plea agreements, Gaines and Cooper agreed to restitution in the amounts of $266,866.39 and $284,162.49, respectively. At sentencing, the defendants each face a maximum statutory sentence of twenty years in prison.
According to court documents, Cooper opened two bank accounts and gave Gaines access to those accounts to deposit various fraudulent tax refunds. Gaines also opened a bank account in her name for the purpose of depositing additional fraudulent tax refunds. From February 2010 through May 2013, Gaines mailed 139 fraudulent tax returns to the IRS seeking refunds in the amount of $299,433.88 by utilizing the personal identification information (PII) of various individuals. Gaines and Cooper received approximately $279,866.39 in fraudulent refunds from the IRS based upon the fraudulent returns. The true taxpayers did not give Gaines or Cooper permission to file fraudulent tax returns on their behalf.
Gaines is scheduled to be sentenced on March 22, 2016 at 1:15 p.m. and Cooper is scheduled to be sentenced on March 31, 2016 at 1:15 p.m., both before U.S. District Judge William P. Dimitrouleas.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS South Florida Organized Fraud Task Force (SFOTF), and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Men Sentenced for Armed Robbery and Carjacking SpreeRead the Press Release
Tywan McGee, 24, of Miami, was sentenced yesterday by U.S. District Judge Kathleen M. Williams to 15 years’ imprisonment for his role in an armed robbery and carjacking conspiracy. His co-defendants, Alan Agnew, 22, and Jamal McMillan, 19, both of Miami, were recently sentenced to 25 years’ and 9 years’ imprisonment for their roles in the conspiracy.
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 J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Agnew previously pled guilty to two armed robberies, in violation of Title 18, United States Code, Section 1951(a); three carjackings, in violation of Title 18, United States Code, Section 2119(1); and the use of a firearm during a crime of violence, in violation of Title 18, United States Code, Section 924(c). McGee previously pled guilty to two armed robberies and one carjacking, as well as the use of a firearm during a crime of violence. McMillan previously pled guilty to one armed robbery, one attempted carjacking, and the use of a firearm during a crime of violence.
According to court documents, between August 10, 2014 and September 7, 2014, one or more of the defendants participated in six different armed robberies and carjackings, all of which occurred in the Little River area of Miami. The victims included taxi cab drivers, a fast food delivery driver, and individuals whom the defendants contacted over Facebook.
Mr. Ferrer commended the investigative efforts of ATF and MDPD for their work on this case. The case was prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Benjamin Widlanski.
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.
Health Care Clinic Consultant and Medicare Biller Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, made the announcement.
Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering. Cowan will be sentenced by Judge Bloom on March 25, 2016.
According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals. Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.
Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
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
Health Care Clinic Consultant and Medicare Biller Pleads Guilty in Miami for Role in $63 Million Health Care Fraud SchemeRead the Press Release
A former health care clinic consultant and Medicare biller pleaded guilty today in connection with a $63 million health care fraud and money laundering scheme involving a defunct Miami-area health care provider.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Nery Cowan, 53, of Miami, pleaded guilty before U.S. District Judge Beth Bloom of the Southern District of Florida to one count of conspiracy to commit money laundering. Cowan will be sentenced by Judge Bloom on March 25, 2016.
According to the factual basis, Cowan served as a consultant and Medicare biller for Greater Miami Behavioral Healthcare Center Inc. (Greater Miami), a partial hospitalization program (PHP) that purported to provide intensive treatment for severe mental illness, where Cowan directed the payment of kickbacks to patient brokers and others in exchange for Medicare beneficiary referrals. Cowan admitted that she received a percentage of the Medicare reimbursement from Greater Miami’s PHP as compensation.
Cowan admitted that she, along with co-defendants Dean Butler and Irina Mora, took great lengths to conceal kickback payments to shell companies owned by “patient brokers” who, on behalf of Greater Miami, solicited Medicare beneficiaries from assisted living facilities, halfway houses and drug courts located throughout the Southern District of Florida. Cowan, Butler and Mora disguised these monthly kickbacks as “outreach” or “marketing” payments through HNB-Stell Care Inc., a sham staffing company, she admitted.
According to court documents, from 2006 through 2014, Greater Miami billed Medicare approximately $63 million for purported mental health services.
On Nov. 30, 2015, Judge Bloom sentenced Butler to 16 years in prison and Mora to nine years in prison following their guilty pleas.
The FBI and HHS-OIG investigated this case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division's Fraud Section and the U.S. Attorney's Office for the Southern District of Florida. Assistant Chief Allan J. Medina and Trial Attorneys Elizabeth Young and Kelly Graves of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,000 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Palm Beach County Resident Sentenced to 15 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
Ronnie Razz, a resident of West Palm Beach, was sentenced to 15 years in prison by U.S. District Judge Kenneth Marra, following his guilty plea to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
According to court records, a stolen firearm was recovered after Razz fled from law enforcement in early January 2015. Razz was arrested later that month pursuant to a warrant. During the subsequent search of the residence in which Razz was arrested, law enforcement discovered a second stolen firearm and a controlled substance (“Flakka”). A forensic analysis identified the defendant’s DNA on the firearm and narcotics discovered in the residence. On September 30, 2015, Razz pled guilty to possession of both recovered firearms. Razz, was previously convicted of state felony offenses, including robbery with a weapon, aggravated battery and sale of cocaine within 1000 feet of a place of worship or convenience business.
This case is, in large part, the result of the Project Safe Neighborhood Partnership, launched by the U.S. Attorney’s Office for the Southern District of Florida. Through this Partnership, the U.S. Attorney’s Office and its federal, state 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 youth, provide job training and family services, and help individuals who have completed their federal and state prison sentences to successfully re-enter society.
Mr. Ferrer and Mr. Aronberg commended the investigative efforts of the ATF and PBSO. This case was prosecuted by Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Wellington Man Charged with Credit Card FraudRead the Press Release
A Palm Beach County resident is charged with using unauthorized personal identification information to facilitate a credit card fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Kesner Joaseus, 46, of Wellington, FL, was charged by criminal complaint with aggravated identity theft, access device fraud, and bank fraud, in violation of Title 18, United States Code, Sections 1028A, 1029(a)(2) and 1344 (Case No. 15-CR-8006). If convicted, Joaseus faces up to 30 years in prison and up to $1 million in fines on the bank fraud charge, up to 10 years in prison and $250,000 in fines on the access device fraud charge, and two years in prison on the aggravated identity theft charge, to run consecutively to any other sentence imposed.
According to the criminal complaint, Joaseus used the personal identifiers, including the date of birth and Social Security number, of several victims to fraudulently obtain credit cards and then used the unauthorized cards to purchase merchandise and withdraw cash at various locations in Palm Beach County and elsewhere. The unauthorized merchandise purchases included two Mercedes-Benz automobiles. The total fraud loss resulting from the fraudulent scheme is estimated at over $260,000.
Mr. Ferrer commended the investigative efforts of the USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A complaint is only an accusation and a 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.
Three Palm Beach County Residents Charged in Elaborate Fraud Scheme Involving Rental Property TakeoversRead the Press Release
Three Palm Beach County residents are charged with running a fraudulent rental property scheme that caused the true property owner to sustain financial losses of hundreds of thousands of dollars.
Wifredo A. Ferrer, U.S. 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, Sean Scheller, Chief of Police for the Town of Lantana, Florida, and Delany De-Leon Colon, Inspector in Charge, United States Postal Inspection Service, Miami Division, made the announcement.
Kesner Joaseus, 46, of Wellington, FL, Wadno Dorneau, 36, of West Palm Beach, and Miguel Tilus, 54, of Lake Worth, were charged by criminal complaint for their participation in a fraud scheme from November 2014 through January 2016. The defendants are charged with conspiracy to commit mail fraud, mail fraud, in violation of Title 18, United States Code, Sections 1341 and 1349 (Case No. 16-CR-8005). The defendants each face up to 20 years imprisonment, up to $250,000 in fines and mandatory restitution, on each count of conviction. Detention hearings have been scheduled for each defendant on January 19, 2016 in West Palm Beach.
According to court documents, a legitimate real estate investment trust based in Georgia, RHA 2, LLC, owns dozens of properties in Palm Beach and Broward Counties that it leases out as residential single family homes. This company operates as HavenBrook Homes. From November 2014 through the present, Joaseus, Dorneau and Tilus have conspired to use a similar company name, “RHA Two, LLC,” to illegally take possession of and rent the homes lawfully owned by HavenBrook by assuming the legitimate company’s identity.
In order to facilitate the fraud scheme, the defendants identify and monitor the status of homes being renovated by HavenBrook. When construction is nearing completion, the defendants remove the lockbox from a targeted home and call a locksmith to change the locks. After having the locks changed, sometimes within hours, the defendants place signs in high traffic areas advertising a home for rent and post one of several prepaid cellular telephone numbers.
When individuals seeking to rent a house call the listed numbers, one of the defendants arranges to meet the prospective renter at the property, presents the renter with fraudulent leases with a counterfeit “HavenBrook Homes” logo, and collects thousands of dollars in money orders or cash, purportedly for the security deposit, as well as the first and last month’s rent. In this manner, the defendants collected purported lease payments from dozens of tenants of houses owned by which the defendants had no right to possess.
During the course of the fraud scheme, at least 80 homes owned by HavenBrook Homes were taken over by the defendants, causing the company to sustain approximately $100,000 a month in rental income losses.
Mr. Ferrer commended the investigative efforts of the ICE-HSI, Lantana Police Department, and USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
A complaint is only an accusation and a 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.
Broward County Resident Sentenced to More than 5 Years in Prison for Extensive Identity Theft Tax Refund Fraud SchemeRead the Press Release
A Broward County Resident was sentenced to 63 months in prison, to be followed by five years of supervised release, and was ordered to pay restitution in the amount of $119,080.95 for his participation in an extensive identity theft tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Dezman Dunbar Zama, 34, of Fort Lauderdale, previously pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A.
Co-defendant Brandi Mary Janice Stroman, 30, of Oakland Park, was sentenced on October 14, 2015 to 61 months in prison, to be followed by five years of supervised release, and was ordered to pay restitution in the amount of $119,080.95. Stroman previously pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, one count of aggravated identity theft, and one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1343, 1344, 1349, 1028A, 1341 and 1349.
Co-defendant Jerrod Dashon Bosket, 26, of Orlando, previously pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A. On September 23, 2015, he was sentenced to time served.
According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama and Jerrod Bosket. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.
Court documents also state that a member of the conspiracy obtained the names, Social Security numbers, and bank account numbers of three other individuals. A member of the conspiracy transferred or attempted to transfer $62,000, $92,716, and $135,482.46, respectively, from these three individuals’ bank accounts into a bank account controlled by Stroman or Zama. Stroman and Zama then withdrew or attempted to withdraw the transferred funds. Four fraudulent tax refunds in the name of incarcerated individuals were also deposited into Stroman’s bank account.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
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 County Resident Sentenced to 4 1/2 Years in Prison for Supplying Personal Identifying Information in a Stolen Identity Tax Fraud SchemeRead the Press Release
Bryan Sainte-Rose, 39 of Plantation, Florida, was sentenced to 54 months in prison, to be followed by three years of supervised release for supplying personal identifying information (PII) to other individuals who were involved in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Hernandez, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Sainte-Rose previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Sections 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, law enforcement learned that an Electronic Filing Identification Number (EFIN) was used to file 345 tax returns from January 23, 2014 through February 26, 2014 from an address in North Miami, Florida requesting approximately $1,151,482 in tax refunds. The EFIN was assigned to “L.W.,” who incorporated a business called Lil Mama Tax Services. These tax returns contained numerous indicators of identity theft tax fraud, including repeat addresses, the use of deceased or incarcerated individuals, taxpayers under the age of eighteen, and numerous repeated occupations.
On June 11, 2014, law enforcement executed a search warrant at the address used to file the returns. Inside the premises was an office containing evidence indicative of tax fraud: printers, tax documents, notepads containing lists of personal identifying information or “PII” (including the Social Security numbers of more than 15 individuals), stacks of pre-paid debit cards with account numbers, laminate material used for making false identification cards, and two fraudulent State of Florida driver's licenses. On a sheet of paper was EFIN information used to file income taxes, including taxes filed by Lil Mama Tax Services. Also found at the location was electronic equipment used to access the Internet.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and NMBPD. This case was 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.
President of Miami-Based Transportation Company Convicted in $70 Million Health Care Fraud SchemeRead the Press Release
The president of a Miami-based transportation company was convicted today for his role in a health care fraud scheme involving three mental health centers based in Miami that resulted in the submission of approximately $70 million in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, 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.
Damian Mayol, 43, of Miami, was convicted after trial of one count of conspiracy to pay health care kickbacks.
According to evidence presented at trial, Mayol was the president of Transportation Services Providers Inc., a transportation company based in Miami. The evidence showed that Mayol and his co-conspirators used the company to coordinate the payment of illegal health care kickbacks to recruiters, who in return referred patients to three now-defunct clinics in the Miami area: R&S Community Mental Health Inc. (R&S), St. Theresa Community Mental Health Center Inc. (St. Theresa) and New Day Community Mental Health Center LLC (New Day).
The evidence introduced at trial further established that R&S, St. Theresa and New Day were community mental health centers that purported to provide intensive mental health services to Medicare beneficiaries. On behalf of the recruited beneficiaries, the centers billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients. Patient records, including group therapy session notes, were falsified to support claims for reimbursement from Medicare. Between January 2008 and December 2010, the centers submitted approximately $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims, the evidence showed.
In October 2015, co-defendants Santiago Borges, Erik Alonso and Cristina Alonso pleaded guilty to related charges and were sentenced in December 2015 to prison terms ranging from 28 months to 120 months.
The case was investigated by the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Trial Attorneys A. Brendan Stewart and Timothy Loper of the Criminal Division’s Fraud Section 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.
Four Miami-Dade Residents Indicted for Participation in Fraud SchemesRead the Press Release
Four Miami-Dade residents have been indicted for their participation in various schemes to defraud the United States government.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), Pam Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Linda M. Swacina, District Director, U.S. Citizenship and Immigration Services (USCIS), made the announcement.
