Southern District of Florida
Press releases recorded for this federal judicial district.
Miami-Dade Police Officer Indicted on Fraud ChargesRead the Press Release
A second Miami-Dade Police Department officer was arrested for participating in a fraud scheme arising out of the operation of a series of credit repair businesses.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Miami-Dade Police Officer George Price, 42, and Fatima Ruiz, a/k/a “Fatima Cabana,” 45, both of Miami-Dade, made their initial appearances on a superseding indictment yesterday before Magistrate Judge Andrea M. Simonton. Price and Ruiz are both charged by indictment with conspiracy to commit wire fraud, wire fraud, conspiracy to commit mail fraud, and mail fraud, in violation of Title 18, United States Code, Sections 1341, 1343, and 1349, offenses punishable by up to twenty years in prison. A third defendant named in the indictment, Miami-Dade Police Officer Rafael Duran, was previously arrested on April 2, 2015.
According to allegations contained in the superseding indictment, Price, Ruiz, and Duran participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Price with identifying information of credit business customers. Price would then create false police reports, using the customers’ identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft. Price would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy would cause the false police reports created by Price to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Price created the false police reports in order to promote the success of the credit businesses and in return would receive payment from his co-conspirators.
The superseding indictment further alleges that while working at the credit businesses, Ruiz would provide funds to a co-conspirator who acted as an intermediary between Price and the companies. The intermediary in turn would pay Price for his participation in the scheme. According to the superseding indictment, Ruiz would also allegedly transmit to the credit reporting agencies letters claiming that customers of the credit businesses had been victims of identity theft. Ruiz would include false police reports to support the claims made in these letters.
The superseding indictment also alleges that Ruiz conducted a similar scheme while operating her own separate credit repair business. According the superseding indictment, Ruiz would try to repair customer credit by sending letters to the credit reporting agencies claiming that her customers had been victims of identity theft. Ruiz would include false police reports created by Price along with the letters.
U.S. Attorney Wifredo A. Ferrer stated, “This indictment demonstrates that individuals who facilitate the sale of false police reports will be prosecuted accordingly because their fraudulent conduct undermines the public’s trust in the integrity of our law enforcement community.”
“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard,” said George L. Piro, Special Agent in Charge, FBI Miami. “Unfortunately, the actions of a very few corrupt officers undercuts the public’s trust and they must be rooted out. The FBI’s Miami Area Corruption Task Force was assembled and designed to do just that.”
“The Miami-Dade Police Department is committed to upholding the community's trust. Integrity is the hallmark of the Department, and we will continue to work in collaboration with our law enforcement partners to ensure that those who violate that trust are held accountable,” said MDPD Director J.D. Patterson.
Mr. Ferrer thanked the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
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.
A Miami-Dade Resident was Sentenced for Selling Personal Identifying Information to be used in a Tax Refund Fraud SchemeRead the Press Release
A Miami-Dade County resident was sentenced to 12 months and one day in prison, followed by two years of supervised release for selling personal identifying information (PII), including stolen names, dates of birth, and social security numbers belonging to real individuals (most of whom were from the State of Rhode Island), to be used in a tax refund fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Jeff Pierre Michel, 25, previously pled guilty to one count of access device fraud, in violation of Title 18, United States Code, Section 1029(a)(2).
According to court documents, on April 8, 2013, a confidential law enforcement source arranged for Michel to sell PII to an undercover law enforcement officer. On April 9, 2013, Michel sold 100 pieces of PII, belonging to 100 different individuals, to the undercover law enforcement officer in exchange for $500. On April 22, 2013, Michel sold additional pieces of PII (less than the previously agreed upon amount of 150 pieces of PII) to an undercover law enforcement officer in exchange for $800. In order to compensate for the missing PII, Michel provided the undercover law enforcement officer with a TurboTax username and password. Michel intended that the PII would be used, along with the TurboTax username and password, to commit stolen identity income tax refund fraud over the internet.
Mr. Ferrer commended the investigative efforts of ICE-HSI and IRS-CI. This case was prosecuted by Assistant U.S. Attorney Frank R. Maderal.
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 College Student Sentenced to 2 Years in Prison for Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 24 months in prison, followed by two years of supervised release, and was ordered to pay restitution in the amount of $7,712, for his participation in a stolen identity tax refund fraud scheme involving his student financial services account.
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.
Erving Jaques Etienne, 21, of Hollywood, previously pled guilty to one count of theft of government property, in violation of Title 18, United States Code, Sections 641 and 2.
According to court documents, Etienne received nine fraudulently obtained U.S. Department of Treasury tax refunds into his personal Higher One, Inc. (HOI) account. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney John R. Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Multi-Agency Law Enforcement Operation Tackles Violent Crime, Drug Trafficking, Firearms Offenses, and Gang Activity in Broward CountyRead the Press Release
Wifredo A. Ferrer, United States 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 Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), John Brooks, Chief, Sunrise Police Department (SPD), Amos Rojas Jr., United States Marshal, United States Marshals Service Fugitive Task Force, and J.D. Patterson Jr., Director, Miami-Dade Police Department (MDPD), announce the filing of federal charges against 29 defendants in 5 separate cases for their alleged participation in criminal conduct, including a violent racketeering (RICO) conspiracy, armed Hobbs Act robberies, a narcotics conspiracy, drug trafficking, and firearms violations by convicted felons.
The referenced indictments are, in large part, the result of initiatives which stem from the Violence Reduction Partnership, launched by the U.S. Attorney’s Office in 2011. Through these Partnerships, the U.S. Attorney’s Office and its federal and local law enforcement allies have sought to dismantle the most violent criminal networks that plague communities in Miami-Dade, Broward and Palm Beach Counties. The Partnerships strive to combat violent crime, narcotics trafficking, gang activity and firearms offenses by prosecuting offenders and working with community leaders and non-profit entities to provide preventive services to the local populations.
The members of the Violence Reduction Partnership, and participating agencies, include the United States Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Office, Drug Enforcement Administration (DEA), Miami Field Office, Broward Sheriff’s Office (BSO), Sunrise Police Department (SPD), United States Marshals Service Fugitive Task Force, Miami-Dade Police Department (MDPD), Federal Bureau of Investigation (FBI), Miami Field Office, Hollywood Police Department, Homestead Police Department, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), North Miami Beach Police Department (NMBPD), Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.
United States Attorney Wifredo A. Ferrer stated, “The continued collaboration between federal and local law enforcement agencies to attack violent crime, drug trafficking, and gang activity is of paramount importance. Today’s charges demonstrate that we are dedicated to improving public safety and the quality of life for law-abiding residents by protecting neighborhoods, adopting proactive law enforcement initiatives, and prosecuting repeat offenders, firearms violators and criminal networks. We will continue to prosecute individuals whose violent criminal conduct infects our communities.”
“Today’s arrest demonstrates law enforcement’s relentless effort to reduce violent crime and rid our streets of criminal gangs,” said ATF Special Agent in Charge Hugo J. Barrera. “In conjunction with our Federal, State and Local partners, we continue to work together to end the gang violence that erodes the quality of life in our neighborhoods. The arrests today sends a clear message that our community will not tolerate the heinous activity perpetrated by violent felons and evidences our commitment to work together to dismantle violent street gangs.”
DEA Special Agent in Charge A.D. Wright stated, “The DEA is proud to work with our law enforcement partners to target these violent offenders. Taking these gang members off the street makes Florida a safer place.”
U.S. Marshal Amos Rojas, Jr. stated, “This operation demonstrates the willingness of Federal, State and local law enforcement agencies to work together to combat violent criminal gangs in our communities”
“The Miami-Dade Police Department remains committed to work with fellow law enforcement agencies in arresting those who harm our communities,” said MDPD Director J.D. Patterson.
Today, U.S. Attorney Ferrer, joined by members of federal and local law enforcement agencies announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Juan Alvarez, a/k/a “King Juanma,” et. al., Case No. 15-60094-CR-Cohn
The indictment charges 23 members and associates of the Latin Kings, an organized criminal street gang operating in the Southern District of Florida, for their alleged participation in a violent racketeering conspiracy, in violation of Title 18, United States Code, Section 1962(d).
Charged in the twenty (20) count indictment are Juan Alvarez, a/k/a “King Juanma,” 30, of Miami, Arturo Andrade, a/k/a “King Tu,” 25, of Miami, Sean Buendia, a/k/a “King Chill,” 32, of Davie, Lazaro Castellon, a/k/a “King Speedy,” a/k/a “Laz,” 36, of Hialeah, Domenic Enrique, a/k/a “King Bolo,” 28, of Pembroke Pines, Tony Estevez, a/k/a “King Kilo,” 29, of Miami, Samuel German, a/k/a “King Traffic,” 31, of Hollywood, Alberto Hernandez, Jr., a/k/a “King Gordo,” 20, of Miami, Christopher Isabel, a/k/a “King Nano,” 33, of Plantation, Barbara Lee, a/k/a “Queen Flaka,” 49, of Fort Lauderdale, Andres Lugo, a/k/a “King Ghost,” 33, of Plantation, Danielle Lucatorto, a/k/a “Cookie,” 29, of Margate, John Martins, a/k/a “King Slowdown,” 28, of Lake Worth, Alain Medero, a/k/a “King C-Low,” 31, of Miami, Fernando Moreno, a/k/a “King Boom,” 32, of West Palm Beach, Jorge Perez-Hernandez, 44, of Tampa, Luis Rivera, a/k/a “King Tato,” 32, of Miami Beach, Giovanny Rocha-Collado, a/k/a “King Joker,” 35, of Miami, Barbaro Sanchez, a/k/a “King Tata,” 28, of Miami, Bobbie Tejada, a/k/a “King Riko,”32, of Fort Lauderdale, Jerry Vazquez, 35, of West Palm Beach, Giovanny Viera, a/k/a “King Hollywood,” 35, of Miami, and Juan Marcos Vega, 22, of Homestead.
The indictment alleges that the Latin Kings are one of the largest and most well organized gangs operating in the United States. Chapters of the Latin Kings operate in at least 39 states, including Florida. The gang's primary source of income is generated through offenses related to the distribution of narcotics, assault, robbery, burglary, and identity theft. Members of the gang commit these criminal acts with the intent to benefit, promote, and further the interest of their organization, and to increase their own standing or position within the Latin Kings organization. The Latin Kings adhere to a local, regional, state, and a national hierarchical system. The local chapter reports to the regional officers, the regional officers report to the state officers, and the state officers report to the national officers. State and local chapters, often also referred to as tribes, are comprised of a five person leadership structure, intended to represent the five points of a king’s crown. These positions are identified by the titles of Inca or first crown, Cacique or second crown, Enforcer or third crown, Treasurer or fourth crown, and Secretary or fifth crown. Together, the crowns ensure the Latin Kings members follow the rules and regulations set forth in the Latin King Manifesto, referred to as the “KMC.” Members are required to pay dues, the source of which is usually generated through criminal activity, attend regular meetings and adhere to the gang’s established policies. Failure to adhere to the rules can result in disciplinary action. The Latin Kings colors are Black and Gold. Gang markings consist of a 5 or 3-point "sacred crown," the letters LK (Latin Kings), ALK (Almighty Latin Kings), ALKN (Almighty Latin King Nation), ALKQN (Almighty Latin King Queen Nation), and drawings of the Lion. Once accepted into the organization, members choose a “King” name by which they become known.
At various times, defendants Isabel, Tejada, Rivera, Alvarez, Castellon, Viera, Estevez, German, Medero, Lugo, Rocha-Collado, and Moreno held leadership positions within the state and/or local chapters of the Latin Kings. In their respective positions, these defendants conducted meetings, collected dues, and maintained discipline among members of the Latin Kings.
The twenty-three charged defendants were allegedly employed by and associated with the Latin Kings, a criminal enterprise that affected interstate and foreign commerce, and conspired to violate the federal RICO statute through a pattern of racketeering activity that consisted of multiple acts and threats involving murder, robbery, kidnaping, narcotics trafficking, witness tampering and retaliation, and fraud.
In addition to the racketeering conspiracy charge, many of the defendants were also indicted for their alleged participation in other criminal activity.
Defendants Tejada, Lugo, and Lucatorto are charged with committing a Hobbs Act robbery in Broward County, on or about June 11 and June 12, 2014, in violation of Title 18, United States Code, Sections 1951(a) and 2. The indictment alleges that the defendants attempted to forcibly rob an individual of controlled substances (narcotics). Tejada and Lugo were also charged with possessing a firearm during the commission of the armed robbery, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2.
Defendants Alvarez and Vega were also charged with committing a Hobbs Act Robbery in Miami-Dade County, on or about September 28, 2014. The indictment alleges that the defendants used a firearm to forcibly rob an individual of narcotics and personal items.
Defendant Buenida is also charged with committing a Hobbs Act Robbery in Broward County, on or about June 6, 2014. The indictment alleges that the defendant forcibly robbed an individual of narcotics.
Defendants Rocha-Collado, Medrero, Estevez, Tejada, German and Lee were also charged, with distributing a controlled substance (either cocaine or molly) in Miami-Dade and Broward Counties, on dates on or about and between December 30, 2013 and October 30, 2014, in violation of Title 21, United States Code, Section 841(a)(1).
Isabel, Moreno, Perez-Hernandez, and Vazquez were also charged with conspiring to distribute a controlled substance (heroin), in violation of Title 21, United States Code, Section 846.
Tejada, Alvarez, Viera, Enrique and Castellon were each also charged with being felons in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
During the course of the investigation, law enforcement seized 31 firearms and recovered a variety of narcotics, including cocaine, crack, heroin, and molly.
This case is being prosecuted by Assistant U.S. Attorneys Julia Vaglienti and Lawrence LaVecchio.
2. United States v. Jonathan Gonzalez, III, a/k/a “King Charlie,” Case. No. 15-60059-CR-Cohn
On March 26, 2015, Jonathan Gonzalez III, a/k/a “King Charlie,” 32, Plantation, was charged in a single count indictment for being a felon in possession of a firearm.
According to the indictment, on February 21, 2014 in Broward County, convicted felon Gonzalez was in possession of a .38 caliber revolver that affected interstate and foreign commerce.
This case is being prosecuted by Assistant U.S. Attorney Mark Dispoto.
3. United States v. Jonathan Jose Castro-Guerra and Chavon Hernandez, Case No. 15-20098-CR-Moore
On February 26, 2015, Jonathan Jose Castro-Guerra, 29, of Hollywood, and Chavon Hernandez, 33, of Hollywood, were charged in a single count indictment for being felons in possession of a firearm and ammunition.
According to the indictment, on or about September 18, 2014 in Miami-Dade County, convicted felons Castro-Guerra and Hernandez possessed a 9mm semi-automatic pistol and three rounds of 9mm ammunition that affected interstate and foreign commerce.
This case is being prosecuted by Assistant U.S. Attorney Bruce Brown.
4. United States v. Victor Martinez-Otero, Jr., a/k/a “King Bless” and Luis Almodovar-Alvarez, a/k/a “King Bolillo,” Case. No. 15-60092-CR-Dimitrouleas
On May 5, 2015, Victor Martinez-Otero, a/k/a “King Bless,” 25, and Luis Almodovar-Alvarez, a/k/a “King Boliollo,” 20, both of Kissimmee, were charged in a two count indictment for unlawfully possessing firearms and ammunition.
According to this indictment, on or about August 7, 2014 in Broward County, Martinez-Otero and Almodovar-Alvarez were unlawfully receiving a 9mm semi-automatic handgun and eight rounds of 9mm ammunition that affected interstate commerce, while under a separate indictment. At the time of possession, Martinez-Otero was allegedly a convicted felon.
This case is being prosecuted by Assistant U.S. Attorney William Shockley.
5. United States v. Oscar Valdivia, a/k/a “King Oscar,” a/k/a “King Two Times,” Case. No. 15-60090-CR- Cohn
On May 5, 2015, Oscar Valdivia, a/k/a “King Oscar,” a/k/a “King Two Times,” 21, of Sunrise, was charged in a six count indictment for illegally possessing and selling firearms and ammunition.
According to this indictment, on four separate dates in Broward County, Valdivia did unlawfully receive firearms and ammunition that affected interested commerce, while under a separate indictment. This indictment alleges that he received: two .40 caliber semiautomatic handguns and a .357 revolver on February 25, 2014; a .22 caliber rifle on March 18, 2014; a 12 gauge pump-action shotgun on April 15, 2014; a 5.56 mm semiautomatic rifle, a 9mm semi-automatic handgun, and 1,000 rounds of ammunition on May 3, 2104; a semiautomatic receiver on May 8, 2014. The indictment further alleges that on June 20, 2014, Valdivia sold a .22 caliber handgun and ammunition to a person he believed was a convicted felon.
This case is being prosecuted by Assistant U.S. Attorney William Shockley.
If convicted, the defendants face the following possible statutory sentences for their charged offenses: up to twenty years in prison for the RICO conspiracy, up to twenty years in prison for the Hobbs Act robbery; a term of imprisonment not less than seven years for possession of a firearm in furtherance of a crime of violence (if the firearm is brandished, otherwise not less than five years) consecutive to other terms of imprisonment; up to ten years in prison for possession of a firearm or ammunition by a convicted felon; up to life in prison for conspiring to possess controlled substances with the intent to distribute; and up to forty years in prison for possession of controlled substances with the intent to distribute.
