Southern District of Florida
Press releases recorded for this federal judicial district.
Miami-Dade County Resident Pled Guilty to Filing More Than $7 Million in False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident pled guilty to filing more than $7 million in false refund claims with the Internal Revenue Service.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Efrain Galvez, 53, of Miami, Florida, pled guilty to one count of making a false, fictitious, and fraudulent claim against the United States, in violation of Title 18, United States Code, Section 287.
According to court documents, Galvez filed false 2005 through 2008 federal income tax returns with the IRS claiming a total of $7,421,987 in fraudulent refunds. In the returns, Galvez falsely asserted that he was owed millions of dollars in income from various entities, and that those entities had withheld the money as federal income tax paid to the IRS. In fact, the entities owed no such income to Galvez, and withheld no such taxes on his behalf. Specifically, Galvez filed a 2007 amended tax return requesting a tax refund of $2,852,566 claiming that he received income from two county courts among other entities. Galvez attached Forms 1099-OID to the tax return, purportedly from the two courts, reflecting that the courts paid the amounts to the IRS on Galvez’s behalf as taxes. The filed 1099-OID forms were false. Neither court paid or owed income to Galvez or withheld taxes on his behalf. The amounts referenced in the court documents were in fact foreclosure judgments filed against Galvez for his failure to pay mortgages.
Court documents indicate that Galvez had previously filed legitimate tax returns that did not include fabricated income and withholding amounts, knew that he 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.
Galvez is scheduled to be sentenced on October 15, 2015 at 10:00 a.m. before United States District Judge William J. Zloch. At sentencing, the defendant faces a maximum of five years of imprisonment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
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.
MDPD PSA and Tow Truck Company Owner Charged in Illegal Bribery and Kickback SchemeRead the Press Release
Former Miami-Dade Police Department Public Service Aide and the owner of a tow truck company were charged in an illegal bribery and kickback scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Matthew Valdes Perez, 29, and Lazaro Garcia, 31, are charged with conspiring to violate the Hobbs Act, in violation of Title 18, United States Code, Section 1951(a), an offense which carries a statutory maximum sentence of 20 years’ imprisonment. Valdes and Garcia are also charged with accepting, or paying, bribes concerning a local governmental agency receiving federal funds, in violation of Title 18, United States Code, Sections 666(a)(1)(B) and 666(a)(2), which carry a maximum sentence of 10 years’ imprisonment.
According to the facts alleged in the complaint, in August 2014, a confidential source (CS) told investigating FBI agents that Lazaro Garcia, the owner and operator of a tow truck company, had been receiving kickbacks from the CS and paying bribes to a MDPD Public Service Aide (PSA). The FBI subsequently corroborated the CS’s allegations during a series of recorded meetings between the CS, MDPD PSA Matthew Valdes, and Garcia. During those recordings, Garcia admitted paying Valdes for accident information which, in turn, Garcia would use to illegally solicit stranded drivers for business. Both Valdes and Garcia were recorded on multiple occasions participating in the illegal towing scheme.
The complaint further alleges that in order to further document the illicit relationship between Garcia and Valdes, the CS asked Garcia if he knew anyone who could collect confidential information regarding accident victims. The CS indicated he knew a corrupt chiropractor who would use the confidential information to illegally solicit the accident victims for business. Garcia suggested PSA Valdes. Between September 2014 and October 2014, Valdes accessed and collected the confidential personal information of dozens of accident victims from MDPD databases. Valdes and Garcia sold this information to the CS, in return for $4200 in cash payments. Those transactions were also recorded.
In January 2015, Valdes was interviewed by the FBI and confessed to his part in the various kickback schemes. Valdes admitted receiving more than $10,000 worth of bribes from Garcia between January 2014 and January 2015. Valdes also admitted receiving bribes from the CS for his role in the plot to steal accident victim’s personal information for use by the corrupt doctor.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the MDPD Internal Affairs Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Anthony Lacosta.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Miami-Dade County Residents Pled Guilty to Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami-Dade County residents pled guilty today 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.
Godfrey Teekah, Jr., 28, and Phillip Collins, 29, both of Miami Gardens, each 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 one 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 produced 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.
Sentencing for both defendants is scheduled for October 9, 2015 at 9:00 a.m. before United States District Judge James I. Cohn. The defendants face a maximum statutory sentence of ten years in prison for the possession of unauthorized access devices charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the BSO. This case is being 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.
Miami -Dade County Resident Charged with Robbery of Postal Letter CarrierRead the Press Release
A Miami-Dade County resident was charged with robbery of a U.S. Postal Letter Carrier.
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.
Yunior Blanco, 19, of Miami-Dade, was charged by criminal complaint with robbery of a postal employee, in violation of Title 18, United States Code, Section 2114(a).
According to allegations contained in the criminal complaint, Blanco robbed a U.S. Postal Letter Carrier of his arrow key while the carrier was delivering mail. Blanco then attempted to flee the crime scene. After a brief foot chase, Blanco was stopped by the postal carrier and several nearby bystanders who witnessed the pursuit.
“Letter carriers are government representatives who perform an important public service. The U.S. Attorneys’ Office is committed to working alongside federal and local law enforcement agencies, in our effort to identify and prosecute those who target and steal from government employees,” stated U.S. Attorney Wifredo A. Ferrer.
“Earlier this year, we asked South Florida residents to help us in keeping our letter carriers safe by taking a moment to look around when they see them” said U.S. Postal Inspector in Charge in Miami Ronald Verrochio, “it was just this kind of vigilance that helped apprehend this subject.”
U.S. Attorney Ferrer commended the efforts of the USPIS and the City of Miami Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan Kobrinski.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the 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.
Master of Cargo Vessel Charged with Operating Under InfluenceRead the Press Release
A master of a cargo vessel was charged with operating the boat while under the influence of alcohol.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Rear Admiral Scott Buschman, United States Coast Guard, District 7, made the announcement.
Anatoli Slepov, 50, a citizen of Lithuania, was charged in a criminal complaint filed in Ft. Lauderdale, with operating the vessel as it approached Port Everglades, in U.S. waters, while under the influence of alcohol, that is, while having a blood alcohol concentration of .04 or greater, in violation of Title 46, United States Code, Section 2302(c).
According to court records, Slepov was a master of the Wasaborg cargo vessel and as such had operational control of the ship when it was boarded by United States Coast Guard personnel for purposes of a port state control examination. During the examination, Coast Guard personnel observed Slepov behaving in an agitated manner, with glazed eyes, slurred speech, and a strong odor of alcohol coming from his person. Coast Guard personnel administered two blood alcohol tests to the defendant via breathalyzer. The first reading registered a content of .104, while the second reading registered a content of .108.
Following his initial appearance today before United States Magistrate Judge Patrick Hunt in Ft. Lauderdale, Slepov was ordered held in pre-trial detention pending a bond hearing that has been scheduled for August 4, 2015 at 11:00 a.m.
Mr. Ferrer commended the investigative efforts of the United States Coast Guard and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI). The case is being prosecuted by Special Assistant U.S. Attorney Jeremy McCall.
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.
Founder and Former Owner of Yuca Sentenced for His Role in a Conspiracy to Distribute MethamphetamineRead the Press Release
Miami-Dade County resident sentenced for his role in a conspiracy to distribute methamphetamine.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Efrain Veiga, 64, of Miami, was sentenced yesterday to twenty-four months imprisonment, to be followed by three years of supervised release, for his role in a conspiracy to distribute methamphetamine. Veiga had previously pled guilty to violating Title 21, United States Code, Section 846.
According to court records, Veiga was the founder and former owner of Yuca, a restaurant in Miami Beach, Florida. In November 2014, the DEA initiated an investigation into Veiga’s drug-trafficking activities, based on information that Veiga was distributing methamphetamine in Miami Beach. On November 21, 2014, the DEA conducted a controlled purchase of methamphetamine from Veiga at his apartment, during which Veiga sold approximately 70 grams of methamphetamine in exchange for $3,600. The drug transaction was captured on video. A subsequent laboratory analysis of the methamphetamine determined the drug was 94.7% pure. On December 4, 2014, the DEA executed a search warrant at Veiga’s apartment. DEA agents found digital scales, a portion of the funds used for the controlled purchase and a bag containing a small portion of methamphetamine. Upon entering the apartment’s bathroom, agents also found a plastic bag containing methamphetamine residue floating in the toilet. Two individuals who occupied the residence at the time of the search had attempted to dispose of the methamphetamine. The bag had contained two ounces of methamphetamine.
This case was the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Ferrer commended the DEA for their work on this investigation. This case was prosecuted by Assistant U.S. Attorney Robert J. Brady, Jr.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Sentenced to 15 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
On July 24, 2015, Presner Telusme, of West Palm Beach, was sentenced to 15 years in prison by U.S. District Judge Kenneth Marra, following his guilty plea to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g) and 924(e).
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, David Aronberg, State Attorney, Palm Beach County State Attorney’s Office, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) made the announcement.
According to court records, Telusme was arrested pursuant to a warrant. During the subsequent execution of a search warrant at Telusme’s residence, law enforcement discovered a stolen firearm. Telusme, who was previously convicted of state felony offenses, including two sales of cocaine, resisting arrest with violence, and fleeing/eluding, admitted to unlawfully possessing the firearm.
This case is, in large part, the result of the Project Safe Neighborhood Partnership, launched by the U.S. Attorney’s Office for the Southern District of Florida. Through this Partnership, the U.S. Attorney’s Office and its federal, state and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training and family services, and help individuals who have completed their federal and state prison sentences to successfully re-enter society.
Mr. Ferrer and Mr. Aronberg commended the investigative efforts of the ATF and PBSO. This case is being prosecuted by Special Assistant U.S. Attorney Gregory Schiller from the Palm Beach County State Attorney’s Office.
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.
Investment Advisor Pleads Guilty in Connection with Rothstein CaseRead the Press Release
An investor advisor pled guilty this afternoon for his involvement in the Rothstein wire fraud conspiracy.
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, pled guilty before U. S. District Court Judge William P. Dimitrouleas to conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371. At sentencing, scheduled for October 21, 2015 at 1:15 p.m., Szafranski faces a maximum statutory sentence of five years in prison.
According to court records, including a stipulated statement of facts, 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 through material misstatements and material omissions made by defendant Szafranski. Specifically, 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 the IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorneys Lawrence D. LaVecchio, Paul F. Schwartz, and Jeffrey N. Kaplan.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Monroe County Resident Charged with Attempting to Use Weapon of Mass DestructionRead the Press Release
A Monroe County resident was charged with attempting to use a weapon of mass destruction, an explosive device.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John P. Carlin, Assistant Attorney General for National Security, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Harlem Suarez, a/k/a “Almlak Benitez,” 23, of Key West, Florida, was charged by a criminal complaint with knowingly attempting to use a weapon of mass destruction against a person or property within the United States, in violation of Title 18, United States Code, Section 2332a(a)(2), punishable by up to life in prison.
According to the allegations contained in the complaint, in April 2015, Suarez came to the attention of the FBI due to Facebook postings which contained extremist rhetoric and promoted the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization (FTO).
The complaint further alleges that Suarez told an FBI confidential human source (CHS) that he wanted to make a “timer bomb.” Suarez purchased components for this device, which was to contain galvanized nails, be concealed in a backpack, and be remotely detonated by a cellular telephone. Suarez intended to bury the device at a public beach in Key West and then detonate it.
On July 27, 2015, Suarez took possession of an inert explosive device and was arrested.
“The top priority of the Department of Justice is to protect the security of the American people. The U.S. Attorney’s Office, in collaboration with the FBI, works tirelessly to advance this mission by continuing to thwart home-grown acts of terrorism,” stated U.S. Attorney Ferrer.
“According to the complaint, Harlem Suarez, a self-professed ISIL adherent, knowingly attempted to use a weapon of mass destruction - a backpack bomb - in the United States,” said Assistant Attorney General Carlin. “Stopping attacks on our homeland by those inspired or directed by designated foreign terrorist organizations is the highest priority of the National Security Division.”
