Southern District of Florida
Press releases recorded for this federal judicial district.
Two Miami Residents Plead Guilty Involvement in Stolen Identity Tax Refund Fraud RingRead the Press Release
Two Miami residents pleaded guilty for their role in a stolen identity tax refund fraud conspiracy, U.S. Attorney Wifredo Ferrer of the Southern District of Florida and Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division announced.
Jim Joseph and Roland Alexis pleaded guilty to one count of a multi-object conspiracy to defraud the Internal Revenue Service (IRS), commit wire fraud and commit aggravated identity theft and one count of aggravated identity theft. Joseph pleaded guilty on Nov. 9 and Alexis pleaded guilty Nov. 5. According to court documents, between 2007 and July 2014, Joseph, Alexis and others conspired to defraud the United States by filing false federal income tax returns using stolen identities. Joseph and Alexis obtained the personal identification information of actual individuals, some deceased, including names, social security numbers, addresses and dates of birth, without the individuals’ authorization. The stolen personal identification information belonged to prisoners and deceased individuals. Joseph, Alexis and others recruited knowing co-conspirators and unknowing victims to put Electronic Filing Identification Numbers (EFINs) in their names through which fraudulent income tax returns would be filed.
In late 2009, Alexis formed Worldwide Income Tax Multi-Services LLC and North Miami Income Tax Services. The companies were created with the intended purpose of filing fraudulent tax returns using stolen identities. Worldwide Income Tax Multi-Services was located in Miramar, Florida, and listed Alexis as President and Joseph as Vice-President. North Miami Income Tax Services was set up in Miami and listed Alexis as Registered Agent. Joseph, Alexis and others then used the stolen identities and EFINs to electronically file more than 860 fraudulent tax returns. Alexis’s conduct resulted in a tax loss of $1.8 million and Joseph’s conduct resulted in a tax loss of $1.2 million.
Both individuals face a statutory maximum sentence of five years in prison and three years of supervised release for the conspiracy charge and a statutory mandatory sentence of two years in prison and one year of supervised release for the aggravated identity theft charge. Joseph and Alexis must serve the two-year sentence for aggravated identity theft in addition to any sentence the court imposes on the conspiracy charge. Both charges carry a statutory maximum fine of $250,000.
U.S. Attorney Ferrer and Acting Assistant Attorney General Ciraolo commended special agents of the IRS-Criminal Investigation and Homeland Security Investigations, who investigated the case, and Assistant U.S. Attorney Neil Karadbil of the Southern District of Florida and Assistant Chief Gregory E. Tortella of the Tax Division, who prosecuted the case.
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.
Husband and Wife Convicted of Tax Fraud SchemeRead the Press Release
Following a six-day trial before United States District Court Chief Judge K. Michael Moore, a jury convicted husband and wife, Raul Sosa and Maura Sosa, of criminal tax offenses arising out of a five-year scheme to defraud the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to evidence presented at trial, starting in 2003, Raul and Maura Sosa owned and operated Accion 1 Auto Sales, Inc., an automobile salvage and recycling business in Hialeah. After purchasing junked and non-functioning cars, the defendants would strip the cars, sell the usable parts and components to businesses in the secondary auto parts market, and then sell the remaining metal as scrap to a local metal recycler. On some occasions, the defendants would resell whole cars, without stripping them.
The defendants’ fraud scheme revolved around their underreporting of Accion 1’s annual sales revenue on the businesses’ federal income tax returns. Through this scheme, Raul and Maura Sosa depressed the net profits reported on the businesses’ returns, the income reported on their individual returns, and their federal income tax owed.
From 2004 through 2008, the Raul and Mara Sosa’s business had sales of over $28.6 million. However, the defendants’ reported only approximately 14% of their sales, or $3.9 million, on the businesses’ federal income tax returns during that period. As a result of the scheme the defendants failed to report at least $4.5 million in net profits from their business and defrauded the Internal Revenue Service out of over $1.6 million in federal income taxes.
Evidence introduced at trial included records and witness testimony indicating that the defendants’ spending in 2008, on automobiles, real estate, jewelry, and credit card payments exceeded the total income reported on their joint individual income tax return by at least $900,000.
The defendants are scheduled to be sentenced by Chief Judge Moore on February 3, 2016, at 2:00 pm.
Mr. Ferrer commended the investigative efforts of the IRS. The case is being prosecuted by Assistant United States Attorneys Michael Davis and John 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
Two Individuals Sentenced for Endorsing and Cashing Stolen and Fraudulently Obtained United States Treasury ChecksRead the Press Release
Two individuals from the Southern District of Florida were sentenced for endorsing and cashing stolen and fraudulently obtained United States Treasury checks.
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.
Pete Hoggins, 32, was sentenced to 61 months in prison, followed by three years of supervised release. Hani Sobhi Alshaikh, a/k/a “Danny”, 35, was sentenced to 11 months in prison, followed by three years of supervised release. The defendants were also ordered to pay joint and several restitution in the amount of $150,008.05. Hoggins and Alshaikh previously pled guilty to one count of conspiracy to commit forgery and theft of public money, in violation of Title 18, United States Code, Section 371. Hoggins also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Alshaikh worked at a gas station in Pompano Beach, Florida. On multiple occasions from December 2011 to January 2014, Hoggins brought Alshaikh stolen and fraudulently obtained Treasury checks to cash at this gas station. Hoggins and Alshaikh forged the payees’ endorsements on the Treasury checks. Alshaikh then deposited those checks into several different business checking accounts that he had opened at various banks in the name of his company, HSA Investment Group.
The total number of victims in the scheme was more than 50, but less than 250. The total amount of intended loss was more than $200,000 but less than $250,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This 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.
Medical Director and Three Therapists Sentenced for Their Roles in $63 Million Miami Health Care Fraud SchemeRead the Press Release
A former medical director and three therapists from defunct health provider Health Care Solutions Network Inc. (HCSN) were sentenced today in Miami for their roles in a scheme to fraudulently bill Medicare and Florida Medicaid more than $63 million.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, 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 (HHS-OIG) Miami Regional Office made the announcement.
Roger Rousseau, 73, of Miami, the former medical director of HCSN in Florida, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida to 192 months in prison. Therapist Liliana Marks, 49, of Homestead, Florida, was sentenced to 72 months in prison. Therapists Doris Crabtree, 63, of Miami, Angela Salafia, 68, of Miami Beach, Florida, were each sentenced to 60 months in prison. In addition to their terms of imprisonment, each defendant was sentenced to three years of supervised release. Restitution will be determined at a hearing on Jan. 15, 2016.
On Aug. 24, 2015, following a two-week trial, the jury convicted all four defendants of conspiracy to commit health care fraud. Rousseau was additionally convicted of two counts of health care fraud. In total, 22 defendants have been charged and convicted for their roles in the HCSN scheme, including the former owner of HCSN, Armando “Manny” Gonzalez.
According to evidence presented at trial, HCSN purported to provide intensive mental health services to Medicare and Medicaid beneficiaries in Miami and Hendersonville, North Carolina, from approximately 2004 through 2011. These services were not medically necessary and were often never even provided. HCSN paid kickbacks to assisted living facility owners and operators in Miami who, in exchange, referred beneficiaries to HCSN. In support of this scheme, Rousseau routinely signed what he knew to be fabricated and altered medical records. Crabtree, Salafia and Marks fabricated HCSN medical records to support false and fraudulent claims for partial hospitalization program services that were not medically necessary and often never provided. In total, HCSN submitted approximately $63.7 million in false and fraudulent claims to Medicare, and received payments totaling approximately $28 million on those claims.
This case was prosecuted by Trial Attorneys Allan J. Medina, Lisa H. Miller and Bryan D. Fields of the Criminal Division’s Fraud Section. 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.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Kendall Man Charged with Possessing Unregistered Destructive DeviceRead the Press Release
A Kendall man unlawfully possessed the components of four pipe bombs, in violation of the National Firearms Act.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), J.D. Patterson, Director, Miami Dade Police Department (MDPD), David Downey, Fire Chief, Miami-Dade Fire Rescue Department, and Joseph Steadman, Chief, State of Florida – Fire Marshal’s Office, made the announcement.
Jonathan Cristian Dittemore, 24, of Miami-Dade, was charged, by complaint, with possessing a National Firearm Act (NFA) firearm not registered to him in the National Firearm Registration and Transfer Record, in violation of Title 26, United States Code, Section 5861(d). If convicted Dittemore faces a statutory maximum penalty of 10 years in prison. This afternoon, Dittemore had his initial appearance before U.S. Magistrate Judge Barry L. Garber.
According to court documents, on October 23, 2015, a Miami-Dade County sanitation vehicle exploded in the area of 10620 SW 129th Court in Miami, Florida. An investigation into the explosion led law enforcement to Dittemore’s former residence. Inside Dittemore’s residence, including a bedroom allegedly used by the defendant, law enforcement discovered various explosive powders and components to construct destructive devices (pipe bombs). According to a record query, Dittemore possessed the components of the destructive devices in contravention of the requirements of the National Firearms Act.
Mr. Ferrer commended the investigative efforts of the ATF, MDPD Arson and Bomb Disposal Units, Miami-Dade Fire Rescue Department and the State of Florida – Fire Marshal’s Office. The case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Staff Mentor at Florida Keys Children’s Shelter Convicted of Child Sex TraffickingRead the Press Release
A former staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier, Florida, was convicted today of child sex trafficking, following a three-week jury trial before United States District Court Judge Marcia G. Cooke.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ricky Jermaine Atkins, 29, of Key Largo, was found guilty of one count of conspiracy to engage in the sex trafficking of minors, in violation of Title 18, United States Code, Section 1594(c), and two counts of sex trafficking of minors, in violation of Title 18, United States Code, Section 1591(a)(1). Atkins is scheduled to be sentenced on January 27, 2016.
Atkins’ co-defendant, Sandra Simon, 24, of Homestead, previously pled guilty to one count of sex trafficking of a minor, in violation of Title 18, United States Code, Section 1591. Simon’s sentencing is scheduled for November 20, 2015.
According to evidence presented at trial, since 2011, Atkins worked overnight shifts as a staff mentor at the Florida Keys Children’s Shelter, a residential facility in Tavernier. While working as a staff mentor, Atkins arranged for two of the minor shelter residents, girls aged fifteen and sixteen, to be brought from Tavernier to a hotel in Cutler Bay, where Simon supervised their prostitution. On the night of August 15, 2014, Atkins personally transported the minor victims from Tavernier to an apartment in Homestead where he introduced the teenagers to several of his adult associates. Atkins arranged for one of the minors to have sex with three of the adults to prepare her for prostitution. Atkins then transported both minor victims to Cutler Bay, where he left them with Simon to be sold for sex. Text messages between Simon and Atkins revealed that, on the same day that the victims were trafficked, Simon had pled guilty in state court to procuring a minor for prostitution and had been sentenced to probation.