Mr. Ferrer thanked the law enforcement agencies, community leaders, and social service providers involved in the Violence Reduction Partnership, the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force and the Organized Crime Drug Enforcement Task Force (OCDETF). Mr. Ferrer also commended the investigative efforts of ATF, DEA, BSO, Sunrise Police Department, United States Marshals Service Fugitive Task Force, FBI, Hollywood Police Department, Homestead Police Department, ICE-HSI, North Miami Beach Police Department, Miami-Dade Police Department, City of Miami Police Department, Palm Beach County Sherriff’s Office, Broward County Office of the State Attorney, and Miami-Dade Office of the State Attorney.
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.
Miami-Dade County Resident Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
A Brownsville resident was sentenced to 63 months for being a felon in possession of a firearm yesterday.
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, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Contrell Leo Floyd, a/k/a “Kevin Wells,” 34, was convicted in a two-day trial before U.S. District Judge Federico A. Moreno for being a felon in possession of a firearm.
On October 20, 2014, in the early afternoon, two Robbery Intervention Detail MDPD Detectives in an unmarked vehicle saw Floyd in front of Brownsville middle school and began to approach Floyd to ask him questions. Before they could speak with him, Floyd quickly stopped, turned toward the car, and pulled up his shirt to flash a handgun that was tucked in his waistband. Immediately upon seeing the gun, one detective drew his weapon and announced “police!” Floyd fled and threw the firearm into a public park in front of Brownsville middle school. The police apprehended Floyd after a short pursuit and recovered the loaded handgun.
Mr. Ferrer commended the investigative efforts of ATF and MDPD. This case was prosecuted by Assistant U.S. Attorneys Timothy Abraham and 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
Fort Pierce Woman Pleads Guilty to Jamaican Lottery ScamRead the Press Release
Sheila Denise Kelly-Christie, 48, of Fort Pierce, pled guilty today to one count of conspiracy to commit wire and mail fraud, in violation of Title 18, United States Code, Sections 371 and 2326. Sentencing is scheduled for August 10, 2015, at 3:00 p.m., before U.S. District Judge Jose E. Martinez in Ft. Pierce. At sentencing, Kelly-Christie faces up to fifteen years in prison.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, United States Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), and Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
According to court documents, Kelly-Christie was a participant in a Jamaica based scam primarily targeting persons over the age of 55. Kelly-Christie and her co-conspirators in Jamaica, contacted individuals throughout the United States by telephone and falsely told the victims that they had won a lottery or sweepstakes prize. The callers instructed the victims that in order to the claim the prize, the victims had to send money to the scammers in order to pay non-existent fees, registration taxes and the like. The co-conspirators would direct the victims to send their payments to individuals and addresses located in Florida. Kelly-Christie and individuals she would recruit to aid in the scam would receive money from the victims, by U.S. mail, wire transfer, or deposits that were uploaded to debit cards. In turn, Kelly-Christie would keep ten percent of the fraudulently induced payments and forward the remainder of the monies to co-conspirators in Jamaica. During the course of the fraudulent scheme, Kelly-Christie is believed to have received and forwarded over $70,000 in fraudulently induced payments from victims.
Mr. Ferrer commended the investigative efforts of USPIS and HSI. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
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 City of Miami Police Officer Sentenced for ExtortionRead the Press Release
Jerry Sutherland, 28, of Miami-Dade County, Florida, formerly an officer with the City of Miami Police Department, was sentenced yesterday to 24 months in prison, followed by one year of supervised release, including 150 hours of community service, following a guilty plea to two counts of extortion. Sutherland was also ordered to pay a $2,000 fine and forfeit $3,400 in illegal proceeds.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
On March 2, 2015, Sutherland admitted to the following facts in support of his plea of guilty:
In early 2014, Sutherland, who, at the time, was an officer with MPD, managed a football team in his spare time. Sutherland requested that a vendor paint the football team’s helmets free of charge. Subsequently, Sutherland began to demand additional services from the vendor without payment. When the vendor balked at these demands, Sutherland, who erroneously believed that the vendor was involved in an illegal gambling operation that was located adjacent to the vendor’s business in Miami-Dade County, intimated that he would shut down the gambling operation if his demands were not met.
Sutherland represented to the vendor that he would provide the vendor with information about impending surveillance and other operations by MPD in the area of the gambling operation so that the vendor could pass on that information to the owners and operators of the gambling operation.
An investigation of Sutherland ensued in which several recordings were made of the defendant receiving 10 bribe payments, many which he received while he was in uniform. Of these payments, 6 were made to Sutherland in exchange for his promise to provide protection for a gambling operation located in Miami-Dade County, that communicated the bets placed there to a gambling establishment in Las Vegas, Nevada; two were made to Sutherland in exchange for his promise to arrange for the dismissal of a criminal court case against an employee of the illegal gambling operation; one was made to Sutherland in exchange for his agreement to increase the visibility of police around a rival gambling location in order to discourage its customers from patronizing that rival location; and the remaining payment was for Sutherland’s promise to provide the vendor with a “case card” with a fictitious case number and officer’s name. Sutherland had been told that the fictitious case card would be used to falsely demonstrate that the gambling operation had been robbed so that the workers could keep for themselves the gambling proceeds that had been made that day. Pursuant to Sutherland’s demands, he received bribe payments which totaled $3,400.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, 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.
Broward Resident Charged in Identity Theft Tax Fraud SchemeRead the Press Release
A Broward County resident was charged in an identity theft fraud scheme, involving 734 unauthorized tax returns.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Keyiona Marvette Wright, 27, of Plantation, Florida, was charged by criminal complaint with one count of possessing fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A. The defendant faces a maximum statutory sentence of ten years in prison for the unauthorized access charge, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge.
According to the criminal complaint, from March 25, 2014 to May 6, 2015, forty-six federal tax returns were filed with the IRS claiming refunds of $135,196 from an IP address in Plantation, Florida. From September 16, 2014 to May 5, 2015, at least 688 rejected federal tax returns, claiming refunds of $733,276, were electronically transmitted to the IRS from this same IP address. Agents confirmed that the IP address was assigned to an apartment rented by Wright.
Based on this information, agents executed a search warrant at Wright’s residence and allegedly found four notebooks containing PII, two computers (one of which had numerous social security numbers and other PII displayed on the screen), a bag and suitcase each containing thousands of PII in paper form, multiple pre-paid/value cards and gift cards, hundreds of documents containing PII (including Department of Labor applications), and papers containing PII scattered throughout the apartment.
The complaint also alleges that agents found a laptop computer outside the searched apartment, next to the bathroom window. The complaint further alleges that the agents were able to view a video on the laptop, which showed Wright counting money.
Wright had her initial appearance on May 8, 2015 before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia Wood.
The complaint merely contains allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Broward County Tax Preparer Convicted of Preparing False Tax ReturnsRead the Press Release
After a four-day trial, yesterday a federal jury convicted Hugo Jean Joseph, 60, of Coral Springs, of eleven counts of preparing false tax returns for his clients.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
As shown at trial and in court documents, Jean Joseph and co-defendant Guencia Piard a/k/a Guencia Toussaint operated Lakay Multi Services (LMS), a tax return service with locations in Pompano Beach, Naples and Fort Myers, Florida. Jean Joseph and Piard prepared and filed fraudulent tax returns on behalf of their customers during the 2006 to 2008 tax years by using false Schedule A deductions (such as those for medical and unreimbursed employee business expenses), false Schedule C expenses, false education expenses, and false credits for federal fuel tax without their clients’ knowledge or consent. By inflating their clients' deductions, expenses, education credits, and fuel tax credits, Jean Joseph and Piard attained higher tax refunds for their clients which attracted a greater volume of clients. Jean Joseph and Piard kept a portion of the fraudulently inflated tax refunds as payment for their services.
Jean Joseph and Piard prepared at least 76 false tax returns for twenty-one sets of clients for tax years 2006, 2007, and 2008. Sometimes, Jean Joseph and Piard provided clients with copies of their respective tax returns which were different from the tax returns filed with the IRS. At least 21 of the 76 tax returns filed with the IRS reported a higher tax refund than the copy of the tax return provided to the client.
The total tax loss to the IRS was $283,834.
At sentencing, which is currently set for July 22, 2015 at 1:30 pm, before U.S. District Judge Jose E. Martinez, Jean Joseph faces a maximum term of 33 years in prison.
Co-defendant Piard was sentenced on August 7, 2014 to 24 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $283,834. Piard pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
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.
Bribery Charge Brought Against Miami Building Owner/Manager in Connection with Fire Code ViolationsRead the Press Release
The owner and manager of the Miami Office Center, which leases office space and manages property at a location known as the Flagler Building Downtown, was charged today with one count of bribery.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI, Miami Field Office, and Rodolfo Llanes, Chief, City of Miami Police Department (MPD), made the announcement.
Dvir Derhy, 46, of Miami, was charged by information with bribery, in violation of Title 18, United States Code, Section 666(a)(2). Derhy faces a maximum possible sentence of ten years in prison for this offense.
According to the information, the Flagler Building Downtown, located at 223 East Flagler Street, was cited for violations of the City of Miami fire code for blocking egress from the building. Derhy owned and managed the Flagler Building Downtown. Between July 18, 2014 and July 21, 2014, Derhy corruptly gave, offered, and agreed to give cash payments to another person, with the intent to influence and reward an agent or employee of the City of Miami Fire Department, in connection with the removal of these citations.
Mr. Ferrer commended the investigative efforts of the FBI Miami Area Corruption Task Force and the City of Miami Police Department Internal Affairs Section. The case is being prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr.
An information is only an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Assistant Band Director Charged in Identity Theft Tax Fraud Scheme Involving Former Broward County Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A former assistant band director was charged for his participation in an identity theft tax fraud scheme involving former Broward County students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Delvis Demaine Rogers, 27, of Hollywood, Florida, was charged by indictment with one count of using one or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(2), one count of possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and four counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendant faces a maximum statutory sentence of ten years in prison for each of the unauthorized access charges, and a mandatory term of two years in prison, consecutive to any other term of imprisonment, for the aggravated identity theft charge(s).
According to the criminal complaint filed on March 11, 2015, IRS-CI investigators noticed that 419 suspicious tax returns claiming refunds totaling $754,470 were filed from Rogers’ residential address from January 25, 2014 to April 20, 2014. Based on this information, a search warrant was executed at Rogers’ residence and agents discovered and seized papers, notes, and documents containing thousands of PII (including names, dates of birth, and social security numbers) including PII contained in records of more than a dozen Broward County School District students, some dating back to the late 1990s and others into the late 2000s. Agents also seized numerous printed 2013 tax returns.
Agents interviewed Rogers during the execution of the search warrant and he admitted to having prepared and filed hundreds of fraudulent tax returns without the permission of the people in whose names they were filed. Rogers further admitted that he electronically submitted the filings from his apartment. Rogers advised that he was employed as the band director at a school in Opa Locka, Florida, and that he previously was the assistant band director at a high school in Plantation, Florida.
Rogers pled not guilty at his arraignment today before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. This case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Daya Nathan.
An indictment is only an accusation and a 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.
Highlands County Resident Pleads Guilty to Possessing Firearms and Ammunition While an Alien Unlawfully in the U.S.Read the Press Release
A Highlands County resident pled guilty yesterday to possessing firearms and ammunition while being an alien unlawfully present in the United States.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Matthew Madore, Chief Immigration Officer, U.S. Citizenship and Naturalization Service – Fraud Detection National Security (USCIS-FDNS), Tampa District Office, and Hugo J. Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office made the announcement.
Juan Gregorio Perez-Treviño, 26, of Lake Placid, FL, pled guilty before Chief U.S. Magistrate Judge Frank J. Lynch Jr., in Fort Pierce, Florida to the charge of possession of one or more firearms and ammunition by an alien who is illegally and unlawfully present in the United States, in violation of Title 18, United States Code, Section 922(g)(5)(A). The offense is punishable by up to ten years in prison.
According to court records, on October 27, 2014, Perez-Treviño was interviewed by HSI agents and FDNS Officers with U.S. Citizenship and Immigration Services (USCIS) in Royal Palm Beach, Florida regarding pending immigration benefits. During the interview Perez-Treviño admitted that he was born in Reynosa, Mexico and originally entered the United States, through El Paso, Texas on a B2 ‘Visitor for Pleasure’ (i.e. Tourist) visa, which permitted a maximum stay of six months. Because he failed to exit the country, Perez-Treviño became an “overstay” and was considered an alien unlawfully present in the United States. Perez-Treviño further admitted that he owned two firearms, a .22 caliber rifle and a 12 gauge single barrel shotgun.
On March 25, 2015, HSI agents visited Perez-Treviño at his residence. During the visit, Perez-Treviño admitted to acquiring two additional firearms from when he was interviewed on October 27, 2014; a .308 caliber rifle and a 9mm pistol. Perez-Treviño voluntarily retrieved the four firearms and turned them over to law enforcement. Perez-Treviño also turned over numerous rounds of ammunition, including ammunition for each of the recovered firearms, which he had in his possession.
Mr. Ferrer commended the investigative efforts of HSI, USCIS-FDNS and ATF. 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.
Former Florida Resident Sentenced for Orchestrating an International Stock Fraud SchemeRead the Press Release
A former Florida resident was sentenced to 60 months in prison, to be followed by three years of supervised release, a special assessment in the amount of $3,000, and restitution in the amount of $476,195.51 by U.S. District Court Judge Donald M. Middlebrooks, for orchestrating an international stock fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, George L. Piro, Special Agent in Charge, Federal Bureau Investigation (FBI), Miami Field Office, and Alysa Erichs, Special Agent in Charge U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
Amy Brook Wilkerson, 22, formerly from Orlando, Florida, was charged by information with twenty-nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343 and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). Wilkerson pled guilty to the 30 count information on January 12, 2015.
According to court documents, Wilkerson, while living in Afyonkarahisar, Turkey and later in Tbilisi, Georgia, purchased a list containing contact information for stock market investors. Wilkerson then referred to this list in order to recruit potential clients. Using an alias and falsely claiming to be a high ranking officer and stock broker for a well-known international bank, Wilkerson contacted a number of individuals who were living in the United States. Wilkerson represented to the potential clients that she had access to various initial purchase offerings (IPOS) that would be very profitable. Based on Wilkerson’s fraudulent representations, twenty-three individuals wired a total of $805,996 to various bank accounts controlled by Wilkerson. Following her arrest, the defendant admitted that she in fact never had access to any IPOS, that her entire operation was fraudulent, that she never purchased any stocks as represented to the victims, and that she used the monies wired by the victims to cover her personal expenses.
Mr. Ferrer commended the investigative efforts of the USPIS, FBI, ICE-HSI and the United States Department of Justice Office of International Affairs (OIA). The case was prosecuted by Assistant U.S. Attorney Thomas P. Lanigan.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at 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 Defendants Sentenced for Their Involvement in Extensive Tax Refund Fraud SchemeRead the Press Release
Three defendants were sentenced by U.S. District Judge Joan A. Lenard for their involvement in an extensive tax refund fraud scheme. Vory V. Copeland, of Miramar, was sentenced to 111 months in prison, followed by 3 years of supervised release, and ordered to pay joint and several restitution in the amount of $911,539. Marlan L. Copeland, of Miramar, was sentenced to 72 months in prison, followed by three years of supervised release. Brannoc K. Rudd, of Miami Gardens, was sentenced to 60 months in prison, followed by 3 years of supervised release. The three defendants were held jointly and severally liable for restitution. Vory Copeland was ordered to pay restitution in the amount of $911,539. Marlan Copeland and Brannoc Rudd were each ordered to pay restitution in the amount of $285,834.
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 Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
After a seven-day trial, a federal jury convicted Vory Copeland of one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, three counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and three counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
After a separate ten-day trial, a federal jury convicted Marlan Copeland and Brannoc Rudd of one count of conspiracy, in violation of Title 18, United States Code, Section 371. Marlan Copeland was also convicted of five counts of theft of government property, in violation of Title 18, United States Code, Section 641, and five counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Evidence presented at the trials revealed that between January 2010 and April 2010, Vory Copeland and his co-conspirators filed over 150 fraudulent tax returns, including tax returns that included stolen personal identification information. The co-conspirators then cashed many of the fraudulently obtained tax refund checks at a Wachovia Bank in Miami Gardens, Florida. Marlan Copeland and Rudd brought more than twenty checks into the bank, each check reflecting a tax refund issued by the U.S. Department of the Treasury. At the bank, Marlan Copeland and Rudd cashed the checks and fraudulently obtained more than $100,000.00. Although each check had been purportedly signed by the taxpayer, at trial the taxpayers identified the signatures at forgeries.
During the trials, individual victims whose personal identification information had been compromised testified that they had not authorized the defendants to file the fraudulent tax returns or cash the resulting tax refund checks.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys John Gonsoulin and John Byrne.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Individuals Charged for Possessing Stolen Personal Identification Information at Fort Lauderdale-Hollywood International AirportRead the Press Release
Two Miami Dade County residents were charged for their participation in a stolen identity fraud conspiracy 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, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Godfrey Teekah, Jr., 28, and Phillip Collins, 29, both of Miami Gardens, were each charged by indictment with conspiracy to possess fifteen or more unauthorized access devices (social security numbers issued to other persons), in violation of Title 18, United States Code, Section 1029(b)(2), possession of fifteen or more unauthorized access devices, in violation of Title 18, United States Code, Section 1029(a)(3), and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1). The defendants face a maximum statutory sentence of five years in prison for the conspiracy charge, 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.