Fernando Mendez Villamil, 48, of South Miami, Maritza Exposito, 57, of Miami, Arnaldo Oscar Jimenez, 57, of Hialeah, and Yomara Vila, 45, of Miami were charged in a twenty-one count indictment for their participation in a scheme to defraud Medicare, Medicaid, the United States Social Security Administration (“SSA”), and the United States Citizenship and Immigration Services (“USCIS”). The defendants are charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements with respect to immigration matters, conspiracy to defraud the government with respect to claim, theft of government funds, false statements to SSA, and making false statements with respect to immigration matters.
The indictment alleges that the defendants submitted and caused the submission of false and fraudulent claims to Medicare and Medicaid, made false and fraudulent statements and representations to the SSA regarding the medical treatment and condition of SSA disability benefits applicants and recipients, and made false and fraudulent statements and representations to USCIS regarding the status, medical treatment, and medical condition of applicants for immigration benefits.
The indictment alleges multiple types of fraudulent practices occurred at the Miami-Dade medical office of Fernando Mendez Villamil, a State of Florida licensed psychiatrist authorized to provide health care services to Medicare and Medicaid beneficiaries. The defendants, in exchange for money, offered to aid and aided others to fraudulently apply for and receive SSA disability benefits. Defendant Villamil provided individuals false and fraudulent diagnoses of debilitating psychiatric conditions so that the individuals could fraudulently obtain SSA disability benefits, Medicare and Medicaid benefits.
The indictment also alleges that the defendants submitted or caused the submission of false statements with respect to a material fact in applications and documents required by immigration laws and regulations, which contained false statements with respect to a material fact, namely medical certifications for disability exceptions to the English and or civic requirements to the U.S. Naturalization process.
Mr. Ferrer commended the investigative efforts of the Medicare Fraud Strike Force and participating partners, including HHS-OIG, SSA-OIG, the State of Florida’s Medicaid Fraud Control Unit, ICE-HSI, FBI, and USCIS. The case is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Miami Beach Resident Pleads Guilty for his Participation in a Stolen Identity Tax Fraud SchemeRead the Press Release
A North Miami Beach resident pled guilty for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), 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), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Daiman Williams, 23, 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). At sentencing, Williams faces a maximum statutory sentence of ten years in prison for the access device charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
According to court documents, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop. Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.
On or about August 26, 2014, another state probation compliance check was performed on Williams at his residence. In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle. The vehicle was found in the driveway of Williams’ residence. Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.
The intended loss to the government was $643,205.
Williams is scheduled to be sentenced on March 17, 2016 at 9:30 a.m. before United States District Judge Federico A. Moreno.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Tampa Residents Sentenced in Conspiracy to Import Synthetic Cannabinoids, a/k/a "Spice"Read the Press Release
After a two day hearing, three Tampa residents were sentenced for their participation in a conspiracy to import synthetic cannabinoids, a/k/a “Spice,” to the United States from China, by U.S. District Court Judge Donald M. Middlebrooks in West Palm Beach, Florida.
Wifredo A. Ferrer, U.S. 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, A.D. Wright, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), Miami Field Division, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Saiful Hossain, 28, was sentenced to 120 months incarceration, to be followed by 3 years of supervised release. Hossain was also ordered to forfeit assets totaling over $1.5 million and real property in St. Petersburg, Florida.
Ahmed Yehia Khalifa, 28, was sentenced to 96 months incarceration, to be followed by 3 years of supervised release and Ahmed Maher Elhelw, 25, was sentenced to 36 months incarceration, to be followed by 3 years supervised release. Khalifa and Elhelw were also ordered to forfeit assets totaling $472,780.00.
The defendants previously pled guilty to conspiracy to import a Schedule 1 controlled substance (XLR-11) and conspiracy to manufacture, possess with intent to manufacture and distribute a Schedule 1 controlled substance (XLR-11).
According to court records, U.S. Customs and Border Protection (CBP) Officers in New York identified, searched and detained twelve U.S. Postal Service (USPS) parcels, destined for Indian River and Palm Beach Counties, in the Southern District of Florida. Each of the parcels was shipped from China and contained three kilogram packages of a controlled substance, XLR-11 a chemical used in the manufacture of smokable synthetic cannabinoids (SSC). The parcels were mailed to separate private mailboxes, with defined street addresses, located at mailbox service centers in Indian River and Palm Beach Counties.
The court records further indicate that SSC products, commonly known as “Spice,” are a mixture of an organic “carrier” medium, such as the herb-like substance damiana leaf and/or marshmallow leaf, which is then typically sprayed or mixed with a synthetic cannabinoid chemical compound which mimics the pharmacological effect of the a Schedule I controlled substance, THC. This organic “carrier” is then commonly sprayed with a tobacco flavoring such as strawberry, blueberry, or pineapple, in order to mask the harsh chemical taste upon ingestion. Currently, there are hundreds of synthetic cannabinoid compounds.
Mr. Ferrer commended the investigative efforts of ICE-HSI, DEA, USPIS, U.S. Customs and Border Protection, the Hillsborough County Sheriff’s Office, the Tampa Police Department, and the Indian River County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys Carmen Lineberger and Antonia Barnes.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Sentenced to 16 Years in Prison for his Role in Massive Identity Theft Tax Refund Fraud SchemeRead the Press Release
Lukner Blanc, 33, of Royal Palm Beach, was sentenced to 192 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $733,563 for his role in a massive identity theft tax refund 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), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.
After a ten day trial, Blanc and co-defendant Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 27, of West Palm Beach, were each convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft. Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States. On October 5, 2015, co-conspirator Benoit Placide was sentenced to 120 months in prison, to be followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $742,955.
At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons. While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail. Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 26, of West Palm Beach. Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals. During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide.
During the course of the identity theft fraud scheme investigation federal agents obtained additional warrants to search the computers recovered from Juste’s residence. Forensic examinations of the computers revealed that more than 1,000 fraudulent federal personal income tax returns had been filed using the operating system. The returns were submitted over the internet to the Internal Revenue Service (“IRS”) using TaxHawk.com and TurboTax. Co-conspirators of the fraud scheme opened bank accounts in Florida, in order receive the fraudulently obtained federal income tax refunds.
The co-conspirators attempted to obtain more than $1,200,000 in fraudulent, unauthorized income tax refunds. As a result of the fraudulent scheme, the government was induced to pay out more than $730,000 in unauthorized refunds that were later determined to have been filed by the co-conspirators and not the legitimate taxpayers. The co-conspirators received the fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled. After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
Co-conspirator Jean Juste previously pled guilty to conspiracy, theft of government funds, wire fraud, and aggravated identity theft. On February 17, 2015, Juste was sentenced to 84 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $668,947 for his participation in the conspiracy.
Co-conspirator Shelda Phadael, 29, of Lake Worth, previously pled guilty to conspiracy and theft of government funds. On May 29, 2015, Phadel was sentenced to 18 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $13,327.
Co-Conspirators Marie Claude, 27, of Lantana, and Marie Demesyeux, 31, of Lake Worth, previously pled guilty. On April 16, 2015, both defendants were sentenced to time served.
Co-conspirator Frank Fleuzinord, 30, of Cape Coral, is a fugitive.
Mr. Ferrer commended the investigative efforts of IRS-CI, the United States Marshals Service Regional Fugitive Task Force, and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Martin County Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
A Martin County resident was sentenced to 30 years in prison by United States District Judge Jose E. Martinez for sexually exploiting a child and producing child pornography.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and William D. Snyder, Sheriff, Martin County Sheriff's Office (MCSO), made the announcement.
On April 15, 2015, Eric Leon Gauthier, 54, of Jensen Beach, pled guilty to a single count indictment, which charged him with sexual exploitation of a child and production of child pornography, in violation of Title 18, United States Code, Sections 2251(a), (e). Gauthier was sentenced to the statutory maximum term of incarceration, 360 months in prison. After his release from incarceration, Gauthier will be placed on supervised release for the remainder of his life and was ordered to register as a sex offender.
According to court documents and information disclosed during court proceedings, on October 13, 2014, MCSO detectives received a complaint from a 15 year old male, who reported that Gauthier had encouraged and actively promoted sexual activity between the minor male and a 15 year old female. The promotion included transporting the minors to several locations, under Gauthier’s ownership, in order for them to engage in sexual activity. This complaint ultimately led to the examination of a number of digital devices, which were found to contain images and videos, surreptitiously recorded by Gauthier, without the knowledge of the teenage couple. On November 26, 2014, MCSO detectives and FBI agents executed search warrants at three of Gauthier’s properties, located in Martin and St. Lucie Counties, and discovered a variety of digital devices. One item, a personal computer that was discovered in Gauthier’s warehouse, was found to contain images of the minor couple engaging in sexually explicit conduct.
Mr. Ferrer commended the investigative efforts of the FBI and MCSO. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger.
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.
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 Bank Vice President Sentenced in Connection with Rothstein CaseRead the Press Release
A former bank vice president was sentenced to 30 months in prison, in connection with the Rothstein case.
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 George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Frank Spinosa, 54, of Ft. Lauderdale was sentenced today in Miami by United States District Judge Beth Bloom to 30 months in prison, to be followed by one year of supervised release. On October 8, 2015, Spinosa pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371, in connection with the operation of the former Fort Lauderdale law firm of Rothstein, Rosenfeldt and Adler, P.A. (RRA).
According to court records, including a stipulated statement of facts filed in connection with Spinosa’s guilty plea, in 2009 it was discovered that RRA was being utilized by its Chairman and Chief Executive Officer, Scott W. Rothstein, to commit a massive Ponzi scheme stemming from the sale of fictitious confidential settlements. Spinosa, who, at the time, was a Regional Vice President with TD Bank, admitted that he conspired with Rothstein to induce certain persons into investing money in the confidential settlements through material misstatements by defendant Spinosa. Specifically, Spinosa and Rothstein agreed to utilize the prestige and legitimacy of TD Bank, and Spinosa’s position as Regional Vice President, to give investors in the scheme a false sense of security and induce them into investing in the confidential settlements by fraudulently creating documents that made it appear that certain investment funds were being held in restricted accounts at TD Bank when, in fact, they were not.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
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
Dania Beach Businessman Convicted in Illegal Ivory Trafficking OperationRead the Press Release
A Dania Beach businessman pled guilty to trafficking in elephant ivory.
Wilfredo A. Ferrer, United States Attorney for the Southern District of Florida, Ed Grace, Deputy Assistant Director, U.S. Fish and Wildlife Service (FWS), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Delany E. De Leon-Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), made the announcement.
Raymond J. Reppert, Jr., 54, of Dania Beach, Florida, pled guilty today in U.S. District Court in Miami to knowingly making and causing to be made false records, accounts, labels for, and false identifications of wildlife, that is elephant ivory, by creating and causing to be created documents falsely identifying elephant ivory as resin carvings and wood samples, said elephant ivory having been and intended to be transported in interstate and foreign commerce, in violation of Title 16, United States Code, Sections 3372(d)(2) and 3373(d)(3)(A)(i), and Title 18, United States Code, Section 2. Reppert faces a maximum statutory sentence of 5 years’ imprisonment, up to three years of supervised release and a fine of up to $250,000. The defendant is scheduled to be sentenced in Miami before U.S. District Judge Kathleen M. Williams February 25, 2016.
According to court documents, including a joint factual proffer, Reppert was doing business as Raymie’s Commercial & Residential Moving (Raymies), a packing and shipping company specializing in antiques and located in Dania Beach, Florida,.
On February 14, 2014, U.S. Customs and Border Protection (CBP) officers at the Miami International Mail Facility identified a parcel being exported from the United States, which was referred to the Fish and Wildlife Service for inspection. An FWS Wildlife Inspector determined that the package, being mailed to Guangdong, China, contained elephant ivory. The sender listed a Dania, FL address. The accompanying Customs Declaration and Dispatch Note (Postal Service Form 2976-A) completed by the sender described the contents as “resin carvings” with a declared value of $60. The investigation revealed that the return address was invalid.
A search of a CBP database located over 245 matching records, including shipments from a post office in Pompano Beach, Florida. USPIS inspectors verified that the name and return addresses for those shipments were also false. The investigation revealed that a postal clerk knew the sender as “Raymie,” a regular customer who shipped parcels for other people as part of his business.
On February 20, 2014, CBP detained a second parcel consigned to the address in Guangdong, China. The customs declaration form described the item as a “resin carving” with a declared value of $60, however, FWS personnel identified and photographed the elephant ivory carving found in the parcel. The credit card sales receipt for the parcel was signed by Reppert and video footage captured the defendant dropping off the parcel at the post office.
Thereafter, between March 25 and April 22, 2014, the inter-agency team identified and inspected six additional export shipments originated by Reppert, each consigned to an address in China that was falsely labelled and documented as wood or resin carvings, when in fact they contained undeclared elephant ivory carvings.
Trade in elephant ivory is regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”). CITES is a treaty providing protection to fish, wildlife and plants that are or could become imperiled due to the demands of international markets. CITES has been signed by over 170 countries including the United States. CITES is implemented in the United States through the Endangered Species Act (“ESA”). 16 U.S.C. § 1538(c); 50 C.F.R. §§ 14 and 23. An animal species listed as protected under CITES cannot be exported from the United States without prior notification to, and approval from, U.S. Fish and Wildlife Service. 50 C.F.R. §§ 20.13 and 20.20. Species protected under CITES are listed in a series of appendices (Appendices I, II and III), designating the level of protection afforded each species. Under Appendix II of CITES, a species can be exported from the United States to a foreign country only if, prior to exportation, the exporter possesses a valid CITES export permit issued by the United States. Under Appendix I of CITES, a species can only be exported from the United States if, prior to exportation, the exporter possesses a valid foreign import permit issued by the country of import and a valid export permit issued by the United States. The Asian elephant (Elephas maximus) is a species of elephant native to south-central and southeastern Asia. The Asian elephant is listed on Appendix I of CITES, and was listed as an endangered species in June 1976. 41 Fed. Reg. 24064. The African elephant (Loxodonta africana) is a species of elephant native to eastern and central Africa. The African elephant is listed in Appendix I of CITES, though certain populations of African elephants (specifically those from South Africa, Namibia, Botswana, and Zimbabwe) are listed in Appendix II, accompanied by a special annotation allowing only non-commercial international trade in specimens of those populations. The African elephant was listed as a threatened species under the ESA in May 1978. 43 Fed. Reg. 20504.