“There is no room for failure when it comes to investigating the potential use of a weapon of mass destruction,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI and our local, state and federal partners work around the clock to prevent such catastrophic weapons from being used against our citizens. Even so, we ask the public to be vigilant and report suspicious activity to law enforcement.”
Mr. Ferrer commended the investigative efforts of the FBI, JTTF, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Key West Police Department, Monroe County Sheriff’s Office, and Palm Beach County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorneys Marc S. Anton and Karen E. Gilbert and Trial Attorneys Clement McGovern and Michael Dittoe of the Counterterrorism Section of the U.S. Department of Justice.
A complaint is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident and ISIL Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing a FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, was sentenced yesterday by U.S. District Judge Joan A. Lenard of the Southern District of Florida to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm.
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 members of the South Florida Joint Terrorism Task Force (JTTF) made the announcement.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security,” said U.S. Attorney Ferrer. “Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines.”
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria,” said Special Agent in Charge Piro. “He called himself a ‘Lone Wolf’ for ‘ISIS.’ This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings in the name of “Azizi Al Hariri,” a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization. Thereafter, during a subsequent undercover operation, Diaz told an FBI confidential source that he was a convicted felon and could not purchase a firearm. Diaz asked the confidential source to purchase him a “baby Glock” (a small concealable semi-automatic firearm) and other weapons, in exchange for $500. Diaz proposed that he would arrange to have the guns “stolen” from the confidential source’s vehicle.
Diaz also advised that he already owned a number of weapons, including a rifle, handgun and a Ket Tec 2000 with a collapsible stock that he would use to conceal the firearm. Diaz showed the confidential source photographs of him holding firearms and also displayed a gun that was concealed in his vehicle.
On Jan. 30, 2015, during a meeting with the confidential source in Miami, Diaz described himself as a “Lone Wolf” for ISIS. Diaz indicated that he wanted to acquire a .308 caliber bolt action rifle and intended to scratch “ISIS” into the shell casings. Diaz claimed that after he killed people, authorities would find the shell casings and put the city on lockdown as they attempted to locate the sniper. Diaz also used his iPhone to view Al-Qaida in the Arabian Peninsula’s (AQAP’s) Inspire Magazine website in order to learn how to build bombs.
On Feb. 8, 2015, the confidential source again met with Diaz in Miami in order to conduct target practice with loaded firearms.
On March 20, 2015, the confidential source asked Diaz if he would like to purchase any additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds if the price was good.
On April 2, 2015, the FBI executed a warrant and found Diaz driving a vehicle while in possession of a .40 caliber handgun loaded with 15 rounds of ammunition and a magazine containing 15 addition rounds. A search of Diaz’s residence revealed an additional Kel-tec 2000, .40 caliber rifle and approximately 200 to 300 rounds of .40 caliber ammunition.
U.S. Attorney Ferrer commended the investigative efforts of the FBI and JTTF. The case is being prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert of the Southern District of Florida.
A copy of this press release may be found on the website of the U.S. Attorney’s Office of the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the U.S. District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Resident and Isil Sympathizer Sentenced to 10 Years in Prison for Illegally Possessing A FirearmRead the Press Release
Miguel Moran Diaz, 45, of Miami, Florida, was sentenced yesterday by United States District Judge Joan A. Lenard to the statutory maximum term of 120 months in prison, to be followed by three years of supervised release, following his guilty plea for being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
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 members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
According to court documents and statements made in court, in late January 2015, Diaz came to the attention of the FBI due in part to Facebook postings that included a photo of Diaz possessing a firearm and articles regarding the Islamic State of Iraq and Syria (ISIS), a designated foreign terrorist organization.
Thereafter, Diaz told an FBI confidential human source (CHS) that he was a convicted felon and could not purchase a firearm. Nevertheless, Diaz asked the CHS to purchase a handgun and other weapons in exchange for $500. Diaz also advised that he already owned a number of firearms. Diaz showed the CHS photographs of him holding the weapons and displayed a gun that was concealed in his vehicle.
On January 30, 2015, during a meeting with the CHS, Diaz described himself as a “Lone Wolf” for “ISIS.” Diaz indicated that he wanted to acquire a rifle and intended to scratch “ISIS” into the shell casings so that, after an attack, the authorities would find the shell casings and know what group was responsible.
On February 8, 2015, the CHS again met with Diaz in Miami, in order to conduct target practice with loaded firearms.
On March 20, 2015, the CHS asked Diaz if he would like to purchase additional ammunition. Diaz stated that he had approximately 500 rounds of ammunition at his residence, but wanted to purchase 500 additional rounds.
On April 2, 2015, the FBI arrested Diaz while in possession of a .40 caliber handgun, loaded with fifteen rounds of ammunition, and a magazine containing fifteen additional rounds. A search of Diaz’s residence uncovered more firearms and ammunition.
“The U.S. Attorney’s Office is committed to using our law enforcement resources in order to disrupt potential terroristic plots and prosecute those individuals who seek to jeopardize our security. Individuals who unlawfully possess firearms and advocate for violent extremism will continue to be identified, prosecuted and brought to justice under the federal sentencing guidelines,” stated U.S. Attorney Wifredo A. Ferrer.
“Miguel Moran Diaz was an armed, convicted felon who harbored sympathies for the Islamic State of Iraq and Syria. He called himself a ‘Lone Wolf’ for ‘ISIS,’” said George L. Piro, Special Agent in Charge, FBI Miami. “This is not a scenario where law enforcement can afford to wait and see what happens next. The FBI and our partners in the Joint Terrorism Task Force investigated and disrupted this threat to South Florida.”
Mr. Ferrer commended the investigative efforts of the FBI and JTTF. The case was prosecuted by Assistant U.S. Attorneys Marc S. Anton and Karen E. Gilbert.
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.
Five Charged with Paying and Accepting Bribes and GratuitiesRead the Press Release
Federal charges were filed, by information, against five individuals for paying and accepting bribes and gratuities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Pamela Bondi, Florida Attorney General, and Margaret Moore-Jackson, Special Agent in Charge, United States Social Security Administration, Office of Inspector General (SSA-OIG), Shimon R. Richmond, Special Agent in Charge, Miami Region, United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Irma Davidian, 52, of Boca Raton, is charged with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud; and conspiracy to give a gratuity to a public official, both, in violation of Title 18, United States Code, Section 371.
Gladys Roman, 47, and George Lopez, 35, both of Pompano Beach, are charged in a separate information, with conspiracy to commit bribery in programs receiving federal funds and commit health care fraud, in violation of Title 18, United States Code, Section 371.
Maria Sanchez, 50, of Pembroke Pines, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
Alejandro Lomoso, 56, of Southwest Ranches, is charged with conspiracy to receive and accept a gratuity by a public official, in violation of Title 18, United States Code, Section 371.
According to allegations contained in documents filed with the court, Davidian was in the business of representing persons who sought to obtain government benefits, including Social Security, Medicaid and Food Stamp benefits. Davidian would claim that, for a payment ranging from $2,000-$5,000, she could obtain those benefits for individuals regardless of their personal circumstances. Roman was employed by the Florida Department of Child and Family Services (DCF) as an interview clerk and inputted information from those persons applying for Medicaid and Food Stamps benefits into a DCF computer. The Medicaid applications would then be assigned to a DCF case worker whose job title was an Economic Self-Sufficiency Specialist (ESS).
The court documents allege that, in or about April 2009, Roman submitted applications to DCF on behalf of Davidian’s clients and did so from her home or a public library and would add or change information to enhance the application.Davidian repeatedly asked Roman if there was an ESS worker at DCF who Davidian could pay to approve DCF applications.Lopez was an ESS for DCF.His duties included approving or denying requests for Medicaid and Food Stamp benefits.In or about 2012, Lopez agreed that, in exchange for money, he would approve applications submitted by Davidian on behalf of her clients.
In addition, court records allege that every other week, Davidian submitted applications on behalf of her clients to Roman so that they could be forwarded to DCF.Davidian submitted fraudulent documents with some of the applications in order to make it appear that her clients met the benefit requirements. Davidian instructed Roman to assign Lopez as the ESS worker in order to ensure that some of the fraudulent applications would be approved.
According to allegations, Roman would then fraudulently approve benefits for applicants who were not otherwise qualified.If benefits for Medicaid or Food Stamps were properly denied by another DCF employee, Lopez logged into the DCF computer system and overrode the denial and approved the benefits. Beginning in or about 2012 through in or about January 2014, every other week, Davidian paid Roman and Lopez each $500.As a result of the scheme, Roman and Lopez assisted Davidian to seek more than $5,000,000 in fraudulent benefits.
Court records further allege that Sanchez and Lomoso worked as claims representatives for the SSA.From in or about 2008 through in or about early 2011, Sanchez and Lomoso would periodically receive applications from Davidian on behalf of persons seeking SSA benefits.In exchange for payment, Sanchez and Lomoso would expedite and/or modify the application process.Davidian gave, offered, and promised approximately $9,500 in U.S. currency to Lomoso and approximately $13,000-$15,000 to Sanchez in exchange for performing their official acts.
If convicted, Davidian faces a statutory maximum term of imprisonment of 10 years’ imprisonment and/or a fine of up to $500,000 and may be ordered to pay restitution.If convicted, defendants Roman, Lopez, Sanchez, and Lomoso each face a statutory maximum term of imprisonment of 5 years’ imprisonment and/or a fine of up to $250,000 and may be ordered to pay restitution.
In conjunction with the federal charges, the following individuals were arrested and charged by the Florida Attorney General’s Medicaid Fraud Control Unit:
Alexey Mesiatsev, 61, of Wellington, FL
Ilya Massarsky, 38, of Sunny Isles Beach, FL
Lyudmila Ustakova, 46, of Boca Raton, FL
Maryna Makhnyeva, 37, of Boca Raton, FL
Natalya Krichevskaya, 49, of Ft. Lauderdale, FL
Olga Maximova, 53, of Sunny Isles Beach, FL
Sergei Berezin, 43, of Boca Raton, FL
Lyudmila Pereverzeva, 56, of Hallandale Beach, FL
The total loss to the Florida Medicaid program as a result of the defendants alleged conduct is more than $2.7 million.
Mr. Ferrer commended the investigative efforts of the FBI, Florida Attorney General’s Office, SSA-OIG, HHS-OIG, MFCU and the Florida Department of Children and Families OIG.Attorney General Pam Bondi’s Office of Statewide Prosecution will handle the state law violations.The federal matters are being prosecuted by Assistant U.S. Attorneys Jeffrey N. Kaplan and Thomas P. Lanigan.
An information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Suspected Medicaid fraud can be reported to the Department of Justice through www.stopmedicarefraud.gov or 800-447-8477, or the Florida Attorney General’s Office by calling the hotline telephone at 866-966-7226 or by filing a complaint at http://myfloridalegal.com.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Defendants Pled Guilty in Extensive Identity Theft Tax Refund Fraud SchemeRead the Press Release
Three defendants pled guilty for their participation in an extensive stolen identity tax refund fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Brandi Mary Janice Stroman, 30, of Oakland Park, and Dezman Dunbar Zama, 34, of Fort Lauderdale, each pled guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit bank fraud, and one count of aggravated identity theft, in violation of Title l8, United States Code, Sections 1343, 1344, 1349 and 1028A. Stroman also pled guilty to one count of conspiracy to commit mail fraud, in violation of Title l8, United States Code, Sections 1341 and 1349. Jerrod Dashon Bosket, 26, of Orlando, pled guilty to one count of unauthorized use of an access device and one count of aggravated identity theft, in violation of Title 18, Sections 1029(a)(2) and 1028A.
According to court documents, from March 2012 through August 2012, Stroman obtained the bank account information of Zama, Jerrod Bosket, and co-defendant Cornelius Craig Bosket, 32, of Fort Lauderdale. Stroman then provided the bank account information to another individual who filed false tax returns using the personally identifiable information (PII) of patients of a medical services provider. The fraudulent refunds from these tax returns were deposited into one of the bank accounts controlled by Zama, Jerrod Bosket, Cornelius Bosket, or others. After the money was deposited into the account, Stroman contacted the co-defendants and directed them to withdraw the funds. During the course of the conspiracy, at least 27 false returns were filed requesting $105,313 in fraudulent refunds. Each one of the 27 false returns listed one of the defendant’s bank account numbers.