Evidence presented at trial further established that Atkins collected money earned from the minor victims’ acts of prostitution. Atkins also delivered to Simon a cellular phone and other items intended to facilitate the prostitution of the minor victims.
During the trial, testimony was presented that Atkins simultaneously prostituted an 18-year-old woman he had met while she was a minor child living at the shelter.
Atkins was originally arrested by state authorities in Monroe County on September 9, 2014, and charged with interference with the custody of a minor, before being released on bond. On December 9, 2014, a federal grand jury indicted Atkins on federal trafficking charges.
Mr. Ferrer thanked the FBI, City of Miami Police Department, Monroe County Sherriff’s Office, Sunny Isles Beach Police Department, North Port Police Department and Miami-Dade Police Department for their work on this case. The case is being prosecuted by Assistant U.S. Attorneys Seth M. Schlessinger and Elina A. Rubin-Smith.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Attorney’s Office for the SDFL Hosts Collaborative Symposium to Prevent and Combat Cyber CrimeRead the Press Release
Yesterday, the U.S. Attorney’s Office for the Southern District of Florida hosted a symposium to combat cyber crimes with participation from high ranking officials with the Federal Bureau of Investigation and U.S. Secret Service, as well as approximately eighty representatives from some of the district’s largest companies, hospitals and academic institutions.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Cyber crimes continue to evolve and pose a significant threat to our nation and the privacy and economic security of American consumers and businesses. In order to derail and block cyber intrusions, it is imperative that businesses, companies and institutions report any suspected breach of a network system, identify and notify victims, minimize the impact of the intrusion and work with law enforcement to prevent and combat cybersecurity threats. The mission of law enforcement is to thwart cyber attacks, protect trade secrets, safeguard valuable data and prosecute those who seek to steal from and cripple corporations, medical facilities and academic institutions. Federal law enforcement agencies have joined forces with private entities to protect business ventures and the countless consumers, students and patients who benefit from the services offered by our nation’s industry and business leaders.
“The virtual theft of personal consumer data and other valuable business information is a threat to companies of all shapes and sizes,” stated U. S. Attorney Ferrer. “By bringing together the business and law enforcement communities, we intend to foster our mutual and compelling interest in developing comprehensive and collaborative strategies to prevent and combat cyber attacks. It is our hope that companies and businesses report intrusions and other types of cyber attacks to law enforcement so that we can continue to protect individual citizens and companies that are too often victimized by cybercrime.”
“Cyber is a vector of attack that touches every FBI program and is a means by which criminals of all sorts accomplish their aims. Through similar meetings we hope to build the kind of public and private partnerships to one day predict and prevent cyber attacks, rather than reacting after the fact,” said FBI SSA Jason Manar.
Mr. Ferrer commended the collective efforts of the FBI, USSS, corporations, businesses, hospitals and academic institutions to combat cyber crimes. To report a cybercrime or cybersecurity threat, please visit www.ic3.gov or contact the USSS at (305) 863-5000. To learn more about how to protect your business and consumers from cyber threats, visit www.us-cert.gov.
Owner of Unlicensed Money Transmitter Business Sentenced for Failing to File Currency Transaction Reports and Illegally Sending Money to CubaRead the Press Release
An owner of an unlicensed money transmitter business was sentenced to 30 months in prison, followed by two years of supervised release for failing to file Currency Transaction Reports and illegally sending money to Cuba. The defendant also agreed to forfeit $480,622 in United States currency representing the funds seized in connection with the offense.
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), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), made the announcement.
Karell Cordero, 40, of Hialeah, previously pled guilty to one count of operating an unlicensed money transmitter business, in violation of Title 18, United States Code, Section 1960.
According to court documents, between June 2012 and May 2014, Cordero owned and operated K & Y Multiservices in Hialeah, Florida, where he received euros and exchanged them for U.S. dollars. These transactions often involved sums of tens of thousands of dollars, but Cordero did not submit Currency Transaction Reports (CTRs) or other forms or reports that must be submitted to the Treasury Department. On occasion, Cordero conducted these transactions to exchange money knowing it was derived from unlawful activity. Law enforcement officers monitored two separate meetings where Cordero exchanged 240,000 euros for $326,900 in U.S. currency. Cordero was told that the money was from Mexico and came from drug dealers. Cordero did not file a CTR or any other required report on either occasion.
Another aspect of Cordero's business involved collecting money from various persons in the United States who wanted to send it to persons in Cuba. He used many of the euros he obtained from his money exchange business for this purpose. Cordero used a variety of means to transmit money to the persons for whom it was intended in Cuba, while collecting a fee for his services. Cordero knew that he was prohibited under U .S. law from sending currency from the United States to Cuba.
Cordero handled approximately $800,000 in foreign currency exchanges and transmissions of money to Cuba without filing CTRs or otherwise reporting the money to any governmental regulatory or law enforcement agencies as required by law. In addition, Cordero and his company were not licensed as a money transmitter, money service business, or foreign currency exchange.
Mr. Ferrer commended the investigative efforts of ICE-HSI, IRS-CI, and the DEA. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Six Defendants Sentenced for $4.7 Million Check Cashing and Identity Theft SchemeRead the Press Release
Six defendants have been sentenced to prison terms for their participation in a $4.7 million check cashing and identity theft scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
Stanley Presendieu, 33, of Lake Worth, Latasha Pharr, 29, of Davie, Scarlee Valias Jean, 25, of Smyrna, Georgia, Brian Deronceler, 32, of West Palm Beach, and Jason Miles, 34, of Plantation, were indicted in case number 15-20032-CR-GAYLES and charged with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Section 1349, bank fraud, in violation of Title 18, United States Code, Section 1344, and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. Husein Habib, 58, of Parkland, was charged by information in case number 15-20238-CR-GAYLES. Habib, Presendieu, Valias Jean, and Miles pled guilty to bank fraud conspiracy and aggravated identity theft. Following a jury trial, Deronceler and Pharr were convicted of all counts charged in the indictment.
On various dates, beginning on October 7, 2015, the defendants were sentenced for their participation in the fraudulent check cashing and identity theft scheme. Presendieu was sentenced to 212 months’ incarceration; Pharr was sentenced to 259 months’ incarceration; Valias Jean was sentenced to 51 months’ incarceration; Deronceler was sentenced to 183 months’ incarceration; Miles was sentenced to 145 months’ incarceration; and Habib was sentenced to 72 months’ incarceration.
According to the court record, Presendieu, Pharr, Jean, Deronceler and Miles used stolen personal identification information to make fraudulent claims on falsified tax returns. As a result of the unauthorized claims, the defendants fraudulently procured and cashed tax refund checks. The defendants also obtained stolen United States Treasury checks that had been issued for tax refunds, veterans’ benefits, and disability payments. Between March 2010 and late 2014, each of the defendants brought the illegally acquired checks and counterfeited identification documents to an accomplice, Habib, who operated a Boca Raton Kwik Stop convenience store that offered illicit check cashing services.
Evidence introduced at trial included undercover recordings of the conspirators presenting stolen and fraudulent checks, discussing the selection of identities they would use for the counterfeit identification cards and examining the quality of the falsified documentation that they produced for use in the check cashing scheme. The defendants and other individuals would use the stolen identities of victims throughout South Florida, including individuals in Miami-Dade, Broward, and Palm Beach counties along with others residing outside of the Southern District of Florida, and impersonate the taxpayers on fraudulent tax returns. The offenders would then have the refunds sent to an unauthorized address or transmitted to their illicit tax preparation companies. On other occasions, the conspirators arranged to cash the refunds and other benefit checks that were stolen from the U.S. mail. As a result of the fraudulent scheme, in excess of $4.7 million in stolen and fraudulent checks were cashed through the Boca Raton convenience store. Disabled individuals and other victims were deprived of much needed funds, college financial aid benefits were compromised, and one individual was temporarily forced to relocate to a homeless shelter.
Mr. Ferrer commended the investigative efforts of the FBI. This case was prosecuted by Assistant U.S. Attorney Karen Rochlin.
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.
Nearly 500 Hospitals Pay United States More Than $250 Million to Resolve False Claims Act Allegations Related to Implantation of Cardiac DevicesRead the Press Release
The Department of Justice has reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements, the Department of Justice announced today.
“The settlements announced today demonstrate the Department of Justice’s commitment to protect Medicare dollars and federal health benefits,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Guided by a panel of leading cardiologists and the review of thousands of patients’ charts, the extensive investigation behind the settlements was heavily influenced by evidence-based medicine. In terms of the number of defendants, this is one of the largest whistleblower lawsuits in the United States and represents one of this office’s most significant recoveries to date. Our office will continue to vigilantly protect the Medicare program from potential false billing claims.”
“While recognizing and respecting physician judgment, the department will hold accountable hospitals and health systems for procedures performed by physicians at their facilities that fail to comply with Medicare billing rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We are confident that the settlements announced today will lead to increased compliance and result in significant savings to the Medicare program while protecting patient health.”
An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart. It detects and treats chaotic, extremely fast, life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm. It is similar in function to an external defibrillator (often found in offices and other buildings) except that it is small enough to be implanted in a patient’s chest. Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.
Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD). The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates. The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty. The medical purpose of a waiting period -40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary. The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions. The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD.
“Working as a team with the Department of Justice to investigate and settle false billing claims of this magnitude has resulted in substantial recoveries to Medicare and the successful enforcement of Medicare’s coverage requirements for these procedures,” said Inspector General Daniel Levinson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).
The 70 settlements, representing nearly 500 hospitals, are listed on the attached chart. Most of the settling defendants were named in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in the Southern District of Florida by Leatrice Ford Richards, a cardiac nurse, and Thomas Schuhmann, a health care reimbursement consultant. The whistleblowers have received more than $38 million from the settlements. The Department of Justice is continuing to investigate additional hospitals and health systems.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office of the Southern District of Florida, the Civil Division’s Commercial Litigation Branch and HHS-OIG, Office of Investigations and Office of Counsel to the Inspector General.
This case was prosecuted by Jeffrey W. Dickstein of the United States Attorney's Office in Miami and Amy L. Easton of the Department of Justice in Washington, DC.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.2 billion through False Claims Act cases, with more than $16.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Four Defendants Sentenced in Private Insurance Health Care Fraud SchemesRead the Press Release
Four defendants sentenced for their participation in various private health care fraud schemes.
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, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, J.D. Patterson, Director, Miami-Dade Police Department (MDPD), Ian A. Moffett, Chief, Miami-Dade Schools Police Department, Rodolfo Llanes, Chief, Miami Police Department (MPD), and Sergio Velazquez, Chief, Hialeah Police Department, made the announcement.