Mr. Ferrer commended the investigative efforts of the FWS, ICE-HSI, USPIS and CBP for their assistance with the investigation. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald of the Economic & Environmental Crimes Section.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced to 8 ½ Years in Prison for Identity Theft Fraud Scheme Involving Skimming and Manufacturing Credit Cards and Filing False Tax ReturnsRead the Press Release
A Miami-Dade County resident was sentenced to 102 months in prison, to be followed by 3 years of supervised release, for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards and file false federal income tax returns.
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 J.D. Patterson, Director, Miami Dade Police Department (MDPD), made the announcement.
Christopher M. Mack, 31, previously pled guilty to one count of possession of fifteen or more counterfeit and unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), one count of possession of device making equipment, in violation of Title 18, United States Code, Section 1029(a)(4), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Mack engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of approximately 600 individuals, loose sheets of paper filled with over 1,000 SocialSecurity numbers, and thirteen white envelopes containing approximately $200,000 worth of Western Union money order receipts.
Law enforcement reviewed the contents of the spiral notebooks and discovered numerous handwritten entries detailing the filing of federal tax returns. The IRS confirmed that the entries corresponded to fraudulently filed tax returns submitted to the agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the MDPD. The case is being prosecuted by Assistant U.S. Attorney Matthew J. Langley.
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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Four Defendants Sentenced to Prison for Paying and Accepting Bribes and GratuitiesRead the Press Release
Four defendants have been sentenced to prison terms, by U.S. District Judge Daniel T.K. Hurley in West Palm Beach, for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, was sentenced to 10 years in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. Davidian previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, of Pompano Beach, was sentenced to 40 months in prison, to be followed by three years of supervised release and was ordered to pay $2,789,038.85 in restitution. George Lopez, 35, of Pompano Beach, was sentenced to 54 months in prison, followed by three years of supervised release and was ordered to pay $300,673.42 in restitution. Both defendants previously pled guilty to conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, was sentenced to four months in prison and four months of house arrest, to be followed by three years of supervised release. The defendant previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Co-defendant Alejandro Lomoso, 56, of Southwest Ranches, previously pled guilty to conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371 and is scheduled to be sentenced on January 6, 2016.
According to court records, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
In or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application. Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications. Lopez was an ESS for DCF. His duties included approving or denying requests for Medicaid and Food Stamp benefits. In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF. Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
Roman would then fraudulently approve benefits for applicants who were not otherwise qualified. If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500. As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further indicate that Sanchez and Lomoso worked as claims representatives for the SSA. From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits. In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process. Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG. Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations. The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
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 http://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 http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Return Preparer Sentenced to 4 Year's Imprisonment for Filing False Tax Returns with the IRSRead the Press Release
A tax return preparer was sentenced to 48 months in prison, followed by three years of supervised release for filing a false claim with the Internal Revenue Service (IRS). The defendant was also ordered to pay $7,500.00 in restitution to the IRS and other victims.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, previously pled guilty to one count of filing a false claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed at least seventy-eight separate false 2008 United States income tax return and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming a tax refund of $7,500.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
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.
Martin County Convicted Felons Indicted for Possessing Firearms at Jensen Beach Indoor Firing RangeRead the Press Release
Two Martin County convicted felons have been detained on an indictment, charging them with possessing firearms and ammunition at an indoor firing range in Jensen Beach, Florida.
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, David Dyess, Chief, Stuart Police (SPD), and William D. Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Aldrick James Lott, 30, and John Robert Rucker, Jr., 46, both of Stuart, were charged by indictment with being felons in possession of a firearm on November 7, 2015, in violation of Title 18, United States Code, Section 922(g)(1). In addition, Lott is charged with being a felon in possession of ammunition on December 1, 2015, in violation of Title 18, United States Code, Section 922(g)(1). Lott faces a maximum statutory sentence of 15 years to life imprisonment. Rucker faces a maximum statutory penalty of ten years in prison. A detention hearing was held on December 9, 2015, before Chief U.S. Magistrate Judge Frank J. Lynch, Jr.
According to court records and detention hearing testimony, on November 7, 2015, Lott and Rucker, entered a gun shop and indoor shooting range in Jensen Beach, Florida. During their visit, Lott and Rucker were recorded on video surveillance shooting targets with multiple firearms, including a Glock 30 .45ACP caliber pistol, Smith and Wesson M&P40 .40 caliber pistol, and High-Point 9mm pistol. The Glock and Smith and Wesson pistols were left at the store for cleaning, examined by law enforcement and determined to have been stolen.
On December 1, 2015, federal and local law enforcement agencies executed three search warrants, on residences connected to Lott and Rucker. Law enforcement recovered the High-Point 9mm pistol, a second firearm, and various rounds of ammunition from one home connected to Lott. From a second residence connected to Lott, officers recovered a magazine and ammunition matching the Smith and Wesson M&P40 .40 caliber pistol. From a residence connected to Rucker, officers recovered narcotics.
Mr. Ferrer commended the investigative efforts of ATF, Stuart Police Department, Martin County Sheriff’s Office, Federal Bureau of Investigation, Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
An indictment 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 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.
Nine Charged in $6 Million Dollar Broward Telemarketing Securities Fraud SchemeRead the Press Release
A Miami federal grand jury indicted nine individuals for operating a Broward County telemarketing scheme (“a boiler room”) that targeted investors throughout the country and ultimately defrauded them out of $6.6 million dollars.
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 the Securities and Exchange Commission (SEC), made the announcement.
Thomas A. Guerriero, 39, of Deerfield Beach, Diana P. Lovera (D. Lovera), 32, of Deerfield Beach, Victor Lovera (V. Lovera), 28, of Deerfield Beach, Edward R. Sachs, 56, of Boca Raton, Andrew J. Bourdeaux, 28, of Davie, Joseph Loish, 58, of Pompano Beach, Steven Goldstein, 60, of Sunrise, Steven Sharaf, 63, of Pembroke Pines, and Frank Penaloza, 29, of Pompano Beach, were charged by indictment with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 1349. Additionally, Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, and Goldstein are charged with substantive counts of mail and/or wire fraud, in violation of Title 18, United States Code, Sections 1341 and 1343. Guerriero is also charged with witness tampering and obstruction of justice, during the course of an SEC investigation, in violation of Title 18, United States Code, Sections 1005 and 1512(b)(1).
U.S. Attorney Wifredo A. Ferrer stated, “Securities fraud jeopardizes the financial well-being of our citizens. The U.S. Attorney’s Office and our enforcement partners will continue to identify for prosecution, those individuals who use deception, scare tactics and undue pressure to strip others of their hard-earned financial investments.”
“This case demonstrates our commitment to rooting out fraudsters who bilk millions of dollars from investors every year,” said George L. Piro, Special Agent in Charge, FBI Miami. “Criminals are always devising new methods to defraud unsuspecting investors. Accordingly, we are continuously adapting our investigative techniques in order to hold them accountable for their unscrupulous actions.”
According to allegations contained in the indictment Guerriero, D. Lovera, V. Lovera, Sachs, Bourdeaux, Loish, Goldstein, Sharaf, and Penaloza solicited investors throughout the United States to buy stock shares of Oxford City Football Club, Inc. (“Oxford City”), a Deerfield Beach, Florida corporation that claimed to manage a portfolio involving sports, education, media, and real estate businesses. The defendants sold stock directly from the company in private placement offerings.
The indictment alleges that from July 2013 through July 2015, the defendants conspired to misappropriate investor money for their personal benefit by making false statements, during the course of a telemarketing scheme, regarding the Oxford City stock. According to the indictment, the defendants used high-pressure, strong-armed tactics to intimidate and coerce individuals to invest in Oxford City. Over the course of the scheme, the defendants and their co-conspirators caused over 150 individuals to buy shares of Oxford City restricted stock for approximately $6.6 million.
Today, the SEC announced parallel civil charges against Guerriero and Oxford.
Mr. Ferrer commended the investigative efforts of the FBI and the SEC. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a 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.
Former Cay Clubs Chief Executive Officer Convicted After 5-Week Trial of Multiple Counts of Bank Fraud and Obstruction of the U.S. Securities and Exchange CommissionRead the Press Release
The former Cay Clubs Chief Executive Officer was convicted today after a five week trial.
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 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 fraud scheme involving the sale of vacation rental units involving 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.
U.S. Attorney Wifredo A. Ferrer stated, “We will not stand on the sidelines and allow individuals to defraud investors and financial institutions. As this case demonstrates, the U.S. Attorney’s Office will work with its law enforcement partners to hold those accountable who use deceptive practices to satisfy their personal desires for wealth.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “Today’s conviction is a victory for the victims who were caught up in Mr. Clark’s tangled financial web of lies. The defendant preyed upon trusting investors and then stole their hard earned money. This case is another example of our commitment to pursue individuals who make fraudulent representations with the intent of deceiving others.”
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 properties it had promised to investors and that they remained in a dilapidated condition.
Evidence showed that by at least September 2006, Cay Clubs experienced serious financial difficulties and was unable to meet its commitments. In order to attempt to meet Cay Clubs’ financial obligations and to obtain funds for himself, evidence at trial showed that Clark engaged in a serious of fraudulent 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 on paper units that Cay Clubs had acquired at a lower price, to himself, but at a dramatically higher price, 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, his significant other, 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, including the use of multiple waterfront homes, yachts and aircraft 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 and transcripts presented in court, Clark thereafter engaged in conduct aimed at concealing the location of assets under his control, including by 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 million to a corporate account he controlled in Honduras. After this transfer, U.S. law enforcement and authorities in Honduras were able to obtain 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.
Sentencing in this matter is set for February 25, 2016 before United States District Judge Jose E. Martinez in Key West at the Sidney L. Aronovitz Federal Courthouse.
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
Miami Resident Sentenced to 108 Months in Prison for Defrauding Medicare Part DRead the Press Release
A Miami resident was sentenced by U.S. District Judge Donald M. Middlebrooks to 108 months in prison, to be followed by three years of supervised release and was ordered to pay $20,988,632 in restitution.
Wifredo Ferrer, United States Attorney for the Southern District of Florida, Shimon Richmond, Special Agent in Charge, Health and Human Services, Office of Inspector General (HHS-OIG), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Daniel Suarez, 24, of Miami, previously pled guilty to one count of conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349.
According to the court record, Suarez and his co-conspirators were the owners of eight separate pharmacies that submitted and caused the submission of false and fraudulent claims to Medicare that they provided pharmaceutical drugs pursuant to properly written prescriptions when, in fact, such items were not properly prescribed or actually provided to Medicare beneficiaries. This fraud was accomplished in part by the use of a number of patient recruiters who received kickbacks in return for referring Medicare Part D beneficiaries to the eight separate pharmacies that Suarez controlled. These patient recruiters then purchased the prescriptions for the medically unnecessary pharmaceutical items that the pharmacies billed to Medicare. Suarez placed the pharmacies he controlled in the names of co-conspirator family members. In total, Suarez and his co-conspirators submitted and caused the submission of more than $20 million in false claims to the Medicare Part D program. Suarez used the fraudulently obtained proceeds to benefit himself and his family, including the purchase of luxury automobiles (ie: a Rolls Royce Ghost, Bentley, Range Rover and Mercedes Benz S63 AMG).
Mr. Ferrer commended the investigative efforts of the HHS-OIG and FBI. This case was prosecuted by Assistant United States Attorneys Roger Cruz.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
A Department of Veterans Affairs Nurse Convicted of Falsifying Medical Records and Computer FraudRead the Press Release
A former Department of Veterans Affairs employee pled guilty today to destroying, altering and falsifying records and committing computer fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Monty Stokes, Special Agent in Charge, United States Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division (VA-OIG), Southeast Field Office, made the announcement.
Enrique Martinez, 37, of Miami, pled guilty before United States Magistrate Judge Jonathan Goodman to destruction, alteration, and falsification of records, in violation of Title 18, United States Code, Section 1519, and computer fraud, in violation of Title 18, United States Code, Section 1030. Martinez faces a statutory maximum penalty of up to 20 years in prison.
According to court records and information presented in court, Martinez, a former nurse at the Veterans’ Affairs (VA) Medical Center in Miami, obstructed a federal investigation and caused damage to the computer system of the U. S. Department of Veterans’ Affairs. Martinez falsified the medical records of a 76-year old veteran who was being treated at the medical center and was directly under Martinez’s responsibility. The veteran-patient died while hospitalized at the medical center. Martinez made these changes and alterations in an attempt to avoid responsibility for the poor quality of care he had provided the veteran-patient.
Mr. Ferrer commended the investigative efforts of the VA-OIG’s Office of Investigations and the VA-OIG’s Office of Healthcare Inspections. The case is being prosecuted by Assistant U.S. Attorneys Benjamin Widlanski and Jonathan Kobrinski.
Martinez is set for sentencing before United States District Judge Jose E. Martinez on February 19, 2016 at 2:00 p.m..
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 for Stealing Tax RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 30 months in prison, followed by 3 years of supervised release and was ordered to pay joint and several restitution, in the amount of $891,997.31.
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 Franklin Adderley, Chief, Fort Lauderdale Police Department, made the announcement.
Bobby Cooks, 40, previously pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
According to court documents, between 2011 and 2014, Cooks received three United States Treasury tax refunds totaling $1,428,027 based on fraudulent tax returns filed with the IRS. Specifically, on March 11, 2011, Cooks received a tax refund in the amount of $528,071.33 based on a false 2010 tax return filed in Cooks’ name. The tax return claimed significant gambling winnings from, and tax withheld by, a casino. In fact, Cooks won no such money, no such tax was withheld, and the Form W2-G attached to the tax return showing the purported winnings was fake.
Court documents also state that on November 22, 2013, Cooks received a U.S. Treasury check in the amount of $332,534 based on a fraudulent tax return filed in another individual’s name. Cooks obtained a Florida driver’s license in the name of the individual using a fake Georgia birth certificate, and opened bank accounts in the victim’s name where Cooks then deposited the fraudulent tax refund check. On September 23, 2014, Cooks received another U.S. Treasury check in the amount of $567,422 based on a 2011 fraudulent tax return filed in the name of Cooks’ father, who had the same name as the defendant and who had been deceased since 2008. Cooks deposited the check in a bank account that he set up in his name.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Fort Lauderdale Police Department. This case is being 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.