Court documents also state that a member of the conspiracy obtained the names, social security numbers, and bank account numbers of three other individuals. A member of the conspiracy transferred or attempted to transfer $62,000, $92,716, and $135,482.46, respectively, from these three individuals’ bank accounts into a bank account controlled by Stroman or Zama. Stroman and Zama then withdrew or attempted to withdraw the transferred funds. Four fraudulent tax refunds in the name of incarcerated individuals were also deposited into Stroman’s bank account.
Defendants Zama and Jerrod Bosket are scheduled to be sentenced on September 23, 2015, and defendant Stroman is scheduled to be sentenced on October 7, 2015, all before United States District Judge William J. Zloch. All of the defendants face a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge. Stroman and Zama also face a maximum of twenty years in prison for the conspiracy to commit wire fraud charge and a maximum of thirty years in prison for the conspiracy to commit bank fraud charge. Stroman also faces a maximum of twenty years in prison for the conspiracy to commit mail fraud charge. Jerrod Bosket faces a maximum of ten years in prison for the access device charge.
Trial is scheduled to begin on July 28, 2015 for co-defendant Cornelius Craig Bosket.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida, and Special Agent in Charge George L. Piro for the Federal Bureau of Investigation’s (FBI) Miami Field Office made the announcement.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Florida, Alan D. Messina, 54, of Sunrise, Florida, Michael T. Angeletti, 33, of Sunrise, Florida, Michael J. Calash 34, of Boca Raton, Florida, Stephen R. Reynolds, 38, of Pompano Beach, Florida, Gary X. Schultz, 55, of Miramar, Florida, Chazon Stein, 36, North Miami Beach, Florida, were charged with conspiracy to commit mail and wire fraud.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security,” said U.S. Attorney Ferrer. “Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves.”
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges that the IPO was not forthcoming as promised and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately 35 individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
U.S. Attorney Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Roger Cruz and Trial Attorney Kevin B. Hart from the Antitrust Division of the Department of Justice.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Eight Additional Individuals Charged in NFL-Related Securities Fraud Scheme Targeting the ElderlyRead the Press Release
Eight additional individuals were indicted for participating in a securities fraud scheme that targeted the elderly.
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.
David Anthony Eratostene, 53, of Miramar, Florida, Christopher J. Borgo, 41, of Boca Raton, Alan D. Messina, 54, of Sunrise, Michael T. Angeletti, 33, of Sunrise, Michael J. Calash 34, of Boca Raton, Stephen R. Reynolds, 38, of Pompano Beach, Gary X. Schultz, 55, of Miramar, Chazon Stein, 36, North Miami Beach, were charged with conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and wire fraud, in violation of Title 18, United States Code, Section 1343.
“Securities fraud schemes that target members of our community jeopardize our personal investments and security. Our Office, in collaboration with the FBI, strives to prevent the victimization of our elderly residents. By combatting these invasive fraud schemes, we help to protect potential victims from losing their hard-earned money to telemarketing thieves,” stated U.S. Attorney Wifredo A. Ferrer.
According to allegations contained in the indictment, the defendants pressured investors into purchasing stock in two companies, Thought Development Inc. (TDI) and Virgin Gaming. TDI was a Miami Beach-based company that claimed its signature invention generated a green laser line on the football field visible in the stadium to players, fans as well as on television. TDI represented that use of its technology would decrease the time used by officials to determine first downs, freeing up broadcast time that could then be sold to television advertisers. The defendants raised approximately $2.4 million through the use of call rooms that targeted more than 200 investors throughout the nation, who were told that an initial public offering (IPO) in TDI was imminent and that their money would be safe and used to develop the ground-breaking technology. Instead, the indictment alleges, that the IPO was not forthcoming as promised, and at least 50 percent of the offering proceeds were retained by the defendants or paid to sales agents through undisclosed, exorbitant commissions and fees. The defendants also lured investors by misrepresenting that TDI’s technology was about to be used by the NFL. The defendants also neglected to tell investors the TDI laser technology posed a potential risk of blindness to players on the football field.
The indictment alleges that the second fraudulently sold stock, for Virgin Gaming, a subsidiary of Virgin Media, Inc., provided a fee-based service that facilitated online tournaments, fantasy sports leagues, and competitive online gaming. The Virgin Gaming scheme took one of two forms. In some instances, sales agents told investors they would be investing in a company that had obtained the right to purchase shares of Virgin Gaming stock. The defendants told investors those shares would be converted into shares of Virgin Gaming just prior to an IPO. However, this was not a true representation as no such option to buy Virgin Gaming stock, in fact existed. On other occasions, sales agents told investors that they were directly purchasing Virgin Gaming stock when in fact they were not. The defendants’ sales agents also lied about guaranteed returns on investments and the timing of the purported IPO. Over the course of the scheme, the defendants caused approximately thirty-five individuals to purchase the non-existent Virgin Gaming stock and thereby made approximately $325,000 in fraudulent sales. Nearly all of the monies were misappropriated as undisclosed commissions and fees.
This indictment relates to a case filed a year ago, United States v. Kirschner, et. al, 14-20514-CR-Gayles. All four defendants in that matter, the leader/organizers of the TDI fraud scheme discussed above, pleaded guilty and have been sentenced.
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant United States Attorney Roger Cruz and Department of Justice, Antitrust Division, Trial Attorney, Kevin B. Hart.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Davie Resident Pled Guilty for her Role in Identity Theft Tax Fraud SchemeRead the Press Release
Ashley Monique Leroy, 26, of Davie, pled guilty to one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A(a)(1).
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.
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.
Leroy is scheduled to be sentenced on September 21, 2015 at 9:00 a.m., before the Honorable Beth Bloom, United States District Judge. At sentencing, the defendant faces a mandatory term of two years’ imprisonment, consecutive to any other prison term.
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.
Palm Beach County Resident Charged for Participation in Stolen Identity Tax Fraud Scheme Involving at Least 790 IdentitiesRead the Press Release
A Palm Beach County resident was charged for her participation in a stolen identity tax fraud scheme involving at least 790 stolen identities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Karen Citizen-Wilcox, Special Agent in Charge, U.S. Department of Agriculture, Office of Inspector General (USDA-OIG), made the announcement.
Starling Willis, 32, of West Palm Beach, was charged by information with 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 and 2. If convicted, Willis faces a maximum of twenty years in prison for the conspiracy charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Willis is alleged to have participated in fraudulent activity with two defendants charged in a separate superseding indictment, Latonia Verdell, 40, and Kelli Witherspoon McIntosh, 39, both of Palm Beach County (Case No. 14-CR-80158).
According to the information and other publicly filed court documents, Verdell recruited and led her co-conspirators, including Willis and McIntosh, in a widespread stolen identity refund fraud scheme involving at least 790 stolen identities and personal identification information (PII). This 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.
As part of the overall schemes to defraud the IRS, Willis allegedly allowed Verdell to use her personal bank accounts to receive payments of tax refunds from fraudulent income tax returns. Willis allegedly opened additional bank accounts, at various banks, expressly for the purpose of receiving some of the fraudulent tax refund payments. Willis would then withdraw the monies and share them with Verdell.
Court documents further allege 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.
Trial is scheduled for Verdell and McIntosh on October 5, 2015. The Court has not yet scheduled a trial date for Willis.
Mr. Ferrer commended the investigative efforts of the IRS-CI, and USDA-OIG. Mr. Ferrer also thanked the Palm Beach County Sheriff’s Office for their assistance in the lengthy investigation and ultimate arrests. The case is being prosecuted by Assistant U.S. Attorney Theodore Cooperstein.
An information or indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Sentenced to 41 Months in Prison for Identity Theft Tax Fraud Scheme Involving $418,679.66 in Fraudulent RefundsRead the Press Release
A Miami-Dade County resident was sentenced to 41 months in prison, followed by three years of supervised release, for his participation in an identity theft tax fraud scheme involving $418,679.66 in fraudulent refunds.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Junior St. Fleurose, 29, of Miami, previously pled guilty to five counts of theft of government funds.
According to court documents, from January 2010 through July 2011, St. Fleurose received forty-three (43) Treasury tax refund checks and wire deposits into his personal and business bank accounts that were in other people's names. Some of the tax refund checks and wires were from fraudulently filed tax returns without the knowledge of the taxpayer. Others were Treasury checks stolen from individuals who filed a legitimate tax return. The defendant converted $325,432.02 in tax refunds for his and someone else's use at various vendors in the South Florida area. St. Fleurose also received twenty-six (26) tax Refund Anticipation Loan checks into his bank accounts totaling $89,440.64.
The total amount of loss is $418,679.66.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorney Ilham A. Hosseini.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Two Miami-Dade County Residents Pled Guilty in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
Two Miami-Dade County residents pled guilty for their 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), Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Joshua Chikudo, 40, and Curtis Joseph, a/k/a “CJ,” 36, both of Miami-Dade, each pled guilty to one count of wire fraud conspiracy, in violation of Title 18, United States Code, Section 1349. Chikudo also pled guilty to one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
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, undercover agent, and another undercover partner agreed to split all of the tax refunds equally amongst themselves. 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 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 the twelve IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
The defendants each face a maximum of twenty years in prison for the conspiracy charge. Chikudo is also facing and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
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.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Resident Convicted for Being a Felon in Possession of a FirearmRead the Press Release
A Riviera Beach resident was convicted by a jury for being a felon in possession of a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, 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 convicted following a three-day jury trial before U.S. District Judge Donald M. Middlebrooks on two counts of being a felon in possession of a firearm. McDonald was previously convicted in state court for being a felon in possession. McDonald faces a maximum sentence of up to 20 years in federal prison for the crimes of conviction. McDonald is scheduled to be sentenced on September 30, 2015, at 10:30 a.m.
According to evidence presented at trial, McDonald fled from the police during two separate stolen vehicle investigations. On July 28, 2013, McDonald dropped a fully loaded Smith & Wesson 9 mm semi-automatic pistol during his flight from members of the Palm Beach Gardens Police Department. On December 17, 2013, Palm Beach County Sheriff’s Deputies recovered a fully loaded Ingram Mac 10 semi-automatic pistol from McDonald’s path of flight.
This case is, in large part, the result of the Violence Reduction Partnership, launched by the U.S. Attorney’s Office. Through this Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods, while simultaneously working with community leaders and concerned citizens to mentor at-risk youths, provide jobs and job training to young families, and help probationers and parolees successfully re-enter society.
Mr. Ferrer commended the investigative efforts of ATF, PBGPD and PBSO. The case is being prosecuted by Assistant U.S. Attorneys Brandy Galler and Daniel Funk.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Area Pharmacy Owner Pleads Guilty to Role in $1.8 Million Medicare Fraud SchemeRead the Press Release
A Miami-area pharmacy owner pleaded guilty today for his role in the submission of more than $1.8 million in fraudulent claims to Medicare.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Evelio Fernandez Penaranda, 47, of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida to one count of health care fraud. Sentencing has been scheduled for Oct. 8, 2015.
Penaranda owned Naranja Pharmacy Inc. In connection with his guilty plea, Penaranda admitted that, between May 2013 and March 2014, Naranja Pharmacy submitted fraudulent claims to Medicare for prescription drugs that were not prescribed by physicians, not medically necessary and not provided to Medicare beneficiaries. According to admissions made in connection with Penaranda’s guilty plea, Naranja Pharmacy submitted these false claims by obtaining and using the unique identifying information of Medicare beneficiaries and doctors without their consent.
Penaranda admitted that he controlled Naranja Pharmacy’s bank accounts, and that he transferred the payments received from Medicare to himself and his accomplices. According to admissions made in connection with Penaranda’s plea, during the course of the scheme, Naranja Pharmacy submitted to Medicare over $1.8 million in false claims for prescription drugs, and Medicare paid 100 percent of the claims.
The case is being investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida. The case is being prosecuted by Trial Attorney Nicholas E. Surmacz 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 Team, go to: www.stopmedicarefraud.gov.
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Justice Department Reaches Agreement with Carnival Corp. over ADA Violations by Carnival Cruise Line, Holland America Line and Princess CruisesRead the Press Release
The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.
Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines. Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.
“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities. People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”
“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement agreement is the result of an investigation of complaints by the Justice Department. Carnival officials cooperated with the department throughout the process. Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.
Under the agreement:
- 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations. Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
- Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins. The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
- Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
- Carnival Corp. will provide specific ADA training to employees and managers;
- Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
- The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
- Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
- Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.
Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA. It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
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Justice Department Reaches Agreement with Carnival Corp. over ADA Violations by Carnival Cruise Line, Holland America Line and Princess CruisesRead the Press Release
The Justice Department and Carnival Corp. today announced a comprehensive, landmark settlement agreement under the Americans with Disabilities Act (ADA) to advance equal access for individuals with disabilities who travel on cruise ships.
Carnival Corp. is one of the largest cruise companies in the world, owning and operating several cruise lines. Today’s settlement agreement addresses accessibility on 62 ships among the Carnival Cruise Line, Holland America Line and Princess Cruises brands and implements accessibility standards and policies to provide greater access on cruises that embark and disembark from U.S. waters or those of its territories.
“The ADA guarantees people with disabilities equal access to public accommodations,” said head of the Civil Rights Division, Principal Deputy Assistant Attorney General Vanita Gupta. “Cruise ships are ‘floating cities’ and provide a wide range of facilities and activities subject to the requirements of the ADA, such as lodging, dining, entertainment, recreation, and medical facilities. People with disabilities who travel must be able to count on getting the accessible cabin they reserve, and the cruise lines must provide equal access to the choice of amenities and attractions that passengers expect from a major cruise company like Carnival Corporation.”
“This landmark ADA agreement will enable individuals with disabilities the opportunity to equally enjoy a full range of cabins and services that previously were unavailable while vacationing on cruise ships,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.
The settlement agreement is the result of an investigation of complaints by the Justice Department. Carnival officials cooperated with the department throughout the process. Among the complaints were allegations that the company failed to: properly provide and reserve accessible cabins for individuals with mobility disabilities; reasonably modify policies, practices and procedures to accommodate individuals with disabilities; afford individuals with disabilities the same opportunities to participate in programs and services, including embarkation and disembarkation; and provide effective communication during muster and emergency drills.
Under the agreement:
- 42 existing ships, and 7 ships in various stages of design and construction, will be surveyed and remediated to comply with the ADA regulations. Accessible cabins will be dispersed among the various classes of accommodations and will provide a range of accessible features, including features for guests with hearing impairments;
- Three percent of the cabins on 49 ships will be accessible according to three levels of accessibility: fully accessible cabins, fully accessible cabins with a single side approach to the bed, and ambulatory accessible cabins. The remaining 13 ships will be subject to possible remediation if they continue to be in service in U.S. ports four years after the agreement is entered.
- Carnival Corp. has created brand standards that address an array of accessibility issues and policies to implement them;
- Carnival Corp. will provide specific ADA training to employees and managers;
- Reservations systems will allow individuals with disabilities to reserve accessible cabins and suites with specific available options and amenities, and to guarantee reservations for accessible cabins;
- The accessibility of Carnival Corp. websites and mobile applications will comply with WCAG 2.0 Level A and AA;
- Carnival Corp. will appoint an ADA compliance officer at the executive level, two ADA responsibility officers – one for Carnival Cruises and one for Holland America Group, which includes Holland America Line and Princess Cruises, and ADA shipboard officers for each ship who are responsible for resolving ADA-related issues that arise at sea; and
- Carnival Corp. will pay a civil penalty of $55,000 to the United States and $350,000 in damages to individuals harmed by past discrimination.
Today’s settlement represents the first time the Department of Justice has required a cruise company to provide a minimum number of accessible cabins, to conduct a survey of its ships and to develop a remediation plan to comply with the ADA. It is also the first time that an agreement under the ADA has specifically identified three types of accessible cabins on cruise ships – fully accessible cabins, fully accessible cabins-single side approach and ambulatory accessible cabins – that will be available to individuals with disabilities.
People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.
Jury Convicts Synthetic Cannabinoid DistributorRead the Press Release
Ronen Nahmani, 41, of Aventura, Florida was convicted by a jury of conspiracy to possess with intent to distribute controlled substances and controlled substance analogues, namely, synthetic cannabinoids, in violation of Title 21, United States Code, Section 846. Nahmani is scheduled to be sentenced before Chief Judge Michael Moore on October 8, 2015 at 2:00 p.m.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
Like all other illegal drugs, synthetic cannabinoids, also commonly known as “Spice” or “K2,” pose a nationwide health concern as they are not tested for safety. Clandestine manufacturing of these products increase the likelihood of overdose as users do not know what they are ingesting into their bodies. Synthetic cannabinoids are addictive, are extremely dangerous, and their effects can be life threatening. Since the beginning of 2015, synthetic cannabinoids accounted for thousands of reported exposures to poison at control centers nationwide. Because of their appeal to young adults and children, and their street costs, synthetic cannabinoids pose a growing risk to the public’s health and a hazard to public safety.
Nahmani’s conviction is the product of a long-term federal investigation into the importation and trafficking of synthetic cannabinoids. The investigation revealed that Nahmani purchased vast quantities of illegal chemicals from China and distributed those chemicals in Florida and across the country. The powdery chemicals shipped from China were turned into both leafy and liquid synthetic cannabinoid products that can be ingested by users.
In July 2014, Nahmani was found in possession of multi-kilogram quantities of synthetic cannabinoids, including AB-FUBINACA, PB-22, XLR-11, THJ-2201, 5-Cl-UR-144 and 5-Br-UR-144, as well as the equipment necessary to manufacture the synthetic products and packaging with labels such as “Scooby Snax,” “Diablo” “Platinum” and “Fire.” Spice and K2 are commonly sold in such packaging and often contain deceptive labeling that the product is “incense” and “not for human consumption” to thwart law enforcement detection. Some of the chemicals were not specifically listed under the Controlled Substances Act at the time of the offense conduct, but the government proved that they were controlled substance analogues intended for human consumption under the Controlled Substance Analogue Enforcement Act. The defendant is pending sentencing.
Mr. Ferrer commends the investigative efforts of DEA, working in conjunction with the Broward County Sheriff’s Office, Coconut Creek Police Department (PD), Coral Springs PD, Davie PD, Hollywood PD, North Miami Beach PD, and Miami-Dade PD, and the support from DEA Office of Diversion Control Drug & Chemical Evaluation Section and DEA Office of Chief Counsel.
The case was prosecuted by Assistant U.S. Attorneys Marton Gyires and Jonathan Kobrinski.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Family Members Indicted for Participating in Multi-Million Dollar Scheme to Defraud Commercial Lenders and the U.S. Export-Import BankRead the Press Release
Guillermo M. Sanchez, 60, Isabel C. Sanchez, 36, and Gustavo Giral 38, all of Cutler Bay, Florida, are charged in the indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering.
Three family members were indicted for their alleged participation in a scheme to defraud Miami-area lenders and the Export-Import Bank of the United States (Ex-Im Bank), announced United States Attorney Wifredo A. Ferrer of the Southern District of Florida and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to allegations in the indictment, from 2007 through 2012, the defendants utilized companies they controlled to create fictitious invoices for sales of merchandise that never occurred. In a process called “factoring,” the defendants sold the accounts receivables to two Miami-area lenders for approximately 90 percent of the value of the merchandise listed on the alleged fake invoices. The lenders were not aware that the invoices were fake, and expected to recover the full amount owed from the purported purchasers. To perpetuate the fraud, the defendants allegedly transferred the proceeds through numerous bank accounts under their control and, in a Ponzi-style scheme, used a portion of the funds to pay off other factored invoices.
After the Miami lenders refused to extend further credit, the defendants and their co-conspirators allegedly created false invoices and shipping documents to obtain a loan guaranteed by the Ex-Im Bank. Rather than acquiring, selling and shipping American-manufactured goods as required for Ex-Im Bank-guaranteed loans, the defendants allegedly used the loan proceeds to extend the fraudulent scheme by paying off other lenders, and split the remaining funds among themselves and other co-conspirators. Ultimately, the defendants defaulted on both the factoring loans and the Ex-Im Bank loan.
Co-conspirators Fredy Moreno-Beltran, Ricardo Beato and Jorge Amad were separately charged, and each have pleaded guilty to participating in the scheme. According to his plea agreement, Moreno-Beltran owned Clientric, a purported purchaser of goods from companies controlled by the defendants. According to their plea agreements, Beato and Amad owned Approach Technologies International, a company that the defendants falsely claimed had sold nearly $2 million of American-manufactured telephone call center software to Clientric in order to obtain an Ex-Im Bank-guaranteed loan. In connection with their guilty pleas, Beato, Amad and Moreno admitted that the invoices provided to Ex-Im Bank were false.
The alleged scheme caused approximately $8 million in losses to the private lenders and nearly $2 million in losses to the United States.
The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Ex-Im Bank Office of Inspector General, with assistance provided by the FBI and U.S. Immigration and Customs Enforcement Homeland Security Investigations. The case is being prosecuted by Senior Litigation Counsel Patrick Donley and Trial Attorney William Bowne of the Criminal Division’s Fraud Section.
Two Colombian Citizens Sentenced for Their Participation in an International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens were sentenced for their participation in an international money laundering conspiracy. Leonardo Forero Ramirez, 59, was sentenced to 37 months in prison, followed by one year of supervised release. Ubaner Alberto Acevedo Espinosa, 32, was sentenced to 18 months in prison, followed by one year of supervised release.
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.
The defendants each previously pled guilty to one count of conspiracy to commit money laundering.
According to court documents, both Acevedo and Forero were Colombian citizens residing in Bogota. During 2008 and 2009, Acevedo handled customer accounts at a stock brokerage firm that offered accounts which could be used by customers to receive deposits, wire transfers, and other credit or money, and to disburse the funds through wire transfers and cash or other withdrawals. The stock brokerage firm was authorized to receive funds in U.S. dollars, provided that they were properly documented and justified as being for legitimate business transactions. Forero was one of Acevedo's customers.
During the course of his participation in this scheme, Forero received approximately $1.2 million from IRS undercover accounts which he passed on to the people designated to receive it. Acevedo was involved in the transfer of approximately $335,000 from IRS undercover accounts in the United States to the stock brokerage firm in Colombia, and the conversion of the dollars into pesos and the subsequent withdrawal of the monies by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
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 Credit Union Chief Operating Officer Pleaded Guilty to Stealing Tax Refund MoneyRead the Press Release
Sherrie Rivera, 53 of Hialeah, pled guilty today to one count of theft of government money, in violation of Title 18, United States Code, Section 641.
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 court documents, from 2009 through 2014, Rivera worked as the Chief Operating Officer for a credit union. In that position, Rivera had the ability to access account information, institute fee reversals, and authorize transactions on the credit union’s accounts. Over a five-year period, Rivera stole approximately $385,000 from accounts using different means.
Court documents state that in 2011 a customer’s account at the credit union received a series of tax refunds in different names from the filing of fraudulent tax returns. The U.S. Department of Treasury requested reclamation of these refunds from the credit union. The credit union was supposed to mail checks to the Treasury Department in the amount of the fraudulent refunds. Specifically, the account had a tax refund in the amount of $4,900. On June 1, 2011, Rivera caused a $4,900 check to be written from the account to the U.S. Department of Treasury. Rivera signed the check, but instead of sending the check to the Treasury Department, Rivera told a teller to cash the check and Rivera kept the funds for her personal use. Rivera admitted in an interview to her involvement in this theft of government funds.
Rivera is scheduled to be sentenced on October 2, 2015, before the Honorable Kenneth A. Marra, United States District Judge. At sentencing, the defendant faces a maximum of ten years of imprisonment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Palm Beach County Residents Sentenced for Sex Trafficking of MinorsRead the Press Release
Two Palm Beach County residents received 27 and 15 year prison sentences following their jury trial convictions for sex trafficking of minors.
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.
Dontavious M. Blake, 33, and Tara Jo Moore, 27, both of Palm Beach County, were sentenced to 324 months and 180 months’ imprisonment, respectively, by United States District Judge Kenneth A. Marra following their conviction on charges of sex trafficking of children, in violation of Title 18, United States Code, Sections 1591 and 594.