According to court documents and statements made in court, Teekah and Collins were allegedly in possession of the stolen personal identification information of real persons with the intent to use that information in order to defraud others. The defendants were allegedly stopped while attempting to board a flight at Fort Lauderdale-Hollywood International Airport in February of 2013. The defendants were allegedly found in possession of more than 326 names, social security numbers, and dates of birth, belonging to other individuals. In addition, the defendants allegedly possessed nine debit cards in the names of other individuals.
The defendants had their initial appearances today before United States Magistrate Judge Patrick M. Hunt.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Randy Katz.
An indictment is only an accusation and a 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
Palm Beach County Gastroenterologist Sentenced for His Role in an Income Tax Fraud SchemeRead the Press Release
Dr. Krishna Tripuraneni, 56, of Palm Beach County, was sentenced yesterday by U.S. District Court Judge Darrin P. Gayles to two years in prison, to be followed by one year of supervised release and two hundred hours of community service, for his participation in an income tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, made the announcement.
Tripuraneni had previously pleaded guilty to one count of filing false tax returns, in violation of Title 26, United States Code, Section 7206(1).
According to court documents, Tripuraneni, a physician licensed in the State of Florida who specializes in the field of Gastroenterology, filed fraudulent income tax returns. Tripuraneni's primary place of business is Palm Beach Gastroenterology Consultants LLC (“PBGC”), Wellington, Florida. Tripuraneni also operates two other businesses from this same address, identified as Palm Beach Surgery Center (“PBSC”) and PB Anesthesia Associates, LLC (“PBA”). Tripuraneni is the listed owner of record of PBGC and the Manager and Registered Agent for PBSC and PBA in Florida Corporate records.
For the tax years 2004 to 2008, Tripuraneni knowingly and willfully underreported his income from the above mentioned entities. Tripuraneni received income in the form of direct compensation, distributions, and corporate funds and used these payments to cover personal expenditures. This resulted in the filing of false corporate and personal tax returns by Tripuraneni.
Tripuraneni utilized funds from the above companies to pay for expenses related to a new home that he built in Manalapan, Florida, payments on condominiums that he had purchased, interior design improvements to his residences, and tuition payments for his children. Some of these payments were then fraudulently classified as professional consulting, building repairs, and miscellaneous expenses by the referenced companies.
These falsified profit and loss statements, which included the improper payments, were used by a tax preparer to file Tripuraneni’s corporate and personal income tax returns. Tripuraneni caused the preparation and filing of a false 2006 U.S. Income Tax Return for an S Corporation, IRS Form 1120S; a U.S. Return of Partnership Income, IRS Form 1065 and a U.S. Individual Income Tax Return, IRS Form 1040. These returns were false in that the corporate returns included fraudulent business expenses which reduced the corporations’ income and failed to include the diverted corporate income and to correctly report the defendant’s share of the income generated by these companies, thereby understating the defendant’s total income and the tax due and owing on his personal return.
The false returns resulted in the following misrepresentations and outstanding taxes:
Tax Year Underreported Income Outstanding Taxes 2004 $3,256,616 $1,139,815 2005 $3,940,641 $1,369,581 2006 $4,158,162 $1,533,048 2007 $3,688,283 $1,291,940 2008 $3,084,364 $1,049,593 TOTAL $18,128,066 $6,383,977Mr. Ferrer commended the investigative efforts of the IRS-CI, FBI and DCIS. This case was prosecuted by Assistant U.S. Attorney Christopher J. Clark.
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.justice.gov/usao-sdfl. 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 Bank Robber Pleads GuiltyRead the Press Release
A Broward County resident pled guilty in federal court this afternoon to robbing the Wells Fargo Bank in Pompano Beach.
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 Scott Israel, Sheriff, Broward Sheriff’s Office, made the announcement.
Craig Joseph Naughtin, 43, of Pompano Beach, pled guilty to bank robbery, in violation of Title 18, United States Code, Section 2113(a). The defendant faces a maximum statutory sentence of twenty years in prison.
According to court records, on February 3, 2015, Naughtin walked into the Wells Fargo Bank in Pompano Beach, approached the bank teller and produced a note that stated, in part, “give me all the money in your drawer.” The teller, fearing for her personal safety, gave the defendant more than $3,500 in bank funds. The robbery was recorded on video by the bank’s surveillance cameras. Naughtin was later arrested and found in possession of $3,561.00 in U.S. currency, as well as a demand note stating “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.”
Naughtin is scheduled to be sentenced on July 17, 2015 at 10:00 a.m., by United States District Judge Beth Bloom in Fort Lauderdale.
Mr. Ferrer commended the investigative efforts of the FBI, Broward Sheriff’s Office 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.
Two Miami Dade County Residents Charged in Identity Theft Tax Fraud Scheme Involving Deceased and Other Individuals’ Personal Identifying InformationRead the Press Release
Two Miami Dade County residents were charged 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, were each charged, by indictment, with one count of conspiracy to commit wire fraud and three counts of wire fraud. Chikudo was also charged with two counts of aggravated identity theft.
According to allegations contained in the court documents, Joseph met with an undercover IRS agent who provided the defendant with five IRS-controlled identities, consisting of fictitious personal identification information (“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 he intended to include in fraudulent tax return filings. Chikudo asked the undercover 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, according to the allegations, between April and August of 2013, the defendants filed thirty-two fraudulent federal income tax returns using the IRS-controlled identities, to request refunds totaling $197,688. Twenty-one of the returns were joint returns that included the PII of deceased individuals.
If convicted, the defendants face a maximum of twenty years in prison for each count of conspiracy and the wire fraud charges. 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.
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.justice.gov/usao-sdfl. 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 More Than 7 Years in Prison for Unauthorized Possession of Stolen Identities and Tax Fraud SchemeRead the Press Release
A Miami-Dade County resident was sentenced to 87 months in prison, followed by 3 years of supervised release, and was ordered to pay $42,829 in restitution to the Internal Revenue Service (IRS), for unauthorized possession of stolen identities and participating in a tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, made the announcement.
Brandon K. Jenkins, 23, of Miami-Dade, previously pled guilty to one count of possession of fifteen or more unauthorized access devices (the social security numbers of other individuals), and one count of aggravated identity theft.
According to court documents, on March 18, 2014, IRS-CI and the USSS executed a residential search warrant and discovered over 3,000 items, including paperwork and notebooks, that contained the personal identifying information (PII) – name, date of birth, and social security number - of various individuals. Located in the bedroom where Jenkins was sleeping was an envelope addressed to “Mr. Brandon K. Jenkins.”. Inside the envelope, law enforcement discovered a wallet with a social security card in the defendant’s name, other documents in the defendant’s name, three debit cards in the names of other individuals, and five “Student Selection Form Cards” containing the names and social security numbers of other individuals.
A forensic analysis of the documents recovered from the target residence revealed Jenkins’ fingerprints on numerous items containing PII. One document, a piece of paper, contained an individual’s PII that had been used to file a fraudulent income tax return from the target residence, where Jenkins’ had been residing.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorneys Brooke C. Watson and Gera R. Peoples.
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.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Florida Man and Company Sentenced for Violating the International Emergency Economic Powers Act and U.S. Department of Commerce Denial OrderRead the Press Release
A Palm Beach County, Florida, man and company were sentenced for violating the International Emergency Economic Powers Act (IEEPA), as well as the terms of a denial order issued by the U.S. Department of Commerce.
The announcement was made by U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General for National Security John P. Carlin, Special Agent in Charge John F. Khin Department of Defense’s (DoD) Defense Criminal Investigative Service (DCIS), Special Agent in Charge Alysa Erichs of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) and Acting Special Agent in Charge Gordon Pomeroy of the U.S. Department of Commerce’s Office of Export Enforcement.
Russell Henderson Marshall, 53, was sentenced by U.S. District Judge Kenneth A. Marra of the Southern District of Florida to serve 41 months in prison and will be removed from the United States upon the completion of his sentence. In imposing the sentence, Judge Marra found that the order denying export privileges issued by the Department of Commerce constituted a national security control, which subjected Marshall to an enhanced sentence. Universal Industries Limited Inc. was sentenced to a term of one year probation and a special assessment of $400 upon a finding that the corporation is currently listed as inactive by the Florida Division of Corporations as a result of Marshall’s arrest.
Marshall and his company Universal Industries Limited Inc. were previously convicted in a 2011 case in the Southern District of Florida for violating the Arms Export Control Act, after which the Department of Commerce issued a denial order prohibiting Universal Industries Limited Inc. and its owners, agents and employees from participating in any transaction involving the export of any item subject to the Department of Commerce‘s Export Administration Regulations (EAR). Marshall and Universal Industries Limited Inc. violated IEEPA and the U.S. Department of Commerce’s denial order by attempting to send three temperature transmitters used on F-16 fighter jets and a saddle part for the J-69 engine used on 737 military trainer aircraft to Thailand and Pakistan, respectively.
“National security controls exist to ensure that sensitive U.S. technologies are protected,” said U.S. Attorney Ferrer. “Zero tolerance will be afforded individuals who knowingly continue to violate our export control laws and jeopardize the nation’s security.”
“By repeatedly taking actions that violated export control laws and an order issued by the Department of Commerce, Marshall and Universal Industries Limited Inc. actively engaged in efforts that threatened our national security,” said Assistant Attorney General Carlin. “This sentencing serves as another reminder that we will not tolerate this activity. Protecting our national assets, including highly sensitive technologies, from falling into the hands of those who may wish to do us harm is one of our top national security priorities. The National Security Division commends the law enforcement agents, analysts, and prosecutors who took part ensuring justice was served.”
“Today's sentencing demonstrates the continued commitment of the Defense Criminal Investigative Service and partner agencies to protect sensitive U.S. defense technology from being illegally exported,” said Special Agent in Charge Khin. “American military prowess depends on lawful, controlled exports of sensitive technology by U.S. industries, which is why DCIS will continue its present campaign to aggressively investigate and prosecute criminal violations regarding the illegal procurement or export of sensitive technology.”
“One of Homeland Security Investigation's top enforcement priorities is preventing the exportation of U.S. military products and sensitive technology, and preventing those technologies and weaponry from falling into the hands of those who might seek to harm America or its interests,” said Special Agent in Charge Erichs. “Technology used by the United States and its allies give us a strategic military advantage, which is why HSI will continue to work with its law enforcement partners to ensure such technology doesn't fall into the hands of those opposed to U.S. national security interests.”
“The Office of Export Enforcement is committed to working with our law enforcement partners to pursue individuals who violate our nation's export control laws,” said Acting Special Agent in Charge Pomeroy. “As the sentence in this case demonstrates, we will not allow our national security to be compromised by individuals who intentionally violate these laws.”
According to court documents and information presented during the sentencing hearing, the DoD Inspector General received a hotline complaint concerning Marshall and Universal Industries Limited Inc. in November 2012. The subsequent investigation revealed that the defendants brokered the sale of military aircraft parts which were subject to license controls by the Department of Commerce, and which the defendants knew were intended to be illegally exported to Thailand and Pakistan.
On Feb. 6, 2015, Marshall and Universal Industries Limited Inc. entered guilty pleas to an information that charged them with knowingly and willfully engaging in negotiations concerning selling, delivering or otherwise servicing a transaction involving an item to be exported from the United States to Thailand and subject to the EAR.
U.S. Attorney Ferrer joins Assistant Attorney General Carlin in commending the investigative efforts of the DoD, DCIS, ICE-HSI and the U.S. Department of Commerce’s Office of Export Enforcement for their outstanding efforts in investigating this matter. The case was prosecuted by Assistant U.S. Attorney Michael Walleisa of the Southern District of Florida.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Man Sentenced in Shooting of Miami Gardens Police OfficerRead the Press Release
Randy Thomas, 45, of Miami Gardens, was sentenced yesterday to life in prison after having been convicted at trial of being a convicted felon who shot and injured a local police officer.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Hugo Barrera, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Filed Office, and Antonio G. Brooklen, Interim Chief, Miami Gardens Police Department, made the announcement.
Evidence presented at trial revealed that on January 11, 2014, two Miami Gardens Police Officers responded to a 911 call for assistance. On the scene, an officer separated Thomas and two women who were in a fight. Thomas then began to walk away. Another officer approached Thomas and asked him to stop, so that an investigation could be conducted. Thomas responded by turning around and pointing a gun at the officer. The officer attempted to flee to safety but was pursued by Thomas who fired at and struck the officer in the thigh. In order to protect the community and disarm the defendant, responding officers fired at Thomas. A 9mm pistol was recovered inches from Thomas’ hand, along with several matching spent shell casings. Video surveillance, introduced at trial, captured the shooting.
As a result of the gunshot wound, the responding officer underwent months of medical treatment before being able to return to his job.
Thomas is pending charges in state court for the attempted first degree murder of the law enforcement officer.
U.S. Attorney Wifredo A. Ferrer stated, “Police officers put their lives on the line to protect us every single day. Individuals who target those sworn to maintain our safety will face judgment and be prosecuted accordingly.”
ATF Special Agent in Charge Hugo Barrera stated, “Our community is very fortunate to have heroes that stand ready to defend us against violent criminals who want to harm us. ATF stands with our state and local partners to reduce violent crime and ensure that justice prevails.”
Interim Chief of Police for Miami Gardens Police Department Antonio G. Brooklen added, “The citizens of this great community have once again spoken and brought to bear a clear message that should resonate in the minds of all who would think to violate the law and that is, ‘Be it a private citizen or a law enforcement officer, criminal acts of this nature will be dealt with swiftly and without impartiality.’ The events that took place on January 11, 2014, could have resulted in a greater tragedy: we are thankful they did not, and applaud the multi-jurisdictional efforts that resulted in the successful prosecution of this case. We at the Miami Gardens Police Department are grateful for the continued support of U.S. Attorney Wifredo Ferrer; Special Agent in Charge Hugo Barrera - Bureau of Alcohol, Tobacco, Firearms and Explosives; and State Attorney Katherine Fernandez-Rundle.”
Mr. Ferrer commended the investigatory efforts of the ATF and Miami Gardens Police Department. Mr. Ferrer also thanked State Attorney Katherine Fernandez Rundle and members of the Miami Dade Office of the State Attorney for their assistance with this matter. This case was prosecuted by Assistant U.S. Attorneys Cristina Moreno and Francisco Maderal.
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.justice.gov/usao-sdfl. 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.
2010 Congressional Candidate and Campaign Manager for His Opponent Jointly Charged with Election ViolationsRead the Press Release
A 2010 Congressional candidate for Florida’s 25th Congressional District, along with the campaign manager for an opposing candidate from a different party, have been charged jointly with violating federal election laws.
Benjamin G. Greenberg, First Assistant United States Attorney, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Jeffrey Garcia, 42, and Jose Rolando Arrojo, 41, of Miami, were charged, by criminal information, with conspiring to make and accept excessive contributions to the 2010 Roly Arrojo for Congress Committee, in violation of the Federal Election Campaign Act of 1971.
According to the information, during the 2010 election cycle, Garcia was the campaign manager for a candidate (“Candidate A”) opposing Arrojo in the general election. The information alleges that the objective of the conspiracy was to benefit Candidate A by splitting the general election votes of his opponents, by causing and funding the existence of Arrojo’s campaign. The information also alleges the conspirators used third party checks to conceal the contributions. A $12,000 check signed by Garcia, and drawn from the campaign account of Candidate A, was made payable to Palm Media, LLC, a company that was also owned and operated by Garcia. Garcia then signed two checks, made payable to cash in the amounts of $5,000 and $5,500, drawn from the Palm Media, LLC account. These checks were deposited by Arrojo into a personal account. Arrojo subsequently wrote a $10,500 check from the personal account made payable to “Roly Arrojo for Congress” which was deposited into the bank account for the Roly Arrojo for Congress Committee. Arrojo then caused a $10,440 check to issue from the Committee’s account to the Department of State, in order to cover his filing fee expenses. Arrojo submitted this check, along with an Oath of Candidate form, to the Department of State in order to be placed on the ballot in 2010 for Florida’s 25th Congressional District.
In 2010, the Federal Election Campaign Act of 1971, as amended, established a $2,400 per election limit on contributions from any individual to a federal candidates’ authorized campaign committee. Therefore, because the contributions alleged in the information did not exceed the permissible amount by more than $25,000, Garcia and Arrojo face a maximum possible sentence of one year in prison.
Mr. Greenberg commended the investigative efforts of the FBI Miami Area Corruption Task Force. This case is being prosecuted by Assistant U.S. Attorney Kimberly A. Selmore.
A criminal information is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Attachment:
Information - Garcia, Jeffrey (PDF)
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 Couple Sentenced to Prison for Bankruptcy FraudRead the Press Release
A Palm Beach County couple was sentenced by Senior U.S. District Judge Kenneth L. Ryskamp in West Palm Beach for their participation in a bankruptcy fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Husband and wife Dr. Richard S. Krugman, 61, and Tamara B. Giordano, 54, each previously pled guilty to one count of bankruptcy fraud, in violation of Title 18, United States Code, Section 152. Krugman and Giordano were each sentenced to one year and one day in prison and ordered to pay restitution in the amount of $27,294.35.
According to court documents and information presented during the sentencing hearing, Krugman and Giordano were the owners of a multi-million dollar health care company that took a downturn in 2006. On August 27, 2008, the two filed a joint personal bankruptcy petition in United States Bankruptcy Court in Palm Beach County, Florida before Judge Erik P. Kimball. Upon filing for bankruptcy, Krugman and Giordano were required, and knew that they were required, to report all assets in which they had any interest. At the time of filing, the defendants claimed they owed almost $3 million to creditors and had available assets worth less than $13,000.