Man Charged with Assaulting Coast Guard Officers Arraigned in Key WestRead the Press Release
A Monroe County resident is charged with assaulting United States Coast Guard officers.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott A. Buschman, Commander of the United States Coast Guard 7th District, made the announcement.
Daniel Michael Szabo, 40, of Monroe County, Florida, was arraigned yesterday on a federal indictment charging him with assault on United States Coast Guard officers, in violation of Title 18, United States Code, Section 111, and other offenses.
According to court records, on August 21, 2015, Szabo was on his boat, threatening to commit suicide, when United States Coast Guard officers arrived on scene. After Coast Guard personnel attempted to board Szabo’s vessel, the defendant fled and in the process pulled out a handgun and fired approximately six rounds (shots) at the Coast Guard vessel. Following a thirty minute pursuit, Szabo turned his boat towards and struck the Coast Guard vessel, before being apprehended.
Mr. Ferrer commended the efforts of the U.S. Coast Guard. The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
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.
U.S. Attorney’s Office for the Southern District of Florida Collects $146,171,229.47 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
United State Attorney Ferrer announced today that the Southern District of Florida collected $146,171,229.47 in criminal and civil actions in Fiscal Year 2015. Of this amount, $56,256,636 was collected in criminal actions and $89,914,593.47 was collected in civil actions.
Additionally, the Southern District of Florida worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $217,282,980.63 in cases pursued jointly with these offices. Of this amount, $15,169.93 was collected in criminal actions and $217,267,811 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year (FY) ending Sept. 30, 2015. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources and protecting the American people from exploitation and abuse,” said Attorney General Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance program.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal financial, health, safety, civil rights and environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Southern District of Florida, working with partner agencies and divisions, collected $34,109,303 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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.
Certified Public Accountant Sentenced for Using Her Tax Preparation Business to Facilitate an Income Tax Refund Fraud SchemeRead the Press Release
A Certified Public Account (CPA) was sentenced to 78 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $3,684,921.20 for using her tax preparation business to facilitate an income 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.
Pamella B. Watson, 61, of Davie, previously pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343.
According to court documents, Watson operated Watson & Associates Business Services, Inc., a tax preparation business in Miami. Defendant Watson prepared the client’s tax return and provided him/her a copy showing a refund amount and/or an amount payable to the IRS. Without the client’s knowledge or authorization, the figures on the return were changed, and a tax return showing a higher refund amount was filed with the IRS. The client’s bank account received the refund amount reflected on the copy they received from defendant Watson, and the remainder of the tax refund was deposited into an account controlled by Watson. The client did not have any knowledge of the refund falsification and splitting.
Court documents state that Watson prepared approximately 557 U.S. Individual Income Tax Returns (Forms 1040) for tax years 2010 through 2013 for her clients. Approximately 395 (71%) had refunds split into an account controlled by defendant Watson, or the entire refund diverted into Watson’s bank account. From approximately January 2011 through September 2014, defendant Watson deposited $3,405,479.20 of client tax refunds from 183 individual taxpayers into accounts she controlled.
According to court documents, Watson also diverted checks totaling $222,676 into her personal IRS account, and an additional $56,766 in IRS payments from Watson’s clients was applied to an associate’s tax account. These checks were generated by clients who were informed by defendant Watson that they were paying their own tax liability.
Mr. Ferrer commended the investigative efforts of IRS-CI, and thanked the Jamaican Financial Investigations Division for its substantial assistance. The case is being prosecuted by Senior Litigation Counsel Neil Karadbil.
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 Pleads Guilty to Tax Evasion for Diverting Employees’ Wage Payments into her Personal Bank Account and Not Reporting the Money to the IRSRead the Press Release
A payroll administrator pled guilty to tax evasion for diverting employees’ wage payments into bank accounts under her control and failing 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, 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.
Sentencing is scheduled for February 8, 2016 at 3:30 p.m. before U.S. District Judge Joan A. Lenard. McDaniel faces a maximum statutory sentence of five years in prison.
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.
Miami-Dade Resident Sentenced in Identity Theft Fraud SchemeRead the Press Release
A Miami-Dade resident was sentenced to 66 months in prison, followed by 3 years of supervised release for his participation in an identity theft fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Randy Normul Pierre, 29, of Miami, previously pled guilty to one count of possession of device-making equipment, in violation of Title 18, United States Code, Sections 1029(a)(4) and 2, and one count of aggravated identity theft, in violation of Title 18,United States Code, Sections 1028A(a)(1) and 2.
According to court documents, law enforcement agents executed a search warrant at the defendant’s residence. During the search, law enforcement agents found device-making equipment, including State of Florida seal adhesives and card stock, as well as the Social Security numbers of more than fifteen persons. In addition, law enforcement agents found a fake driver's license with Pierre's photograph, but in the name of another individual, and a credit or debit card in the name of the other individual.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced in Connection with Aircraft Parts Ponzi SchemeRead the Press Release
A Miami-Dade County resident was sentenced by United States District Judge Marcia G. Cooke in Miami to 38 months imprisonment, to be followed by 3 years of supervised release, for organizing and engaging in a fraudulent investment scheme in South 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), and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
On August 7, 2015, Anthony Lazaro Saumell, 45, of Doral, was convicted by a jury of seven counts of wire fraud.
According to documents and statements made in court, Saumell organized and engaged in a complex fraudulent investment scheme to defraud investors in South Florida. Saumell deceived victims into investing approximately $3.9 million dollars into his company, Gear Management Corporation. Victims were told their investment would be used to purchase aircraft parts which would then be sold for a profit. Saumell guaranteed victims a ten percent profit within thirty days but subsequently used the incoming investments to pay other investors or on his personal expenses, such as jewelry, dining, alimony, private school and art galleries. By October 2013, Saumell had spent all of the investors' funds and Gear Management Corporation became insolvent. Investors suffered approximately $1 million dollars in losses.
Mr. Ferrer commended the investigative efforts of ICE-HSI and MDPD. The case was prosecuted by Assistant U.S. Attorneys Gera Peoples and AUSA 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.
FastTrain Owner and Admissions Representative Convicted of Federal Student Aid SchemeRead the Press Release
Following a 23-day trial before United States District Court Judge Joan A. Lenard, a jury convicted Alejandro Amor, the owner of a Florida for-profit college called FastTrain, of one count of conspiracy to steal government money and twelve substantive counts of theft of government money. FastTrain admissions representative Anthony Mincey was also convicted of conspiracy to steal government money.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Yessyka Santana, Special Agent in Charge, Department of Education, Office of Inspector General (ED-OIG) and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
According to evidence presented at trial, starting in 2010, FastTrain admissions representatives, acting at the direction of Alejandro Amor, began recruiting potential students in low income neighborhoods in Miami-Dade, Broward, Hillsborough, Pinellas, and Duval Counties, where FastTrain’s seven campuses were located. When admissions representatives encountered potential students who were ineligible for federal student aid because they had not graduated from high school or earned a GED, the admissions representatives enrolled the potential students anyway, and coached them to lie on their applications to the United States Department of Education for federal student aid, including federal Pell Grants and Direct Loans. Often, FastTrain admissions representatives falsely promised the students they could earn their high school diplomas or GEDs at FastTrain and in some cases, FastTrain admissions representatives actually created fictitious high school diplomas on FastTrain computers. Six student witnesses identified Anthony Mincey as the admissions representative who had coached them to lie about their eligibility.
Once the applications for federal student aid had been processed, millions of dollars in Pell Grants and Direct Loans were disbursed to FastTrain bank accounts controlled by Alejandro Amor and his wife. Alejandro Amor used those funds to make payments on, among other things, his waterfront home, airplane, car, and yacht.
According to the testimony and evidence introduced at trial, Alejandro Amor routinely falsified student records, emails, policy memoranda, and reports of internal investigations to hide the actions of his admissions representatives and retain federal student aid on behalf of the ineligible students enrolled at FastTrain. In one instance, Alejandro Amor created a fictitious disciplinary record for an admissions representative who had been caught coaching students to lie about their eligibility, before sending that admissions representative back out onto the streets to continue recruiting.
Alejandro Amor is scheduled to be sentenced by Judge Lenard on February 3, 2016, at 3:00 p.m. Anthony Mincey is scheduled to be sentenced by Judge Lenard on February 3, 2016, at 3:30 p.m.
Mr. Ferrer commended the investigative efforts of ED-OIG and the FBI. The case is being prosecuted by Assistant United States Attorneys Amanda Perwin and Vanessa Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Indicted in Mail Fraud SchemeRead the Press Release
Two foreign nationals charged with orchestrating an international mail fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
On November 19, 2015, Cristian Mariano Pardo, 30, and Jorge Gabriel Barca, 33, both of Buenos Aires, Argentina, were indicted in West Palm Beach on a single count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341 and fifteen counts of mail fraud, in violation of Title 18, United States Code, Sections 1349. The defendants each face up to 20 years’ imprisonment, a $250,000 fine and mandatory restitution, on each charge. Pardo was arraigned this morning on the indictment. Barca has not yet been arrested.
According to the indictment, between September 2008 and September 2015, the defendants operated telemarketing call centers or “boiler rooms,” in Argentina that targeted Spanish-speaking consumers residing in the United States. The defendants obtained the names of these consumers from lead lists which they had purchased in Argentina. The lists included names of consumers who had previously made online or direct mail purchases of various items, including items sold on Spanish language television, such as English classes.
The telemarketers, acting at the direction of the defendants, would call Spanish-speaking U.S. residents to tell them that they would be receiving a small parcel in the mail that the consumers had ordered. The callers would state that if the consumers failed to pay for the cost on delivery (C.O.D.) package – typically a charge of $500 - they would be subject to lawsuits, expensive attorney’s fees and court costs, arrest, deportation, and/or have their credit ruined.
In truth, these consumers had not ordered any merchandise, and only paid the $500 demanded for the C.O.D. because of the numerous threats made by the boiler room callers.
When consumers refused delivery of a package sent by the defendants’ companies, they frequently were contacted again by the Argentinian telemarketers, who often identified themselves as attorneys. The callers again threatened the consumers if they refused to accept the packages.
As a result of these threats, numerous consumers paid an average of $500 for products of nominal value that they in fact had never ordered, fearing the consequences of failing to do so. In order to avoid detection and the filing of consumer complaints, Pardo and Barca changed the names of their companies frequently. During the course of the conspiracy, Pardo and Barca, through their companies, attempted to collect C.O.D. fees from thousands of consumers, and collected at least $700,000 in proceeds from the targeted consumers.
Mr. Ferrer commended the investigative efforts of USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Wellington Man Sentenced to 60 Months for Heroin, Identity Theft and Filing False Tax Return ChargesRead the Press Release
A Wellington resident was sentenced to 60 months in prison for possession with intent to distribute heroin, identity theft and filing false tax return charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), and Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office (PBSO), made the announcement.
Christopher Richard Edwards, 26, of Wellington, was sentenced today by U.S. District Court Judge Kenneth A. Marra to 60 months in prison, to be followed by three years of supervised release. Edwards was also ordered to pay $212,936 in restitution.
According to the Superseding Information and court documents, a search warrant was executed on Edwards’ apartment, during which law enforcement found approximately 159 access device cards in other peoples’ names, three laptop computers, an encoder/decoder, a credit card embosser, a currency counter machine, and several ledgers containing personal identifying information (PII). In addition to the evidence of identity theft and access device fraud, agents also recovered 66 capsules containing heroin, a digital scale, and a plate containing heroin residue.
A forensic examination of Edwards’ computer revealed substantial filings for unemployment benefits, consistent with the unemployment benefit cards found in his apartment. The unemployment claims filed from Edwards’ computer in 2014 totaled $287,360. Law enforcement also determined that Edwards filed 41 federal tax returns containing false information in the names of others claiming a total of $299,240 in false tax refunds.
The total amount of loss attributable to Edwards is $586,600, including the actual payments and intended fraud. Restitution payable for the paid unemployment claims and tax returns totals $212,936.
Mr. Ferrer commended the investigative efforts of USSS, IRS-CI, DOL-OIG, and PBSO. This case is being prosecuted by Assistant U.S. Attorney Lauren E. Jorgensen.
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.
Leader of Little Haiti Based Crack Cocaine Trafficking and Identity Theft Tax Fraud Organization Sentenced to 22 Years’ ImprisonmentRead the Press Release
A leader of a Little Haiti based drug trafficking organization and identity theft tax fraud scheme was sentenced to 22 years’ imprisonment by Senior United States District Judge Donald L. Graham.
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, Carlos A. Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Espere Desmond Pierre, 33, of Miami, previously pled guilty to conspiracy to possess with intent to distribute over two hundred eighty (280) grams of crack cocaine, in violation of Title 21, United States Code, Sections 846 and 841(b)(1)(A); possession with intent to distribute over 28 grams of crack cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B); possession of a firearm in furtherance of a drug-trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A); conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349; and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
The Court sentenced Pierre to be imprisoned for a total term of 264 months (22 years). The Court further ordered that Pierre serve a five year term of supervised release, following his release from custody, and that Pierre pay a special assessment of $500.
According to court documents, Pierre and co-defendant Markentz Blanc, 34, of Miami, conspired as supervisors and directors of a drug-trafficking organization that distributed cocaine base (commonly referred to as “crack” cocaine) through multiple storage and retail distribution locations in the Little Haiti area of Miami-Dade County. Pierre and Blanc also conspired to obtain the personal identifying information (PII), including the names, dates of birth, and Social Security numbers, of various persons. Pierre and Blanc then used the unauthorized information to submit fraudulent tax returns in order to claim income tax refunds to which they were not entitled.
Earlier this year, Blanc and another co-defendant, Willis Maxi, 33, of Miami, were each convicted following a jury trial and sentenced to 300 and 312 months’ imprisonment, respectively. Five additional co-defendants – including Meluin Jermaine Braynen, 21, Wisvelt Voltaire, 33, Alex Bermudez, 26, Sanders Bermudez, 23, and Kervens Lalanne, 25, all of Miami, previously pled guilty and were sentenced to terms of imprisonment ranging from 18 to 188 months.