According to court records and trial testimony, this case stemmed from an investigation into the production of child pornography. During the investigation, a juvenile victim revealed that she had engaged in prostitution, at the age of 15, beginning in August of 2011 and continuing until December 2011. She had approximately 10 – 15 regular clients and worked in hotels in the Palm Beach County area. After further investigation, a second juvenile victim was identified and revealed that she had also engaged in prostitution, at the age of 16, beginning in July 2011 and continuing through October 2012. They worked for a pimp who they identified as Blake and his girlfriend Moore. Blake would post online escort advertisements with photographs of the minors on Backpage.com, which postings included a telephone number that belonged to him. Moore would answer the calls from the clients and negotiate a price for prostitution services and schedule a “date.” Once the negotiated price had been agreed upon, Blake would contact the minors and drive them to the hotel or location for the “date.” At the conclusion of the date, the minor would pay a portion of the proceeds to Blake including payment for a portion of the hotel room.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mr. Ferrer commended the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorney Lothrop Morris.
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
Pagans Motorcycle Club Members Convicted of Firearms ChargesRead the Press Release
Two members of the Pagans Motorcycle Club were convicted of firearms offenses at trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro, Federal Bureau of Investigation (FBI), Miami Field Office, Hugo J. Barrera, Special Agent in Charge Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Ken J. Mascara, Sheriff, St. Lucie County Sheriff’s Office, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and Michelle Morris, Chief, Sebastian Police Department, made the announcement.
Richard Todd Badali, 52, of Castelberry, and Thomas Richard Laakmann, 60, of Orange City, were convicted of all charges following a jury trial in Fort Pierce, Florida, before Senior U.S. District Court Judge Donald L. Graham. Badali was convicted of possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d). Laakmann was convicted of possession of a firearm, after having been convicted of a misdemeanor crime of domestic violence, in violation of Title 18, United States Code, Section 922(g)(9) and sale of a firearm to a known convicted felon, in violation of Title 18, United States Code, Section 922(d).
Badali and Laakmann will both be sentenced by Senior Judge Graham in Miami, Florida on a date not yet scheduled in September 2015. At sentencing, the defendants each face a maximum sentence of 20 years’ imprisonment.
According to court records and trial testimony, between August 9, 2011 and September 3, 2011, Badali agreed to sell a 9mm pistol to another Pagans Motorcycle Club member who was cooperating with the FBI. The cooperating source secretly recorded conversations with Badali and Laakmann regarding the sale of the firearm. Laakmann delivered the firearm to the cooperating source on September 3, 2011, at the Pagans’ clubhouse in Sebastian, Florida.
These charges were the result of a multi-year federal, state and local law enforcement task force operation targeting the Pagan’s Motorcycle Club. The operation resulted in the conviction of nine individuals for violations of federal firearms and narcotics laws.
U.S. Attorney Ferrer stated, “[T]his verdict reflects the commitment of this Office and our federal, state and local law enforcement partners in combatting the illegal trafficking in firearms.”
“This operation exemplifies the cooperation among federal, state and local agencies to target dangerous individuals who through illegal gun sales may threaten the safety of our communities,” stated St. Lucie County Sheriff Mascara.
Mr. Ferrer commended the investigative efforts of the FBI, ATF, St. Lucie County Sheriff’s Office Special Investigations Unit, Martin County Sheriff’s Office and Sebastian Police Department in Indian River County. The case was prosecuted by Assistant U.S. Attorney Russell R. Killinger and Special Assistant U.S. Attorney Ryan L. Butler.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Martin County Resident Sentenced for Manufacturing Hash Oil in His Apartment Laboratory and Possessing a FirearmRead the Press Release
A Martin County resident was sentenced to 90 months in prison for manufacturing hash oil in his apartment laboratory and possessing a firearm.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office, A.D. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sheriff, Martin County Sheriff’s Office, and David Dyess, Chief, Stuart Police Department, made the announcement.
Daniel Paul Vranich, 31, of Lake Park, was sentenced by United States District Court Judge Kenneth M. Mara, in Fort Pierce, to 30 months’ imprisonment for endangering human life while illegally manufacturing a controlled substance to run consecutive to a term of 60 months’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. Upon his release from incarceration, Vranich will be placed on supervised release for three years.
According to the stipulated factual basis in support of the defendant’s previous guilty plea, on December 30, 2014, at approximately 4:00 a.m., an emergency services call was made regarding an explosion at an apartment in Stuart, Florida. Members of the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and State Fire Marshal’s Office responded to the residence and discovered a smoldering fire, as well as a large industrial vacuum drying oven with a timing device. Stuart Police Department detectives also found numerous large glass cylinders containing marijuana, numerous empty butane cans, air pumps and compressors, a vacuum oven, wax paper with approximately 48 grams of butane hash oil, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. In addition, law enforcement discovered a loaded Sig Sauer .45 caliber pistol and personal documents belonging to Vranich. DEA agents and members of the Hazardous Material Unit (Hazmat) determined that the discovered chemicals, equipment and other items were used to operate a butane hash oil laboratory in the residence. The investigation further revealed that Vranich resided in the apartment with his family.
The stipulated factual basis further indicates that Vranich admitted that he was manufacturing and possessing with the intent to distribute the controlled substances, identified as marijuana and hashish oil, and that he possessed the firearm in furtherance of his drug trafficking operation. Vranich also admitted that while manufacturing and attempting to manufacture hashish oil he created a substantial risk of harm to human life.
Hash oil is a highly potent derivative of marijuana, obtained by extracting the resins containing Tetrahydrocannabinol (THC), the active psychoactive compound, from marijuana buds and plant matter through a chemical process using materials and equipment like those found in Vranich’s apartment. Because the butane vapor created during the process is extremely volatile, highly flammable and large amounts are required in the process of extracting the resin from the raw marijuana, explosions and fires from accidents have resulted in the destruction of property, severe injuries and even death.
Mr. Ferrer commended the investigative efforts of the ATF, DEA, Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue, Stuart Fire Rescue and the State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Bank Robber SentencedRead the Press Release
Craig Joseph Naughtin, 43, of Broward County was sentenced to 52 months imprisonment by United States District Judge Beth Bloom for robbing the Wells Fargo Bank in Pompano Beach. Following his release from prison, the defendant will be placed on supervised release for three years and is ordered to pay restitution.
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 Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
According to court records, on February 3, 2015, Naughtin walked into the Wells Fargo Bank in Pompano Beach and handed the bank teller a demand note. The teller read the note and then gave Naughtin a stack of money. After receiving the money, Naughtin fled the bank. The robbery was recorded on the bank’s video surveillance system. In a search incident to Naughtin’s arrest, law enforcement officers found $3,561.00, on the defendant as well as the demand note which stated “no this is not a joke all the money in the cash draw, no GPS, no dye packs, I’ll be on my way no problems.”
Mr. Ferrer commended the investigative efforts of the FBI, BSO and the South Florida Violent Crimes Task Force for their work on this case. The case is being 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.
Five Defendants Charged in Extensive Tax Refund and Identity Theft Fraud SchemeRead the Press Release
Five defendants were indicted on charges stemming from their participation in an extensive tax refund and identity theft fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Ronald Jerome Scriven, Danesa Latoya Webb, Walter Waitus Pressley, Fritznel Jacques, a/k/a “Glacier,” and Michael Dwight Brown, a/k/a “Big Mike,” were each charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Defendants Scriven, Webb, Jacques, and Brown were also charged with six counts of misusing Social Security numbers, in violation of Title 42, United States Code, Section 408(a)(8), and six counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1), (c)(11) and 2.
Scriven and Pressley had their initial appearances today before U.S. Magistrate Judge Barry S. Seltzer.
According to allegations contained in the indictment, Scriven created various tax preparation business entities using his name, the names of co-conspirators, or the names of individuals whose identities were stolen. Scriven and Webb obtained electronic filing identification numbers (EFINs) from the IRS for the purpose of electronically submitting false tax returns. Scriven, Webb, Pressley and Jacques recruited taxpayers and obtained their personal identifying information (PII), such as their names and Social Security numbers, for the purpose of submitting false tax returns to the IRS. Without authorization, the PII of living and deceased individuals was also obtained for the same fraudulent purpose.
The indictment also alleges that Scriven, Webb and Jacques prepared and filed false 2008, 2009 and 2010 federal income tax returns claiming false refunds on behalf of the taxpayers who were recruited or whose identities they had stolen. Tax preparers’ fees and other fees totaling $700,000 were deducted from the tax refunds and were deposited into bank accounts controlled by some of the co-conspirators.
According to allegations contained in the indictment, Scriven and Webb prepared refund checks or prepaid debit cards in the names of taxpayers whose names and Social Security numbers were used to file the false tax returns. Some of the co-conspirators accompanied taxpayers, whose identities they had used to file false tax returns, to cash the refund checks. The defendants would demand a substantial portion of the proceeds obtained from those cashed checks. In the instances where the stolen identities of individuals were used to file false returns, Scriven and Webb cashed the refund checks or negotiated them for reduced values.
If convicted, the defendants each face a maximum of ten years in prison for the conspiracy charge, five years in prison for each count of the misusing a Social Security number, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charges.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Owner of Mortgage Company Pleads Guilty to $64 Million Mortgage Fraud SchemeRead the Press Release
A Miami-area real estate developer and owner of a mortgage company, his business partner and a senior mortgage underwriter each pleaded guilty to a mortgage fraud scheme involving federally insured mortgages that caused losses of $64 million to the Federal Housing Administration (FHA). Including these defendants, 25 individuals have pleaded guilty to offenses related to this scheme to date.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Nadine Gurley of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG) made the announcement.
Hector Hernandez, 57, of Miami; Aleida Fontao, 62, of Miami; and Olga Hernandez, 58, of Lake Mary, Florida, each pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. Hector and Olga Hernandez both pleaded guilty late yesterday, while Fontao pleaded guilty on July 7, 2015. As part of his plea, Hector Hernandez also agreed to forfeit $8 million, which amounts to his profits from the scheme.
Hector Hernandez’s mortgage company, Great Country Mortgage Bankers, specialized in mortgage loans that were insured by the FHA, a division of HUD, as part of a program designed to make homeownership more accessible to first-time buyers and borrowers with lower income and imperfect credit history. To qualify for these federally-insured mortgages, potential borrowers must meet certain income and other financial requirements. Under the program, HUD relies on lenders like Great Country to review and approve only those borrowers who meet the employment, income and other financial requirements needed to qualify for an FHA mortgage.
According to admissions made in connection with the guilty pleas, although most of Great Country’s potential borrowers did not qualify for the FHA-insured loans, Hector Hernandez and his business partner, Aleida Fontao, directed Great Country employees, including underwriter Olga Hernandez, to falsify important documents in the potential borrowers’ loan applications to make them appear qualified. In particular, Hector Hernandez and Fontao admitted to pressuring their employees to approve and close loans using earnings statements and verification of employment forms that made it appear as if the borrowers had higher incomes and more favorable work histories than they actually did, and documents falsely improving or explaining borrowers’ credit histories. As an underwriter responsible for reviewing and approving loan applications, Olga Hernandez admitted that she provided her coworkers with false information and that she endorsed the applications knowing that the borrowers did not actually qualify for the loans.
After Great Country closed the fraudulent loans, the company sold the loans to financial institutions for profit. In connection with their guilty pleas, the defendants admitted that they offered kickbacks to the borrowers in the form of cash back after closing, which payments were not disclosed during the loan application process in order to hide the payments both from HUD and from the financial institutions that purchased the loans from Great Country.
The vast majority of the borrowers on these fraudulent loans failed to meet their monthly mortgage obligations and defaulted on their loans. When these loans went into foreclosure, HUD, which had insured the loans, was required to pay the outstanding loan balances to the financial institution investors, resulting in substantial losses to the FHA of at least $64 million.
This case was investigated by HUD-OIG’s Miami Field Office. This is being prosecuted by Senior Litigation Counsel David A. Bybee and Trial Attorneys Michael T. O’Neill and William E. Johnston of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Producer of Child Pornography ConvictedRead the Press Release
Miami-Dade resident convicted at trial of producing child pornography.