An investigation revealed that Krugman and Giordano knowingly and fraudulently concealed and caused to be concealed property belonging to their bankruptcy estate. Specifically, Krugman and Giordano admitted concealing jewelry and other valuables, including a women’s gold and diamond Rolex watch, a gold ring with two carats of diamonds, diamond earrings, Royal Dalton china, Waterford crystal, silver, and two George Rodrigue “Blue Dog” lithographs, signed and numbered.
U.S. Attorney Wifredo A. Ferrer stated, “Criminal bankruptcy fraud can pose a threat to the economy and those who honestly abide by the bankruptcy laws. Those who hide their assets from the bankruptcy court to enrich themselves should know they may be prosecuted and imprisoned for their misdeeds.”
Mr. Ferrer commended the investigative efforts of the FBI. This case is being prosecuted by Assistant U.S. Attorney Carolyn Bell.
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.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Pleads Guilty in Identity Theft Tax Fraud SchemeRead the Press Release
A Miami-Dade County resident pled guilty for his participation in an identity theft tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
Patrick Exilhome, 23, of Miami-Dade County, pled guilty to one count possession of fifteen or more unauthorized access devices and one count of aggravated identity theft.
According to court documents, law enforcement responded to a hotel and observed four individuals, including Exilhome, smoking marijuana. The individuals were asked to leave the hotel. Before departing, a female from the group asked to retrieve her purse from a hotel room. Officers accompanied the female to the hotel room and discovered, in plain view, a computer, pieces of paper containing names, dates of birth and social security numbers or personal identification information (“PII”), and debit cards in other peoples’ names.
Officers obtained a search warrant for the hotel room and seized the computer, approximately 131 forms of PII and 16 credit/debit cards in other peoples’ names. A forensic analysis of the computer revealed thirty “recently used” websites for tax filings and access to debit/credit cards. PII belonging to individuals, other than the defendant, had been saved to the websites. Latent print analysis revealed that Exilhome’s prints were on the computer and pieces of paper that contained PII.
Exilhome is scheduled to be sentenced by U.S. District Court Judge Kathleen M. Williams on July 16, 2015 at 10:30 a.m. At sentencing, Exilhome faces a maximum of ten years in prison for the access devices charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
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.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Resident Pleads Guilty to Traveling to Colombia to Engage in Sexual Activity with MinorsRead the Press Release
Dennis De Jesus, 46, of Fort Lauderdale, pled guilty to traveling to Colombia in order to engage in illicit sexual activity with two persons under the age of eighteen, enticing the minors to engage in sexual activity, and knowingly possessing a visual depiction of a minor engaged in sexually explicit conduct.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Miami Office, and Luis Sierra, Country Attaché HSI Andean Region, Colombia, made the announcement.
According to court documents and statements made in court, the ICE-HSI’s Attaché Office in Colombia and the Colombian Attorney General’s Technical Investigative Corps Transnational Criminal Investigative Unit (CTI TCIU) conducted an undercover operation into a sex trafficking ring that was suspected of exploiting minors in Colombia.
In September 2014, HSI in Bogotá, Colombia received information that Dennis De Jesus intended to travel, the following month, from the United States to Colombia in order to engage in sexual activity with minors.
In an effort to further the investigation, a confidential source working with law enforcement created an undercover account on a social media internet networking site. De Jesus became a social media friend of the confidential source utilizing the account. During the course of their internet communications, De Jesus discussed his plans to travel to Colombia in order to engage in illicit sexual activity with minors in Colombia.
On October 11, 2014, law enforcement officers executed a search warrant at De Jesus’s home in North Lauderdale, Florida. During the search, agents discovered a computer in De Jesus’s bedroom, in addition to various costumes and masks. A forensic analysis of the computer recovered videos depicted De Jesus with minors wearing costumes and masks. At least one of the recovered videos showed two minors engaging in sexual acts.
Law enforcement also recovered De Jesus’ cellular telephone. The telephone contained text messages between De Jesus, the undercover officer and two minors. In the messages, De Jesus stated that he intended to return to Colombia in order to have a private party with minor females engaged in the sex tourism trade. De Jesus also referenced his previous trip to Colombia, during which time he and a minor engaged in illicit sexual acts. Using his cellular telephone, De Jesus sent photographs of the costumes and presents he intended to give the minors in exchange for the sexual acts.
The investigation further revealed that De Jesus had traveled to Medellin, Colombia in June 2013 and engaged in illicit sexual conduct with minor females.
De Jesus is scheduled to be sentenced on June 30, 2015 at 9:00 a.m. by U.S. District Judge James I. Cohn. At sentencing, De Jesus faces a mandatory minimum term of 10 years in prison up to a statutory maximum term of life in prison. \
Mr. Ferrer commended the investigative efforts of HSI (Miami and Bogota), United States Customs and Border Protection, Department of Justice, Judicial Attaché’s Office in Bogota, Colombia, Broward Sheriff’s Office, Florida Department of Law Enforcement, CTI TCIU, Colombian Navy, Colombian Army Special Forces, and Instituto Colombiano de Bienestar Familiar. This case is being prosecuted by Assistant U.S. Attorneys Francis Viamontes and Jodi Anton.
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 Colombian Citizens Plead Guilty in International Money Laundering ConspiracyRead the Press Release
Two Colombian citizens pled guilty for their participation in an international money laundering conspiracy.
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.
Leonardo Forero Ramirez, 59, and Ubaner Alberto Acevedo Espinosa, 32, each 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 their withdrawal by Forero. Both Acevedo and Forero knew that the money was derived from criminal activity.
Two other co-defendants indicted in this case are awaiting extradition from Columbia.
Sentencing for both defendants is scheduled before U.S. District Court Judge Ursula Ungaro on July 17, 2015 at 1:30 pm. At sentencing, the defendants each face a maximum of twenty years in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Frank H. Tamen.
Palm Beach County Resident Arrested for Importing FlakkaRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and A.D. Wright, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Office, announced Jaime Nicole Lewis, 22 of Palm Beach County, was charged by criminal complaint with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka”. A Pre-trial detention hearing is scheduled for the defendant on Monday, April 27, 2015 at 10:00 a.m. in front of U.S. Magistrate Judge James M. Hopkins in West Palm Beach.
More specifically, the complaint charges Lewis with importing and possessing with the intent to distribute Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka” and the conspiracy to do the same, in violation of Title 21, United States Code, Sections 952(a), 963, 841(a)(1), 841(b)(1)(C) and 846, respectively. If convicted, Lewis faces a maximum statutory sentence of twenty years in prison.
In March of 2015, as a part of an ongoing investigation regarding the illegal drug trafficking of 4-Methyl-N-Ethylcathinone, a/k/a “4-MEC,” Methylone, and powdered MDMA, a/k/a “Molly” and synthetic cathinones, specifically Alpha-pyrrolidinopentiophenone (“α-PVP”), aka “Flakka,” DEA agents received information about suspected narcotics packages being delivered to Palm Beach County. DEA Agents in London, England received information from the British authorities on multiple packages that were intercepted from a chemical company in Hong Kong, China. The Chinese based chemical company has been utilizing a shipping Company to transport chemicals to buyers in the United States. The British authorities found multiple packages that contained a white crystallized substance which tested positive for the presence of α-PVP. DEA agents delivered the package in Palm Beach County. A co-defendant of Lewis answered the door and took possession of the package. Additionally, one of the packages was addressed to Lewis and listed Lewis’ telephone number as the contact.
“Synthetic drugs are illegal and present a grave danger to our community, particularly our children,” said United States Attorney Ferrer. “Floridians can be very proud of the hard work and cooperation by federal, state and local law enforcement in identifying and investigating this important case.”
“The manufacture, sale, and abuse of synthetic drugs represents a clear and detrimental danger to our society,” said Drug Enforcement Administration Acting Special Agent in Charge A.D. Wright. “These substances serve no legitimate purpose other than to generate a powerful intoxication for the user while generating enormous illicit profits for the criminal organizations who sell them. These powerful chemicals are generally manufactured and produced in a foreign laboratory environment without safety protocols nor concerns for their potential negative effects which ultimately leaves the users at great risk of death.”
“It is DEA’s global footprint pledge, with the assistance of our law enforcement partners, to remain vigilant in our pursuit of identifying, investigating, arresting, and seizing any illicit assets from those criminal organizations who continue to circumvent the law by producing, transporting, and distributing synthetic drugs. Today’s announcement represents the culmination of months of teamwork between state, local, and federal partners. It should serve notice to any criminal organization operating with a nexus to Florida that law enforcement will not obscurely stand in the shadows, but rather will utilize all available resources to bring them to justice and hold them accountable for their actions.”
Mr. Ferrer commended the investigative efforts of the DEA. The case is being prosecuted by Assistant U.S. Attorney Lothrop Morris.
A complaint is only an accusation and a 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.justice.gov/usao-sdfl. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twenty-Seven South Florida Residents Charged in Marriage and Immigration Fraud SchemeRead 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 Custom Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, announce that Inaldo Chavez, 57, of Hialeah, Caridad Baez, 50, of Hialeah, Masiel Puron, 33, of Marathon, Elides Rodriguez Vallejo, 42, of Marathon, Claudio Catapano, 49, of Argentina, Naile Yubero Carrasco, 30, of Hialeah, Enrique Giglio, 32, of Venezuela, Duniesky Alvarez Perez, 26, of Homestead, Angela Cuellar Velandia, 29, of Colombia, Marcos Vila, 25, of Homestead, Olena Pokotiuk, 27, of Ukraine, Dayana Trigueiro, 21, of Homestead, Vladimir Popa, 28, of Moldova, Yinet Hernandez Martinez, 31, of Weston, Camilo Benavides Prieto, 30, of Colombia, Daylin Ramirez Pereira, 24, of Marathon, Igor Singereanu, 29, of Moldova, Jennifer Gutierrez, 22, of Marathon, Serghei Serdiuc, 27, of Moldova, Suset Nodarse Gonzalez, 23, of Coral Gables, Eldar Ben Atar, 28, of Israel, Kassandra Perdomo, 21, of Miami, Efrain Basaldella Landa, 24, of Venezuela, Elio Martinez Alan, 44, of Hialeah, Maria Pinto Camacho, 48, of Venezuela, Jenny Gonzalez, 24, of Miami, and Ido Sharir, 25, of Israel, have been charged by federal indictment with conspiracy to commit marriage fraud and related immigration fraud charges.
According to the indictment, between May 2011 and February 2014, organizers, Chavez and Baez, and recruiters, including Puron, arranged for United States citizens and lawful permanent residents to enter into fraudulent marriages with aliens for the purpose of evading the immigration laws of the United States. Chavez, Baez, and Puron charged the aliens a fee to arrange the fraudulent marriages, notarized the fraudulent marriage licenses, completed the necessary immigration paperwork, and prepared the co-conspirators for their interviews with United States Citizenship and Immigration Services. The United States citizen and lawful permanent resident co-conspirators also charged the aliens a fee to enter into the fraudulent marriages. Aliens Catapano, Giglio, Velandia, Pokotiuk, Popa, Prieto, Singereanu, Serdiuc, Atar, Landa, Camacho, and Sharir, all paid a fee to enter into fraudulent marriages with United States citizens Gutierrez and Jenny Gonzalez, and lawful permanent residents Vallejo, Carrasco, Perez, Vila, Trigueiro, Martinez, Pereira, Suset Gonzalez, Perdomo, and Alan. These fraudulent marriages took place in the Southern District of Florida. In addition, during the time that they were arranging the fraudulent marriages, Chavez and Baez personally attempted to fraudulently obtain naturalization.
United States Attorney Wifredo A. Ferrer stated, “Marriage and immigration fraud is a serious crime that seeks to undermine the integrity and fairness of our immigration system. Our Office will continue to work with our law enforcement partners to investigate these crimes and prosecute those individuals who seek to perpetrate fraudulent immigration schemes.”
“Today’s arrests send a clear message that we will not tolerate individuals defrauding our immigration system for their own personal or financial gain,” said Alysa D. Erichs, Special Agent in Charge of HSI Miami.” HSI will continue to work to ensure that those who attempt to defraud the government will be prosecuted.”
Mr. Ferrer commended the investigative efforts of ICE-HSI and U.S. Citizenship and Immigration Services, who provided significant and valuable support to this investigation. The case is being prosecuted by Assistant U.S. Attorney Vanessa Snyder.
An indictment is only an accusation, and the defendants are presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Resident Charged for Threatening to Destroy a Local IRS BuildingRead the Press Release
A Miami-Dade County resident was charged for threatening to destroy the Internal Revenue Service (IRS) building by fire or a bomb.
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, Melissa Chedotal, Special Agent in Charge, Treasury Inspector General for Tax Administration (TIGTA), Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and members of the South Florida Joint Terrorism Task Force (JTTF), made the announcement.
Morris R. Whitehead, 53, of Miami, was charged by complaint, with willfully making a threat through the use of a telephone concerning an attempt to be made to unlawfully damage or destroy a building by means of fire or an explosive, in violation of Title 18, United States Code, Section 844(e). The charge is punishable by a maximum sentence of ten years in prison.
According to allegations contained in the affidavit in support of a criminal complaint, Whitehead called the FBI’s Miami Field Office on April 20, 2015, and indicated that the IRS Building in Miami, Florida should be evacuated within two hours because it was going to go up in smoke. Whitehead was arrested later that same day and allegedly admitted to law enforcement officers that he had placed the threatening call.
“Threats to federal buildings are taken extremely seriously and we will continue to prosecute to the fullest extent of the law any attempts to disrupt the proper functioning of government and endanger the community,” stated United States Attorney Wifredo A. Ferrer.
Whitehead is scheduled to be arraigned on May 5, 2015.
Mr. Ferrer commends the outstanding investigative efforts of the South Florida Joint Terrorism Task Force, including the FBI, TIGTA, IRS-CI, U.S. Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Protective Services, and City of Miami Police Department. The case is being prosecuted by Assistant United States Attorney Adam Fels.
A complaint is only an accusation and a defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade County Resident Pleads Guilty in Identity Theft Fraud Scheme Involving $322,000 in Cashed Tax Refund ChecksRead the Press Release
A Miami-Dade County resident pled guilty for his participation in an identity theft fraud scheme involving $322,000 in 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 Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Eldridge Nichols, 41, of Miami, pled guilty to one count of theft of government money. As part of his plea agreement, Nichols agreed to pay restitution in the amount of approximately $322,000.
According to court documents, from February 2011 to January 2012, Nichols 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.
Nichols is scheduled to be sentenced before U.S. District Court Judge Cecilia M. Altonaga on June 29, 2015 at 9:30 a.m. At sentencing, Nichols faces a maximum of ten years in prison.
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.
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 for Identity Theft Tax Fraud Scheme Involving the Unauthorized Use of Debit CardsRead the Press Release
A Miami-Dade County man was sentenced to 24 months in prison, followed by 3 years of supervised release, and was ordered to pay $5,855 in restitution, for his participation in a stolen identity tax fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
Duniel Gongora, 28, previously pled guilty to one count of using unauthorized access devices and one count of aggravated identity theft.
According to court documents, from February 24, 2014 through March 4, 2014, Gongora knowingly used two debit cards that belonged to other people with the intent to defraud. Gongora knew that both debit cards were funded with fraudulent tax refunds. Gongora used the debit cards at various ATMs in Miami-Dade County and withdrew funds totaling over $1,000. Gongora knew that the debit card numbers belonged to real people and that the victims did not authorize him to possess their personal information or to use debit cards in their names.
Mr. Ferrer commended the investigative efforts of FBI, IRS-CI, and USSS. This case was prosecuted by Assistant U.S. Attorney Vanessa Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Resident Pleads Guilty to Using Counterfeit Money in Broward and Palm Beach CountiesRead the Press Release
A Broward County resident used counterfeit currency to unlawfully purchase items and gamble in Broward and Palm Beach Counties.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Paula A. Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, William R. Latchford, Chief of Police, Seminole Police Department, and Stephen J. Stepp, Chief, Palm Beach Gardens Police Department, made the announcement.
Bernardo Lecaros, 35, of Pompano Beach, pled guilty to possessing and passing counterfeit currency and conspiracy to possess and pass counterfeit currency.
According to court documents, Lecaros used counterfeit money to pay for items he purchased and to gamble. On December 10, 2014 and again on December 14, 2014, Lecaros unlawfully used $5,400 in counterfeit currency in order to gamble at the Seminole Classic Casino in Hollywood, Florida. During the course of the investigation, Lecaros was also found to have possessed an additional $37,800 in counterfeit currency.
On March 3, 2015, Lecaros used $300 in counterfeit currency to make additional unlawful purchases at a luxury department store located inside the Palm Beach Gardens Mall in Palm Beach Gardens, Florida. Lecaros was also found to be in possession of an additional $31,500 in counterfeit currency.
Lecaros is scheduled to be sentenced on June 29, 2015 at 9:00 a.m., by U.S. District Judge Robin Rosenberg, in West Palm Beach.
At sentencing, Lecaros faces up to twenty years in prison for each count of possessing and passing counterfeit currency, and up to five years in prison for the conspiracy to possess and pass counterfeit currency charge.
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. Attorney’s Randy Katz and Lauren Jorgensen.