Hendris Castillo Morales, 33, of Miami, Maite Garcia, 40, of Hialeah, Osvaldo Marin Medina, 48, of Hialeah, and Alejandro Biart, 40, of Miami, were sentenced following their respective guilty pleas for their participation in schemes to defraud privately insured health care plans located in Miami-Dade County, including Cigna, Blue Cross Blue Shield (BCBS), United Health Care (UHC), Miami-Dade County Public Schools, City of Miami, Pepsi Co., BJ’s Wholesale Club, Inc., Lincoln Property Company, Macy’s Inc., Nextera Energy Inc., Radioshack Corporation, Sodexo, Inc., Southeast Frozen Foods Company LP, and other self-insured employers which offered Administrative Services Only (ASO) insurance plans to their employees. ASO insurance plans reimbursed Cigna, BCBS, and UHS for the money paid out by the insurance companies for health benefits for their respective employees. Therefore, the employers acted in a self-insured role, making them financially responsible for any claim payments to their employees.
The Honorable Robert N. Scola, Jr., United States District Judge, sentenced Hendris Castillo Morales to a term of 121 months’ incarceration, followed by a three-year term of supervised release and ordered restitution in the amount of $13,853,392. Judge Scola sentenced Maite Garcia to a term of 48 months’ incarceration, followed by a three-year term of supervised release and ordered restitution in the amount of $13,853,392.
The Honorable Ursula Ungaro United States District Judge, sentenced Osvaldo Medina to a term of 41 months’ incarceration, followed by a three-year term of supervised release. Judge Ungaro sentenced Alejandro Biart to a term of 41 months’ incarceration, followed by a three-year term of supervised release.
These four defendants are among fifteen individuals who have pled guilty to federal health care fraud conspiracy charges in two cases, United States v. Reynaldo Castillo, et al., Case No. 15-20144-Cr-Scola, and United States v. Ernesto Castillo, et al., Case No. 15-20177-Cr-Ungaro.
As alleged in the indictment in Case No. 15-20144-Cr-Scola, Reynaldo Castillo, Hendris Castillo Morales, Lisbet Castillo Batista, and Maite Garcia owned and controlled 30 companies based in Miami, Hialeah, Hialeah Lakes, and Doral, Florida. These individuals used medical director staffing companies to obtain and misappropriate the names and licensing information for numerous physicians. This information was then used to submit false and fraudulent claims to the private insurance plans.
The indictment further alleges that Alejandro Biart accepted kickbacks from co-conspirators in return for referring Cigna, BCBS, and UHC beneficiaries to the medical clinics controlled by Reynaldo Castillo, Hendris Castillo Morales, Lisbet Castillo Batista, and Maite Garcia. These beneficiaries signed documents falsely and fraudulently representing that they had received medical services when, in fact, they had not received medical services.
The indictment additionally charges Maite Garcia for her role in paying kickbacks and bribes to certain beneficiaries in order to reimburse the beneficiaries for their monthly premium payments to Cigna.
According to the indictment, Osvaldo Marin Medina, Humberto Martinez Rodriguez, Alejandro Jesus Cura, Dania Chavez, Ezequiel Severo Casas, Jose Gerardo Gonzalez, Julio Suarez, Nelson Ramos, Reinaldo Cinta Gonzalez, Rudy N. Dominguez and Duilys Martinez agreed, in exchange for a fee, to have companies be placed in their names, to open bank accounts and check cashing accounts in the names of the companies, and to cash and deposit checks received from Cigna, BCBS, and UHC.
The indictment alleges that as a result of this scheme, Reynaldo Castillo together with his co-conspirators, submitted and caused to be the submitted false and fraudulent claims to private insurance plans, including Cigna, BCBS, UHC, and ASO insurance plans managed by Cigna, BCBS, and UHC, on behalf of the medical clinics seeking approximately $125,676,324.00, as reimbursement for injection treatments, physical therapy treatments, and other medical items and services which were neither ordered by a physician nor provided to a beneficiary as claimed. Based on these false and fraudulent claims, Cigna, BCBS, and UHC, as well as, ASO insurance plans managed by Cigna, BCBS, and UHC, paid the medical clinics approximately $13,853,392.00.
The indictment further alleges that Reynaldo Castillo, Lisbet Castillo Batista, and Hendris Castillo incorporated Investors Group of Florida Corp. to receive proceeds from the medical clinics and utilized those proceeds to purchase real estate properties. Investors Group of Florida Corp. was listed as owner of the purchased real estate properties and acted as the leasing agent. Reynaldo Castillo was the president and registered agent of Investors Group of Florida Corp. The real properties are subject to criminal forfeiture as specified in the indictment.
Osvaldo Marin Medina and Alejandro Biart were also charged in United States v. Ernesto Castillo, et al., Case No. 15-20017-Cr-Ungaro, together with Ernesto Castillo, 43, of Hialeah, and Danny Jacomino Bordon, 50, of Miami, for Conspiracy to Commit Health Care Fraud and Health Care Fraud.
The indictment in Case No. 15-20017-Cr-Ungaro alleges that Ernesto Castillo, Osvaldo Marin Medina, Alejandro Biart, Danny Jacomino Bordon, and their co-conspirators submitted and caused Amazing Medical Services Inc. (Amazing) to submit claims to Cigna seeking reimbursement in the amount of approximately $1,111,183.00, which claims falsely and fraudulently represented that medical services were prescribed by a doctor and provided to Cigna beneficiaries by Amazing. As a result of such false and fraudulent claims, Cigna made payments to Amazing in the approximate amount of $86,035.00.
The indictment further alleges that Ernesto Castillo, Osvaldo Marin Medina, Alejandro Biart caused Serenity Rehabilitation Center, Inc. (Serenity) to submit fraudulent claims to Cigna seeking reimbursement in approximately $1,806,800.00, which resulted in reimbursement payments to Serenity in the approximate amount of $252,259.00. The defendants also caused World of Rehabilitation Therapy, Inc. (World Rehab) to submit fraudulent claims to Cigna seeking reimbursement in the amount of approximately $2,245,300.00, which resulted in payments to World of Rehab from Cigna in the approximate amount of $889,151.00.
The indictment also alleges that defendant Alejandro Biart accepted kickbacks from co-conspirators in return for referring Cigna beneficiaries to Amazing, Serenity, and World of Rehab.
Mr. Ferrer thanked the FBI, ICE-HSI, MDPD, Miami-Dade Schools Police Department, MPD, and the Hialeah Police Department for their investigative efforts. This case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark.
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.
Port St. Lucie Resident Sentenced for Preparing False Tax Returns for Himself and his ClientsRead the Press Release
A Port St. Lucie resident was sentenced to 30 months in prison, followed by one year of supervised release for preparing false tax returns for himself and his clients. The defendant was also ordered to pay joint and several restitution in the amount of $558,000.
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.
Jean Pedro Jean Baptiste, 55, previously pled guilty to two counts of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1), and four counts of assisting in filing false tax returns, in violation of Title 26, United States Code, Section 7206(2).
According to court documents, Baptiste was a paid tax return preparer who owned and operated JP and Sons Enterprises in Delray Beach, Florida. For tax years 2008 and 2009, Baptiste prepared individual income tax returns for customers using false income and deduction figures. Baptiste claimed deductions and credits for items that he knew the taxpayers were not entitled to take including, false Schedule C items and false Earned Income Credits, Additional Child Tax Credits, and First Time Home Buyer Credits. Baptiste failed to review the tax returns in detail with his clients and then electronically filed them for the taxpayers.
Baptiste also filed false Form 1040 income tax returns for himself for tax years 2008 and 2009. The 2008 tax return falsely claimed a First Time Home Buyer Credit, and the 2009 tax return falsely claimed an Additional Child Tax Credit, an Earned Income Credit, and falsely stated Schedule C income, gross receipts and sales. As a result, Baptiste received an inflated and unmerited tax refund payment.
The total loss to the United States is approximately $558,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Carmen M. Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Investment Advisor Sentenced in Connection with Rothstein CaseRead the Press Release
An investment advisor connected to the Rothstein case was sentenced this afternoon to 30 months in prison.
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.
Michael Szafranski, 37, of Surfside was sentenced today in Ft. Lauderdale by United States District Judge William P. Dimitrouleas to 30 months in prison, to be followed by 3 years of supervised release. On July 29, 2015, Szafranski pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371.
According to court records, including a stipulated statement of facts filed in connection with Szafranski’s guilty plea, it was discovered in 2009 that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (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. Szafranski, who was a registered investment advisor, conspired with Rothstein to induce certain persons into investing money in the confidential settlements by making material misstatements and omissions. Szafranski secretly received compensation from Rothstein and RRA while simultaneously employed by certain investors as a purportedly independent verifier of the legitimacy of the settlement transactions.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Plantation Resident Sentenced to 7 Years in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Broward County resident was sentenced to 84 months in prison, followed by three years of supervised release for an identity theft fraud scheme involving 734 unauthorized tax returns.
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.
Keyiona Marvette Wright, 27, of Plantation, Florida, previously pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation. From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address. Agents confirmed that the IP address was assigned to an apartment rented by Wright.
Based on this information, agents executed a search warrant at Wright’s residence and found four notebooks containing PII, two computers (one of which had numerous Social Security numbers and other personal identification information (PII) displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment. A forensic analysis revealed that the documents, computers, and debit/credit cards seized from Wright’s residence contained identifying or account information for over 14,000 individuals.
Court documents also indicate that agents found a laptop computer outside Wright’s apartment that contained a video depicting the defendant counting money.
Mr. Ferrer commended the investigative efforts of the IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia Wood.
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 Assistant Band Director Sentenced for Identity Theft Tax Fraud Scheme Involving Former Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A former assistant band director was sentenced today to 61 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $129,321 for his participation in an identity theft tax fraud scheme involving former Broward County students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Delvis Demaine Rogers, 27, of Hollywood, Florida, previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). As part of his plea agreement, the defendant agreed to pay restitution in the amount of $129,321.
According to court documents, IRS-CI investigators noticed that 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014. Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.
Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed. Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and 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.
Coral Springs Resident Sentenced for Stealing Government MoneyRead the Press Release
A Coral Springs resident was sentenced to 18 months in prison, followed by two years of supervised release for stealing government money.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Tony Pustizzi, Chief, Coral Springs Police Department, made the announcement.