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 of 15 of 16 charged counts following a jury trial before U.S. District Court Chief Judge K. Michael Moore. Killen was convicted of 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.
Killen is scheduled to be sentenced by Chief Judge Moore on September 24, 2015. At sentencing, Killen faces a minimum mandatory term of 15 years’ imprisonment.
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 to be a teenage girl. 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 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.
With this conviction, U.S. Attorney Ferrer noted “[T]he defendant used the internet to target children and to sexually exploit numerous vulnerable victims. Our Office will continue to join forces with the FBI to combat child pornography offenses. This particular type of criminal activity, now being commonly referred to as “sextortion,” represents an evolving and pernicious threat. Parents must understand this new danger, and make certain that their children are similarly aware. With just an internet connection or a smart phone, even the youngest of children are susceptible to this type of trickery and criminal exploitation.”
“Sextortion is a growing Internet crime by which online predators take advantage of children through terror and manipulation,” said Brenda L. Moxley, Assistant Special Agent in Charge, FBI Miami. “More information about sextortion and how to protect children from this vile crime can be found at FBI.gov.”
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.
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
Geographic Targeting Order Issued by FinCEN Aims at Combatting Stolen Identity Tax Refund Fraud in South FloridaRead the Press Release
MIAMI- Federal Authorities announced today that the Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) for South Florida check cashers to temporarily enhance the identification requirements on customers cashing Federal tax refund checks. The GTO will require check cashers in Miami-Dade and Broward Counties to obtain and record specific identification information from customers cashing federal income tax refund checks over $1,000. This information will include the customer’s identification, a digital photograph of the customer taken at the time of the transaction, the customer’s telephone number, and, in accordance with Florida law, the individual’s thumbprint.
FinCEN issued the GTO in close coordination with the Internal Revenue Service Criminal Investigation (IRS-CI), Miami Field Office and the U.S. Attorney’s Office for the Southern District of Florida (SDFL), which established the South Florida Identity Theft Tax Fraud Strike Force to combat the wave of stolen identity tax refund scams over the last several years. The Florida Office of Financial Regulation further provided valuable assistance to the federal authorities in issuing the GTO.
FinCEN, the IRS, and the SDFL are particularly concerned that identity thieves are attempting to perpetrate their schemes outside of the tax filing season in hopes that their illegal activity will catch financial institutions off guard and be more likely to slip through their anti-money laundering controls, which are aimed at preventing criminal funds from entering and moving through the financial system. The GTO will, therefore, cover a time period (August 3, 2015, through January 30, 2016) in which the proportion of fraudulent tax refund transactions is high, but the total volume of transactions is relatively low.
U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida stated, “Prosecuting stolen identity tax refund fraud remains a top priority for the U.S. Attorney’s Office. We greatly appreciate the continued efforts of FinCEN and the IRS in this area and look forward to working with financial institutions in the private sector through this GTO in order to further combat these fraudulent schemes that impact our South Florida communities.”
A copy of the Order is available at the following website: http://www.fincen.gov/news_room/nr/pdf/20150710GTO.pdf.
Failure to comply could result in substantial criminal and civil penalties.A copy of the FinCEN release may be found at the following website: http://www.fincen.gov/news_room/nr/pdf/20150713.pdf.
Sunrise Man Sentenced to 20 Years in Prison for Payroll Tax Fraud SchemeRead the Press Release
Sonny Austin Ramdeo, 35, of Sunrise, was sentenced today to 240 months in prison, followed by 3 years of supervised release in connection with a $20 million federal payroll tax fraud scheme. Ramdeo was also ordered to pay restitution in the amount of $21,442,173.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Ramdeo previously pled guilty to two counts of wire fraud and money laundering, in violation of Title 18, United States Code, Sections 1343 and 1956(a)(1)(B)(i).
According to statements made in court and court records, from as early as 2005, defendant Ramdeo was employed as the payroll supervisor at Promise Healthcare, Inc. (Promise Healthcare) and Success Healthcare Group (Success Healthcare), both of which owned and operated hospital facilities throughout the United States. As payroll supervisor for these two companies, Ramdeo was responsible for overseeing the payment of bi-weekly wages and related payroll taxes for approximately 4,000 employees. While employed as a payroll supervisor, Ramdeo facilitated a $20 million dollar federal payroll tax fraud scheme. To execute this scheme, Ramdeo incorporated PayServ Tax Inc., and thereafter represented to officers and employees of Promise Healthcare and Success Healthcare that his company would handle the transfer of local, state and federal payroll taxes to the proper agencies. Instead of forwarding all of the monies due to the taxing authorities for employee payroll taxes, Ramdeo stole and embezzled the funds resulting in a $21 million dollar underpayment. By stealing the payroll tax money, Ramdeo caused hospitals to lay off employees, adversely impacted the maintenance and operations of seventeen acute care hospitals, jeopardized services provided to patients, challenged investors’ security, and reduced the amount of money the taxing authorities actually collected.
Court records indicate that Ramdeo kept the taxes paid by Promise and Success Healthcare to PayServ for his own personal use. These stolen monies included employee and company wages. Ramdeo used the proceeds from this fraudulent scheme in order to finance a now defunct charter airline company.
U.S. Attorney Ferrer stated, “Sonny Ramdeo abused the trust bestowed upon him as a payroll supervisor. By stealing payroll taxes for his own personal gain, Ramdeo adversely impacted private citizens and companies. His selfish acts were rightly punished with the imposition of a significant federal sentence.”
“Sonny Austin Ramdeo portrayed himself as a business man who promised his clients that he would file and remit payroll taxes to the proper agencies. He didn’t,’ said Michael A. D’Alonzo, Assistant Special Agent in Charge, FBI Miami. “Instead, he was blinded by greed and apparently unconcerned about the plight of the thousands of people he bilked to the tune of $20 million in losses.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Sonny Austin Ramdeo was responsible for paying local, state and federal payroll taxes to the proper agencies on behalf of thousands of employees, but instead selfishly stole the money for his own personal use. As seen in this case, the failure to pay over withheld payroll taxes is a serious offense that can have severe consequences for both employers and the employees of the affected businesses. Let Ramdeo’s actions and lengthy sentence serve as a warning to those who are considering similar conduct.”
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI, and HHS-OIG. This case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Pled Guilty to Filing False Refund Claims with the IRSRead the Press Release
A Miami-Dade County resident pled guilty to 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, 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.
Mavys Galvez is scheduled to be sentenced on September 17, 2015 at 1:30 p.m. before United States District Judge William P. Dimitrouleas. At sentencing, the defendant faces a maximum of five years of imprisonment.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney John P. Gonsoulin.
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.
A Carjacking Spree Leads to Consecutive Federal Sentences for Two Miami ResidentsRead the Press Release
Two men were sentenced to decades in prison, following their participation in a carjacking spree in Miami-Dade and Broward Counties.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), Sergio Velazquez, Chief, City of Hialeah Police Department, and Tomas Sanchez, Interim Chief, City of Hollywood Police Department, made the announcement.
Ty West, 19, and Demetrius Bain, 19, both of Miami-Dade County, were sentenced by United States District Court Senior Judge James Lawrence King to consecutive terms of imprisonment totaling 32 years and 35 years respectively, for possession of a firearm by a convicted felon, carjacking and brandishing firearms during a crime of violence, in violation of Title 18, United States Code, Sections 922(g)(1), 2119(1) and 924(c)(1)(A)(ii). Upon completion of their prison sentences, the defendants will be placed on supervised release. West will be on supervised release for a period of five years and Bain for ten years.
According to court documents and information provided in court, on June 19, 2014, West was in the City of Hialeah when he brandished a firearm and threatened to kill the vehicle occupants before he took possession of the car. Days later, on June 26, 2014, West was seen running through private property with a firearm, in Miami-Dade County. Police arrested West and recovered the firearm. However, police were not yet aware of West’s involvement in the earlier carjacking and he was released from state custody.
On July 14, 2014, in the City of Hialeah, Bain and West brandished firearms, ordered a couple from their vehicle, and then stole the victims’ car. A few hours later, West and Bain would later use the stolen vehicle to facilitate the carjacking of a young mother in Broward County. The defendants drove to a residential neighborhood in Hollywood, Florida. As the victim attempted to retrieve her child from the vehicle, Bain approached, brandishing a firearm and demanded that the mother give him her purse. Bain removed the keys from the purse and entered the victim’s vehicle. Just moments before the defendant drove away in the stolen car, the victim was able to recover her child from the vehicle. Police later observed West driving the stolen vehicle in Miami-Dade County. An investigation by law enforcement, including fingerprint examinations and eyewitness statements, linked both West and Bain to the offenses for which they previously pleaded guilty.
Mr. Ferrer commended the investigative efforts of the ATF, MDPD, City of Hialeah Police Department, and City of Hollywood Police Department. This case was prosecuted by Assistant U.S. Attorney Breezye Telfair.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Real Estate Developers Sentenced to Prison for Their Roles in $27.8 Million Mortgage Fraud SchemeRead the Press Release
Three Miami real estate developers were sentenced to prison terms today for their roles in a mortgage fraud scheme that caused losses of $27.8 million.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Nadine Gurley of the Department of Housing and Urban Development’s Office of Inspector General (HUD-OIG) and Special Agent in Charge Timothy A. Mowery of the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG) made the announcement.
Stavroula Mendez, 68, was sentenced to 135 months in prison; Lazaro Mendez, 42, was sentenced to 108 months in prison; and Marie Mendez, 49, was sentenced to 57 months in prison. U.S. District Judge Patricia A. Seitz of the Southern District of Florida also ordered each of the defendants to forfeit $35,252,331 in fraudulent proceeds and to pay $21,240,064 in restitution. In November 2014, all three defendants were convicted of wire fraud, bank fraud and conspiracy. Eleven other co-conspirators were previously convicted of fraud in connection with the scheme.
Stavroula Mendez, Lazaro Mendez and Marie Mendez owned, controlled or managed various condominium developments in the Miami area. According to evidence presented at trial, the defendants engaged in a scheme in which they facilitated payments to straw buyers as well as the submission of false loan applications on behalf of the straw buyers to secure mortgages to purchase units in the developments. Once the units were sold, the defendants retained both the profits from the sales and control over the units.
The trial evidence showed that Lazaro Mendez recruited family members and others to be straw buyers of units that he controlled at one development and that he facilitated the submission of false loan applications. In addition, Lazaro Mendez enlisted mortgage brokers and another individual to recruit straw buyers and to assist them in obtaining fraudulent loans. Lazaro Mendez received kickbacks for each referred buyer.
The evidence at trial demonstrated that, after units were sold at a development that Stavroula Mendez and her husband controlled, Stavroula Mendez funneled a portion of the loan proceeds to shell companies to pay the straw buyers’ closing cash obligations and mortgage payments. The evidence presented at trial further established that, in 2008 and 2009, Stavroula Mendez used other shell companies to divert more than $2 million of the fraudulent proceeds to bank accounts in Switzerland and Liechtenstein.
According to the evidence presented at trial, Marie Mendez used rental payments received by the conspirators to make mortgage payments, and directed cash to another individual to make mortgage payments on behalf of straw buyers. The evidence also showed that Marie Mendez submitted fraudulent loan applications for three condominium units that were purchased in her name.
Eventually, the defendants and their co-conspirators were unable to make mortgage payments, which caused dozens of condominium units to go into foreclosure. The scheme caused the Federal Housing Administration, Freddie Mac, Fannie Mae and private lenders to sustain combined losses of $27.8 million.
The case was investigated by the HUD-OIG and the FHFA-OIG. The case was prosecuted by Trial Attorneys Gary A. Winters, Brian R. Young and Kyle Maurer of the Criminal Division’s Fraud Section.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Preparer Charged with Filing False Claims with the IRSRead the Press Release
Joseph Akins Owanikin, a/k/a Joe Akins, of Fort Lauderdale, was charged by indictment with ten counts of filing false claims with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287. Owanikin had his initial appearance and arraignment today in Fort Lauderdale before United States Magistrate Judge Patrick M. Hunt. He pled not guilty.