Through its Violence Reduction 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 in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
Mr. Ferrer thanked FBI, ATF, IRS-CI, the Miami-Dade Police Department, and the City of Miami Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Olivia S. Choe.
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.
61 Defendants Charged in Fraud Schemes Involving Tens of Thousands of Stolen Personal IdentitiesRead the Press Release
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), Miami Field Office, Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, J.D. Patterson, Director, Miami Dade Police Department (MDPD), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, 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 Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Amos Rojas, Jr., United States Marshal, U.S. Marshals Service (USMS), Jesse Panuccio, Executive Director, Florida Department of Economic Opportunity (DEO), Steve Steinberg, Chief, Aventura Police Department, J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), Tony Pustizzi, Chief, Coral Springs Police Department (CSPD), Edward J. Hudak, Jr., Chief, Coral Gables Police Department, Rudy Herbello, Assistant Chief, Golden Beach Police Department, Ray Black, Chief, Miramar Police Department, W. Howard Harrison, Chief, Plantation Police Department, Franklin Adderley, Chief, Fort Lauderdale Police Department, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Dan Guistino, Chief, Pembroke Pines Police Department, announce the filing of federal charges against 61 defendants in 43 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from individuals, businesses and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012. With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Fraud Strike Force.
The cases announced in this takedown demonstrate the pernicious and prevalent nature of identity theft fraud. This fraud permeates every aspect of the public sphere and private industry. The expanded scope of the Identity Theft Fraud Strike Force recognizes the breadth of this problem and demonstrates law enforcement’s ability to tackle the ever evolving identity theft threat. No longer limited to stolen identity tax refund fraud or any type of government benefit fraud, the Strike Force is investigating and prosecuting cases including an intrusion into proprietary government databases, takeovers by identity thieves of accounts as diverse as U.S. Social Security accounts, retail credit card accounts, and bank accounts, and the use of skimmers to steal valuable personal identity information. These cases demonstrate that law enforcement in general and the Strike Force in particular continue to adapt to meet this insidious identity theft threat.
Since the inception of the Strike Force, we have charged 433 defendants, who were responsible for approximately $352 million in intended losses and in excess of $142 million in actual SIRF fraud loss.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, IRS-CI, TIGTA, SSA-OIG, ICE-HSI, FBI, MDPD, USSS, USPIS, DOL-OIG, ATF, USMS, DEO, Aventura Police Department, NMBPD, BSO, CSPD, Coral Gables Police Department, Golden Beach Police Department, Miramar Police Department, Plantation Police Department, Fort Lauderdale Police Department, MPD, and Pembroke Pines Police Department.
United States Attorney Wifredo A. Ferrer stated, “Identity theft continues to plague our community in evolving ways. Identity thieves are now using stolen personal identity information to infiltrate proprietary government databases and accounts of private individuals at banks, retailers and other financial institutions. We remain committed to stopping identity thieves who cost individuals and entities across the public and private sectors billions of dollars. The cost of identity theft cannot be measured in dollars alone, as it further undermines the financial stability of identity theft victims and wreaks havoc on their lives. Our Office thanks the dedicated members of federal, state and local law enforcement who work tirelessly to bring these offenders to justice.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation (IRS-CI), stated, “As a result of today’s coordinated effort, we have charged and arrested individuals who participated in different roles related to stolen identity refund fraud (SIRF) and numerous other identity theft schemes. IRS-CI remains committed to allocating time and resources to investigating those who victimize individuals for their own personal gain. The investigation of egregious return preparers and SIRF cases remain a top priority for IRS-CI.”
“We estimate that criminals steal billions of dollars of IRS tax refunds each year by utilizing various schemes involving stolen identities. This crime victimizes not only the person whose identity has been stolen, but every American taxpayer. Prosecuting individuals for stealing identity information and refunds will continue to be one of our top investigative priorities,” said TIGTA Deputy Inspector General for Investigations Timothy Camus.
“Social Security payments are a lifeline for many Americans who are retired or unable to work due to disability. These indictments are a testament to our serious commitment to pursuing those who would victimize Social Security beneficiaries. Our office is gratified by the U.S. Attorney’s shared commitment to investigate and prosecute this type of fraud, which affects all Americans,” Special Agent in Charge Margaret Moore-Jackson, Social Security Administration, Office of the Inspector General.
“Ranging from tax fraud to immigration fraud violations, ICE-HSI strives to disrupt identity theft on many levels to protect our citizens and financial infrastructure,” said Robert C. Hutchinson, Acting Special Agent in Charge of HSI Miami. “We will continue to utilize our very broad authorities and vast skills to support this important mission with our partner agencies.”
Juan J. Perez, Acting Director, Miami-Dade Police Department, announced that “The investigations and arrests highlighted today are yet another example of how much can be accomplished through strong relationships and collaboration between law enforcement agencies at all levels. The Miami-Dade Police Department remains committed to this spirit of teamwork and to using all tools available in combating the crimes of fraud and identity theft which affect the entire community.”
“The U.S. Mail remains one of the most secure means of transmitting personal information,” said Ronald Verrochio, Inspector in Charge, USPIS, Miami Division. “The Postal Inspection Service is committed to ensuring the nation’s mail system is not exploited by criminals for illicit financial gain.”
“An important part of the DOL-OIG mission is to investigate unemployment insurance fraud, often perpetrated through identity theft. We are committed to continuing to work with our Identity Theft Strike Force partners and the law enforcement agencies in other affected states in an effort to combat this issue,” stated Rafiq Ahmad, Special Agent in Charge of the Atlanta Regional Office of the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations.
Florida Department of Economic Opportunity Executive Director Jesse Panuccio said, “Identity theft and related fraud have reached crisis levels, and the Department of Economic Opportunity has made fighting this fraud a top priority. Over the last two years, we have stopped 135,000 fraudulent claims with a potential value of $558 million. The criminals who attempt this fraud need to understand that they will be caught, arrested, and prosecuted. We are thankful for our partnership with, and the hard work of, the U.S. Department of Labor’s Office of Inspector General and the U.S. Attorney for the Southern District of Florida.”
Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Fraud Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
A. STOLEN DATA
1. United States v. Marvin Ricardo Herard, Case No. 15-20898-CR-Gayles
On November 17, 2015, Marvin Ricardo Herard, 26, of Miami, was charged in a thirteen-count indictment for his participation in an identity theft tax fraud scheme.
According to the allegations contained in the indictment, between October 2011 and July 2015, Herard was involved in a stolen identity refund scheme that used stolen personal identification information to file false federal income tax returns. Herard and his co-conspirators also used stolen personal identification information to access the Internal Revenue Service’s “Get Transcript” service and obtain tax records of their identity theft victims. Herard and his co-conspirators caused the IRS to deposit the fraudulent tax returns onto prepaid debit cards and bank accounts controlled by them, and Herard used a debit card number registered to another person.
Herard was charged with conspiracy to commit wire fraud, wire fraud, aggravated identity theft, possession of fifteen or more unauthorized access devices, and use of unauthorized access devices.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
2. United States v. Arvis Jamar Lawson, Case No. 15-06494-MJ-Valle
On November 17, 2015, Arvis Jamar Lawson, 30, of Broward County, was charged by complaint for his participation in an access device fraud scheme.
According to the allegations contained in the complaint, Lawson possessed and exchanged with co-conspirators numerous individuals’ personal identification information, including names, dates of birth and Social Security numbers. Lawson also possessed personal identification information for an individual who had been the victim of a fraudulent tax return filing.
Mr. Ferrer commended the investigative efforts of TIGTA, IRS-CI, NMBPD and Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
B. ACCOUNT TAKEOVERS
3. United States v. Judel Jean-Charles, Case No. 15-6490-MJ-Valle
On November 16, 2015, Judel Jean-Charles, 24, of Miami, was charged by criminal complaint with using an unauthorized access device to obtain a thing of value aggregating $1,000 or more and aggravated identity theft.
According to the allegations contained in the criminal complaint, on or about July 18, 2015, an anonymous person called the Miramar Police Department to report suspicious activity at an ATM located at a Wells Fargo branch located in Miramar, Florida. An officer from the Miramar Police Department responded to the scene and observed an individual, later identified as Jean-Charles, matching the description provided by the anonymous caller.
While the officer was speaking to Jean-Charles, the defendant dropped something on the ground at the rear of a vehicle. As a second police officer arrived, Jean-Charles fled the scene on foot leading the officers on a chase through the fenced in yards of several homes in the area before he was caught by the officers. A search of Jean-Charles recovered $7,200 in cash from his pocket. The officers also recovered two Visa credit cards in other individuals’ names, one from the defendant’s flight path and the other from the vehicle. The defendant was arrested on state charges.
A subsequent investigation revealed that the two Visa credit cards in other individuals’ names were issued by the same bank (the “Victim Bank”). Investigators made contact with the Victim Bank and learned that the Visa credit cards belonged to individuals living in the State of Ohio. Investigators further learned that both accounts had been compromised by unidentified individuals who called the Victim Bank and (i) ordered replacement cards to be sent to an address in Florida and (ii) changed the PIN numbers on the respective accounts. Further, it appears that the unidentified callers utilized masking software when they called the Victim Bank to make it appear that they were calling from the account holders’ phone numbers on record with the Victim Bank in a process known as “spoofing.” In total, the Victim Bank reported to law enforcement that on July 18, 2015, the two replacement cards recovered by the Miramar Police Department were used to make an ATM withdrawal in the amount of $7,227 from the Wells Fargo branch in Miramar, Florida, and a $6,424 ATM withdrawal from a Wells Fargo Branch in Pembroke Pines, Florida.
Mr. Ferrer commended the investigative efforts of Aventura Police Department, Miramar Police Department and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
4. United States v. Jean Ductan, Case No. 15-200861-CR-Ungaro
On November 5, 2015, Jean Ductan, 34, of Miami, was charged in a five-count indictment for his participation in a debit card fraud scheme.
According to the allegations contained in the indictment, from October 2014 to October 15, 2015, Ductan engaged in a conspiracy to use unauthorized debit cards to obtain something of value aggregating $1,000 or more. Members of the conspiracy ordered replacement pins and debit cards for at least three victims’ accounts and stole the replacement pins and debit cards from the mail at the victims’ addresses. Ductan then used the debit cards to withdraw at least $4,000 from the victims’ accounts at ATMs in Miami-Dade and Broward Counties.
According to additional court documents, on October 15, 2015, law enforcement officers observed Ductan drive up to the mailbox of a residence in Plantation, Florida, sort through the mail, and drive away. During an investigatory stop of the vehicle, officers found two envelopes addressed to that same residence. The envelopes contained debit cards that had been taken without the knowledge and authority of the addressee.
The indictment charges Ductan with conspiracy to use unauthorized debit cards to obtain $1,000 or more, use of unauthorized debit cards to obtain $1,000 or more, aggravated identity theft, and theft of mail.
Mr. Ferrer commended the investigative efforts of the USPIS. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
5. United States v. Nadia Coles, et al., Case No. 15-20827-CR-Gayles
On November 17, 2015, Nadia Coles, 36, Deidra Steed, 27, Brittany Roby, 28, Kevin Bennet, 37, Zakeylia Ward, 23, and Eugene Rodriguez, 21, all of Miami, were charged in a seventeen-count indictment for their participation in a conspiracy to use stolen personal identity information (PII) to take over unauthorized credit card accounts at department stores in South Florida.
According to the allegations contained in the indictment, at least as early as August 2015, the defendants and their co-conspirators would use the stolen PII to call and fraudulently add themselves as authorized users of the victims’ credit card accounts. The defendants would then travel to the department stores and request to purchase large amounts of merchandise using the victims’ credit card accounts. The defendants and their co-conspirators would enter the true customers’ stolen Social Security number into the keypad at the store counter or provide the customers’ PII directly to the cashier in order to complete the purchases.
Mr. Ferrer commended the investigative efforts of the MDPD Economic Crimes Bureau/Organized Fraud Intelligence Squad (OFIS). The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
6. United States v. Frisler Clairvil, Case No. 15-60295-CR-Dimitrouleas/Snow
On November 17, 2015, Frisler Clairvil, 29, of Lauderdale Lakes, was charged in an eight-count indictment for his participation in a conspiracy to use stolen personal identity information (PII) to commit Social Security fraud.
According to the allegations contained in the indictment, at least as early as June 2013, the defendant and his co-conspirators would use the stolen PII to obtain Social Security benefit payments that belonged to Social Security beneficiaries. To accomplish this scheme, Clairvil and his co-conspirators logged onto the Social Security Administration website, “My Social Security,” with the victims’ names, dates of birth, and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Clairvil and his co-conspirators redirected the Social Security benefit payments from the victims to themselves by having the funds deposited into bank accounts which they controlled. To further conceal their criminal activity, Clairvil and his co-conspirators opened these bank accounts using stolen PII of other persons.
From June 2013 to October 2015, Clairvil and his co-conspirators used the stolen PII of over 1,300 victims and stole over $300,000 in Social Security benefits.
Clairvil was charged with conspiracy to use unauthorized access devices, access device fraud, theft of government money, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
7. United States v. Alexander Bernard Harris, Case No. 15-20850-CR-Middlebrooks
On October 30, 2015, Alexander Bernard Harris, 25, of Miami, was charged in a six-count indictment for the theft of Social Security benefits.
According to the allegations contained in the indictment, Harris re-directed the Social Security benefits of other individuals into bank accounts in his own name by stealing the personal identifying information of Social Security beneficiaries.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
8. United States v. Hervens Steven Sanon, Case No. 15-20849-CR-Gayles
On October 30, 2015, Hervens Steven Sanon, 29, of Miami, was charged in a five-count indictment for the theft of Social Security benefits.
According to the allegations contained in the indictment, Sannon stole the Social Security benefits of other individuals and deposited those benefits into his own account.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
9. United States v. Samonique Honer, Case No. 15-03497-MJ-Simonton
On November 18, 2015, Samonique Honer, 26, of Miami, was charged by criminal complaint for her participation in a stolen identity Social Security Administration (SSA) benefit and tax fraud scheme.