Lenord Williams, 28, 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, on August 25, 2012, probation officers conducted a planned compliance search of Williams’ residence and discovered eight United States Treasury checks, worth $41,638.40, in Williams’ nightstand in other individuals’ names. Seven of the checks were payments of tax refunds, and the other check was a monthly Social Security payment. The defendant admitted that he has someone cash the unauthorized checks for him.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Coral Springs Police Department. This case is being prosecuted by Assistant U.S. Attorney Jared M. Strauss.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Miami Residents Sentenced in Social Security Fraud Scheme Involving Stolen IdentitiesRead the Press Release
Two Miami-Dade County residents were sentenced to prison yesterday, for their involvement in a social security fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Margaret Moore-Jackson, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), made the announcement.
Jeffrey Joseph, 26, and Rosetta Latricia Tooks, 25, both of Miami, were sentenced to 65 months and 42 months in prison, respectively, for their participation in a scheme to defraud the Social Security Administration. Upon completion of their period of incarceration, the defendants will be on supervised release for two years. Joseph and Tooks previously pled guilty to access device fraud, in violation of Title 18, United States Code, Section 1029 and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Joseph and Tooks used stolen identities to file fraudulent Social Security Retirement Income Benefit (RIB) claims. The illicit scheme resulted in the payment of $81,124.90 in fraudulent RIB claims.
Mr. Ferrer commended the investigative efforts of SSA-OIG. The case is being prosecuted by Assistant U.S. Attorneys Timothy Abraham and Frank Maderal.
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 Defendants Sentenced for their Participation in a Stolen Identity Tax Refund SchemeRead the Press Release
Two defendants were sentenced for their participation in a stolen identity tax refund 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 Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Adrian Claude Green, Jr., 24, of Miami Gardens, was sentenced on October 22, 2015 to 34 months in prison, followed by three years of supervised release, and was ordered to pay restitution to the IRS in the amount of $34,000. Aquil Emmons, 25, of Marietta, GA, was sentenced on September 22, 2015 to one year and a day in prison, followed by two years of supervised release, and was ordered to pay restitution to the IRS in the amount of $31,600. Green and Emmons previously pled guilty to one count of using one or more unauthorized access devices to obtain goods worth $1,000 or more, in violation of Title 18, United States Code, Sections 1029(a)(2) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Sections 1028A(a)(1) and 2.
According to court documents, from March 17, 2012 through April 12, 2012, Emmons and Green used a number of prepaid debit cards, loaded with illicit federal tax refunds and registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant United States Attorney Tonya R. Long.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Resident Who Was Wanted in Connection with A Drug Trafficking Conspiracy Arrested in ArkansasRead the Press Release
A Palm Beach County resident, wanted on charges out of the Southern District of Florida for his alleged participation in a drug trafficking conspiracy, was arrested yesterday in Arkansas.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Amos Rojas, Jr., United States Marshal, United States Marshals Service, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
On February 5, 2015, Samuel David Alvarado, a/k/a “Wham,” 35, of Lake Worth, and thirty-eight co-defendants were charged in a fourteen count indictment with participating in a conspiracy to possess with intent to distribute various narcotics, including cocaine base, heroin, and/or cocaine hydrochloride, in violation of Title 21, United States Code, Sections 841(a)(1), and 846. If convicted, Alvarado faces a maximum sentence of life in prison. Alvarado allegedly fled the Southern District of Florida prior to his arrest on the indictment. A warrant was subsequently issued for his arrest.
Following his initial appearance in the Eastern District of Arkansas, Alvarado will be returned to the Southern District of Florida to face all charges contained in the indictment.
U.S. Attorney Wifredo Ferrer commended the investigative efforts of the United States Marshals Service in Florida and Arkansas, ATF, FBI and the Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Rinku Tribuiani and Robert Waters.
An indictment is only an accusation and the defendants are 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
South Florida Man Who Engaged in “Sextortion” Sentenced to 139 Years in PrisonRead the Press Release
After having been convicted at trial of producing child pornography, a Miami-Dade County resident was sentenced today to 139 years in prison, to be followed by a lifetime of supervised release by U.S. District Court Chief Judge K. Michael Moore.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Special Agent in Charge George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Patrick Killen, Jr., 22, of Hialeah, was convicted on July 13, 2015, by a Miami jury of fifteen federal charges, including: three counts of production of child pornography, in violation of Title 18, United States Code, Section 2251(a); two counts of distribution of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2); four counts of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B); and two counts of transmission of interstate threats, in violation of Title 18, United States Code, Section 875(d). Killen was acquitted of destruction of evidence, in violation of Title 18, United States Code, Section 1519.
According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls. Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts. Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype, and Omegle. Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself as teenage girls. Killen would beg, bribe, and cajole the unsuspecting boys to send him sexually explicit pictures of themselves. In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs and videos identified as child pornography. When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites. Killen collected, catalogued, and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs. Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.
“The lengthy sentence handed down today sends a message to those who use the Internet to target and extort children through sexual exploitation (“sextortion”) and pornographic offenses” stated U.S. Attorney Ferrer. “We implore the community to protect our children by being vigilant and reporting all suspected offenses to law enforcement.”
"The conduct of Patrick Killen, Jr., is as appalling as it is inexcusable, said George L. Piro, Special Agent in Charge, FBI Miami. Taking the identities of minor females online, Killen would persuade teenage boys to send him sexually explicit photographs of themselves which Killen later used to extort these teenage boys. Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. The FBI and its Child Exploitation Task Force aggressively investigates allegations of sextortion and other online offenses against children."
Mr. Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department. The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Man Who Engaged in “Sextortion” Sentenced to 139 Years in PrisonRead the Press Release
After having been convicted at trial of producing child pornography, a Miami-Dade County resident was sentenced today to 139 years in prison, to be followed by a lifetime of supervised release by U.S. District Court Chief Judge K. Michael Moore.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Special Agent in Charge George Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office made the announcement.
Patrick Killen Jr., 22, of Hialeah, Florida, was convicted on July 13, 2015, by a Miami jury of 15 federal charges, including: three counts of production of child pornography; two counts of distribution of child pornography; four counts of receipt of child pornography; four counts of possession of child pornography; and two counts of transmission of interstate threats. Killen was acquitted of destruction of evidence.
According to the court records and trial testimony, beginning at least as early as November of 2012, Killen created fraudulent social media accounts using assumed identities of teenage girls. Killen stole photographs of minor females from Facebook, Instagram and other sources that he used in support of his falsified accounts. Using the assumed female identities, Killen would search social media websites and engage teenage boys, generally between 11 and 14 years of age, in conversation using internet chat applications such as Kik, Skype and Omegle. Over the course of these conversations, some of which lasted hours and others months, Killen falsely presented himself as teenage girls. Killen would beg, bribe and cajole the unsuspecting boys to send him sexually explicit pictures of themselves. In response to Killen’s fraudulent representations, hundreds of teenage boys sent Killen sexually explicit photographs and videos identified as child pornography. When many of these young boys expressed reticence in sending additional sexually explicit photographs, Killen would blackmail them by threatening to post the previously provided material on Instagram and other social media sites. Killen collected, catalogued and traded the child pornography photographs and videos with other individuals around the world using peer-to-peer file sharing programs. Killen produced, possessed, distributed and received thousands of images and video of children engaged in sexually explicit conduct.
“The lengthy sentence handed down today sends a message to those who use the Internet to target and extort children through sexual exploitation ‘sextortion’ and pornographic offenses,” said U.S. Attorney Ferrer. “We implore the community to protect our children by being vigilant and reporting all suspected offenses to law enforcement.”
“The conduct of Patrick Killen Jr., is as appalling as it is inexcusable,” said Special Agent in Charge George L. Piro. “Taking the identities of minor females online, Killen would persuade teenage boys to send him sexually explicit photographs of themselves which Killen later used to extort these teenage boys. Known as sextortion, online predators use this type of behavior to produce child pornography and take advantage of children through terror and manipulation. The FBI and its Child Exploitation Task Force aggressively investigates allegations of sextortion and other online offenses against children.”
U.S. Attorney Ferrer commended the investigative efforts of the FBI and Norwood New Jersey Police Department. The case was prosecuted by Assistant U.S. Attorneys Robb Emery and Ben Widlanski.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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.
Plantation Resident Sentenced to More Than 9 Years in Prison for Identity Theft Scheme Involving Income Tax, Unemployment, and Credit Card FraudRead the Press Release
A Plantation resident was sentenced today to 111 months in prison, followed by three years of supervised release for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card fraud. A restitution hearing is scheduled for January 5, 2016.
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), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, and John E. Brooks, Chief, Sunrise Police Department, made the announcement.
Leonce V. Jeudy, 25, previously pled guilty to one count of possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Section 841(a)(1), two counts of access device fraud, in violation of Title 18, United States Code, Sections 1029(a)(2) and 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, on January 7, 2015, a detective with the Sunrise Police Department initiated a traffic stop of a vehicle driven by Jeudy. After smelling the odor of marijuana emanating from the vehicle, the detective conducted a search of the car and found a loaded handgun, ammunition, approximately twenty credit cards in various names, new iPhones and iPads, bank records of an unrelated individual, and receipts of four Visa debit cards purchased earlier that day for approximately $2,000.
Police officers obtained a state search warrant for Jeudy’s residence. During the execution of the warrant, officers found more than 100 credit and debit cards in the names of various individuals, numerous documents with the personally identifying information (“PII”) of different individuals, along with various electronic devices including numerous computers, thumb drives, and cellular telephones. The officers also recovered from an AK-47 rifle, hundreds of rounds of different caliber ammunition, butylone, ethylone (commonly known as “Mollys”), several smaller packages of powder and crack cocaine, and other drug paraphernalia.
Subsequent forensic analysis by federal law enforcement of the recovered digital devices revealed more than 8,000 sets of PII. In addition, an analysis revealed that some of the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and were associated with fraudulent unemployment insurance claims. Law enforcement determined that Jeudy was responsible for filing unemployment insurance benefits claims totaling $100,000.
Mr. Ferrer commended the investigative efforts of IRS-CI, DOL-OIG, USSS, and the Sunrise Police Department. The case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Individuals in Southern District of Florida Receive Attorney General AwardsRead the Press Release
Attorney General Loretta Lynch recognized 279 Justice Department employees and 33 individuals, including two people in the Southern District of Florida, with Attorney General Awards at a ceremony today in Washington DC. These annual awards recognize department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.
“The individuals being honored today stand out within a department that holds all of its employees and partners to an extremely high standard of excellence,” said Attorney General Lynch. “They have put in long hours, made immense sacrifices, and, in some cases, placed themselves in harm’s way. They have taken on issues that once seemed intractable, and made progress on problems that once seemed impossible. And their outstanding work is an inspiration to public servants everywhere.”
“I commend the tireless efforts of Assistant United States Attorneys Marie Villafaña and E.J. Yera to combat fraud and obtain significant financial recoveries on behalf of the defrauded companies,” said U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida. “I am incredibly proud of the outstanding work done by our colleagues at the U.S. Attorney’s Office.”