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.
According to court documents, Owanikin was a professional tax return preparer and operated Akins Financial Inc., a/k/a Akins Financial Services, in Miami-Dade County. The defendant obtained an Electronic Filing Identification Number (EFIN) so that he could submit tax returns electronically to the IRS in the names of other individuals. Owanikin knowingly filed false and fraudulent claims, that is, false 2008 individual United States income tax returns and supporting documents, including IRS Form 5405 for the First-Time Homebuyer Credit, fraudulently claiming tax refunds of $7,500 per return.
If convicted, the defendant faces up to 50 years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Roger Cruz.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Man Sentenced to 300 Months for Receiving and Possessing Child PornographyRead the Press Release
A Miami-Dade County resident was sentenced to a term of imprisonment of 300 months for receipt of child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and Daniel J. Oates, Chief, Miami Beach Police Department (MBPD).
Juan Roman, 57, of Miami, was sentenced today by United States District Judge James Lawrence King to 300 months in prison, to be followed by a lifetime of supervised release. Roman was also ordered to register as a sex offender upon his release from prison. Roman previously pled guilty to receiving and possessing visual depictions of minors engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2) and (a)(4).
According to court documents and information provided in court, on August 28, 2014, law enforcement officers executed a search warrant at Roman’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents found Roman’s laptop and hard drives. A forensic examination of the devices revealed that they contained videos and images of child pornography. According to court records, Roman, a retired officer from the City of Miami Police Department, produced some of the videos depicting the sexual exploitation of minors and also downloaded multiple files of child pornography from the internet.
Mr. Ferrer commended the investigative efforts of ICE-HSI, USSS, MDPD, and MBPD. This case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
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.
Government Settles False Claims Act Allegations Against American Access Care Holdings, LLCRead the Press Release
American Access Care Holdings, LLC, which operated a vascular access center in Miami, has agreed to pay $1.2 million to resolve allegations that it violated the False Claims Act by billing Medicare for medically unnecessary percutaneous transluminal angioplasties (PTAs) and thrombectomies and by billing for more PTAs per patient encounter than permitted. Former American Access Care (AAC) facilities, including the one in Miami, are now operated by Fresenius Vascular Care, Inc. The conduct addressed by the settlement agreement took place prior to the merger between the two entities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
“Health care providers that bill for medically unnecessary procedures put their own financial self-interest over their duty to their patients’ well-being,” said Wifredo A. Ferrer, United States Attorney for the Southern District of Florida. “We will hold providers accountable for this type of fraud and abuse that plagues the Medicare program and increases the cost of health care for all.”
“Jeopardizing patient care in order to steal taxpayer dollars is deeply troubling,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Actions like these only strengthen our resolve to protect the American public and hold accountable those who would compromise our health care system.”
The United States alleged that a substantial percentage of the PTAs and thrombectomies billed by the AAC facility in Miami were unnecessary, based on a medical review of patient records. Patients at the facility were routinely brought back for follow-up visits that were not justified by the patients’ condition and that simply provided more opportunities to bill for procedures the patients did not need. The United States also alleged that AAC billed for multiple PTAs performed during one patient encounter, even though it knew that such procedures were not reimbursable.
The settlement announced today resolves allegations originally brought by Dennis Souza, a registered nurse who worked at American Access Care of Miami, under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for the submission of false claims and to receive a share of any recovery. The False Claims Act authorizes the United States to intervene in such lawsuits and take over primary responsibility for litigating them, as the United States did here. Souza’s share of the settlement has not yet been determined.
The investigation of this matter reflects a coordinated effort between the U.S. Attorney’s Office for the Southern District of Florida and HHS-OIG. The case was handled by Assistant U.S. Attorney Susan Torres.
The case is captioned United States ex rel. Souza v. American Access Care of Miami, LLC, No. 11-22686-Civ-Lenard (S.D. Fla.). The claims settled by the lawsuit are allegations only, and there has been no determination of liability.
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.
Four Miami Area Residents Sentenced for Mann Act and Money Laundering OffensesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), announce that on July 1, 2015, United States District Judge Cecilia M. Altonaga sentenced Istvan Kaszab, 38, and Andrea Avram, 25, of Aventura, Florida, to 27 months’ and 11 months’ imprisonment, respectively, for Mann Act and money laundering offenses, in violation of Title 18, United States Code, Sections 2421 and 1956. Judge Altonaga sentenced defendant Szabina Balazs, 21, of Hallandale, Florida to time served (approximately five months’ imprisonment) for violating the Mann Act. As part of the same case, on July 2, 2015, Judge Altonaga sentenced Christian Fiorenza, 51, of Ft. Lauderdale, Florida, to 37 months’ imprisonment for Mann Act and money laundering violations. Judge Altonaga said that the sentence imposed was necessary to promote respect for the law and deter the defendant and others from engaging in this type of criminal activity. All defendants pled guilty to the charges at issue.
Between May 2012 and September 2014, the defendants participated in the operation of an escort agency, that is, the Fort Lauderdale Escort Services (“FLES”). FLES recruited adult women from Eastern Europe, predominantly Hungary, to engage in prostitution in the United States. The women were recruited through various advertisements and other means. FLES would assist the women in petitioning for travel to the United States through the Electronic System for Travel Authorization (“ESTA”) program. ESTA is an automated system that determines the eligibility of visitors to travel to the United States under the Visa Waiver Program (“VWP”).
Once the women were admitted into in the United States, they would immediately begin working as prostitutes for FLES, both locally in South Florida, as well as nationally.FLES would advertise each prostitute’s “services” on FLES’ website.
FLES would arrange the prostitutes’ travel and housing needs in the United States.Each prostitute stayed in the United States, on average, between three months to a year.However, many overstayed their visas.
Each of the defendants played a different role in the conspiracy.Fiorenza was listed as the President of FLES, according to publicly available information on the Florida Division of Corporation’s website sunbiz.org.He also maintained FLES’ website.Kaszab recruited most of the prostitutes from Hungary.
Avram and Balazs began their affiliation with FLES as prostitutes.Avram then began assisting Kaszab in recruiting women from Hungary, arranging client meetings and travel, and facilitating money transfers from her bank account to Hungary, knowing the money came from prostitution earnings.Balazs began assisting Fiorenza with FLES’ operations.Specifically, she would assist in the maintenance of the website, book client meetings and travel, and facilitate money transfers to and from her bank accounts, knowing that the money came from prostitution earnings.
The defendants received a portion, or “cut,” of the monies earned by the prostitutes.Fiorenza received the largest cut, followed by KaszabAvram and Balazs would receive their cut from their male codefendants’ share.
Kaszab and Avram wired funds from the United States to Hungary on a regular basis and purchased several luxurious items from proceeds earned from prostitution, such as Mercedes Benz vehicles and a Breitling timepiece.
Mr. Ferrer commends the investigative efforts of ICE-HSI for their work on this case. The case was prosecuted by Assistant U.S. Attorneys Vanessa S. Johannes and Elina A. Rubin-Smith.
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.
Summer Camps Must Reasonably Accommodate Children with DisabilitiesRead the Press Release
Summer camps are legally required to make reasonable accommodations to accept children with disabilities, U.S. Attorney Wifredo A. Ferrer announced today.
To help ensure that children with disabilities receive the opportunity to attend summer camp, the U.S. Attorney’s Office recently sent the attached flyer to hundreds of summer camps located within the Southern District of Florida reminding them of their obligations under the Americans with Disabilities Act (“ADA”).
Under the ADA, summer camps, both private and those run by municipalities, must make reasonable modification to enable campers with disabilities to participate fully in all camp programs and activities. This generally means that children with disabilities are entitled to attend any camp or activity that non-disabled children attend, that camps must evaluate each child on an individual basis, and that camps must train their staff in the requirements of the ADA. Camps are obligated to pay for the cost of any reasonable modifications necessary for disabled children to participate in camp activities, and parents should not be charged any additional fee beyond standard camp enrollment costs.
“Summer camps represent a cherished pastime where children are given tremendous growth opportunities to learn independence, try novel activities while simultaneously building self-confidence,” Ferrer said. “The law requires camps to provide equal opportunities to disabled children whose needs can be reasonably accommodated.”
Additional information about the ADA is available at www.ada.gov, or through contacting the U.S. Attorney’s Office Civil Rights Coordinator (305) 961-9327.
Five Individuals Sentenced for Their Role in Medicare and Medicaid Fraud Scheme in Florida, Nicaragua and the Dominican RepublicRead the Press Release
Five residents of Miami-Dade County and one resident of Nicaragua were sentenced yesterday for their participation in a $25.2 million Medicare, Medicaid, and wire fraud scheme. Erendira V. Delgado, a/k/a “Eren Delgado,” 31, of Miami, Edgardo Rodriguez, 47, of Nicaragua, Rodney Montoya, 36, of Miami, Deborah Smith, 53, of Hialeah, and Augustin Abaga, 48, of Sunny Isles, were sentenced by U.S. District Court Judge Federico A. Moreno in Miami.
Delgado was sentenced to 40 months imprisonment. E. Rodriguez was sentenced to 42 months imprisonment. Montoya was sentenced to 48 months imprisonment. Smith was sentenced to 15 months imprisonment. Abaga was sentenced to 18 months imprisonment. Each defendant was sentenced to serve a three year term of supervised release upon completion of their incarceration and pay restitution to the Centers for Medicare and Medicaid Services.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Pam Bondi, Florida Attorney General, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and David Brown, Acting Special Agent in Charge, U.S. Department of State, Diplomatic Security Service (DSS), made the announcement.
On October 30, 2014, a federal grand jury in Miami returned a 36-count indictment charging Pedro Hernandez, a/k/a “Peter Hernandez,” 51, of Miramar, Freddy Zeron, 52, of Miami and Nicaragua, Delgado, E. Rodriguez, R. Montoya, Santiago Bernabe Montoya, 72, of Miami, Jose Eloy Sanchez, a/k/a “Jose Eloy Sanchez Arguello,” 70, of Coral Gables and Nicaragua, Abram J. Rodriguez, a/k/a “Abe Rodriguez,” 31, of Miami, Mirna L Blanco, 49, of Hialeah, Smith and Abaga for allegedly participating in a scheme to defraud Medicare and Medicaid by submitting false and fraudulent enrollment applications which claimed that beneficiaries resided in Florida when, in fact, they resided in Nicaragua and the Dominican Republic. The defendants were charged with conspiracy to commit health care fraud and wire fraud, substantive counts of health care fraud, conspiracy to defraud the United States and make false statements related to health care matters and substantive counts of making false statements related to health care matters.
Beginning on November 19, 2014, ten of the eleven individuals charged in the Indictment were arrested. Sanchez remains at large and is believed to be in Nicaragua. All ten individuals arrested pleaded guilty in federal court. Hernandez and A. Rodriguez pleaded guilty on Friday, June 19, 2015. Zeron pleaded guilty on Tuesday, June 23, 2015. S. Montoya pleaded guilty on May 14, 2015. They are scheduled to be sentenced on August 27, 2015, at 9:30 a.m. before the U.S. District Court Judge Federico A. Moreno.
Previously, on May 5, 2015, Blanco was sentenced to 24 months imprisonment after pleading guilty to conspiracy to commit wire fraud and health care fraud.
As part of the indictment, a Temporary Restraining Order (TRO) was obtained against A. Rodriguez and Montoya. Pursuant to the TRO, various banks froze over $150,000 that were allegedly held in the defendants’ accounts, in order to enjoin the ongoing fraud and restrain the dissipation of fraudulent proceeds.
According to allegations contained in the indictment, Florida Healthcare Plus (“FHCP”) was authorized by the Centers for Medicare and Medicaid Services to offer Medicare Advantage HMO plans to Medicare beneficiaries residing in Miami-Dade County, among other counties in Florida. The defendants recruited individuals who resided in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans and Florida Medicaid by falsely and fraudulently representing in enrollment applications that they resided in Florida. In these enrollment applications, the defendants represented that the foreign residents resided in Florida by using non-residential addresses, the addresses of beneficiaries’ friends and relatives, and addresses associated with the defendants. The defendants induced the individuals residing in Nicaragua and the Dominican Republic to enroll in Medicare Advantage plans, including FHCP plans, by making false and fraudulent representations, including that Medicare benefits were available in Nicaragua and the Dominican Republic. As a result of the submission of these false and fraudulent enrollment applications, the defendants caused the Center for Medicare and Medicaid services to make monthly capitation payments to FHCP and other Medicare Advantage plans. The defendants also caused the Florida Medicaid program to pay Medicare premiums and deductibles for many beneficiaries who did not reside in Florida, a benefit for which non-Florida residents would not be entitled.