According to the allegations contained in the criminal complaint, from approximately February 2014, and continuing through at least October 2014, Honer conspired with others to knowingly and willfully receive for her own use and gain SSA benefit payments and United States Department of Treasury tax refund checks, knowing that the benefit payments and tax refunds had been stolen and converted. Honer and her co-conspirators obtained SSA benefits and tax information belonging to other individuals without their knowledge and authority. They subsequently unjustly enriched themselves by obtaining SSA benefit payments and United States Department of Treasury tax refunds, to which they were not entitled.
According to the complaint, on or about February 25, 2014, Honer incorporated Hooner Financial Accounting Services, LLC (Hooner Financial) a Florida corporation, with its principal place of business in Mimi-Dade County. Honer was listed on corporate documents as the manager and registered agent of Hooner Financial. Bank records indicate that on or about February 28, 2014, Honer opened a Citibank, N.A. bank account in the name of Hooner Financial. One debit card, with a corresponding PIN, was issued in connection with the account. Honer was the only signatory on the bank account. Honer and her co-conspirators designated this bank account for the deposit of the fraudulently obtained SSA payments and federal income tax refunds. Surveillance video captured conspirators withdrawing funds from this account for their own use and benefit.
The criminal complaint charges the defendant with conspiracy to commit an offense against the United States, and theft of government property.
Mr. Ferrer commended the investigative efforts of the SSA-OIG and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
10. United States v. Emelia Chang and Ashley Palmieri, Case No. 15-6492-MJ-Valle
On November 17, 2015, Emelia Chang, 25, of Miami, and Ashley Palmieri, 24, of Miami Gardens, were charged by criminal complaint for their participation in a debit card fraud scheme to order replacement debit cards and personal identification numbers (“pins”) to be sent to victims’ addresses; steal those debit cards and pins from the mail; and use them to withdraw funds from victims’ accounts without authorization.
According to the allegations contained in the criminal complaint, from October 2, 2014 to October 21, 2014, Chang and Palmieri engaged in a conspiracy to use unauthorized debit cards to obtain something of value aggregating $1,000 or more. Members of the conspiracy ordered replacement pins and debit cards for at least two victims’ accounts and stole the replacement pins and debit cards from the mail at the victims’ addresses. Chang then used the debit cards to withdraw at least $5,100 from the victims’ accounts at ATMs in Broward County. On October 21, 2014, law enforcement officers observed Palmieri drive up to a mailbox in Pembroke Pines, Florida, take the mail, and drive away. During an investigatory stop of the vehicle, officers found mail addressed to that same residence, including a letter that appeared to contain a debit card and one that appeared to contain a pin number. In a post-Miranda statement, Palmieri admitted to driving Chang to banks, where Chang made ATM withdrawals.
The complaint charges Chang and Palmieri with conspiracy to use unauthorized debit cards to obtain $1,000 or more.
Mr. Ferrer commended the investigative efforts of USPIS. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
C. SKIMMING CASES
11. United States v. Anthony Nunovero and Edelso Sanchez, Case No. 15-20884-CR-Huck
On November 13, 2015, Anthony Nunovero, 29, and Edelso Sanchez, 53, both of Miami, were charged in an eight-count indictment for their participation in a conspiracy to illicitly install credit card skimmers at gas pumps in South Florida gas stations in order to steal the credit card account information of unsuspecting customers and then making and using counterfeit credit cards with the stolen information.
According to the allegations contained in the indictment, at least as early as August 2015, the defendants and their co-conspirators installed credit card scanning devices which were modified to attach to the credit card readers in area gas pumps so that the scanners would capture the credit card account information of unsuspecting customers. The defendants and their co-conspirators would open the targeted gas pumps, install the credit card scanning device, close the pump and replace the gas pump tamper-proof seal stickers with counterfeit tamper-proof stickers. They would later collect the skimmer and create counterfeit credit cards with the credit card account information that had been taken from unsuspecting customers.
Mr. Ferrer commended the investigative efforts of the MDPD Economic Crimes Bureau/Organized Fraud Intelligence Squad (OFIS). The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
12. United States v. Randy Normul Pierre, Case No. 15-20661-CR-Altonaga
Randy Normul Pierre, 29, of Miami, was charged in a six-count indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendant possessed device-making equipment, including State of Florida seal adhesives and card stock, as well as the Social Security numbers of fifteen or more persons. On September 23, 2015, Pierre pled guilty to identity theft and the unlawful possession of device-making equipment. Pierre is scheduled to be sentenced on November 30, 2015 before U.S. District Court Judge Cecilia M. Altonaga.
Mr. Ferrer commended the investigative efforts of IRS-CI and FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
13. United States v. Marlin Jean, Case No. 15-20870-CR-Moreno
On November 6, 2015, Marlin Jean, 24, of Miami, was charged in a three-count indictment for possessing 15 or more counterfeit credit cards and credit card account numbers, access device-making equipment, and a stolen firearm.
Mr. Ferrer commended the investigative efforts of the USSS and MPD. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
14. United States v. Rolando Aguilar Conde, Case No. 15-20877-CR-Martinez
On January 30, 2015, Rolando Aguilar Conde, 29, of Miami, was charged in a two-count indictment with unauthorized possession of device-making equipment and aggravated identity theft.
According to the allegations contained in the indictment and other court records, on September 22, 2015, law enforcement executed a search warrant at Conde’s residence pursuant to an investigation of identity theft and credit card fraud of other residents, including the defendant’s mother. During the search, law enforcement officers discovered, among other things, a credit card “skimming” device and a credit card embossed with Conde’s name and encoded with a debit account number issued to another person in Conde’s bedroom. In addition, law enforcement discovered 28 other credit cards embossed with Conde’s name and encoded with credit and debit card account numbers issued to other persons. The investigation also revealed that the “skimming” device contained a debit card account number that had been issued to another person.
Mr. Ferrer commended the investigative efforts of the ICE-HSI and the CSPD. The case is being prosecuted by Assistant U.S. Attorney Joshua S. Rothstein.
D. MONEY SERVICE BUSINESSES
15. United States v. Junior Jean Baptiste, Case No. 15-20777-CR-Martinez
On October 1, 2015, Junior Jean Baptiste, 35, of Miami, was charged in a twenty-count indictment for his participation in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained tax refund checks.
According to the allegations contained in the indictment, Baptiste operated a check-cashing store called Surveillance Master LLC in North Miami, Florida from 2010 to 2012. At this store, the defendant cashed fraudulently obtained tax refund checks for a fifty-percent fee and knowingly possessed hundreds of false identification documents corresponding to tax refund checks. Hundreds of the tax refund checks had been issued in the names of deceased persons. In total, the defendant cashed over $10 million in fraudulently obtained tax refund checks. Among other things, Baptiste used proceeds from this fraud scheme to purchase a cargo ship, registered in Palau.
The defendant was charged with possession of five or more false identification documents and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
16. United States v. Gino Denis, Case No. 15-03496-MJ-Simonton
United States v. Sebastien Dumond, Case No. 15-20839-CR-Moreno
On November 18, 2015, Gino Denis, 32, of Miami Lakes, was charged by criminal complaint for his participation in a stolen identity refund fraud scheme involving the cashing of fraudulently obtained tax refund checks. Sebastien Dumond, 25, of Miami, was previously charged in a one-count information for his role in this scheme.
According to the allegations contained in the criminal complaint, Denis operated Tiblanc Multi-Services in Miami, Florida in 2012 and 2013. At this store, Denis cashed approximately $3.8 million in fraudulently obtained tax refund checks. Denis directed the proceeds of this fraud for his own personal benefit by wiring funds to his wife’s account, to his landlord for rent, and to others for cash payments.
According to the complaint, in June 2015, Denis discussed cashing fraudulently obtained tax refund checks, in exchange for a 30% facilitator’s fee. Denis directed co-conspirator Dumond to cash the fraudulently obtained checks with using false identification documents. Dumond cashed approximately $120,000 in fraudulently obtained tax refund checks.
Denis was charged with conspiracy to commit theft of government money, theft of government money, and money laundering. Dumond was charged with conspiracy to commit theft of government money.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, FBI, USSS, Coral Gables Police Department, and Golden Beach Police Department. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
E. EFIN/TAX PREPARATION BUSINESS FRAUD
17. United States v. Johny Wolf Jasmin and Carneisha Patrice Mitchell, Case No. 15-60276-CR-Zloch
Johny Wolf Jasmin, 32, of Boca Raton, and Carneisha Patrice Mitchell, 31, of Miami, were charged in a ten-count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the allegations contained in the indictment, from on or about September 5, 2013, to March 4, 2015, in Hollywood, Florida, the defendants used various Electronic Filing Identification Numbers (“EFIN’s”), to file false and fraudulent federal income tax returns with the Internal Revenue Service (“IRS”) seeking refunds using stolen personal identifying information (“PII”) that was issued to living and deceased individuals. After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments loaded to various pre-paid debit cards in the names of taxpayers whose names and Social Security numbers were used to file false and fraudulent tax returns or issued by check in the names of taxpayers whose names and Social Security numbers were used to file false and fraudulent tax returns. In total, approximately $1.4 million in fraudulent tax refunds were sought from the IRS.
Mr. Ferrer commended the investigative efforts of IRS-CI, FBI and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
18. United States v. Shontavia Monique Williams, Case No. 15-20878-CR-Altonaga
On November 13, 2015, Shontavia Monique Williams, 32, of Miami, was charged by indictment with participating in a fraudulent income tax refund scheme.
According to the allegations contained in the indictment, A-Z Tax Solutions, Inc. (“A-Z Tax”) was a business in Opa-Locka, Florida. Williams was the registered agent and owner of A-Z Tax, a tax preparation business. Williams maintained a bank account, in the name of A-Z Tax. The IRS permitted tax professionals to submit tax returns in the names of other individuals, in accordance with the rules and requirements of the IRS’s e-file program.
From January 17, 2012, through February 13, 2012, Williams filed income tax returns claiming tax refunds in the names of other people, knowing such claims were false, fictitious, and fraudulent. Williams used, without authorization, the Social Security numbers belonging to other individuals, to file the fraudulent claims. The claims totaled approximately $41,504.00. From February 1, 2012 through February 8, 2012, Williams received a total of approximately $33,858 in fraudulent tax refunds via U.S. Treasury electronic funds transfers issued to various payees.
Williams is charged with six counts of filing false, fictitious, and fraudulent individual income tax returns; five counts of theft of government property; and five counts of aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI, City of Miami Police Department and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.
19. United States v. Wolf Obin, Stanley Muscova, and Rosny Muller, Case No. 15-20885-CR-Gayles
On November 13, 2015, Wolf Obin, 32, of Miami-Dade, Stanley Muscova, 28, of Miami-Dade, and Rosny Muller, 29, of Broward County, were charged in an eight-count indictment for their participation in a conspiracy to commit tax fraud using other peoples’ stolen identities.
According to the allegations contained in the indictment, beginning in or around October 2011, Obin, Muscova, and Muller fraudulently obtained Electronic Filing Identification Numbers (“EFINs”) in the names of other individuals who acted as “straw” EFIN holders which allowed the defendants to submit tax returns in the names of other individuals. The defendants then used those EFINs, as well as EFINs in their own names, to file false and fraudulent federal income tax returns using the stolen personal identifying information of other individuals without their knowledge and authority. When law enforcement executed a search warrant on the defendants’ Aventura apartment, they discovered the personal identifying information of more than 1,600 individuals. Through their tax filings, the defendants claimed approximately $2,900,000 and caused the IRS to pay approximately $1,700,000 in illicit federal tax refunds.
Mr. Ferrer commended the investigative efforts of the IRS-CI and Aventura Police Department. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
20. United States v. David Robersant Louis, Case No. 15-6495-MJ-Valle
On November 17, 2015, David Robersant Louis, 36, of Miami, was charged by criminal complaint with possession of 15 or more unauthorized access devices, that is, Social Security numbers issued to other persons.
According to the allegations contained in the criminal complaint, Louis possessed in his computers the personal identifying information (PII) of hundreds of individuals, including their Social Security numbers, dates of birth, and names. This PII was used to file fraudulent tax returns from an IP address linked to Louis, in Miramar, Florida.
Mr. Ferrer commends the efforts of ICE-HSI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
F. STOLEN TREASURY CHECKS
21. United States v. Fidel Rodriguez, Case No. 15-20743-CR-Martinez
On September 24, 2015, Fidel Rodriguez, 56, of Miami, was charged in a one-count information for his involvement in a stolen identity refund fraud scheme and account takeover scheme involving the cashing of fraudulently obtained checks.
According to documents filed in Court, Rodriguez was allegedly part of a conspiracy involving the filing of at least $14 million in fraudulent large-dollar tax refund claims—each ranging from approximately $140,000 to $170,000—in 2014. These fraudulent refund requests were submitted for payment using stolen identity information. Over 100 of these tax refunds were directed for payment to the same address in Hialeah. The defendant is on surveillance video from a local bank depositing two fraudulently obtained tax refund checks—each totaling approximately $160,000—that had been in September and October 2014. Separately, Rodriguez also deposited fraudulently obtained temporary bank checks—one for approximately $195,000 and one for approximately $400,000—using compromised bank account information at a local bank in Miami in December 2014 and January 2015.
Rodriguez was charged with one count of conspiracy to commit theft of government money.
Mr. Ferrer commended the investigative efforts of the Identity Theft Tax Refund Strike Force, with special commendation to IRS-CI, FBI, and ICE-HSI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
22. United States v. Shirley Saint-Louis, Case No. 15-3498-MJ-Simonton
On November 17, 2015, Shirley Saint-Louis, 20, of North Miami, was charged by criminal complaint for her theft of government money.
According to the allegations contained in the criminal complaint, in December 2014, Saint-Louis deposited into her own bank accounts Department of Treasury checks for Social Security benefits and tax refunds that belonged to other individuals and which had been altered so that Saint-Louis’ name and address appeared on the check instead of the intended beneficiaries’ name and address.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant U.S. Attorney Timothy J. Abraham.
23. United States v. Anthony Maycock and Roshea Alexis Reid, Case No. 15-20852-CR-Moore
On November 3, 2015, Anthony Maycock, 57, and Roshea Alexis Reid, 21, both of Miami, were charged in a two-count indictment with conspiracy to commit an offense against the United States and theft of government money.