In the Southern District of Florida, Assistant United States Attorneys (AUSAs) A. Marie Villafaña and Evelio J. (EJ) Yera were recognized with the Attorney General’s Award for Fraud Prevention. The Attorney General’s Award for Fraud Prevention recognizes the exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption. The award was presented to AUSAs Villafaña and Yera for their integral roles in Operation Sledgehammer, a six-part operation directed at staged auto accidents and chiropractic clinic fraud. Starting with Operation Sledgehammer I in June 2011 and including the defendants charged in Operation Sledgehammer VI, 105 defendants have been charged for their participation in this automobile insurance fraud scheme. Of those 105 defendants, 57 have been charged federally by the U.S. Attorney's Office, and 51 were convicted either by guilty plea or after trial, including 6 chiropractors, and 15 other licensed healthcare professionals, resulting in court-ordered restitution of more than $10 million to the defrauded insurance companies. Forty-eight defendants have been charged by 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.
Former Cargo Operations Manager at Miami International Airport Sentenced for his Role in a Conspiracy to Possess with Intent to Distribute CocaineRead the Press Release
A former cargo operations manager at Miami International Airport was sentenced to 50 months in prison for conspiring to possess with the intent to distribute cocaine.
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 Enforcements Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Vinicio Morales, 53, of Miami, previously pled guilty to conspiracy to possess with the intent to distribute cocaine, in violation of Title 21, United States Code, Section 846.
According to the court record, in 2011, while working as an employee at Miami International Airport, Morales agreed to be paid $12,500 for his participation in a conspiracy to assist with the offloading of cocaine into the United States, from arriving international flights. Ultimately, Morales offloaded what he believed to be five kilograms of cocaine from the cargo can of a plane that had arrived at Miami International Airport in the Southern District of Florida.
Mr. Ferrer commended the investigative efforts of ICE-HSI. The case was prosecuted by Assistant U.S. Attorney Karen Stewart.
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 Miami-Dade Police Officer Sentenced to 48 Months in PrisonRead the Press Release
A former Miami-Dade Police Department officer was sentenced to 48 months in prison, to be followed by three years of supervised release, by U.S. District Judge Jose E. Martinez for his participation in a wire fraud scheme, arising out of the operation of a series of credit repair businesses.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
George Price, 42, previously pled guilty to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349.
According to court documents, Price and his co-conspirators participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Price with identifying information of credit business customers. Price would then create false police reports, using the customers’ identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft. Price would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy would cause the false police reports created by Price to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Price created the false police reports in order to promote the success of the credit businesses and in return would receive payment from his co-conspirators.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case was prosecuted by Assistant U.S. Attorney Michael Davis.
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 Miami Dade College Student Sentenced for His Involvement in a Stolen Identity Tax Refund Fraud Scheme Involving Financial Services AccountRead the Press Release
A former Miami Dade College (MDC) student was sentenced to 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $30,967 for his involvement in a stolen identity tax refund fraud scheme involving his student financial services account.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Jonathan Joseph, of Miami-Dade County, previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
According to court documents, Joseph was a student at Miami Dade College. During his time as a student, Joseph opened a bank account serviced by Higher One, Inc. (HOI), which provides financial services to colleges and universities throughout the United States, including Miami Dade College in Florida.
Joseph and other unknown co-conspirators submitted twenty-two (22) fraudulent tax returns to the U.S. Department of Treasury (Treasury) claiming $104,260 in tax refunds and directed these refunds be deposited into Joseph’s HOI account. They also submitted sixteen (16) fraudulent tax returns to Treasury claiming $75,527 in tax refunds and directed these refunds be deposited into his unindicted co-conspirator's HOI account.
Joseph’s HOI account received $11,320 in fraudulently obtained tax refunds from Treasury. From July to September 2012, Joseph’s HOI account also received over $15,000 in proceeds from stolen tax refunds from his unindicted co-conspirator's HOI account.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Three Palm Beach County Residents Plead Guilty for Their Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
Three Palm Beach County residents recently pled guilty for their participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Nadine Gurley, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County, (Case No. 14-CR-80158) and Starling Willis, 32, of West Palm Beach, (Case No. 15-CR-80119) have each pled guilty to aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) and conspiracy to commit wire fraud, in violation of Title 18, United States Code, Sections 1343 and 1349. Verdell also pled guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1); possessing fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3); theft of government property, in violation of Title 18, United States Code, Section 641; and making a false statement to a federal government agency, in violation of Title 18, United States Code, Section 1001(a)(2).
The defendants face a mandatory term of two years’ imprisonment, consecutive to any other prison term, for each of the aggravated identity theft charges, as well as a maximum statutory sentence of twenty years in prison for the conspiracy conviction. Verdell also faces a maximum of ten years in prison for each of the theft of government money, felon in possession and unauthorized access devices convictions; and a maximum of five years in prison for the false statement conviction.
According to court documents, Verdell, Willis and McIntosh, participated in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). The PII was used to file fraudulent income tax returns online, with those refunds being directed to various bank accounts created and maintained by Verdell, McIntosh and Willis, as well as to reloadable debit cards. Identity theft victims whose personal information was used for this scheme spanned from Indian River, Highlands, St. Lucie, Martin and Palm Beach Counties, as well as persons outside the State of Florida. This scheme resulted in the submission to the IRS of more than 590 fraudulent returns in the names of other persons, seeking approximately $1.5 million in fraudulent income tax refunds.
Court documents also state that on September 1, 2010, while Verdell was receiving income from filing fraudulent income tax returns with the IRS, she received a housing assistance payment funded by the U.S. Department of Housing and Urban Development (HUD), while knowing she was not entitled to receive such a payment. On September 24, 2013, Verdell submitted an application for enrollment in the Supplemental Nutrition Assistance Program (SNAP), also sometimes known as ‘food stamps.’ In her application, Verdell knowingly stated that her only monthly income was $715, without any other source of income, when she was in fact receiving significant income from fraudulent tax refund payments.
Court documents also state that evidence of the stolen PII, a list of bank accounts belonging to Willis, information regarding accounts which received fraudulent refunds, and a stolen .38 caliber pistol, were found in Verdell’s home during the execution of a federal search warrant.
Sentencing hearings for Verdell, McIntosh and Willis will be scheduled by United States Senior District Judge Daniel T. K. Hurley.
Mr. Ferrer commended the investigative efforts of the IRS-CID, HUD-OIG, and USDA-OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance with this investigation and law enforcement operation. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former City of Miami Police Officer Pleads Guilty to Accepting BribesRead the Press Release
A former uniformed police officer with the City of Miami Police Department pled guilty today to accepting bribes.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD) made the announcement.
Julio Ruiz pled guilty to violating three counts of the Hobbs Act, that is, affecting commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a).
According to the court record, including documents in support of the Ruiz’s guilty plea, the defendant accepted bribes from an FBI confidential source on three occasions between April 26 and June 12, 2013. In exchange for $1,800 cash and a cellular telephone, Ruiz misused his official position to provide the confidential source access to, and information regarding, traffic accidents located within the City of Miami Police Department. Ruiz also inaccurately reported the disposition of the towed vehicles in the resulting City of Miami police reports.
Julio Ruiz’s sentencing is scheduled to take place on December 22, 2015, before U.S. District Court Judge Cecilia M. Altonaga. Each of the three counts to which the defendant has pleaded guilty carries a maximum sentence of 20 years’ imprisonment, a maximum fine of $250,000, and a term of supervised release of up to three years. The Court may order any sentence of imprisonment awarded under one count to be served concurrently or consecutively to a sentence imposed on a different count.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Division. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Man Pleads Guilty to Wire Fraud and Criminal Contempt ChargesRead the Press Release
A Palm Beach County man pled guilty today to wire fraud and criminal contempt charges.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), made the announcement.
David Lee Ortiz, 39, pled guilty today to charges of 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).
Sentencing for Ortiz is scheduled for December 2, 2015, before United States District Judge Robin L. Rosenberg in Fort Pierce. At sentencing, Ortiz faces a maximum statutory sentence of twenty years in prison on the wire fraud count, and, a maximum sentence of life in prison on the contempt of court count.
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 internet and email, among other means. Ortiz collected from his victims approximately $420,000 through fraudulent websites and advertisements offering 10% per month returns 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. He invested some of the money with losing forex positions at two licensed Futures Commission Merchants. The remainder of the money he diverted to his own personal uses. To attract investors, Ortiz established Internet websites. In July 2008, he 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, he 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. Over the period of 2008-2011, Ortiz solicited and took investment from clients, variously placing the monies in accounts he personally controlled, investing some of it in losing forex trades, and mostly spending the remainder on himself. Ortiz concocted 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 to that 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 entered by Chief Judge Moore in the civil case. 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 $2800 from the Texas investor, but that Ortiz was unable to comply and pay any monies to the aggrieved investors.
A federal grand jury sitting in Fort Pierce, Florida, indicted Ortiz on February 19, 2015, charging him with three counts of wire fraud and one count of criminal contempt of court for his actions.
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.
Owner and Operator of Miami-Based Mental Health Centers Pleads Guilty in $70 Million Health Care Fraud SchemeRead the Press Release
Clinical Director and Therapist Also Plead Guilty
An owner, a clinical director, and a therapist pleaded guilty today for their roles in a health care fraud scheme involving three Miami-based mental health centers.
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.
Santiago Borges, 51, Erik Alonso, 45, and Cristina Alonso, 43, all of Miami, pleaded guilty before U.S. District Judge Ursula Ungaro of the Southern District of Florida. Borges pleaded guilty to conspiracy to commit health care fraud and conspiracy to defraud the United States and pay health care kickbacks. Erik Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters. Cristina Alonso pleaded guilty to conspiracy to commit health care fraud and conspiracy to make false statements relating to health care matters.
Borges owned the now-defunct mental health centers R&S Community Mental Health Inc. (R&S) and St. Theresa Community Mental Health Center Inc. (St. Theresa), and was an investor in New Day Community Mental Health Center LLC (New Day). Erik Alonso was the clinical director of all three centers. Cristina Alonso was a therapist at R&S.
R&S, St. Theresa and New Day were community mental health clinics that purported to provide intensive mental health services to Medicare beneficiaries in Miami. In connection with their guilty pleas, the defendants admitted that, from 2008 through 2010, the clinics billed Medicare for costly partial hospitalization program (PHP) services that were not medically necessary or not provided to patients. Borges admitted that he paid kickbacks to patient recruiters who, in exchange, referred beneficiaries to the centers. Erik Alonso admitted that he oversaw the preparation of false patient records. Cristina Alonso admitted that she fabricated patient records, including group therapy session notes that were used to support claims for reimbursement from Medicare.