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
Police Officer Pleads Guilty to Aiding and Abetting a Conspiracy to Possess with Intent to Distribute MarijuanaRead the Press Release
A police officer, formerly assigned to the Miami-Dade Police Department Narcotics Bureau, pled guilty on April 16, 2015, to aiding and abetting a conspiracy to possess with the intent to distribute marijuana.
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 Filed Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Roderick Silva, 45, of Miami, pled guilty to aiding and abetting a conspiracy with the intent to distribute marijuana.
According to court documents and statements made in court, Officer Silva aided and abetted a group of persons who were illegally growing hydroponic marijuana in numerous homes that they owned, rented, or otherwise controlled, in the south west area of Miami-Dade County. This group of persons included members of the Santiesteban family, and their friends and associates. The Santiesteban family members, and a number of their friends and associates, were convicted in 2013 for their participation in a conspiracy to possess with intent to distribute over 1000 marijuana plants. The co-conspirators were sentenced to significant prison sentences for their participation in the narcotics conspiracy.
Officer Silva aided and abetted the Santiesteban family members, and their friends and associates, in their marijuana growing activities by providing them with confidential information about when they were being investigated by MDPD narcotics detectives, and when they might have their marijuana grow houses searched and their marijuana plants seized; and by providing advice to the Santiestebans and their friends and associates about how to avoid, deflect, frustrate, and obstruct those MDPD investigations.
Silva is scheduled to be sentenced on July 21, 2015 by U.S. District judge Robert N. Scola Jr. At sentencing, Silva faces a minimum mandatory sentence of 5 years in prison up to 40 years in prison on the aiding and abetting a conspiracy charge.
Mr. Ferrer commended the investigative efforts of the FBI and MDPD. This case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Andy Camacho.
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 Pleads Guilty to Manufacturing Hash Oil in His Apartment Laboratory and to Weapons ChargesRead the Press Release
A Martin County resident pled guilty yesterday to manufacturing hash oil by using a butane hash oil laboratory in his apartment and to related weapons charges.
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, Acting Special Agent in Charge, Drug Enforcement Administration (DEA), Miami Field Division, William D. Snyder, Sherriff, Martin County Sheriff’s Office (MCSO), and David Dyess, Chief, Stuart Police Department (SPD) made the announcement.
Daniel Paul Vranich, 31, of Lake Park, FL, pled guilty before Chief U.S. Magistrate Frank J. Lynch Jr., in Fort Pierce, to charges of endangering human life while illegally manufacturing a controlled substance, punishable by up to ten years in prison; possession of a firearm in furtherance of a drug trafficking crime, punishable by a consecutive five years in prison; and possession of a firearm by a convicted felon, punishable by up to ten years in prison.
According to the stipulated factual basis in support of the guilty plea, at approximately 4:00 a.m. on December 30, 2014, 911 Emergency Services received a call, regarding an explosion originating from an apartment in Stuart, Florida. In the apartment, the Stuart Police Department, Martin County Sheriff’s Office, Martin County Fire Rescue (MCFR), Stuart Fire Rescue (SFR) and State Fire Marshal’s Office discovered a smoldering fire and a large industrial vacuum drying oven with a timing device. DEA and Hazardous Material Unit (Hazmat) determined that the chemicals, equipment and other items were consistent of a Butane Hash Oil (BHO) laboratory. A witness identified Daniel Paul Vranich and his girlfriend, as the couple who had been living in the apartment for the past year, with their twin baby girls. SPD detectives found large glass cylinders containing approximately 20 pounds of marijuana, numerous empty butane cans, air pumps/compressors, a 1.9 cubic foot vacuum oven, wax paper with approximately 48 grams of BHO, a food saver sealing machine, two digital scales, an electric grinder, a money counting machine, a vacuum chamber, and numerous containers and storage bags. SPD detectives also found a loaded Sig Sauer .45 caliber pistol and numerous personal documents belonging to Vranich.
According to the stipulated factual basis in support of guilty plea, Vranich admitted that he was committing the drug trafficking crime of manufacturing and possessing with intent to distribute the controlled substances marijuana and hashish oil, and that the possession of the aforementioned Sig Sauer pistol was in furtherance of the defendant’s drug trafficking crime. Vranich also admitted in the factual basis 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, SPD, MCSO, MCFR, SFR and State Fire Marshal’s Office. This case is being prosecuted by Assistant U.S. Attorney Carmen Lineberger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
South Florida Doctor Indicted for Medicare FraudRead the Press Release
A South Florida Doctor was charged in a seventy-six count indictment for participating in a Medicare fraud scheme, announced 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, Special Agent in Charge Shimon Richmond of the U.S. Department of Health and Human Services Office of the Inspector General’s Miami Region (HHS-OIG), Special Agent in Charge Michael D. Angelucci of the U.S. Railroad Retirement Board’s Office of Inspector General (RRB) and Special Agent in Charge John Khin of the Defense Criminal Investigative Service (DCIS).
Salomon E. Melgen, 60, of North Palm Beach, Florida, was chargedin an indictment, with 46 counts of health care fraud, 19 counts of making, presenting and filing false, fictitious and fraudulent claims and 11 counts of making false statements relating to health care.
According to the indictment, Melgen was an ophthalmologist and retina specialist licensed to practice medicine in the state of Florida, who owned and operated Vitreo-Retinal Consultants of the Palm Beaches (VRC), a medical clinic that was incorporated in 1990. VRC conducted business as “Vitreo Retinal Consultants Eye Center” and “The Melgen Retina Eye Center” and had four offices located in Palm Beach and St. Lucie Counties. Melgen’s high-volume medical practice provided services to as many as 100 patients or more in a single day. A large percentage of Melgen’s patients were Medicare beneficiaries.
The indictment alleges that from as early as 2004 and continuing through at least Dec. 31, 2013, Melgen participated in a scheme to defraud Medicare and other health care benefit programs, by submitting false claims and creating fraudulent entries on patients’ medical charts. Melgen is alleged to have falsely diagnosed patients with serious eye conditions, notably age-related macular degeneration (ARMD or AMD) and retinal disorders. Macular degeneration is a disease of the retina that is one of the leading causes of severe vision loss in persons age 65 and older. There are two forms of ARMD, “dry” and “wet.” In patients with dry macular degeneration, the cells of the central area of the retina (the macula) break down, causing distorted and blurred vision. In wet macular degeneration, abnormal blood vessels leak blood and fluid into the macula, causing scarring and rapid loss of vision. Without treatment, wet ARMD can lead to permanent vision loss. Based upon the false diagnoses, the defendant would allegedly perform and bill for medically unreasonable and unnecessary tests and procedures, which included unnecessary laser surgeries and eye injections.
The defendant is also alleged to have made exorbitant and improper profits from the purchase and administration of the drug Lucentis, which is used for the treatment of wet macular degeneration. The defendant would purchase the drug from the manufacturer, Genentech, arrange to have the “single-use” vials split into multiple doses and administered to multiple patients, and then separately bill Medicare and other health care providers at the reimbursement rate for each full dosage.
The defendant is also alleged to have caused patient files to contain false information, including the false diagnoses as well as fictitious drawings and diagrams that misrepresented the condition of the patients’ eyes. The indictment also alleges that the defendant prepared false and fictitious reports regarding his abnormal billing practices, in response to audit inquiries from Medicare.
Additionally, the defendant allegedly submitted claims for incomplete and non-performed diagnostic tests, such as angiographic studies on blind eyes and prosthetic eyes.
The indictment further charges that, between January 2008 and December 2013, the defendant billed the Medicare program more than $190 million, for which he, through VRC, was reimbursed and paid more than $105 million. A substantial portion of these reimbursement payments were allegedly obtained through fraudulent billing.
“Medicare was created to ensure adequate protection for the senior citizens against the cost of health care and to ensure that they are provided with quality medical services,” said U.S. Attorney Ferrer. “Medical professionals who violate their oath by failing to attend to the health of their patients and who submit falsified billing statements for their own personal gain, jeopardize the viability of government benefit programs. Our office will continue to work with all involved agencies to protect our senior citizens, prosecute those individuals who perpetuate the fraudulent schemes and help preserve precious Medicare dollars for the intended beneficiaries – the poor, sick and elderly.”
“People who defraud Medicare indirectly increase the cost of health care for everyone,” said Special Agent in Charge Piro. “The FBI and our law enforcement partners are committed to rooting out this kind of fraud and reclaiming money that was dishonestly obtained.”
“Patients fearing blindness sought treatment from Dr. Melgen’s office,” said Special Agent in Charge Richmond. “Instead, they allegedly received medically unreasonable and unnecessary tests and procedures for which they and taxpayers paid millions of dollars. My office will continue to work with our law enforcement partners to ensure the integrity of the Medicare program.”
“The Office of Inspector General for U.S. Railroad Retirement Board will continue to work with our law enforcement partners to investigate and prosecute any individual that defrauds the Medicare system,” said Special Agent in Charge Angelucci.
"Today's indictment is part of an ongoing effort by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of federal health care programs and the quality of care our military service members receive,” said Special Agent in Charge Khin. “DCIS will tirelessly pursue allegations of health care fraud that put the Warfighter at risk and burden the Defense Health Agency with unnecessary costs."
Melgen is scheduled to be arraigned on the indictment on April 15, 2015, in West Palm Beach, Florida, before U.S. Magistrate Judge James M. Hopkins of the Southern District of Florida.
U.S. Attorney Ferrer commended the investigative efforts of the FBI, HHS-OIG, RRB and DCIS. This case is being prosecuted by Assistant U.S. Attorneys Roger H. Stefin, Carolyn Bell and Alexandra Chase of the Southern District of Florida.
An indictment is only an accusation and the 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 U.S. District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Palm Beach County Sheriff's Deputy Indicted for Using Excessive Force and Filing False ReportRead the Press Release
A federal grand jury in West Palm Beach, Florida, returned a two-count indictment charging Palm Beach County Sheriff’s Deputy William D. Wheeler, 46, with unlawfully assaulting a man at the Palm Beach County Detention Center on Oct. 9, 2013, and filing a false report on the incident, announced U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division and Special Agent in Charge George L. Piro of the FBI.
According to the allegations contained in court documents, on or about Oct. 9, 2013, Wheeler was employed as a Palm Beach County Sheriff’s Office Deputy and was assigned to the Corrections Division (PBSO) West Detention Center located in Belle Glade, Florida. As part of his duties, the complaint alleges that Wheeler escorted an inmate, J.S., to the medical area of the facility where he was seated in a chair with his hands restrained behind his back with handcuffs. The complaint alleges that J.S. did not comply with the treating nurse’s attempt to review his medical bracelet. The complaint further alleges that as the defendant lifted the inmate’s arm to read the medical bracelet, the inmate pulled his arm away. The complaint alleges that Wheeler then placed his hands around the inmate’s neck, struck the inmate’s head against the wall and pulled the inmate to the floor. The complaint further alleges that the defendant then struck the inmate in the face with his knee. The inmate sustained facial injuries as a result of the incident, which was allegedly captured on a video recording.
According to the complaint, the defendant prepared an incident report regarding the use of force. The complaint further alleges that the defendant was later questioned regarding the incident and claimed to have been physically assaulted by the inmate. The complaint alleges that the defendant’s version of the events is not corroborated by the video footage.
United States Attorney Wifredo A. Ferrer stated, “Law enforcement officers and public servants are not above the law, but are held to the highest standard. They must protect the civil rights of the individuals they are sworn to protect and monitor. Those individuals who violate our civil liberties and falsify documents to conceal their criminal conduct will be held accountable within the justice system.”
Wheeler is scheduled to be arraigned before U.S. Magistrate Judge James D. Hopkins on April 15, 2015.
If convicted, Wheeler faces a maximum punishment of 30 years in prison.
The Department of Justice commends the investigative efforts of the West Palm Beach Resident Agency of the FBI, Ric Bradshaw of the Palm Beach County Sheriff’s Office and State Attorney Dave Aronberg of the Palm Beach County State Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Susan Rhee Osborne of the Southern District of Florida and Trial Attorney D.W. Tunnage of the Justice Department’s Civil Rights Division.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Attachment:
Wheeler, William D. Indictment (PDF)Miami Office Manager Convicted for Her Participation in Medicare Fraud SchemeRead the Press Release
A former office manager of a Miami based physical and occupational therapy clinic was convicted, following a four day trial, for her participation in a scheme that involved the fraudulent submission of more than $3.3 million dollars in false billing to Medicare.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Shimon Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), made the announcement.
Defendant Rossana Caneiro, 41, of Miami Lakes, was convicted of conspiracy to commit health care fraud and six substantive counts of health care fraud.
Evidence presented at trial showed that Caneiro had managed and operated Flagler Rehabilitation Center, Inc., a Miami based physical and occupational therapy clinic, for five years. The defendant was responsible for patient appointments, Medicare billing, the scheduling of therapy sessions, and was the point of contact for co-conspirator therapists who worked at the facility. Caneiro facilitated the fraudulent conduct at Flagler Rehabilitation Center, Inc. by directing the co-conspirator therapists to write fraudulent evaluations and other falsified documents for patients that were not actually treated at the clinic. The falsified physical and occupational therapy evaluations were prepared in an effort to conceal the Medicare fraud.
The defendant faces a maximum possible sentence of ten years in prison for each count of conviction.
Mr. Ferrer commended the investigative efforts of HHS-OIG. The case was prosecuted by Assistant U.S. Attorneys James V. Hayes and Amanda Perwin of the U.S. Attorney’s Office for the Southern District of Florida, in coordination with the Fraud Section of the Justice Department’s Criminal Division and the Medicare Strike Force.
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 College Student Sentenced to 51 Months in Prison for Stolen Identity Tax Refund Fraud Scheme Involving Student Financial Services AccountsRead the Press Release
A Miami Dade College student was sentenced to 51 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution in the amount of $29,289, for his participation in a stolen identity tax refund fraud scheme involving student financial services accounts.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, 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.
Smith Jean, 23, previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money.
According to court documents, from October 15, 2012 to September 23, 2013, Jean participated in a tax fraud scheme with co-defendant Beatrice Simeon, 22, and other co-conspirators. During the course of the scheme, the co-conspirators received fraudulently obtained U.S. Department of Treasury tax refunds into their personal Higher One, Inc. (HOI) accounts. HOI provided financial services to colleges and universities throughout the United States, including Miami Dade College in the Southern District of Florida.
Jean opened his HOI account when he enrolled as a student at Miami Dade College. Jean and his co-conspirators set up their HOI accounts to allow for the receipt of the fraudulently obtained federal income tax refunds. After the stolen tax refunds were deposited into Jean’s HOI account, the defendant withdrew the fraudulently obtained monies for his own personal benefit. Jean recruited co-defendant Simeon to participate in the tax fraud scheme by offering her a financial incentive, in exchange for the deposit of stolen tax refunds into Simeon’s HOI account. Simeon agreed to participate in the tax fraud scheme and provided Jean with her HOI account number.
Jean and other unknown co-conspirators submitted thirty-eight (38) false and fraudulent tax returns, claiming $263,415 in tax refunds to be deposited into Simeon’s HOI account. Jean and the co-conspirators also submitted twenty-four (24) false and fraudulent tax returns, claiming $81,076 in tax refunds to be deposited into Jean’s HOI account.
Co-defendant Simeon previously pled guilty to one count of conspiracy to commit an offense against the United States and one count of theft of government property or money. Simeon was sentenced to five years of probation by U.S. District Judge Ursula Ungaro.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case is being prosecuted by Assistant U.S. Attorney Gera R. Peoples.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Palm Beach County Residents Convicted in Connection with Identity Theft Tax Refund Fraud SchemeRead the Press Release
The leader and another member of a massive identity theft tax refund fraud scheme have been convicted of conspiracy, wire fraud, and aggravated identity theft charges following a ten day trial.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Ric Bradshaw, Sheriff, Palm Beach County Sherriff’s Office, and Amos Rojas, Jr., United States Marshals, United States Marshals Service Regional Fugitive Task Force, made the announcement.
Defendant Lukner Blanc, 31, of Royal Palm Beach, and Benoit Placide, a/k/a “Snow,” a/k/a “Mario,” 26, of West Palm Beach, were convicted of conspiracy to receive, conceal or retain monies stolen from the United States, wire fraud, and aggravated identity theft. Blanc was also convicted of receiving, concealing and retaining monies stolen from the United States. The defendants were remanded into custody, following their conviction.
At trial, the government presented evidence that the federal investigation began with the arrest of Blanc, on October 29, 2012, for an unrelated state crime. Agents recovered four bank debit cards out of Blanc’s pants pocket, all in the names of other persons. While incarcerated in the state case, Blanc made recorded calls from the Palm Beach County Jail. Based on information obtained during the course of the monitored and recorded jail calls, law enforcement officials obtained a state search warrant for the residence of co-conspirator Jean Juste, a/k/a “Junior,” a/k/a “Shorty,” 24, of West Palm Beach. Inside Juste’s residence, agents discovered items used to facilitate identity theft crimes, including computers, more than sixty-nine Western Union debit cards, lists of employers, and the names, Social Security numbers, and dates of birth of various individuals. During the course of the investigation, law enforcement learned that Blanc and Juste were associates in the identity theft fraud scheme, alongside co-conspirator Placide.