According to the allegations contained in the indictment, Maycock, Reid, and their co-conspirators obtained and altered a United States Treasury check in the amount of $31,401 and deposited it into a bank account controlled by them.
Mr. Ferrer commended the investigative efforts of TIGTA. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
24. United States v. Shonteaka Moore, Case No. 15-20880-CR-Lenard
On November 13, 2015, Shonteaka Moore, 31, of Miami Gardens, was charged in a four-count indictment with theft of government money and aggravated identity theft.
According to the allegations contained in the indictment, Moore knowingly received, concealed, and retained at least two United States Department of Treasury checks with an aggregate value of more than $1,000. Moore intended to convert these checks for her own personal use and gain, despite knowing they had been stolen. Specifically, on April 26, 2014, Moore deposited a United States Department of Treasury tax refund check issued in the amount of $1,441 into a SunTrust bank account that she controlled. Then, on May 20, 2014, she deposited another United States Department of Treasury tax refund check issued in the amount of $10,000 into the same bank account. Both times, Moore knowingly transferred the money to herself, without lawful authority, by using the names and signatures of the victims.
Mr. Ferrer commended the investigative efforts of the Aventura Police Department and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Anne McNamara.
25. United States v. Jean Daniel Julien, Case No. 15-8610-CR-Brannon
On November 17, 2015, Jean Daniel Julien, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme which occurred in Palm Beach and Broward Counties.
According to the allegations contained in the criminal complaint, Julien received a $56,000 U.S. Treasury refund check in the name of “D.H.” Another individual opened a bank account in D.H.’s name, and the defendant deposited the refund check into this account. Julien then deposited a $55,000 starter check written on the D.H. account into a business account controlled by Julien’s wife. During the next three days, most of the $55,000 was withdrawn from the account.
The complaint charges the defendant with theft of government money and bank fraud.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney William Zloch.
26. United States v. Lori Sue Lotter, Case No. 15-20848-CR-Moreno
On October 30, 2015, Lori Sue Lotter, 41, of Miami, was charged by indictment with theft of a United States Department of Treasury tax refund check.
According to the allegations contained in the indictment, on May 19, 2014, Lotter deposited into her own bank account a Department of Treasury tax refund check that belonged to another individual and which had been altered so that Lotter’s name and address appeared on the check instead of the intended beneficiaries’ name and address.
Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
27. United States v. Johanne Hilaire, Case No.15-20873-CR-Seitz
On November 10, 2015, Johanne Hilaire, 30, of Miami, was charged by indictment with four counts of theft of government money. According to the allegations contained in the indictment, Hilaire retained for her own use and gain over $10,000 of stolen United States Treasury checks.
Mr. Ferrer commended the investigative efforts of TIGTA. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
28. United States v. Darius Terrell Parke, Case No.15-60279-CR-Cohn
On November 10, 2015, Darius Terrell Parke, 19, of Miami, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, Parke fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
29. United States v. Tewon Ieshia Thompson, Case No.15-60280-CR-Zloch
On November 10, 2015, Tewon Ieshia Thompson, 22, of Fort Lauderdale, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, Thompson fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of the IRS-CI, TIGTA and the Fort Lauderdale Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
30. United States v. Bertram Marvin White, Case No.15-60292-CR-Marra
On November 17, 2015, Bertram Marvin White, 30, of Miami, was charged by indictment with fraudulent endorsement of a United States Treasury check, theft of government money, and aggravated identity theft. According to the allegations contained in the indictment, White fraudulently endorsed and cashed a United States Treasury check that belonged to another individual.
Mr. Ferrer commended the investigative efforts of IRS-CI, TIGTA and the Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
G. STOLEN IDENTITY BENEFITS/CREDIT CARD FRAUD
31. United States v. Alexandra Fernandez, Case No. 15-20881-CR-King
On November 13, 2015, Alexandra Fernandez, 25, of Miami, was charged in a three-count indictment with one count of unlawful use of one or more access devices, and two counts of aggravated identity theft.
According to the allegations contained in the indictment, from approximately July 13, 2015, through July 23, 2015, Fernandez knowingly used credit card numbers belonging to another person in order to fraudulently obtain more than $1,000 worth of items. In doing so, on at least two occasions, Fernandez purposely transferred, possessed, and used, without lawful authority, the victim’s means of identification to obtain merchandise.
Mr. Ferrer commended the investigative efforts of the Aventura Police Department and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Anne P. McNamara.
32. United States v. Bechir Delva and Dann Kenny Delva, Case No. 15-60209-CR-Dimitrouleas
Bechir Delva, 24, and Dan Kenny Delva, 27, both of Miramar, were charged in a seven-count indictment for their participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendants conspired to possess debit cards and Social Security numbers issued to other persons and possessed several firearms, including an AR-15 rifle, a SIG 522 rifle and a .380 pistol, to protect the stolen items. The indictment charges the defendants with one count of conspiracy to possess fifteen or more unauthorized access devices, one count of possession of fifteen or more unauthorized access devices, and five counts of aggravated identity theft.
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.
33. United States v. Ricardo Jean Loiseau, Case No. 15-60208-CR-Cohn
Ricardo Jean Loiseau, 27, of Hallandale Beach, was charged in a four-count indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, the defendant possessed debit cards registered to other individuals. The indictment charges the defendant with one count of possession of fifteen or more unauthorized access devices and three counts of aggravated identity theft.
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.
34. United States v. Stacy A. Gaines and Nicaya T. Cooper, Case No. 15-60275-CR- Dimitrouleas
On November 5, 2015, Stacy A. Gaines, 39, and Nicaya T. Cooper, 35 both of Tamarac, were charged by criminal information for their participation in a stolen identity tax fraud scheme.
According to the information, from February 2010, through July 2013, Gaines and Cooper filed, or caused to be filed, fraudulent federal tax returns with the Internal Revenue Service (“IRS”) seeking refunds in the amount of $299,433.88. The IRS refunded approximately $279,866.39 for those fraudulently filed tax returns.
According to the investigation, Cooper opened bank accounts at Regions Bank and gave Gaines access to those accounts to deposit the various fraudulent refunds. Gaines filled out the fraudulent tax returns seeking refunds by hand utilizing the personal identification information (“PII”) from various individuals and mailed them into the IRS for processing. The true taxpayers did not give Gaines or Cooper permission to file fraudulent returns on their behalf.
The defendants are charged with participating in a wire fraud conspiracy.
Mr. Ferrer commended the investigative efforts of IRS-CI, BSO and the USSS South Florida Organized Fraud Task Force (SFOTF). The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
35. United States v.Damian Williams, Case No. 15-20856-CR-Moreno
On November 3, 2015, Daiman Williams, 23, of North Miami Beach, was charged in a four-count indictment for his participation in a stolen identity tax fraud scheme.
According to the allegations contained in the indictment, on or about January 18, 2013, a state probation compliance check was performed on Williams at his residence in North Miami Beach, FL. During the compliance check of Williams’ residence, officers found a Toshiba laptop that contained a list of personal identifying information (PII). A forensic examination of the laptop revealed a series of documents containing over two thousand (2,000) pieces of PII, which included the names, Social Security numbers, and dates of birth for hundreds of school teachers and medical patients. In addition, credit reports, tax returns, and other miscellaneous PII were found in the laptop. Further investigation revealed that several of the individuals identified from the laptop had been victims of identity theft related to the fraudulent filing of their federal income tax returns.
On or about August 26, 2014, another state probation compliance check was performed on Williams’ residence. In connection with the compliance check, law enforcement searched Williams’ phone and found a video of the defendant holding a firearm and then storing the firearm in the trunk of a white Lexus vehicle. The vehicle was found in the driveway of Williams’ residence. Officers opened the trunk of the vehicle and discovered the firearm, ammunition and PII for more than 50 individuals, including names, dates of birth and Social Security numbers of homeowners’ insurance applications and completed income tax forms.
The indictment charges the defendant with possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, DEO, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
36. United States v. Edward Fiol, Case No. 15-20827-CR-Graham
On October 23, 2015, Edward Fiol, 59, of Miami, was charged in a ten count indictment for his participation in a scheme to embezzle money from the Social Security Administration.
According to the allegations contained in the indictment, from January 2011 through December 2013, Fiol embezzled money payable to an individual with the initials "M.F." and improperly converted the money to his own use.
Mr. Ferrer commended the investigative efforts of the SSA-OIG. The case is being prosecuted by Assistant United States Attorney Cary O. Aronovitz.
37. United States v. Quinzella Jjovanna Romer, Case No. 15-06498-MJ-Valle
On November 18, 2015, Quinzella J. Romer, 39, of Miami, was charged by criminal complaint for her participation in possessing over 60 persons names and Social Security numbers that she unlawfully accessed while working at a health insurance company.
According to the allegations contained in the criminal complaint, on April 8, 2014, Romer was issued a traffic citation and law enforcement determined that she had an outstanding warrant for arrest due to petit theft. A pat down was conducted of Romer’s person and law enforcement found a Florida driver’s license in another person’s name in her jacket. After obtaining a search warrant, law enforcement searched Romer's cell phone where they found over 20 pictures of a computer screen containing personal identifying information (PII), names and Social Security numbers of health insurance customers. Upon further investigation, law enforcement determined that at least three of the individuals whose PII was found in Romer’s phone were victims of identity theft in 2013.
The criminal complaint charges Romer with knowingly, and with intent to defraud, possessing fifteen or more unauthorized access devices, that is names and Social Security numbers issued to other persons, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. The case is being prosecuted by Assistant U.S. Attorney Cary O. Aronovitz.
38. United States v. Wilna Joseph and Maraldy Necker Jean, Case No. 15-60277-CR-Zloch
On November 6, 2015, Wilna Joseph, 36, and Maraldy Necker Jean, 39, both of Broward County, were indicted for their involvement in an identity theft conspiracy scheme involving the trafficking in, use, and possession of unauthorized debit card account numbers.
According to the allegations contained in the indictment, between January 20 and 21, 2014, a conspirator filed fraudulent tax returns using the name and Social Security number of other individuals. Then, on February 6, 2014, the defendants drove to a Wells Fargo Bank in Pembroke Pines and Joseph attempted to withdraw cash from the ATM using a debit card encoded with an account number belonging to one of the tax return victims. The defendants then drove to a Citibank, located in Pembroke Pines, where Joseph made four withdrawals, totaling approximately $1,200.00, using a debit card encoded with an account number belonging to another one of the tax return victims.
At the time of their arrest, on February 6, 2014, the defendants had in their possession seventeen unauthorized debit cards, registered in the names of other persons.
The defendants are charged with access device fraud and aggravated identity theft.
Mr. Ferrer commends the efforts of IRS-CI, FBI, and the Pembroke Pines Police Department. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
39. United States v. Reyniel Cabrera Inurrieta, a/k/a “Anthony Smith,” a/k/a “Anthuan Smith,” Case No. 15-CR-20819-Cooke
On November 6, 2015, Reyniel Cabrera Inurrieta, 29, of Miami, was indicted for importing and attempting to possess with the intent to distribute a controlled substance, ethylone (“Molly”), into the United States from China.
According to the allegations contained in the previously filed criminal complaint, on October 21, 2015, Inurrieta attempted to pick up two parcels that had arrived at his P.O. Box in Miami, from China which he expected contained ethylone. At the time of his arrest, Inurrieta also possessed numerous counterfeit credit cards.
Mr. Ferrer commends the efforts of ICE-HSI, USSS, and MDPD. This case is being prosecuted by Assistant U.S. Attorney Jonathan K. Osborne.
40. United States v. Marvin John Janvier, Case No. 15-20851-CR-Gayles
On November 3, 2015, Marvin John Janvier, 22, of Miami, was charged in a nine-count indictment for his participation in an identity theft tax fraud scheme.
According to the allegations contained in the indictment, between January 21, 2015 and April 25, 2015, Janvier caused to be filed over 170 fraudulent federal income tax returns, seeking refunds in excess of $100,000.
Janvier was charged with wire fraud, aggravated identity theft, and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of IRS-CI, USSS, and NMBPD. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
41. United States v. Mike Patrick Guillaume, Case No.15-60288-CR-Bloom
On November 10, 2015, Mike Patrick Guillaume, 31, of Miramar, was charged by indictment for his participation in an identity theft scheme.
According to the allegations contained in the indictment, on or about December 4, 2014, the defendant possessed the Social Security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the debit card account numbers of two individuals.
The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Miramar Police Department and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
42. United States v. Ronel Junior Lamour, Case No.15-20882-CR-Gayles
On November 13, 2015, Ronel Junior Lamour, 25, of Miami, was charged in a 5-count indictment for a scheme to use stolen identities to file unauthorized tax returns, setup bank accounts with debit cards in the names of the tax filers, and then have the refunds wired to those accounts.
According to the allegations contained in the indictment, beginning on or about February 1, 2013, Lamour fraudulently used debit card account numbers issued to other persons to purchase United States Postal Service (USPS) money orders. On August 13, 2014 and January 2, 2014, Lamour deposited these USPS money orders into a bank account.
On March 18, 2014, pursuant to a warrant, federal law enforcement conducted an electronic search of Lamour’s cell phone. The search uncovered personal identifying information (“PII”) - including names, dates of birth, and social security numbers.
The investigation further revealed that Lamour used Social Security numbers issued to other persons to file unauthorized tax returns.
Lamour was charged with conspiracy to commit access device fraud, use of one or more unauthorized access devices, possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and USPIS. The case is being prosecuted by Assistant U.S. Joshua S. Rothstein.
43. United States v. Sean Lyons, Case No. 15-60297-CR-Cohn
On November 17, 2015, Sean Lyons, 29, of Plantation, was charged in a five-count indictment for his participation in a stolen identity tax fraud scheme.
According to the allegations contained in the indictment, on May 28, 2014, Lyons possessed unauthorized prepaid debit cards registered to at least fifteen people. The indictment also alleges that Lyons transferred, possessed, or used the means of identification of four individuals in relation to that offense.