According Borges’ plea agreement, between January 2008 and December 2010, the centers submitted more than $70 million in false and fraudulent claims to Medicare. Medicare paid approximately $28 million on those claims.
The case is being 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 of the Southern District of Florida. This case is being prosecuted by Trial Attorney A. Brendan Stewart 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.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Borges Plea Agreement
Borges Factual Basis
Cristina Alonso Indictment
Cristina Alonso Factual Basis
Two Miami-Dade County Residents Sentenced for Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami-Dade County residents were sentenced to prison terms for their participation in a stolen identity tax fraud scheme based on information discovered while they were boarding a flight at the Fort Lauderdale-Hollywood International Airport.
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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Phillip Collins, 29, of Miami Gardens, was sentenced to 25 months in prison, followed by three years of supervised release. Godfrey Teekah, Jr., 28, also of Miami Gardens, was sentenced to 24 months in prison, followed by three years of supervised release. Both defendants were also ordered to pay restitution. Collins and Teekah previously pled guilty to one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3) and 2, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1) and 2.
According to court documents, the defendants were stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February 2013. Teekah was found in possession of nine debit cards embossed with names other than his own and $4,365 in U.S. currency. Collins was in possession of a debit card in someone else’s name. Two computers were also found in the defendants’ possession. A search of Teekah’s computer revealed photographs of handwritten notes containing personal identification information (PII), IRS employer identification numbers, and IRS website access logs. A search of Collins’ computer revealed temporary internet files for “get my prepaid card,” “irs.gov” and “gfx-prepaid-cards.” A search of Teekah’s bag revealed three additional debit cards, along with manila envelopes containing hundreds of individuals’ PII including names, dates of birth and Social Security numbers. In total, the defendants unlawfully possessed PII belonging to over three hundred individuals. Both Teekah and Collins were aware that false tax returns would be filed using the PII and that the debit cards were used to obtain the fraudulent tax refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI and the BSO. This case was prosecuted by Assistant U.S. Attorney Randy Katz.
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 Pleads Guilty in Connection with Rothstein CaseRead the Press Release
A former Vice President of TD Bank pled guilty today for his involvement in a wire fraud conspiracy connected to the Rothstein matter.
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 pled guilty before U. S. District Judge Beth Bloom, in Miami, to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At his sentencing, scheduled for December 18, 2015, at 9:00 a.m., the defendant faces a maximum statutory sentence of up to five years in prison.
In 2009, it was discovered that the law firm of Rothstein, Rosenfeldt and Adler, P.A. (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. In a written factual stipulation filed in connection with his guilty plea, 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 admitted that he 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 a document that made it appear that certain investment funds were being held in a restricted account 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.
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 10 Years in Prison for his Role in Massive Identity Theft Tax Refund Fraud SchemeRead the Press Release
Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 26, of West Palm Beach, was sentenced to 120 months in prison, followed by three years of supervised release, and was ordered to pay joint and several restitution in the amount of $742,955 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, Placide and co-defendant Lukner Blanc, 31, of Royal 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. The defendants were remanded into custody, following their conviction. Blanc is scheduled to be sentenced on October 22, 2015 at 9:30 a.m. before Judge Daniel T. K. Hurley.
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,” 24, 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. The actual taxpayers had filed or authorized the filing of the fraudulent income tax returns. 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 unauthorized income tax refunds. The co-conspirators received more than $700,000 in 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, 28, 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, 25, of Lantana, and Marie Demesyeux, 29, of Lake Worth, previously pled guilty. On April 16, 2015, both defendants were sentenced to time served.
Co-conspirator Frank Fleuzinord, 29, 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.
Former Stuart Youth Pastor Charged with Enticement of a Minor over the InternetRead the Press Release
A former youth pastor was charged with enticing a minor over the internet, to engage in sexual activity.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and William Snyder, Sheriff, Martin County Sheriff’s Office (MCSO), made the announcement.
Jeffrey Brian Mobley, 24 of Ocala, formerly of Stuart, Florida was charged by criminal complaint with using a facility or means of interstate commerce to persuade, induce, or entice an individual under the age of 18 to engage in sexual activity, in violation of Title 18, United States Code, Section 2422(b). If convicted, Mobley faces a mandatory minimum sentence of 10 years up to life in prison. If convicted, Mobley also faces up to a lifetime of supervised release and the requirement that he register as a sex offender.
Mobley had his initial appearance today and was ordered to be held in custody pending a detention hearing and preliminary examination on October 7, 2015 at 10:30 a.m. before U.S. Magistrate Judge Philip R. Lammens in Ocala.
According to allegations contained in the criminal complaint, in September 2015, a suspicious conduct report was made to the Martin County Sheriff’s Office concerning a youth pastor, Jeffrey Brian Mobley, and a minor who was under his trust and care through a religious based youth program in Stuart, Florida. During the course of the investigation law enforcement learned that the defendant, while the youth pastor, had allegedly engaged in sexual intercourse with two minors in the church’s youth program. The defendant allegedly enticed the minors to engage in sexual activity and exchange sexually explicit images.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Mr. Ferrer commended the investigative efforts of the FBI and Martin County Sheriff’s Office for their work on this case. Mr. Ferrer also thanked the members of the United States Attorney’s Office for the Middle District of Florida for their assistance with this matter. The case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A criminal complaint 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.
Riviera Beach Resident Sentenced to 20 Years in Prison as an Armed Career CriminalRead the Press Release
A Riviera Beach man was sentenced yesterday to 20 years in prison for being a felon in possession of firearms.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Carlos Canino, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Stephen J. Stepp, Chief, Palm Beach Gardens Police Department (PBGPD) and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
Joseph McDonald, 36, of Riviera Beach, was sentenced by U.S. District Judge Donald M. Middlebrooks to 240 months (20 years) in federal prison, to be followed by five years of supervised release, for being an armed career criminal in possession of a firearm.
According to evidence presented at trial, McDonald fled from the police on two separate occasions during the course of stolen vehicle investigations. On July 28, 2013, McDonald dropped a fully loaded 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department. Then, on December 17, 2013, deputies with the Palm Beach County Sheriff’s Office recovered a fully semi-automatic pistol from McDonald’s flight path. A forensic examination report confirmed that the firearm that was recovered on December 17, 2013 had been used in a Jupiter, Florida shooting the preceding day. McDonald had previously been convicted of numerous felonies and was thereby prohibited from possessing a firearm.
McDonald was sentenced under the Armed Career Criminal Act, which provides a mandatory sentencing range of fifteen years to life for individuals who have been convicted of a federal gun offense and have at least three prior qualifying felony convictions for crimes of violence and/or serious drug offenses.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is a Department of Justice nationwide initiative that combines traditional law enforcement activities with community-based support and intervention programs. The two primary goals of the PSN initiative are to reduce and prevent violent crimes and to help past offenders adjust and re-enter the community. This program emphasizes and facilitates cooperative federal, state and local prosecution of firearm crimes, violent criminals, repeat violent offenders and gang related criminal activity.
Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO. The case was prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Miami-Dade County Resident Sentenced in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals' Personal Identifying InformationRead the Press Release
A Miami-Dade County resident was sentenced to 44 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme using deceased and other individuals' personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, previously pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
Co-defendant Curtis Joseph, a/k/a "CJ," 36, of Miami-Dade, pled guilty to one count of wire fraud conspiracy. Sentencing for defendant Joseph is scheduled for October 6, 2015 at 1:00 p.m. before Judge Beth Bloom.
According to court documents, Joseph met with an IRS confidential informant (CI) and discussed a scheme to cash tax refund checks involving PII stolen from a medical clinic. The CI introduced Joseph to an undercover IRS agent. During three separate meetings, Joseph gave the undercover agent a total of thirteen tax refund checks for the undercover agent to cash. In exchange, the undercover agent gave Joseph approximately sixty-five percent (65%) of the check amounts as payment for his participation in the illicit scheme.
Court documents also state that at another meeting, the undercover agent provided Joseph with five IRS-controlled identities, consisting of fictitious PII - names, social security numbers, and dates of birth - to be used by a tax preparer in order to file fraudulent federal tax returns. During a separate meeting, the undercover agent gave Chikudo seven additional IRS-controlled identities that Chikudo intended to include in fraudulent tax return filings. Chikudo asked the undercover agent if he could obtain a business bank account for the purpose of depositing the fraudulent tax refunds into that account to avoid detection. The defendants and the undercover agent agreed that they would split all of the tax refunds equally amongst themselves and a fictitious undercover partner. The undercover agent provided Chikudo with IRS-controlled bank account information to be included on the fraudulent tax returns. The defendants caused six fraudulent federal income tax returns to be filed. The majority of the filings designated the IRS-controlled bank account as the intended recipient of the fraudulent refunds.
Furthermore, court documents state that between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using eleven IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
During the sentencing, Judge Bloom specifically referenced that back in 2007, Chikudo and been previously enjoined in a $1 million civil action initiated by the IRS for filing fraudulent tax returns claiming fuel tax credits and telephone excise tax credits on behalf of his clients that they were not entitled to claim. The resulting injunction order entered by United States District Court Judge James I. Cohn barred Chikudo from acting as a return preparer, preparing or filing federal tax returns, assisting taxpayers in understating their tax liabilities or evading taxes, and engaging in other conduct that interfered with the administration or enforcement of the internal revenue laws.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and NMBPD. This 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.
Miami-Dade County Resident Sentenced for Filing More Than $3.4 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident was sentenced to 24 months in prison, followed by three years of supervised release, for filing false refund claims with the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Mavys Galvez, 32, of Miami, Florida, previously pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2006, 2007, 2008 and 2009 amended federal income tax returns with the IRS claiming fraudulent refunds. In the returns, Galvez falsely asserted that she and her husband were owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez or her husband, and withheld no such taxes on their behalf. Specifically, Galvez filed a 2006 amended tax return with her husband claiming a tax refund of $1,049,270 based in large part on claimed income and $810,224 of tax withheld by a bank. The tax return also attached a Form 1099-OID purportedly from the bank reflecting those totals, as well as 1099-OID forms from other entities. The filed 1099-OID forms were false.
Court documents indicate that Galvez had previously filed legitimate tax returns for tax years 2006 through 2009, knew that she and her husband had not received the income from the various entities reported on the fraudulent returns, knew that the taxes claimed had not been withheld, and knew that the 1099-OID forms were false. The total amount of fraudulent refunds claimed by Galvez for tax years 2006 through 2009 is $3,424,834.
Mr. Ferrer commended the investigative efforts of IRS-CI. 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.