During the course of the identity theft fraud scheme investigation federal agents obtained additional warrants to search the computers recovered from Juste’s residence. Forensic examinations of the computers revealed that more than 1,000 fraudulent federal personal income tax returns had been filed using the operating system. The returns were submitted over the internet to the Internal Revenue Service (“IRS”) using TaxHawk.com and TurboTax. The actual taxpayers had filed or authorized the filing of the fraudulent income tax returns. Co-conspirators of the fraud scheme opened bank accounts in Florida, in order receive the fraudulently obtained federal income tax refunds.
The co-conspirators attempted to obtain more than $1,200,000 in unauthorized income tax refunds. The co-conspirators received more than $700,000 in fraudulent tax refund payments, which were sent to bank accounts and pre-paid debit cards they controlled. After the fraudulent refunds were sent by wire transfer to the bank accounts and debit cards, the defendants and their co-conspirators withdrew the funds at automatic teller machines (ATMs) and point of sale electronic terminals at various retail establishments.
Co-conspirator Jean Juste previously pled guilty to conspiracy, theft of government funds, wire fraud, and aggravated identity theft. On February 17, 2015, Juste was sentenced to 84 months in prison, followed by three years of supervised release, and was ordered to pay restitution of $668,947 for his participation in the conspiracy.
Co-Conspirator Marie Claude, 25, of Lantana, previously pled guilty for her participation in the conspiracy.
Co-conspirator Marie Demesyeux, 29, of Lake Worth, previously pled guilty to one count of perjury for making a false statement while testifying under oath before a Federal Grand Jury.
Claude and Demesyeux are scheduled to be sentenced on April 16, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Shelda Phadael, 28, of Lake Worth, previously pled guilty to conspiracy and theft of government funds. Phadel is scheduled to be sentenced on May 27, 2015 before United States District Judge T.K. Hurley.
Co-conspirator Frank Fleuzinord, 29, of Cape Coral, is a fugitive.
Defendants Claude and Demesyeux face maximum possible sentences of five years in prison. Phadel faces a maximum possible sentence of fifteen years in prison for the theft of government funds conviction and twenty years in prison for the conspiracy conviction. Blanc and Placide face a maximum possible sentence of twenty years in prison for the conspiracy-related convictions, followed by a mandatory minimum term of two years in prison for the aggravated identity theft conviction.
Mr. Ferrer commended the investigative efforts of IRS-CI, the United States Marshals Service Regional Fugitive Task Force, and the Palm Beach County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Broward Tax Preparers Sentenced for Preparing False Tax ReturnsRead the Press Release
Three Broward Residents were sentenced today for preparing false tax returns for their clients. Steven Tidas, of Tamarac, was sentenced to 30 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $85,459. Sylvanie Junior Pierre, of Lauderdale Lakes, was sentenced to 18 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $28,119. Stenor Prosper, of Parkland, was sentenced to 6 months in prison, followed by 6 months home confinement and three years of supervised release, and ordered to pay restitution in the amount of $30,463.
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.
Tidas, Pierre and Propser previously pled guilty to one count of conspiracy.
According to court documents, the defendants served as officers of Value Tax Services, Inc. and Value Financial Group, Inc., both of Sunrise. The defendants prepared tax returns for individuals that falsely claimed tax credits for being first time home buyers, when the defendants knew that in truth and in fact, the taxpayers had not purchased a home and did not qualify for the tax credit. The defendants also prepared tax returns for individuals that falsely claimed they had received household help income or inflated household help income and had falsely inflated other income or deductions, in order to increase the amount of the taxpayers’ refunds.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
First Jamaican Man Extradited to the United States in Connection with International Lottery Scheme Pleads GuiltyRead the Press Release
A Jamaican man pleaded guilty today in the U.S. District Court in the Southern District of Florida in Fort Lauderdale to one count of conspiracy to commit wire fraud, the Justice Department announced today.
Damion Bryan Barrett, 28, was extradited from Jamaica in February based on charges that he committed fraud as part of an international lottery scheme against elderly victims in the United States. The prosecution is part of the United States’ ongoing crackdown on fraudulent international lottery schemes.
“The protection of the most vulnerable members of our society, including the elderly, is one of the top priorities of the Department of Justice and of our Office, and this case again shows that an international border is no defense for those who defraud our senior citizens,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Regardless of where the criminals may be located, we will work together with our domestic and international law enforcement partners to bring them to the United States to hold them accountable for their crimes. In particular, we thank the Jamaican authorities for their cooperation and assistance in our continuing efforts to stamp out these long-running lottery schemes that target older Americans.”
“Scammers in foreign countries preying on elderly victims in the United States are not immune from prosecution in the United States,” said Acting Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division. “This case demonstrates that we will bring those responsible to justice, wherever they may seek to hide.”
Barrett was indicted by a federal grand jury in Fort Lauderdale on Aug. 9, 2012, and was arrested in Jamaica in January based on the United States’ request that he be extradited. On Feb. 12, Barrett was the first Jamaican to be extradited to the United States based on charges that he committed fraud as part of an international lottery scheme.
As part of his guilty plea, Barrett acknowledged that had the case gone to trial, the United States would have proved beyond a reasonable doubt that from 2008 through 2012, Barrett was a member of a conspiracy in which elderly victims were informed that they had won a large amount of money in a lottery and were induced to pay bogus fees in advance of receiving their purported lottery winnings. Barrett also admitted that the United States would have proved that he knew the claims of lottery winnings were completely fabricated and that he and his co-conspirators kept the victims’ money for their own benefit without paying any lottery winnings. Barrett also admitted that the United States would have proved that in an effort to convince the victims that the lottery winnings were real, the conspirators sent the victims communications discussing their purported lottery winnings, which falsely claimed to be from a genuine sweepstakes company and from federal agencies including the Internal Revenue Service and the Federal Reserve. In fact, these communications were not from a genuine sweepstakes company or from agencies of the United States.
At his June 19 sentencing, Barrett faces a statutory maximum sentence of 30 years in prison and mandatory restitution. Barrett’s co-defendant, Oneike Barnett, 29, pleaded guilty on Feb. 28, 2014, to conspiracy to commit wire fraud. On April 29, 2014, U.S. District Court Judge William J. Zloch sentenced Barnett to serve 60 months in prison and five years of supervised release, and to pay $94,456 in restitution for his role in this case.
U.S. Attorney Ferrer and Acting Assistant Attorney General Mizer commended the investigative efforts of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Postal Inspection Service and the U.S. Marshals Service. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani of the Southern District of Florida and Trial Attorney Kathryn Drenning of the Civil Division’s Consumer Protection Branch.
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.
Okeechobee Man Sentenced for Preparing False Tax ReturnsRead the Press Release
An Okeechobee man was sentenced to 24 months in prison, followed by one year of supervised release, and was ordered to pay $238,734.00 in restitution, by United States District Judge Robin L. Rosenberg, for his participation in a tax fraud scheme.
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.
Wyman Pittman, 47, of Okeechobee, previously pled guilty to aiding in the preparation and presentation of false tax returns.
According to court documents, Pittman was a paid tax preparer who, together with his former partner Ventrell Bouie, of Fort Pierce, Florida, operated a tax preparation service business, First Premium Financial Services (FPFS), in Okeechobee, Florida. From 2008 through 2012, Pittman prepared individual income tax returns. Pittman assisted in the preparation of multiple, fraudulent tax returns by supplying false income and deduction figures, failing to review them in detail with the taxpayers, and then electronically filing them for the taxpayers.
Specifically, Pittman filed a Form 1040 income tax return for the 2008 tax filing year that falsely itemized a taxpayers’ deductions for, among other things, medical and work expenses. As a result, the taxpayer received an inflated and unmerited tax refund payment. Pittman knew that the taxpayer had not claimed, or provided to Pittman, the information regarding those deductions for inclusion in the tax return.
Maria Garcia began working in 2008 for FPFS and was trained and supervised by Pittman and Bouie. Garcia, as a paid tax preparer, prepared false returns for customers based on false Schedules A and C, false education credits, and false child and dependent care credits. Additionally, Garcia filed three false returns for herself for tax years 2008, 2009, and 2010.
Garcia learned the tax preparation business, while working under Bouie and Pittman. Pittman taught Garcia how to fraudulently inflate deductions and refunds on client taxpayer returns. Using that knowledge, Garcia started her own tax preparation business where she too prepared false returns.
Bouie was charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14025-CR-Martinez. Bouie was sentenced to 24 months in prison.
Garcia was also charged separately and pled guilty to aiding in the preparation and presentation of false tax returns, in Case No. 13- 14026-CR-Graham. Garcia was sentenced to 18 months in prison.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case was prosecuted by Assistant U.S. Attorney Theodore M. Cooperstein.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Defendants Charged in Separate Fraud Schemes that Resulted in Thousands of Identities Stolen and Used to Commit Fraud SchemesRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Paula Reid, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Rafiq Ahmad, Special Agent in Charge, United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Jesse Panuccio, Executive Director, State of Florida’s Department of Economic Opportunity (DEO), Thomas Caul, Special Agent in Charge, Social Security Administration, Office of Inspector General (SSA-OIG), Steve Steinberg, Chief, Aventura Police Department, J.D. Patterson Jr., Director, Miami Dade Police Department (MDPD), and J. Scott Dennis, Chief, North Miami Beach Police Department (NMBPD), announce the filing of federal charges against 42 defendants in 25 separate cases, dealing with tens of thousands of stolen identities and millions of dollars stolen from victims and government agencies through fraudulent schemes. Today’s cases reaffirm the joint federal, state and local commitment to the prosecution of perpetrators who steal, sell and use personal identification information to commit identity theft fraud schemes.
According to the Federal Trade Commission, Florida had the highest rate of identity theft in the United States in both 2013 and 2014. While identity theft in Florida ranks highest in the United States, the identity theft rate in Miami has reached near epidemic proportions. Florida’s rate of 186.3 identity theft complaints per 100,000 residents – the highest in the United States – is dwarfed by the Miami rate of 316.2 complaints per 100,000 residents.
In an attempt to combat the rising wave of stolen identity tax refund scams, and armed with recent directives from the Department of Justice’s Tax Division, making prosecutions faster and easier, the U.S. Attorney’s Office for the Southern District of Florida established the South Florida Identity Theft Tax Fraud Strike Force (Strike Force) in August 2012. With the escalating spread of fraud offenses, the Strike Force has broadened the scope of its focus and is now identified as the Identity Theft Strike Force.
The members of the Strike Force, and participating agencies, include the United States Attorney’s Office, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, Federal Bureau of Investigation (FBI), Miami Field Office, U.S. Secret Service, U.S. Postal Inspection Service (USPIS), Miami Division, Social Security Administration, Office of Inspector General (SSA-OIG), United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations Miami Office (DOL-OIG), Aventura Police Department, North Miami Beach Police Department, Miami-Dade Police Department, Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), Miami Field Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Miami Field Division, Broward Sheriff’s Office (BSO), Sunrise Police Department, Coral Springs Police Department, Miramar Police Department, North Miami Police Department, City of Miami Police Department, Ohio Department of Taxation, Michigan Unemployment Insurance Agency, and Texas Workforce Commission.
Since the inception of the Strike Force, we have charged 359 defendants, who were responsible for approximately $314 million in intended losses and in excess of $125 million in actual SIRF fraud loss.
The U.S. Attorney’s Office and the IRS have also attacked this problem at its root by revoking so called “electronic filing identification numbers” or EFIN numbers, which allow individuals to file tax returns on behalf of others.
United States Attorney Wifredo A. Ferrer stated, “Identity theft is a virus that has engulfed our community. Evolving fraud schemes are sweeping the state, utilizing the stolen personal identification information of our residents and individuals throughout the country. Theft of personal information is no less egregious when it is perpetrated by offenders who operate fraud schemes from their own homes and places of business. We are committed to stopping the fraud and encourage institutions to establish protective measure that will ensure personal information is not jeopardized. Our Office thanks the countless members of federal, state and local law enforcement agencies and other governmental entities who work together to fight these pervasive crimes and hold the offenders accountable.”
Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, stated, “Stolen Identity Refund Fraud is an ongoing battle that requires constant, joint and aggressive law enforcement actions to continue protecting the citizens of Florida. Today’s announcement should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about investigating identity theft crimes, and IRS Criminal Investigation is committed to working with the U.S. Attorney’s Office and our partners on the Identity Theft Strike Force to combat the fraud.”
DEO Executive Director Jesse Panuccio said, “Identity theft and public-benefits fraud have reached crisis levels. This fraud harms those whose identities are stolen, robs the social safety net of resources meant for hardworking Floridians, imposes significant costs on taxpayers, and undermines public trust. Our goal at DEO is to set a national standard in preventing, detecting, and helping to prosecute this fraud. We are making great strides within the Reemployment Assistance program, and in the last year our new fraud detection measures uncovered and halted 97,000 fraudulent claims, worth more than $400 million.”
“The epidemic of identity theft and tax fraud has hit South Florida hard in the past few years. The creation of the South Florida Identity Theft Strike Force has allowed the law enforcement members involved in the task force to work together, on many different levels, to combat this epidemic” said Ronald J. Verrochio, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “These arrests should send a message to criminals that we will bring them to justice.”
“HSI will not tolerate criminals taking advantage of our citizens through identity theft schemes and we will continue to work hand-in-hand with our law enforcement partners to bring them to justice,” said Alysa D. Erichs, Special Agent in Charge of Homeland Security Investigations Miami. “Identity theft causes distressing hardships for many citizens and has a devastating impact on the entire community.”
J.D. Patterson, Director of Miami Dade Police Department stated, “It is extremely important for law enforcement agencies to work in collaboration with each other and our communities to address crimes that span the jurisdictional boundaries of one agency and impact thousands of our citizens. The Miami-Dade Police Department remains committed to working together with fellow law enforcement agencies in the fight against fraud.”
Today, U.S. Attorney Ferrer, joined by members of the Identity Theft Strike Force, announce the most recent results of their investigative efforts. The cases announced today include:
1. United States v. Densom Beaucejour and Winzord Beaucejour, Case No. 15-20190-CR-Ungaro
On March 24, 2015, Densom Beaucejour, 22, and Winzord Beaucejour, 21, both of Miami Gardens, were charged in a six-count indictment for their participation in a conspiracy to use stolen identities to commit unemployment insurance fraud, state income tax fraud, and federal income tax fraud.
According to public documents, the investigation in this case began in January 2015, when a local police officer reported that he/she was the victim of identity theft and that a fraudulent unemployment insurance claim had been filed in his/her name. Subsequent investigation by federal law enforcement revealed numerous instances of suspected unemployment insurance fraud connected to the defendants’ residence.
On March 11, 2015, law enforcement agents executed a federal search warrant at the defendants’ residence. Inside several bedrooms in the defendants’ home, law enforcement found numerous sheets of paper, ledgers, and other documents with personal identifying information (“PII”) – including names, dates of birth, and Social Security numbers – of more than 1,000 individuals. Agents also discovered three handguns (one of which had been reported stolen), $8,600 in cash, and several credit cards embossed with names of individuals that did not appear to live at the defendants’ residence. Densom Beaucejour admitted to law enforcement that he possessed the PII found in his bedroom and had used some of it to commit fraud.
The indictment charges the defendants with engaging in a conspiracy between February 2, 2014, and March 11, 2015, to use stolen PII to file fraudulent Florida unemployment insurance claims, fraudulent federal income tax returns, and fraudulent State of Ohio income tax returns. The fraudulent claims and refund amounts -- ranging between $275 and $7,581 -- are alleged to have been filed from the defendants’ home in Miami Gardens.
The defendants were charged with conspiracy to use unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
2. United States v. Cora Eutsay, Case No. 15-2250-MJ-Turnoff
Cora Eutsay, 50, of Miami, was charged by criminal complaint with trafficking in and using unauthorized access devices to obtain anything of value, aggregating $1,000 or more in a one year period.
As alleged in the complaint, Eutsay worked for CareerSource South Florida in the Opa Locka office. During her employment, Eutsay sought and inappropriately obtained access to the Department of Children and Families’ ACCESS Florida System, a State database containing the personally identifying information, including names, dates of birth, and social security numbers (“PII”) of individuals who applied for public benefits in Florida. Eutsay’s employment credentials were used on several occasions to run queries in the ACCESS Florida database for the PII of persons who had previously applied for public benefits. Eutsay then sold the PII of more than 200 individuals.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, USSS, BSO, and DEO. The case is being prosecuted by Assistant U.S. Attorney Jaime Galvin.
3. United States v. Kyron Jonathon Nedd, Case No. 15-2426-MJ-Goodman
On April 1, 2015, Kyron Jonathan Nedd, 22, of Miami Gardens, was charged by criminal complaint for his participation in a stolen identity tax fraud scheme.
According to the criminal complaint, between February 1, 2014 and July 18, 2014, a total of 379 fraudulent federal income tax returns, for tax year 2013, were filed with the Internal Revenue Service (“IRS”) from Nedd’s residence in Miami Gardens. The returns claimed $843,295 in tax refunds. The IRS refunded approximately $64,557 for those fraudulently filed tax returns.
On February 12, 2015, a federal search warrant was executed at Nedd’s residence, where agents discovered items containing personal identification information (“PII”) - names, dates of birth and social security numbers - of hundreds of individuals. Inside Nedd’s bedroom, law enforcement found a safe with numerous debit cards and computer-generated printouts from the State of Florida Department of Children and Families (“DCF”) database. The printouts contained the name they contained the name “C.Eutsay” at the top of the documents as well as her ID number and system identification number for “Cora Eutsay,” who, as noted above, was charged in a separate criminal complaint in Case No. 15-2250-MJ-Turnoff, with selling PII that she had unlawfully obtained from the DCF database. IRS-CI agents have since determined that there were numerous instances in which the PII contained on the DCF printouts matched up with fraudulent returns filed from Nedd’s residence.