The indictment charges Lyons with possession of fifteen or more unauthorized access devices and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Plantation Police Department. The case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
If convicted of the charged conduct, the defendants face a possible maximum statutory sentence of 10 years in prison for possession of fifteen or more unauthorized access devices; 10 years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtaining anything of value over $1,000; 5 years in prison for theft of mail; 10 years in prison for theft of government money; 5 in prison for conspiracy to commit theft of government money; 5 years in prison for conspiracy to defraud the United States; 20 years in prison for participating in a wire fraud conspiracy; 5 years in prison for conspiracy to pass Treasury checks bearing forged endorsements; and 2 years in prison consecutive to any other term for aggravated identity theft.
A complaint or an indictment 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 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.
Georgia and Florida Residents Plead Guilty in Stolen Mail SchemeRead the Press Release
Two men separately pled guilty to possession of mail that had been stolen from various condominium complexes throughout Broward County, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Anthony Bouquette, 24, of Valdosta, Georgia, pled guilty today to two counts of possession of stolen mail, in violation of Title 18, United States Code, Sections 1708 and 2. James Mathurin, 24, of Fort Lauderdale, pled guilty on October 8, 2015 to two counts of possession of stolen mail, in violation of Title 18, United States Code, Sections 1708 and 2. Bouquette is scheduled to be sentenced on January 28, 2015 at 10:30 a.m. in front of U.S. District Judge William J. Zloch. Mathurin will be sentenced on January 8, 2016 at 9:30 a.m. in front of U.S. District Judge James I. Cohn. At sentencing, both defendants face up to five years imprisonment, three years supervised release, a fine of up to $250,000 and restitution as to each count.
According to information contained in the court records, from February through September 2011, the defendants possessed mail that had been stolen from various apartment complexes in Broward County, including locations in Deerfield Beach, Lauderhill, Sunrise and Wilton Manors. The defendants and other individuals possessed checks that had been made out to businesses and stolen from the condominium complex mail receptacles. The defendants separately deposited the stolen checks into accounts at local banks and were compensated for depositing these checks. The defendants’ unauthorized conduct caused both the check writer and the intended business recipient to sustain a financial loss.
Mr. Ferrer commended the investigative efforts of the USPIS. The case is being prosecuted by Assistant U.S. 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.
Defendant Sentenced for Fraudulent Short Sale of a 10-Acre Residential Property in Southwest RanchesRead the Press Release
A defendant was sentenced to 30 months in prison, followed by three years of supervised release for arranging a fraudulent short sale of a 10-acre residential property in Southwest Ranches, Florida. A restitution hearing is scheduled for January 22, 2015.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Jaime Olaya Marroquin, a/k/a Jaime Olaya, 53, previously pled guilty to one count of bank fraud, in violation of Title 18, United States Code, Section 1344. As part of his plea agreement, Olaya agreed to forfeit the 10-acre property involved in this transaction.
According to court documents, in 2005, Olaya purchased a 10-acre residential property in Southwest Ranches, Florida. In 2008, he quitclaimed ½ of the property to AJZ Investments (AJZ), a company he controlled. To avoid having to continue making payments on the $1.6 million mortgage debt, Olaya submitted a request to the bank for a short sale on the property while intentionally excluding the portion of the property he quitclaimed to AJZ.
Olaya arranged for his family member to make a written offer to purchase the property for $430,000, but he did not inform the bank that the buyer was a family member. The defendant represented to the bank that the buyer would be putting her own money into a cash purchase of the property, but in reality the buyer did not put any money into the purchase. Olaya wired the money to the U.S. from a bank in Colombia after telling the bank that he did not have sufficient assets to pay the original mortgage debt.
The bank approved the short sale of the property for $430,000, and canceled Olaya’s remaining $1.2 million debt and released the mortgages encumbering the entire 10 acres. As a result of the fraud, Olaya was successful in preventing the bank from obtaining the benefit of the approximately $421,000 value of the property that was quitclaimed to AJZ.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI, and the Miami-Dade Police Department. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Man Convicted for Selling Counterfeit CigarettesRead the Press Release
Man pled guilty to trafficking in counterfeit cigarettes before U.S. District Court Judge William P. Dimitrouleas in Fort Lauderdale.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert J. West, Acting Special Agent in Charge, Miami Field Office, and U.S. Food & Drug Administration, Office of Criminal Investigations (FDA/OCI), made the announcement.
On November 13, 2015, Gaurav Joseph Jayaseelan, 25, a citizen of India, pled guilty to selling and dispensing and causing the sale and dispensing of a counterfeit tobacco product, cigarettes, the labeling of which bore the trade name of Newport cigarettes, a tobacco product listed with the FDA under Title 21, United States Code, Section 387(e)(i)(1), in violation of Title 21, United States Code, Sections 331(qq)(3) and 333(a)(2), and Title 18, United States Code, Section 2; and trafficking in 53,740 cartons of cigarettes, while knowingly using a counterfeit mark on and in connection with such cigarettes, the use of which was likely to cause confusion, cause mistake, and deceive. The counterfeit marks were false marks identical to and substantially indistinguishable from the marks of the legitimate manufacturer of Newport brand cigarettes, which were in use by and registered to the manufacturer on the principal register of the U.S. Patent and Trademark Office, in violation of Title 18, United States Code, Sections 2320(a) and 2.
Jayaseelan faces maximum statutory sentence of up to three years in prison, a fine of up to $250,000, and supervised release of up to three years for selling the counterfeit cigarettes. The defendant faces up to ten years in prison, a fine of up to $2,000,000, and a three year term of supervised release, for the trafficking of the cigarette cartons. The defendant is scheduled to be sentenced on January 22, 2016 at 1:15 pm.
According to the court record, including the a jointly filed factual statement, the investigation began in January 28, 2013, when a FDA/OCI undercover agent met with a third-party in Kingston, Jamaica to discuss the sale of counterfeit Marlboro brand cigarettes. Thereafter, negotiating by email, a deal to sell and ship 1,100 “master cases” of counterfeit Marlboro Reds, for a total cost of $377,300.00 was reached. To pursue the deal, agents made an initial a wire transfer in the amount of $133,190 to an account located in Dubai, United Arab Emirates for the purchase of the counterfeit cigarettes.
In August 2013, FDA/OCI undercover agents met with Jayaseelan, who travelled to Miami, FL from Dubai, as a representative of the producer, to discuss the pending sale. During the recorded meeting, Jayaseelan told the agents that he and his father, Joseph Jayaseelan were in the cigarette and alcohol business in the Middle East and India. He also claimed they owned and operated their own tobacco manufacturing plant which could manufacture any tobacco brand.
In December 2013, Jayaseelan sent an email advising they had to temporarily shut down their counterfeit Marlboro plant to avoid detection by law enforcement and offered in the interim to provide counterfeit Newport cigarettes. Subsequently, at Jayaseelan’s request, two cartons of Newport cigarettes to be used as samples for the manufacturing of the counterfeits were provided to an address in India.
In January 2014, an undercover agent was advised by Jayaseelan that the defendant would send 1,030 master cases of Newport cigarettes, for a total value of: $450,625. Later, Jayaseelan by email advised that the counterfeit Newport cigarettes had been shipped on April 7 to Port Everglades, Florida. The shipment was seized in Fort Lauderdale by Customs and Border Protection officers, in coordination with FDA/OCI and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) agents. The counterfeit cigarettes had an estimated United States street value of more than $1 million. Jayaseelan was arrested in August 2015 when he traveled to the United States in order to secure further payment on the counterfeit cigarette deal.
“This case represents our relentless commitment to stopping international rings of counterfeiters from jeopardizing products used by American consumers,” stated U.S. Attorney Ferrer.
"A key part of FDA's mission is to protect consumers from counterfeit products -- including cigarettes -- that the agency regulates," said Robert J. West, Acting Special Agent in Charge, FDA Office of Criminal Investigations' Miami Field Office. "We will continue to focus our efforts and resources on removing harmful counterfeit products from the US marketplace."
Mr. Ferrer commended the investigative efforts of the FDA/OCI, Miami Field Office, U.S. Customs and Border Protection (CBP), Port Everglades Office, ICE-HSI, Fort Lauderdale Office, and Broward Sheriff’s Office (BSO) for their assistance in the development of the case. This matter is being prosecuted by Assistant U.S. Attorney Thomas Watts-FitzGerald.
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 MDPD Police Officer, Former Public Service Aide and two Tow Truck Drivers Arrested in Illegal Bribery and Kickback SchemeRead the Press Release
Four individuals arrested, including former Miami Dade Police Officer, for their participation in illegal bribery and kickback scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), made the announcement.
Former MDPD Police Officer Yuri Millan, 39, Oriel Ugardes, 42, and Jose Guim, 34, are charged by criminal complaint with conspiring and participating in a bribery and kickback scheme, in violation of Title 18, United States Code, Section 371. Another alleged participant in the conspiracy, former MDPD Public Service Aide (PSA) Elina Rodriguez was charged by information on October 27, 2015. If convicted, each defendant faces a maximum statutory sentence of five years imprisonment, up to 3 years supervised release, and a maximum fine of $250,000.
According to the facts alleged in the complaint, Miami-Dade County has a rotational wrecker system, which is a process where certain tow truck companies enter into a contract with the county in return for being placed on a rotational wrecker list. When there is an accident within MDPD jurisdiction, if the driver of the disabled vehicle is not able to secure their own tow truck, the responding MDPD employee is required to contact, via dispatch, the rotational tow truck company with responsibility for that geographical area. In return for that business, the rotational tow truck company pays Miami-Dade County a fee for each referred tow.
In 2013, the FBI Task Force became aware of allegations that Oriel Ugardes, the owner of O&U towing, was paying police department employees bribes in return for their assistance in enabling the defendant and his company trucks to circumvent the MDPD rotational wrecker system. During the resulting investigation, investigators documented that Ugardes and one of his drivers, Jose Guim, would pay bribes to MDPD Officer Yuri Millan and MDPD PSA Elina Rodriguez. In return for cash payments, rather than contact the rotational tow truck company, Millan and Rodriguez would permit O&U tow trucks to tow disabled vehicles directly from accident scenes. Millan and Rodriguez would also use their MDPD computers to access police databases and locate accidents that were “holding,” that is, which were not yet assigned a responding officer. Ugardes and Guim would then use this information to respond to the accident scenes before an officer or PSA arrived and solicit business directly from the stranded driver. Once business was obtained, the disabled vehicles would be towed to body shops which themselves participated in the scheme by paying cash kickbacks based upon the anticipated repair cost of the disabled vehicle.
In addition, by May 2014, the FBI had also become aware that Millan was renting his MDPD police encrypted radio to Ugardes and Guim in return for $300 a week. With that radio, Ugardes and Guim could intercept confidential police communications and identify accident locations. On May 14, 2014, investigators recovered Millan’s assigned MDPD radio from Ugardes’s possession after Ugardes was seen picking the radio up at Millan’s residence. Millan subsequently filed a false police report claiming that he had lost his encrypted radio at an unknown location.
On May 2, 2014, investigators interviewed Rodriguez and she allegedly admitted being paid bribes by Ugardes since 2009. Rodriguez admitted being paid between $100 to $300, per accident. Rodriguez has estimated that she personally received at least $35,000 during the course of the conspiracy.
On June 20, 2014, Millan was interviewed and provided a statement in which he allegedly admitted to taking bribes from Guim. Millan admitted that for the five month period preceding his interview, he accepted $500 to $600 and “borrowed” and additional $2,000 to $3,000 in cash from Jose Guim. Millan also admitted providing Guim and Ugardes his encrypted MDPD radio.
“All public officials, including police officials, cannot take money kickbacks in exchange for performing, or in this case for not performing, their official duties,” stated U.S. Attorney Ferrer. “This case, and our ongoing investigation, makes clear that corrupt activity that affects the people of this community will not be tolerated and will be punished to the fullest extent of the law.”
“Every day, thousands of dedicated, able and honorable law enforcement officers take to the streets to protect communities throughout South Florida,” said George L. Piro, Special Agent in Charge, FBI Miami. “It is on behalf of these professionals that the FBI’s Miami Area Corruption Task Force seeks to root out wrongdoing to ensure that the high standards we expect of our police are met and maintained.”
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Division. To date, the FBI investigation into alleged corruption in the towing industry has resulted in sixteen police department employees and tow truck operators being charged in federal court. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A criminal complaint, information or 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.
Miami-Area Pharmacy Owner Sentenced to 42 Months in Prison for Role in $1.5 Million Medicare Part D Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 42 months in prison for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 48, of Miami, pleaded guilty to one count of health care fraud on Aug. 7, 2015. In addition to imposing the prison sentence, U.S. District Judge James I. Cohn of the Southern District of Florida ordered Esponda to pay $1,583,976 in restitution.
Esponda owned Biomax Pharmacy Inc. According to admissions made in connection with Esponda’s guilty plea, between October 2012 and September 2013, Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. Esponda further admitted that in perpetrating this fraud she and her accomplices used the beneficiaries’ and doctors’ Medicare identification numbers without their consent. During the course of the scheme, Biomax received more than $1.5 million in payments from Medicare Part D, the prescription drug benefit, based on those false claims.
The case was investigated by the FBI and HHS-OIG, and 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. The case was prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
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.
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-Area Pharmacy Owner Sentenced to 42 Months in Prison for Role in $1.5 Million Medicare Part D Fraud SchemeRead the Press Release
A Miami-area pharmacy owner was sentenced today to 42 months in prison for her role in the submission of more than $1.5 million in fraudulent claims to Medicare Part D.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Tamara Esponda, 48, of Miami, pleaded guilty to one count of health care fraud on Aug. 7, 2015. In addition to imposing the prison sentence, U.S. District Judge James I. Cohn of the Southern District of Florida ordered Esponda to pay $1,583,976 in restitution.
Esponda owned Biomax Pharmacy Inc. According to admissions made in connection with Esponda’s guilty plea, between October 2012 and September 2013, Biomax Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. Esponda further admitted that in perpetrating this fraud she and her accomplices used the beneficiaries’ and doctors’ Medicare identification numbers without their consent. During the course of the scheme, Biomax received more than $1.5 million in payments from Medicare Part D, the prescription drug benefit, based on those false claims.
The case was investigated by the FBI and HHS-OIG, and 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. The case was prosecuted by Trial Attorney Timothy P. Loper of the Criminal Division’s Fraud Section.
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.