Four Miami-Dade Residents Sentenced for Using Credit Card Numbers Skimmed from Palm Beach County ResidentsRead the Press Release
Four Miami-Dade residents were sentenced to terms of imprisonment for their participation in a fraud conspiracy that involved the unauthorized use of credit card numbers that had been skimmed at local establishments.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, made the announcement.
Jordy Hechavarria Morales, 21, Yoandy Hechavarria Morales, 29, Christian Vinent, 23, and Addel Fernandez Camejo, 31, all of Miami-Dade, previously pled guilty for their involvement in a conspiracy to commit credit card fraud. Camejo and Vinenta also pled guilty to aggravated identity theft. Jordy Morales also plead guilty to possessing fifteen or more counterfeit credit cards, using counterfeit credit cards, and using counterfeit credit cards to obtain goods valued at $1,000 or more. In addition, Jordy Morales was convicted, following a bench trial, of aggravated identity theft. Yoandy Morales also pled guilty to possessing fifteen or more counterfeit credit cards, three counts of using counterfeit credit cards, and using counterfeit credit cards to obtain goods valued at $1,000 or more. In addition, Yoandy Morales was convicted, following a bench trial, of three counts of aggravated identity theft.
The Honorable Judge Kenneth A. Marra sentenced each of the defendants to a term of incarceration, to be followed by two years of supervised release. Camejo was sentenced to 36 months; Vinent was sentenced to 38 months; Jordy Morales was sentenced to 40 months; and Yoandy Morales was sentenced to 48 months, in prison.
According to court documents, on March 24, 2015, officers with the Tequesta Police Department stopped a car that was occupied by Jordy Morales, Yoandy Morales, Vinent and Camejo. During a search of the vehicle, officers discovered 143 credit cards, each embossed with a defendant’s name or alias. Officers also found counterfeit Florida driver’s licenses embossed with Vinent and Yoandy Morales’ aliases. Each of the discovered credit cards was found to be counterfeit and included unauthorized credit card numbers. During the subsequent investigation, agents uncovered evidence that the conspirators had used additional unauthorized credit cards during the course of the conspiracy. In total, the defendants were engaged in a conspiracy involving 173 counterfeit and unauthorized credit cards.
The unauthorized credit card numbers used during the course of the conspiracy actually belonged to Palm Beach County residents. These credit card account numbers were unlawfully obtained through the use of “skimmers” at gas stations in Palm Beach County. The stolen credit card numbers were then used to manufacture counterfeit credit cards which were encoded and embossed with the account number and a conspirator’s name, to make it appear as if the defendant was the actual account holder. The defendants, who are residents of Miami-Dade County, traveled together to Palm Beach County and used the counterfeit credit cards to purchase and attempt to purchase Visa, MasterCard, and American Express gift cards from Palm Beach County merchants.
Mr. Ferrer commended the investigative efforts of ICE-HSI and the Village of Tequesta Police Department. The case is being prosecuted by Assistant U.S. Attorney Stephanie Evans.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Pleads Guilty to Stealing $1,428,027 in Tax RefundsRead the Press Release
A Miami-Dade County resident pled guilty to stealing tax refunds totaling $1,428,027.
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, pled guilty to one count of theft of government money, in violation of Title 18, United States Code, Section 641. As part of his plea agreement, the defendant agreed to pay restitution in the amount of $1,428,027. At sentencing, Cooks faces a maximum statutory sentence of ten years in prison.
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 Cooks and who had been deceased since 2008. Cooks deposited the check in a bank account that he set up in his name.
Cooks is scheduled to be sentenced on December 8, 2015 at 8:30 a.m. before United States District Judge Robert N. Scola, Jr.
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.
Miami Lakes Resident Sentenced for Structuring and Causing the Filing of False Currency Transaction ReportsRead the Press Release
A Miami Lakes resident was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to forfeit $595,500 and to pay a fine of $6,000 for structuring and causing the filing of false currency transaction reports.
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.
Jorge R. Raynaud, 31, previously pled guilty to thirty-one counts, including five counts of structuring currency transactions with the intent to evade reporting requirements, in violation of Title 31, United States Code, Section 5324(a)(3), and twenty-six counts of causing and attempting to cause a financial institution to fail to file a currency transaction report, in violation of Title 31, United States Code, Section 5324(a)(1). As part of his plea agreement, Raynaud agreed to forfeit $595,500 in U.S. currency.
The Bank Secrecy Act requires financial institutions to file a currency transaction report with the Treasury Department for each financial transaction that involves currency in excess of $10,000. According to court documents, Raynaud structured currency withdrawals at two different banks by intentionally arranging a series of separate transactions, each one involving less than $10,000, for the purpose of evading the $10,000 currency reporting requirement. Raynaud also caused the banks to fail to file twenty-six currency transaction reports for currency withdrawals and the cashing of checks in 2012 and 2013.
The intended loss resulting from the offense is between $400,000 and $1,000,000.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Elijah Levitt
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 Charged in Stolen Mail SchemeRead the Press Release
Two men have been separately charged with 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, was charged by indictment with four counts of possession of stolen mail, in violation of Title 18, United States Code, Sections 1708 and 2. James Mathurin, 24, of Fort Lauderdale, was charged by information with two counts of possession of stolen mail, in violation of Title 18, United States Code, Sections 1708 and 2. If convicted, each defendant faces up to five years in prison.
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. The defendants’ unauthorized conduct caused both the check writer and the intended business recipient to sustain a financial loss.
Mathurin is scheduled to have his initial appearance on October 7, 2015 before U.S. Magistrate Judge Barry S. Seltzer and is scheduled for a change of plea hearing on October 8, 2015 in front of U.S. District Judge James I. Cohn. Bouquette’s initial appearance date has not yet been scheduled.
Mr. Ferrer commended the investigative efforts of the USPIS. The case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An indictment or information is only an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Florida Mortgage Company Sentenced to over 11 Years in Prison for Orchestrating $64 Million Fraud SchemeRead the Press Release
The owner of a Florida mortgage company was sentenced today to serve 135 months in prison for orchestrating a $64 million mortgage fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) Atlanta Region made the announcement.
Hector Hernandez, 57, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was sentenced for conspiracy to commit wire fraud affecting a financial institution. He was also ordered to pay $64,508,141 in restitution and to forfeit $8,000,000 in illicit profits.
In the same case, a real estate developer for Great Country, Aleida Fontao, 62, of Miami, was sentenced today to serve 41 months in prison, and ordered to pay $7,131,952 in restitution and $400,000 in forfeiture. An underwriter for Great Country, Olga Hernandez, 59, of Lake Mary, Florida, was sentenced yesterday to serve 51 months in prison and ordered to pay $24,512,755 in restitution. Hector and Olga Hernandez both pleaded guilty on July 13, 2015, while Fontao pleaded guilty on July 7, 2015. Hector Hernandez was the last defendant to be sentenced in the case. All 24 defendants charged in this case, which included loan officers, loan processors and underwriters, were convicted of participating in the scheme.
According to admissions made in connection with the guilty pleas, from at least 2006 and continuing through at least September 2008, Hector Hernandez was the owner and operator of Great Country which specialized in approving Federal Housing Administration (FHA) loans. The loans were primarily for buyers of condominiums at complexes where Hector Hernandez was a part owner – however, the buyers were unqualified borrowers, due to insufficient income, high levels of debts, and outstanding collections. Hector Hernandez admitted that his company employed loan officers, loan processors and underwriters, including Olga Hernandez and Fontao, whom he knew approved and submitted false and fraudulent FHA mortgage loan applications and accompanying documents to HUD on behalf of the unqualified borrowers. These documents included false pay stubs, false verification of employment forms, and fictitious letters from the borrowers.
According to admissions made in connection with the guilty pleas, closing costs were paid on behalf of the unqualified borrowers through an interstate wire transfer of funds. The borrowers were also paid to purchase the condominium units as an unreported inducement to purchase. After the loans closed, the loans were sold to financial institutions. When the unqualified borrowers failed to meet their monthly mortgage obligations, they defaulted on the loans causing losses both to the financial institutions and to HUD which insured the loans. Hector Hernandez admitted that the loss from the fraudulent conduct was at least $64 million.
This case was investigated by HUD-OIG as participants in the Miami Mortgage Fraud Strike Force. The case was prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Mike O’Neill and William Johnston of the Criminal Division’s Fraud Section.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Gardens Resident Pleads Guilty to Stolen Identity Tax Refund Fraud SchemeRead the Press Release
A Miami Gardens resident pled guilty to a stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Rosheem Oneil Williams, 19, 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 in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to court documents, IRS-CI investigators noticed that, from January 17, 2015 through June 6, 2015, 187 tax returns claiming refunds totaling $363,457 were filed from Williams’ residence. A search warrant was executed at the residence on June 19, 2015, and law enforcement found and seized numerous items containing personal identification information (PII) (including names, dates of birth, and social security numbers). Specifically, agents found computer-generated lists and an Apple iPad containing hundreds of individuals’ PII.
Agents interviewed Williams, and he admitted that he possessed the PII found in the residence on June 19, 2015, and that he prepared and filed at least 180 tax returns without the permission of the individuals in whose names the returns were filed.
Williams is scheduled to be sentenced on December 2, 2015 at 2:00 p.m. United States District Judge Marcia G. Cooke.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Daya Nathan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Certified Public Accountant Pleads Guilty to Using Her Tax Preparation Business to Facilitate an Income Tax Refund Fraud SchemeRead the Press Release
A Certified Public Account (CPA) pled guilty today to 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, 60, of Davie, pled guilty to one count of wire fraud, in violation of Title 18, United States Code, Section 1343. At sentencing, the defendant faces a maximum statutory sentence of twenty years in prison.
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 them 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.
Watson is scheduled to be sentenced on December 4, 2015 at 9:00 a.m. before Judge James I. Cohn.
Mr. Ferrer commended the investigative efforts of IRS-CI. 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.
Owner of Florida Mortgage Company Sentenced to over 11 Years in Prison for Orchestrating $64 Million Fraud SchemeRead the Press Release
Two Associates Also Sentenced for their Roles in the Conspiracy
The owner of a Florida mortgage company was sentenced today to serve 135 months in prison for orchestrating a $64 million mortgage fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) Atlanta Region made the announcement.
Hector Hernandez, 57, of Miami, Florida, the owner and operator of Great Country Mortgage Bankers (Great Country), a mortgage lender in Miami, was sentenced for conspiracy to commit wire fraud affecting a financial institution. He was also ordered to pay $64,508,141 in restitution and to forfeit $8,000,000 in illicit profits.