Additionally, the defendants caused individuals associated with Pharmovisa Inc., Axis Le Professional Medical Group, Inc. (“Axis Le”), and Rodney Montoya Corp. in Miami, where defendant Montoya was employed as a doctor, to be designated as the primary care physicians for the beneficiaries residing in Nicaragua and the Dominican Republic. The defendants paid for the beneficiaries to travel from the Dominican Republic so that they could be seen by a U.S. licensed physician. The physician would then provide diagnoses which were used to calculate the amount of money Florida Health Care Plus and other Medicare Advantage plans would receive from Medicare. As a result of these false and fraudulent enrollment applications, the defendants obtained approximately $25,247,413 from Medicare and Florida Medicaid.
According to the indictment, Hernandez was the chief operating officer of FHCP until May 8, 2013, A. Rodriguez was the marketing director until on or about April 21, 2014. E. Rodriguez, Smith and Abaga were insurance agents employed by FHCP during the time of the scheme occurred. Blanco was employed by FHCP, as well as, Axis Le and Rodney Montoya Corp.
U.S. Attorney Wifredo A. Ferrer stated, “Health care fraud cripples the American social service system by increasing health care costs, stealing taxpayer monies that support the Medicare and Medicaid programs, and robbing individuals of quality of life benefits. This case demonstrates that, with the assistance of law enforcement partners, the U.S. Attorney’s Office is able to successfully combat these fraud schemes even when the offenders move the crime outside our shores.”
“This elaborate $25 million Medicare and Medicaid fraud scheme essentially stole millions of taxpayer dollars, and thanks to my Medicaid Fraud Control Unit and our partnerships with federal authorities, these individuals will be held accountable for their brazen actions,” said Attorney General Pam Bondi.
“Greed does not respect the law, does not concern itself with patient welfare and is not limited by international borders. Medicare patients and American taxpayers deserve better,” said Shimon R. Richmond, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our partners we will meet this greed at every turn and bring these criminals to justice.”
“These fraudsters attempted to cheat Medicare and Medicaid by falsely claiming that beneficiaries resided in Florida when in fact they were living in Nicaragua and the Dominican Republic. A novel idea, but not enough to thwart the hard work and diligence of the agents investigating this matter,” said George L. Piro, Special Agent in Charge, FBI Miami. “A special thanks goes to the U.S. Embassy Managua for their close cooperation and support.”
“The worldwide presence and investigative capabilities of the Diplomatic Security Service places us in the unique position to identify criminals who would defraud the U.S. government,” said David Brown, Acting Special Agent in Charge of the Miami Field Office of the Diplomatic Security Service. “Regardless of where they hide, we are able to work with our law enforcement partners -- both domestically and around world -- to bring these criminals to justice.”
Mr. Ferrer commended HHS-OIG, FBI, the Florida Office of the Attorney General, Medicaid Fraud Control Unit, and DSS for their investigative efforts.
Mr. Ferrer also thanked U.S. Department of State, Diplomatic Security Service, Regional Security Office, at the U.S. Embassies in Managua and Santo Domingo for their assistance with this investigation.
This case, brought as part of the Medicare Fraud Strike Force, under the supervision of U.S. Attorney’s Office for the Southern District of Florida, is being prosecuted by Assistant U.S. Attorney Eric E. Morales and Special Assistant United States Attorney Hagerenesh Simmons.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 2,300 defendants who collectively have falsely billed the Medicare program for more than $7 billion. In addition, the 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.
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.
Pair Sentenced in Counterfeit Spending Spree in Broward and Palm Beach CountiesRead the Press Release
Two Palm Beach County residents were sentenced today to possessing and using counterfeit currency.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, William R. Latchford, Chief, Seminole Police Department, and Stephen J. Stepp, Chief, Palm Beach Gardens Police Department, made the announcement.
Bernardo Lecaros, 35, of Delray Beach, was sentenced by U.S. District Judge Robin Rosenberg to 27 months imprisonment, to be followed by two years of supervised release upon release, and was also ordered to pay $5,400 in restitution. Co-defendant Mariana Cordova Ortiz, 23, of West Palm Beach, was sentenced to 8 months imprisonment, to be followed by a year of supervised release. Both Lecaros and Ortiz previously pled guilty to passing counterfeit currency, in violation of Title 18, United States Code, Section 472. Lecaros also pled guilty to conspiracy to pass and possess counterfeit currency, in violation of Title 18, United States Code, Section 371.
According to public records and information presented in court, on December 10, 2014 and December 14, 2014, Lecaros passed $5,400 in counterfeit currency at the Seminole Classic Casino in Hollywood, Florida. Lecaros also possessed an additional $37,800 in counterfeit currency. On December 20, 2014, Lecaros was arrested by the Seminole Police Department and the USSS in connection with his use of counterfeit money at the casino.
In a separate incident, according to public records and information presented in court, Lecaros and Ortiz were arrested on March 3, 2015 by the USSS and the Palm Beach Gardens Police Department after Lecaros used $300 in counterfeit currency to purchase merchandise at a luxury department store inside the Palm Beach Gardens Mall, and possessed an additional $31,500 in counterfeit currency that day. Lecaros and Ortiz had entered the mall together that day, and Ortiz used $700 in counterfeit currency to purchase luxury goods.
Mr. Ferrer commended the investigative efforts of the USSS, the Seminole Police Department and the Palm Beach Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren Jorgensen and 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.
Miami-Dade County Resident Sentenced for Identity Theft Fraud Scheme Involving $322,000 in Cashed Tax Refund ChecksRead the Press Release
A Miami-Dade County resident was sentenced to 37 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $322,617.31, for his participation in an identity theft fraud scheme involving cashed tax refund checks.
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 Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Eldridge Nichols, 41, of Miami, previously pled guilty to one count of theft of government money.
According to court documents, from February 2011 to January 2012, the defendant had access to and control over a bank account in the name of Eldridge Nichols LLC in Miami, Florida. Nichols caused fraudulent tax refund checks to be deposited into this account. Approximately forty-three U.S. Treasury tax refund checks, totaling approximately $322,000, were cashed through this bank account. Nichols used the proceeds from the fraudulent tax refund checks for travel, clothing, entertainment, and other personal purposes.
Law enforcement contacted a sample of individuals who had a tax refund check in their name cashed in this account. All of the individuals advised that they did not know of the defendant, that they did not authorize Nichols to have possession of a tax refund check in their name, and that they did not personally receive any of the proceeds from this unauthorized tax refund.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorney Michael N. Berger.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Man Sentenced to 151 Months for Receiving Child PornographyRead the Press Release
A Miami-Dade County resident was sentenced to a term of imprisonment of 151 months for receipt of child pornography.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), Daniel J. Oates, Chief, Miami Beach Police Department (MBPD) and Leonard Burgess, Chief, North Miami Police Department (NMPD), made the announcement.
Jefferson Sanchez, 32, of Homestead, was sentenced yesterday to 151 months in prison, to be followed by a lifetime of supervised release. Sanchez was also ordered to register as a sex offender upon his release from prison. Sanchez previously pled guilty to receiving a visual depiction of a minor engaged in sexually explicit conduct, in violation of Title 18, United States Code, Section 2252(a)(2).
According to court documents and information provided in court, on January 29, 2015, law enforcement officers executed a search warrant at Sanchez’s home after receiving information that a computer user at the residence was downloading child pornography. While executing the search warrant, agents followed a trail of water from the bathroom to a closet, where they found Sanchez’s wet laptop inside a storage bin covered by clothes. A forensic examination of the computer revealed videos and images of child pornography and that the defendant had downloaded a child pornography video just before agents executed the search warrant.
Mr. Ferrer commended the investigative efforts of the USSS, FBI, ICE-HSI, MDPD, MBPD and NMPD. This case was prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
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.
Miami Resident Pleads Guilty in Identity Theft Tax Fraud Scheme Involving Thousands of Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
A Miami resident pled guilty for participating in an identity theft tax fraud scheme involving thousands of deceased and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Neil Melofchik, Acting Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), made the announcement.
Yovaris Pardo, 40, of Miami, pled guilty to one count of possessing a counterfeit access device, in violation of Title 18, United States Code, Section 1029(a)(1), one count of possessing fifteen or more unauthorized access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title l8, United States Codes Section 1028A.
According to court documents, on April 22, 2013, Pardo knowingly used a counterfeit credit card to purchase tires at a Pep Boys Store in North Miami, Florida. Pardo knew that the credit card was counterfeit and acted with the intent to defraud. On July l0, 2013, law enforcement encountered Pardo and executed a search warrant for the contents of her vehicle in Miami-Dade County. In her vehicle, Pardo had numerous counterfeit credit cards, counterfeit driver's licenses, social security cards belonging to other individuals, debit cards also in the names of other individuals that contained fraudulent tax refunds, numerous tax documents, printouts of death record search results (containing names, dates of birth, and social security numbers for deceased people), and notebooks containing handwritten identities (names, dates of birth, social security numbers). Pardo knowingly possessed the approximately 1,320 unauthorized access devices (i.e. debit card numbers, credit card numbers, social security numbers) that were found in her vehicle. Pardo did not have permission or authority to possess or use the PII belonging to the other individuals.
In addition, a forensic examination of Pardo's laptop that was found in the trunk of her vehicle revealed approximately 4,095 death record search results (containing names, dates of birth, and social security numbers for deceased people) and 48 additional credit card numbers. The laptop also contained pictures of credit card skimmers, embossing machines, and credit card readers, as well as software to make fraudulent credit cards, and subscriptions to fraud programs.
Pardo is scheduled to be sentenced on September 10, 2015 at 10:30 a.m. before United States District Judge Robin L. Rosenberg. At sentencing, the defendant faces a maximum of fifteen years in prison for the counterfeit access device charge, ten years in prison for the access devices charge, and a mandatory term of two years’ imprisonment, consecutive to any other prison term, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI and NMBPD. This case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami Gardens Residents Charged with Selling Crack Cocaine and Firearms OffensesRead the Press Release
Three Miami Gardens residents, Talvet Johnson, 45, Demetrius Brown, 25, and Eric McKenzie, 25, were indicted on charges of selling crack cocaine. Brown is also charged with possessing a firearm in furtherance of drug trafficking and with possession of a firearm by a convicted felon. A fourth Miami Gardens resident, Reuben Oliver, 22, was indicted on charges of selling firearms to a convicted felon. As part of a joint federal-state operation, five other defendants who have been charged by the Miami-Dade State Attorney’s Office with related narcotics offenses remain at large.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Antonio G. Brooklen, Interim Chief, Miami Gardens Police Department (MGPD), made the announcement.
According to court documents and statements made in court, Johnson, Brown, and McKenzie are each charged in separate indictments with selling crack cocaine on multiple occasions in or near a housing complex located in Miami Gardens. If convicted, Brown faces a mandatory minimum sentence of five years’ imprisonment and a maximum term of life imprisonment. Johnson and McKenzie each face a maximum term of 20 years’ imprisonment. Oliver faces a maximum term of 10 years’ imprisonment.
Mr. Ferrer commended the investigative efforts of members of the United States Attorney’s Office Violence Reduction Partnership, which includes the FBI, ATF, and MGPD. The federal cases are being prosecuted by Assistant U.S. Attorneys Olivia S. Choe and Vanessa Snyder. The state cases are being prosecuted by Assistant State Attorney Sarah Lobel.
Through its Violence Reduction Partnership, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks in various neighborhoods in the Southern District of Florida, while simultaneously working with community leaders and concerned citizens to mentor at-risk youth, provide job training, coordinate social services and support the reintegration of ex-offenders (returning citizens) to the community.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.