According to the complaint, federal law enforcement agents interviewed Nedd after serving the federal search warrant. Nedd admitted to law enforcement that he electronically filed the income tax returns from his house and that the returns were false and done without the taxpayers’ permission.
The criminal complaint charges the defendant with use of one more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI, USPS-OIG, DOL-OIG, and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
4. United States v. Earnest Thad Etienne and Wilbert Champagne, Case No. 15-20054-CR-Ungaro
On January 30, 2015, Earnest Thad Etienne, 29, and Wilbert Champagne, 20, both of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit state income tax fraud using stolen identities.
According to the indictment and other court records, on September 26, 2014, law enforcement executed a state search warrant at Etienne’s residence pursuant to an investigation of a homicide that took place in front of Etienne’s home. During the search, law enforcement officers discovered fifteen prepaid debit cards embossed with various individuals’ names, a thumb drive, ammunition, and $7,750 in cash in Etienne’s bedroom. In another room in the residence, law enforcement discovered additional electronic devices and a bank debit card embossed with the name of an individual who did not appear to live in the residence. Several firearms and additional ammunition were found in the back yard of the home.
Subsequent investigation by federal law enforcement revealed that the thumb drive discovered in Etienne’s room contained the personal identifying information (“PII”) – including names, dates of birth, and social security numbers – of more than 650 individuals with addresses in Ohio. In addition, Etienne used at least one of the debit cards found in his residence to withdraw money associated with fraudulent state of Ohio income tax refunds.
The indictment alleges that between January 14, 2014, and September 26, 2014, Etienne and his co-conspirators caused fraudulent income tax returns to be filed in the State of Ohio seeking tax refunds in amounts ranging between $7,543 and $11,515. The conspirators caused the State of Ohio to pay the fraudulent tax refunds to pre-paid debit cards in other individuals’ names or to a bank account in one of the co-conspirator’s names. The indictment alleges that on several occasions, Etienne withdrew money from the bank account in his co-conspirator’s name that contained fraudulent income tax refunds from the State of Ohio.
Etienne and Champagne were charged with conspiracy to use unauthorized access devices and aggravated identity theft. Etienne was also charged with possession of fifteen or more unauthorized access devices. Champagne was also charged with use of unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, IRS-CI, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
5. United States v. Leonce V. Jeudy, Case No. 15-60037-CR-Bloom
On March 3, 2015, Leonce V. Jeudy, 24, of Plantation, was charged in a six count indictment for his participation in a scheme utilizing stolen identities to commit income tax, unemployment, and credit card fraud.
According to court documents, on January 7, 2015, a detective with the Sunrise Police Department initiated a traffic stop of a vehicle being driven by Jeudy. After smelling the odor of marijuana emanating from inside the vehicle, the detective conducted a search of the car and found a loaded handgun, ammunition, approximately twenty credit cards in various names, new iPhones and iPads, bank records of an unrelated individual, and four receipts for Visa debit cards purchased earlier that day for $2,000. Jeaudy admitted that he had purchased the debit cards and electronic devices with the credit cards that he had obtained fraudulently.
Police officers obtained a state search warrant for Jeudy’s residence. During the execution of the warrant, inside Jeudy’s bedroom officers found more than 100 credit and debit cards in the names of various individuals including Jeudy, numerous documents with the names, dates of birth, and social security numbers (“PII”) of different individuals, and various electronic devices including five computers, three thumb drives, and seven cellular telephones. The officers also recovered from Jeudy’s residence an AK-47 rifle, hundreds of rounds of different caliber ammunition, MDMA and Methamphetamine, several smaller packages of powder and crack cocaine, and other drug paraphernalia.
Subsequent forensic analysis by federal law enforcement revealed more than 8,000 sets of PII were found on the recovered thumb drives. In addition, an analysis revealed that eighteen of the recovered debit cards had received approximately $30,000 in fraudulent income tax refunds and two of the debit cards were associated with fraudulent unemployment insurance claims.
The indictment charges the defendant with six counts of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, trafficking and using unauthorized access devices, possession of unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Sunrise Police Department, IRS-CI, the DOL-OIG, and USSS. The case is being prosecuted by Assistant U.S. Attorney Jonathan Kobrinski.
6. United States v. Jesney Eliassaint, Case No.15-2378-MJ-Simonton
On March 23, 2015, Jesney Eliassaint, 33, of Miami, was charged by criminal complaint for his involvement in an identity theft scheme.
According to the criminal complaint, in February 2014, officers with the Miami Gardens Police Department performed a traffic stop of a car for having an expired vehicle registration. Inside the car were several iPads and sheets of paper containing (“PII”) – including names, dates of birth, and Social Security numbers - of various individuals. A subsequent investigation by the USSS revealed that there were approximately 137 different names, with corresponding PII, printed on the sheets, some of which had the word “Patient” written across the top. The USSS determined that the PII found in the vehicle originated from a data breach at Aventura Hospital. The breach had been executed from Eliassaint’s computer in the hospital’s medical billing department. According to Aventura Hospital, computer records revealed that Eliassaint had conducted approximately 4,000 inquiries for patients by their date of birth.
During the investigation, USSS agents interviewed Eliassaint, who admitted to conducting the searches and printing out patient records containing the PII while he was working as a contract employee for an outside company. Eliassaint also told USSS agents that he would take screen shots of the patient records and then print them out to avoid detection. Eliassaint stated that he sold the sheets of paper, containing PII, for approximately $100 per sheet, to several individuals. Eliassaint estimated that he made a total of $2,000 for selling the patients’ information.
The defendant is charged with access device fraud and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the USSS. The case is being prosecuted by Assistant U.S. Attorney Robert J. Emery.
7. United States v. Bradley Lee Ritter, Case No. 15-20215-CR-Gayles
On Tuesday, March 31, 2015, Bradley Lee Ritter, 23, of North Miami, was charged in a five-count indictment in a scheme to steal unemployment insurance payments by filing fraudulent claims using stolen personally identifying information of numerous Florida residents.
According to court documents, numerous unemployment insurance claims filed in both the State of Florida and the State of Texas were connected to Ritter’s residence. On March 18, 2015, a federal search warrant was executed at the defendant’s home. In one bedroom, along with Ritter’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - names, dates of birth, and Social Security numbers - of approximately 1,000 individuals. Law enforcement contacted three individuals whose PII was found in Ritter’s home and had unemployment claims submitted in their names. All three individuals revealed that they did not file the claim or authorize anyone to use their identity.
The indictment charges the defendant with use of unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, DEO, the USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
8. United States v. Renet Blanc, Case No. 15-2357-MJ-O’Sullivan
On Thursday, March 19, Renet Blanc, 21, of North Miami, was charged by criminal complaint for his participation in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Renet Blanc was involved in a scheme that utilized the stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency then sent unemployment payments, by direct deposit, to Blanc’s bank account in Florida. Blanc was identified on bank surveillance photos withdrawing some of the unauthorized funds.
On Wednesday, March 18, 2015, a federal search warrant was executed at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered numerous sheets of paper, ledgers, and other documents containing the personally identifying information (“PII”) - including names, dates of birth, and Social Security numbers - of various individuals who did not appear to live at Blanc’s residence. In particular, law enforcement discovered in excess of 50 unique sets of PII on notebook paper, W-2 employment forms, and patient records. Law enforcement also discovered the debit card Blanc was captured using at the bank to withdraw fraudulent unemployment insurance funds.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
9. United States v. Ronet Blanc, Case No. 14-2458-MJ-McAliley
On Tuesday, April 7, 2015, Ronet Blanc, 24, of North Miami, was charged by criminal complaint with participating in an unemployment insurance fraud scheme.
According to the complaint and other public documents, Ronet Blanc was involved in a scheme that utilized stolen identities of Michigan and Florida residents to file fraudulent unemployment insurance claims in both those states. The State of Michigan Unemployment Insurance Agency (“UIA”) sent the unemployment insurance payments by direct deposit to Blanc’s bank account in Florida. The complaint alleges that Blanc was identified withdrawing some of the unauthorized funds, in bank surveillance photographs.
On Wednesday, March 18, 2015, officers executed a federal search warrant at Blanc’s residence. In one bedroom, along with Blanc’s personal items, law enforcement discovered a laptop computer. A subsequent forensic search of the computer revealed Blanc’s resume and a spreadsheet containing the personal identification information (“PII”) – including names, dates of birth, and social security numbers - of at least 3,000 individuals.
The complaint charges the defendant with possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, SSA-OIG, DEO, USPIS, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Ben Widlanski.
10. United States v. Luis Daniel Lopez Morales and Rigo Octavio Lopez, Case No. 15-2428-MJ-Goodman
On April 1, 2015, Luis Daniel Lopez Morales, 19, and Rigo Octavio Lopez, 25, both of North Miami, were charged by criminal complaint for their participation in a fraudulent tax refund scheme.
The complaint alleges that between January 31, 2014, and July 8, 2014, a total of 494 fraudulent income tax returns for tax year 2013 were filed with the Internal Revenue Service (“IRS”) from the defendants’ home in North Miami. The fraudulent returns claimed approximately $237,092 in tax refunds. The IRS paid out approximately $49,902 for the fraudulent returns.
On February 11, 2015, a federal search warrant was executed at the home of Lopez and Lopez Morales. Federal Agents recovered dozens of items containing personal identifying information (“PII”), including handwritten ledgers with account and PIN numbers, handwritten documents with names and dollar amounts, numerous pre-paid debit cards, lists from the Florida Department of Motor Vehicles (“FLDMV”) and print-outs of “Student Information” from the Miami-Dade Public School system. The school print-outs contained the names, dates of birth, and social security numbers of current or former Miami-Dade students. Some of the PII listed in the print-outs corresponded with fraudulent income tax returns that had been filed from the defendants’ residence.
Both Lopez and Lopez Morales admitted to law enforcement that they conspired to file fraudulent income tax returns from their home.
The complaint charges the defendants with conspiracy to use one or more access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the FBI, IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
11. United States v. Antwan Lamar Edwards, et. al, Case No. 15-20174-CR-Cooke
On March 19, 2015, Antwan Lamar Edwards, 26, of Miramar, and Dennis Franks, Jr., 27, of Miami, were charged by indictment for their participation in a scheme to file fraudulent tax returns using stolen personal identity information.
According to the indictment, the defendants were the registered managers of a tax preparation business called All-Star Tax Solutions, LLC (“ASTS”), a Florida corporation with its principal place of business in Miami. Over the course of almost two years, the defendants used ASTS’s Electronic Filing Identification Number (“EFIN”) and their respective Preparer Tax Identification Numbers (“PTINs”) to e-file fraudulent tax returns using stolen personal identification information and fabricated W-2 statements. The indictment alleges that the defendants filed the false returns from their residences and claimed refunds for the 2011 tax year in amounts ranging between $563 and $6,515, which were paid by check and direct deposit onto debit cards mailed to ASTS.
The thirty-one count indictment charges the defendants with conspiracy, submitting false claims to the government, wire fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Christopher Browne.
12. United States v. Christopher M. Mack, Case No. 15-2317-MJ-O’Sullivan
On March 16, 2015, Christopher M. Mack, 30, of Miami, was charged by criminal complaint for operating a scheme to skim credit card numbers, manufacture counterfeit credit cards, and file false federal income tax returns.
According to the criminal complaint, the defendant engaged in a scheme to skim credit card numbers from the customers of a South Beach restaurant. Pursuant to the investigation and the execution of a search warrant at Mack’s residence, officers discovered a magnetic stripe encoder, a credit card skimmer, over 100 counterfeit credit cards embossed with Mack’s name, three spiral notebooks filled with the personal identifying information of over 500 individuals, and loose sheets of paper filled with over 1,000 social security numbers.
Pursuant to the complaint, a Miami Dade Police Department (“MDPD”) detective selected for further inspection fifty entries from the hundreds listed in the spiral notebooks. The detective discovered that the fifty entries represented a total of $232,344.00 in filed returns. Further investigation revealed that individuals listed in the entries had false tax return filings associated with the discovered PII. Of those false filings, four resulted in paid disbursements.
The complaint charges the defendant with possessing fifteen or more counterfeit or unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the MDPD and IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Matthew Langley.
13. United States v. Yvenante Achille, Case. No. 15-20229-CR-Lenard
In April 3, 2015, defendant Yvenante Achille, 30, of Miami, was charged by indictment for her participation in an identity theft tax fraud scheme.
According to the indictment, Achille was an employee of a community health care provider. As part of her regular employment, the defendant had access to patient records, which contained personal identifying information (“PII”). Between August 22, 2013, and March 26, 2104, the defendant stole the PII of more than 9,000 current and former patients. Achille provided the stolen PII, without the patients authorization or permission, to a co-conspirator. Using a patient’s PII, the co-conspirator filed a fraudulent tax return.
The indictment charges the defendant with conspiracy to commit access device fraud, possession of fifteen or more unauthorized access devices, and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
14. United States v. John Mackenley Cesar, et. al, Case No. 15-60071-CR-Zloch
On April 2, 2015, John Mackenley Cesar, 26, of Miami, Chedlor Dorilus, 22, of Hollywood, Lawrence Bernadel (“Bernadel”), 22, of Tallahassee, Ariel Ronet Walker, 22, of Tallahassee, and Lubens Inalien, a/k/a “Lubaby,” 29, of Fort Lauderdale, were charged in a six count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from January 29, 2014, through April 17, 2014, in Fort Lauderdale and Tallahassee, Florida, the defendants used an Electronic Filing Identification Number (“EFIN”), in the name of Canaan Plus Tax, Inc. of Miami Gardens, to file fraudulent tax returns with the Internal Revenue Service (“IRS”). The defendants used the personal identification information (“PII”) of hundreds of individuals, including PII obtained from the Texas Department of Public Safety, to file the fraudulent tax returns. After the fraudulent tax returns were received by the IRS, the defendants arranged to have the tax refund payments deposited onto pre-paid debit cards. After the monies were deposited onto the cards, they were used by the defendants to purchase items and make withdrawals from ATMs in Broward County and elsewhere. The indictment alleges that through the submission of the fraudulent tax returns, the defendants sought to obtain approximately $800,000 in tax refunds.
The defendants were charged with conspiracy to defraud the United States, conspiracy to possess fifteen or more unauthorized access devices, possession of fifteen or more unauthorized access devices, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
15. United States v. Kiesha Adderly Mitchell and Melissa Pearl Davis, Case No. 15-20131-CR-Gayles
On March 5, 2015, Kiesha Adderly Mitchell, 36, and Melissa Pearl Davis, 32, both of Miami, were charged in a seventeen count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, in 2009 the defendants applied to the Internal Revenue Service (“IRS”) for Electronic Filing Identification Numbers (“EFIN”) in the name of corporate or fictitious entities they controlled, including K. Mitch Services, Inc. and Pebbles Tax & Notary Services. The defendants submitted false and fraudulent federal income tax returns to the IRS, using the names and Social Security numbers of other individuals, without the taxpayers’ authority. The defendants filed the false and fraudulent tax returns using EFINs, issued in the names of K. Mitch Services Inc. and Pebbles Tax & Notary Services, among others. After the tax returns were received by the IRS, various financial institutions would authorize refund anticipation loans (“RALs”) in the names of fraudulent tax return applicants. The refunds were to be loaded onto debit cards controlled by the defendants. The defendants then used those debit cards for their personal use and enrichment.
The indictment alleges that the defendants submitted fraudulent tax returns for tax years 2011 through 2013, seeking refunds in amounts ranging between $1,122 and $5,830.
The defendants were charged with conspiracy to defraud the government with false claims, filing false, fictitious, and fraudulent claims, possession of fifteen or more unauthorized access devices, and aggravated identity theft
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Maurice A. Johnson.
16. United States v. Alexander Paul, Case No. 15-20236-CR-Lenard/Goodman.
On April 7, 2015, Alexander Paul, 23, of North Miami, was charged in a two count information for his participation in an identity theft scheme.
According to the information, on or about June 5, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of an individual with the initials “C.F.”
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
17. United States v. Ashley Leroy, Case No. 15-60009-CR-Bloom
On January 22, 2015, Ashley Monique Leroy, 26, of Davie, was charged in a three count indictment for her participation in an identity theft scheme.
According to the indictment, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred the means of identification, specifically, the name and date of birth, of two individuals.
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.
18. United States v. Bash-Dee Antoine Barlatier, Case No. 15-20111-CR-Middlebrooks
On February 27, 2015, Bash-Dee Antoine Barlatier, 28, of North Miami Beach, was charged in a three count indictment for his participation in an unemployment insurance fraud scheme.
According to the indictment, Barlatier used the names and social security numbers of other individuals to obtain anything of value aggregating $1,000 or more. The defendant also used the names and debit cards of two individuals in relation to that offense.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
19. United States v. Christ Lamarre, et al., Case No. 15-20109-CR-King
On February 27, 2015, Christ Lamarre, 24, Antonio Hernandez, 21, and Christopher Carre, 19, all of North Miami Beach, were charged in a five-count indictment for their participation in a conspiracy to commit unemployment insurance fraud.