In the same case, a real estate developer for Great Country, Aleida Fontao, 62, of Miami, was sentenced today to serve 41 months in prison, and ordered to pay $7,131,952 in restitution and $400,000 in forfeiture. An underwriter for Great Country, Olga Hernandez, 59, of Lake Mary, Florida, was sentenced yesterday to serve 51 months in prison and ordered to pay $24,512,755 in restitution. Hector and Olga Hernandez both pleaded guilty on July 13, 2015, while Fontao pleaded guilty on July 7, 2015. Hector Hernandez was the last defendant to be sentenced in the case. All 24 defendants charged in this case, which included loan officers, loan processors and underwriters, were convicted of participating in the scheme.
According to admissions made in connection with the guilty pleas, from at least 2006 and continuing through at least September 2008, Hector Hernandez was the owner and operator of Great Country which specialized in approving Federal Housing Administration (FHA) loans. The loans were primarily for buyers of condominiums at complexes where Hector Hernandez was a part owner – however, the buyers were unqualified borrowers, due to insufficient income, high levels of debts, and outstanding collections. Hector Hernandez admitted that his company employed loan officers, loan processors and underwriters, including Olga Hernandez and Fontao, whom he knew approved and submitted false and fraudulent FHA mortgage loan applications and accompanying documents to HUD on behalf of the unqualified borrowers. These documents included false pay stubs, false verification of employment forms, and fictitious letters from the borrowers.
According to admissions made in connection with the guilty pleas, closing costs were paid on behalf of the unqualified borrowers through an interstate wire transfer of funds. The borrowers were also paid to purchase the condominium units as an unreported inducement to purchase. After the loans closed, the loans were sold to financial institutions. When the unqualified borrowers failed to meet their monthly mortgage obligations, they defaulted on the loans causing losses both to the financial institutions and to HUD which insured the loans. Hector Hernandez admitted that the loss from the fraudulent conduct was at least $64 million.
This case was investigated by HUD-OIG as participants in the Miami Mortgage Fraud Strike Force. The case was prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Mike O’Neill and William Johnston of the Criminal Division’s Fraud Section.
Former Miami Springs Police Department Sergeant Sentenced to Nine Years in PrisonRead the Press Release
Former Miami Springs Police Department (MSPD) Sergeant Andres Quintanilla was sentenced today to nine years in prison by U.S. District Court Chief Judge Michael K. Moore. Quintanilla had previously pleaded guilty to receiving bribes from an undercover FBI confidential source, who Quintanilla believed was a narcotics trafficker.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida and George L. Piro, Special Agent in Charge, FBI, Miami Field Office made the announcement.
Andres Quintanilla, 34, had previously pleaded guilty to attempting to affect commerce by extortion under color of official right, in violation of Title 18, United States Code, Section 1951(a). Quintanilla was sentenced to 108 months in prison, to be followed by a year of supervised release. He was also ordered to pay a $5,000 fine and to forfeit an additional $3,700 that had been paid to him by the confidential source.
According to court documents, in October 2014, a FBI confidential source (CS) informed Quintanilla that he (the CS) was a drug trafficker. Rather than arrest the CS, or open an investigation, Quintanilla offered to help the CS’s drug trafficking business. During a series of recorded meetings, Quintanilla offered advice on how the CS should run his drug trafficking business, provided the location of an unmarked Miami-Dade Police Department narcotics office, provided the names of three Miami-Dade Police Department officers, and promised to provide photographs of officers in the future. In addition, Quintanilla ran the name of a purported drug dealer in a law enforcement database when asked to do so by CS.
By December 2014, Quintanilla had agreed to act as an escort during a purported 10 kilogram cocaine deal. Under FBI direction, the CS told Quintanilla that the CS needed a safe location in Miami Springs where the CS could exchange 10 kilograms of cocaine for $250,000. Quintanilla chose a location for the transaction to take place and, on the date of the transaction, the FBI filmed and recorded Quintanilla meeting with the CS and viewing the cocaine. After the purported deal took place with second undercover CS acting as a drug dealer, Quintanilla then followed the CS’s vehicle to an express package service center, where Quintanilla believed that the CS would ship the $250,000 of drug proceeds to New York. Quintanilla participated in the transaction in uniform, while driving his MSPD marked vehicle. In exchange for his assistance, Quintanilla accepted $3,500 in bribe payments.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Port St. Lucie Police Officer Charged with Receiving, Distributing and Possessing Child PornographyRead the Press Release
A Port St. Lucie Police Officer has been charged with receiving, distributing and possessing child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Robert C. Hutchinson, Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and John A. Bolduc, Chief of Police, Port St. Lucie Police Department, made the announcement.
Michael Edwin Harding, of Port St. Lucie, was charged, by criminal complaint with receiving and distributing material involving sexual exploitation of minors and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a) and 2252A. If convicted, Harding faces a mandatory minimum term of 5 years in prison and maximum statutory sentence of 20 years in prison.
Following his initial appearance today before United States Chief Magistrate Judge Frank J. Lynch, Jr., Harding was ordered held without bond pending a detention hearing on Wednesday, September 30, 2015 at 9:30 a.m.
According to allegations contained in the court record, on July 23, 2015, an individual posted images of child pornography to an instant messaging account for mobile devices. An investigation by law enforcement revealed that subsequently, an additional image and video of child related sexually explicit material were posted to the account. Subscriber information allegedly identified Michael Harding as the accountholder. On September 22, 2015, law enforcement executed a federal search warrant at Harding?s residence and seized Harding?s computer, cell phones and thumb drives, among other materials. A preliminary forensic analysis revealed that the recovered items allegedly contained hundreds of images and videos of children engaged in sexually explicit conduct.
This case is part of Operation Predator, an international law enforcement initiative, led by ICE-HSI, to combat the sexual exploitation of children. Through this collaborative effort, law enforcement strives to protect children from sexual predators, including individuals who travel overseas in order to engage in sexual conduct with minors, individuals who possess, trade and produce child pornography, criminal alien sex offenders, and child sex traffickers. Anyone with information about suspected child exploitation is encouraged to call 1‑866‑872-4973. For additional information regarding the initiative and resources, visit www.ice.gov.
Mr. Ferrer thanked the ICE-HSI and the Port St. Lucie Police Department for their assistance with this investigation. The case is being prosecuted by Assistant United States Attorneys Daniel Funk and Russell Killinger.
A complaint is only an accusation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Carlisle CEO Pleads Guilty in $30 Million Fraud Involving Ten Low-Income Housing DevelopmentsRead the Press Release
Former Carlisle Chief Executive Officer (CEO) pled guilty to participating in a $30 million fraud scheme involving ten low-income housing developments.
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, Nadine Gurley, Special Agent in Charge, United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Former Carlisle CEO Matthew Greer, 37, of Miami Beach, pled guilty yesterday before United States District Court Judge Ursula Ungaro to two counts of conspiracy to commit theft of government money, in connection with a scheme to steal government funds intended for the construction of low-income housing.
According to court documents, including the factual proffer in support of the defendant’s plea, Matthew Greer and Lloyd Boggio served, at alternating times, as CEO of Carlisle Development Group (CDG), a low-income housing developer in Miami, Florida. CDG applied for federal tax credits and federal grant monies to build low-income housing developments through a program administered by the Florida Housing Finance Corporation (FHFC). To obtain these federal funds, FHFC required developers to submit proposed development costs, including a construction contract signed by the developer and contractor.
The court records further indicate that Greer and others through CDG, conspired to unjustly enrich themselves by submitting fraudulently inflated low-income housing construction contracts to FHFC’s representatives to obtain excess federal tax credits and grant monies to which they were not entitled, and then to use the proceeds for their personal use and benefit. From 2006 to 2012, Greer, and the other conspirators caused the submission of fraudulently inflated construction contracts on at least eight different low-income housing developments, which resulted in the allocation of at least $26 million in excess federal tax credits and grant monies. Similarly, during the course of the scheme, the conspirators made kickback payments for the benefit of Greer and others totaling at least $26 million.
Greer conspired with representatives of Biscayne Housing Group (BHG) to commit theft of government money and property. BHG employed the same contract inflation scheme of submitting fraudulently inflated contracts to FHFC for the receipt of excess federal tax credits and grant monies. CDG and BHG had a joint venture for two developments. In or around May 2010, Greer and his conspirators agreed to share approximately $3.7 million in excess government funds for these two joint venture developments.
Greer is scheduled to be sentenced on November 13, 2015. The United States has seized $9.3 million from Greer, who has agreed to entry of a forfeiture money judgment in the amount of $16,004,137, the balance of which he is expected to pay prior to sentencing. Greer faces a maximum possible sentence of ten years in prison.
Mr. Ferrer thanked the FBI, HUD-OIG, and IRS-CI for their work on this case. The case is being prosecuted by Assistant United States Attorneys Michael R. Sherwin, Michael N. Berger, Evelyn Sheehan and Eloisa Fernandez.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Davie Resident Sentenced for her Role in Identity Theft Tax Fraud SchemeRead the Press Release
A Davie resident was sentenced by United States District Judge Beth Bloom to 24 months in prison, followed by one year of supervised release, and was ordered to pay restitution in the amount of $191,678 for her role in an identity theft 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 Raymond Black, Chief, Miramar Police Department, made the announcement.
Ashley Monique Leroy, 26, of Davie, previously pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Codes Section 1028A(a)(1).
According to court documents, on September 17, 2012, police officers from the Miramar Police Department arrested Leroy for possession of marijuana and other traffic infractions. After her arrest, officers conducted an inventory search of her vehicle and recovered a blue notebook that contained hundreds of personal identifying information, such as names, Social Security numbers, and dates of birth. The notebook also contained information explaining how to file income tax returns.
As part of her plea agreement, Leroy agreed to pay restitution to the IRS of $191,678. This amount represents the monetary loss for the filing of fraudulent income taxes in the names of the individuals listed in the blue notebook found in Leroy’s possession.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI and the City of Miramar Police Department. The case is being prosecuted by Assistant U.S. Attorney Miesha Shonta Darrough.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
U.S. Department of Justice Awards Law Enforcement Hiring Grants to Help Build Trust, Reduce Violence and Protect SchoolsRead the Press Release
WASHINGTON, DC—Today, U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) a funding award to Metropolitan Dade County, in the Southern District of Florida, aimed at creating, and in some cases protecting twenty-five (25) Miami-Dade County Police Department law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $3,125,000 to be awarded to Metropolitan Miami-Dade County.
The list of this year’s grantees includes Metropolitan Miami-Dade County (the Miami-Dade County Police Department).
“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”
CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.
“The CHP grants support law enforcement’s ability to advance public safety and strengthen community relations.” stated U.S. Attorney Wifredo A. Ferrer. “The U.S. Attorney’s Office for the Southern District of Florida applauds Metropolitan Miami-Dade County for receiving an award that will augment the crime prevention efforts of our local law enforcement partner, the Miami-Dade County Police Department.”
Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers. All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.