According to the indictment, the co-conspirators used the names and social security numbers of other individuals to file fraudulent unemployment insurance claims. The co-conspirators caused the fraudulent unemployment insurance benefits to be electronically deposited into a bank account they controlled. The defendants then withdrew fraudulent funds from the bank account, using debit cards issued in the name of another individual.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the DOL-OIG, ICE-HSI, and the NMBPD. The case is being prosecuted by Assistant U.S. Attorney Jamie R. Galvin.
20. United States v. Rashad Aquil Emmons and Adrian Claude Green, Jr., Case. No. 15-60057-CR-Bloom
On March 20, 2015, Rashad Aquil Emmons, 25, of Marietta, GA, and Adrian Claude Green, Jr., 24, of Miami Gardens, were charged in a nine-count indictment for their participation in a stolen identity tax refund scheme.
According the indictment, the defendants engaged in a conspiracy pursuant to which illicit federal tax refunds were deposited by the IRS onto prepaid debit cards. The indictment alleges that from March 17, 2012, through April 5, 2012, Emmons and Green used a number of those prepaid debit cards, registered in the names of various individuals, to purchase a 2007 BMW and a 2009 Mercedes Benz at a car dealership in Broward County.
The defendants are charged with conspiracy to commit access device fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the IRS-CI and the Aventura Police Department. The case is being prosecuted by Assistant United States Attorney Tonya Long.
21. United States v. Junior St. Fleurose, Case No. 15-20155-CR-Moore
On March 12, 2015, Junior St. Fleurose, 29, of Miami, was charged with five counts of theft of government funds.
According to the indictment, from March 30, 2010, through June 16, 2011, Fleurose received a total of approximately $112,665.95 in fraudulent tax refunds via U.S. Treasury checks or electronic funds transfers issued to various payees.
Mr. Ferrer commended the investigative efforts of the USSS, IRS-CI, and USPIS. The case is being prosecuted by Assistant U.S. Attorneys Aileen Cannon and Ilham Hosseini.
22. United States v. Michelson Jeancy, Case No. 15-20230-CR-Huck
On April 3, 2015, defendant Michelson Jeancy, 35, of Miami, was charged by indictment for his participation in an identity theft tax fraud scheme.
According to the indictment, Jeancy was an employee of a Miami-Dade College. As part of his regular employment, the defendant had access to student records, which contained personal identifying information (“PII”). Between February 2013, and June 2104, the defendant stole the PII of current and former Miami Dade College students. Using the students’ PII, the defendant and his accomplices filed fraudulent tax returns.
The indictment charges the defendant with wire fraud, aggravated identity theft and possession of fifteen or more unauthorized access devices.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, and FBI. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
23. United States v. Brandi Mary Janice Stroman, et. al, Case No. 15-60045-CR-Zloch
On March 10, 2015, Brandi Mary Janice Stroman, 30, of Oakland Park, Dezman Dunbar Zama, 34, of Fort Lauderdale, Cornelius Craig Bosket, 32, of Fort Lauderdale, and Jerrod Dashon Bosket, 26, of Oarlando, were charged in a twenty-four count indictment for their participation in a stolen identity tax refund fraud scheme.
According to the indictment, from November 2009, to March 28, 2014, the defendants obtained income tax refunds from the U.S. Department of the Treasury in the names of unsuspecting identity theft victims. After coconspirators obtained the personal identification information (“PII), including names, social security numbers, and dates of birth of real persons, the defendants and their coconspirators used the PII to electronically file fraudulent tax returns with the Internal Revenue Service (“IRS”) claiming tax refunds to which they were not entitled. The defendants then, in part, used their personal bank accounts to receive the fraudulently obtained tax refunds by direct deposit or through depositing U.S. Treasury tax refund checks to those accounts. The defendants withdrew the money using a variety of methods including making ATM withdrawals, purchasing items or paying their bills, and moving the funds to other accounts.
The charges in the indictment include conspiracy to commit wire, mail, and bank fraud, access device fraud, and aggravated identity theft.
Mr. Ferrer commended the investigative efforts of the Identity Theft Strike Force, with special commendation to the FBI and IRS-CI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Mr. Ferrer commended the investigative efforts of IRS-CI and the USSS. The case is being prosecuted by Assistant U.S. Attorney Brooke C. Watson.
24. United States v. Thomas Jerry, III, Case No. 15-20228-CR-Scola
On April 3, 2015, defendant Thomas Jerry III, 31, of Miami, was charged by indictment for his participation in an identity theft scheme.
According to the indictment, on or about July 24, 2014, the defendant possessed the social security numbers of at least fifteen individuals. The indictment also alleges that the defendant transferred, possessed and used the means of identification, specifically, the name and social security number, of two individuals.
The indictment charges the defendant with possession of fifteen or more unauthorized access devices, aggravated identity theft, and being a felon in possession of firearms and ammunition.
Mr. Ferrer commended the investigative efforts of the City of Aventura Police Department, IRS-CI, FBI, ATF, and the City of Miami Police Department. The case is being prosecuted by Assistant U.S. Attorney Gera Peoples.
If convicted, the defendants face a possible maximum statutory sentence of ten years in prison for trafficking in or using one or more unauthorized access devices during a one-year period and by such conduct obtains anything of value over $1,000; ten years in prison for stealing government funds; and two years in prison consecutive to any other term for aggravated identity theft.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Six Individuals Indicted for Mortgage Fraud SchemeRead the Press Release
Six individuals, from Miami and Brazil, were indicted for participating in a mortgage fraud conspiracy.
Wifredo A. Ferrer, U.S. 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.
Raul Enrique Quintana, 48, of Miami, Maura Barbosa Lopes, a/k/a “Maura Quintana,” 55, of Brazil, Arnaldo Almeida Prado Neto, 33, of Brazil, Evelyn Lara, 47, of Miami, Luis Enrique Sosa, 43, of Miami, and Juan Osiel Gonzalez, 54, of Miami, were charged with conspiracy to commit bank fraud and wire fraud affecting a financial institution, and various counts of bank fraud offenses, punishable by up to thirty years in prison.
The indictment alleges that from 2004 to 2007, the defendants conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders, including Chevy Chase Bank, JP Morgan Chase Bank, and Washington Mutual Bank.
The indictment alleges that the defendants Raul Enrique Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto purchased and refinanced residential properties in Miami-Dade and Palm Beach Counties, including a number of properties on Fisher Island, using mortgage loans that they obtained through false and fraudulent misrepresentations on their loan applications and related documents.
According to the indictment, the fraudulent loan applications were originated by Raul Enrique Quintana’s mortgage brokerage company, Brickell Financial Corporation (“BFC”). Title Closing Partners, LLC (“TTP”), a company controlled by Raul Enrique Quintana, Maura Barbosa Lopes, and Evelyn Lara, served as the closing agent for the loans.
According to the indictment, the defendants’ misrepresentations to the banks included fictitious verifications of false and fraudulent employment and bank deposit information set forth on loan applications. The indictment alleges that Maura Barbosa Lopes and Arnaldo Almeida Prado Neto, as borrowers, falsely and fraudulently declared that they were employed by defendant Luis Sosa’s company, CWW, and were earning substantial salaries. It is further alleged that Raul Quintana and Luis Sosa agreed that when lenders contacted CWW the employees would provide fraudulent verifications of Barbosa Lopes and Prado Neto’s employment with the company.
The indictment also alleges that Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto submitted loan applications that fraudulently listed fictitious or inflated bank account balances as assets, and that in some instances they provided lenders with falsified bank account statements in support of those claims. It is alleged that defendant Juan Gonzalez, who was an employee at Wachovia Bank, provided lenders with false and fraudulent verifications of deposit for fictitious and inflated Wachovia Bank accounts that were listed as assets by Raul Quintana and Maura Quintana on their loan applications.
The indictment alleges that Evelyn Lara prepared and signed HUD-1 Settlement Statements for loans to Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto, which falsely and fraudulently stated that they had paid earnest money deposits and cash due at the closing of their loans.
On April 6, 2015, Raul Quintana, Maura Barbosa Lopes, Arnaldo Almeida Prado Neto, Luis Sosa, and Juan Gonzalez appeared for their initial hearing before United States Magistrate Judge Chris M. McAliley. Luis Sosa and Juan Gonzalez were granted bond. Raul Quintana, Maura Barbosa Lopes, and Arnaldo Almeida Prado Neto remain in custody pending their pretrial detention hearings, which are currently set for April 9, 2015, before Magistrate Judge McAliley in Miami.
Mr. Ferrer commends the investigative efforts of the FBI. The case is being prosecuted by Assistant United States Attorney Dwayne E. Williams.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Sentenced to More Than 5 Years in Prison for Identity Theft Schemes Involving Fraudulent Income Tax Refunds and Social Security BenefitsRead the Press Release
A Broward County resident was sentenced to 61 months in prison, followed by 3 years of supervised release, and was ordered to pay restitution of $57,949, for his participation in identity theft schemes involving fraudulent income tax refunds and Social Security benefits.
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), Paula Reid, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, Thomas Caul, Special Agent in Charge, Social Security Administration (SSA), Office of Inspector General (OIG), and Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), made the announcement.
Sheldon Mozie, II, 23, previously pled guilty to one count of wire fraud and one count of aggravated identity theft.
According to court documents, law enforcement executed a search warrant at Mozie’s residence and seized papers/notes containing at least 182 victims’ personal identifying information (PII), a thumb drive containing at least 99 additional victims, Mozie’s computer, and debit cards. Computer forensic investigators determined that Mozie’s computer contained the PII of many of the same victims’ that were found in the notes/papers in Mozie’s bedroom, in addition to other victims’ PII. Mozie filed 49 federal income tax returns for tax year 2013 using the PII of many of the victims that were found on the papers/notes in his bedroom. Between February 10, 2014 and May 6, 2014, for the tax year 2013, Mozie claimed $208,559 on the fraudulent tax returns.
Mozie also utilized the stolen PII to divert Social Security benefit payments to himself that belonged to additional identity theft victims. To accomplish this scheme, Mozie logged onto the Social Security Administration website, “my Social Security,” with the victims’ names, dates of birth and Social Security numbers to open online accounts in those victims’ identities. Once the online accounts were opened, Mozie was able to divert the Social Security benefit payments from the victims to himself by having the funds deposited onto prepaid debit cards (mostly Green Dot cards) or by directly depositing the funds into his personal bank account. Between September 2013 and May 2014, Mozie diverted approximately $25,027 in Social Security benefits to himself.
Mr. Ferrer commended the investigative efforts of IRS-CI, the USSS, SSA-OIG, and BSO. The case is being prosecuted by Assistant U.S. Attorney Alicia E. Shick.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward County Resident Sentenced in Connection with International Fraud SchemeRead the Press Release
A Broward county resident was sentenced by United States District Judge Beth Bloom in Fort Lauderdale to 71 months imprisonment, followed by three years of supervised release, for his participation in a fraudulent international lottery scheme that targeted senior citizens living in the United States.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Ronald J. Verrochio, Inspector in Charge, United States Postal Inspection Service, and Alysa D. Erichs, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
On January 23, 2015, Mikhail Gorbachev George Williams, 26, of Fort Lauderdale, pled guilty to one count of conspiracy to commit wire fraud.
According to court documents and statements made in court, Williams participated in a fraudulent lottery scheme, emanating from Jamaica, in which elderly victims throughout the United States were falsely told that they had won a lottery/sweepstake contest. Williams and his co-conspirators sent letters and made multiple telephone calls to the victims, wherein they fraudulently claimed to be representatives of the sweepstakes/lottery company that was to award the prize monies. The victims were told that in order to claim their winnings, they had to pay taxes, duties or fees. The co-conspirators directed the victims to pay Williams in order to receive their purported winnings. The elderly victims were induced to send thousands of dollars to cover bogus fees, taxes and insurance for the fraudulent lottery winnings. The victims paid Williams by wire transfers, money orders, U.S. currency, and checks. Payment was made though the U.S. mail and by prepaid debit cards.
Mr. Ferrer commended the investigative efforts of the U.S. Postal Inspection Service and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorney Bertha R. Mitrani.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Broward Resident Pleads Guilty to Stealing Personally Identifiable Information of Magazine Subscription CustomersRead the Press Release
A Broward resident pled guilty for her participation in an identity theft fraud scheme involving the personally identifiable information (PII) of magazine subscription customers.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Eartha Ann Worthy, 29, pled guilty to one count of conspiracy to commit access device fraud and one count of aggravated identity theft.
According to court documents, law enforcement agents executed a search warrant at a residence and found the PII belonging to 36 individuals, including their names, addresses, credit card information, dates of birth or social security numbers, on order sheets (taken from a direct call telemarketing center) related to magazine subscriptions. The owner of the residence explained that Worthy was employed as a supervisor with a company that sells magazine subscriptions and that Worthy was the source of the PII.
Worthy admitted to providing information to the residence’s owner and stated that she knew that the information she was providing was being used for fraudulent purposes. Worthy stated that the residence’s owner used the stolen credit card information to pay bills and make small purchases. Worthy also provided PII to another individual, who was involved in a tax refund fraud scheme.
Sentencing is scheduled for June 11, 2015 at 9:30 a.m. At sentencing, Worthy faces a maximum of five years in prison for the conspiracy charge, and a mandatory term of two years in prison, consecutive to any other term in prison, for the aggravated identity theft charge.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. This case is being prosecuted by Assistant U.S. Attorney Cynthia R. Wood.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Miami-Dade Police Department Officer Indicted on Fraud ChargesRead the Press Release
A Miami-Dade Police Department Officer was arrested for participating in a fraud scheme.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J.D. Patterson, Director, Miami-Dade Police Department (MDPD), made the announcement.
Rafael Duran, 43, of Miami, made his initial appearance before U.S. Magistrate Jonathan Goodman. Duran’s arraignment is scheduled for April 16, 2015.
Duran is charged, by indictment, with conspiracy to commit wire fraud and wire fraud offenses, punishable by up to twenty years in prison.
According to allegations contained in the indictment, Duran participated in a scheme to provide false police reports to individuals operating credit repair businesses. A co-conspirator would provide Duran with the personal identifying information of credit business customers. Duran would create false police reports, using the customers’ personal identifying information. The police reports would falsely represent that the customers had reported to the Miami-Dade Police Department facts consistent with having been victims of identity theft. Duran would cause the false police reports to become official records of the Miami-Dade Police Department. A member of the conspiracy, associated with the credit businesses, would cause the false police reports created by Duran to be transmitted to credit reporting agencies in order to induce the removal of negative items from the credit histories of the alleged victims identified in the false police reports. Duran created the false police reports in order to promote the success of the credit businesses and in return would receive payment and other things of value from his co-conspirators, including credit repair services.
Mr. Ferrer thanked the FBI Miami Area Corruption Task Force and MDPD Professional Compliance Bureau. This case is being prosecuted by Assistant U.S. Attorney Michael Davis.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Two Former Cay Clubs Executives Sentenced to Prison Terms in Connection with Fraud Scheme Involving Sales of Vacation Rental UnitsRead the Press Release
Two South Florida residents were sentenced to 60 months imprisonment, followed by three years of supervised release, by United States District Judge Jose E. Martinez, for their involvement in a fraud scheme involving vacation rental units.
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 Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG), made the announcement.
According to court documents and statements made in court, Barry J. Graham, 59, and Ricky Lynn Stokes, 54, both of Ft. Myers, Florida, participated in a $300 million Ponzi scheme involving the sale of Cay Clubs Resorts and Marinas (Cay Clubs) vacation rental units to approximately 1,400 investors in the Florida Keys and elsewhere. The Cay Clubs business operated from 2004 through 2008, out of offices in the Florida Keys and Clearwater, Florida. Graham was the Director of Sales for Cay Clubs from 2004 through late 2007. From September 2005 to 2008, Stokes was one of Cay Clubs’ highest-producing sales agents and was Cay Clubs’ Director of Investor Relations.
Cay Clubs marketed vacation rental units, in seventeen locations throughout Florida, Las Vegas and the Caribbean, to investors throughout the United States. Cay Clubs promised to develop dilapidated properties into luxury resorts. They also promised investors an upfront “leaseback” payment of 15 to 20% of the unit’s sales price, at the time of closing. Once an investor agreed to purchase a unit, Cay Clubs arranged for a real estate closing and lender financing. Clay Clubs would not disclose the leaseback payment and other financial inducements to the borrowers, on paperwork submitted to lending institutions.
Graham and Stokes conspired with others to fraudulently inflate the prices of Cay Clubs units through insider sales. Graham, Stokes and other insiders purchased units from Cay Clubs without disclosing their affiliation with Cay Clubs. Thereafter, these insider sale prices were used on marketing materials to make it appear to investors that the Cay Clubs units were rapidly increasing in price. Stokes, Graham, and others created and distributed marketing materials that contained false and misleading statements in order to induce investors to purchase units. Furthermore, as Cay Clubs experienced financial difficulties, Graham, Stokes and others conspired to fraudulently market the Cay Clubs investment to new investors by making false and misleading statements, including by concealing Cay Clubs’ failure to convert dilapidated properties into luxury resorts.
During the course of the fraud scheme, Graham and Stokes received approximately $6.5 and $6.2 million, respectively, in real estate commissions or referral fees from Cay Clubs’ affiliated accounts.
On September 16, 2014, co-conspirators Fred Davis Clark, Jr., a/k/a Dave Clark, 56, and Cristal R. Clark, a/k/a Cristal R. Coleman, 41, both formerly from Monroe County, were charged by Superseding Indictment with conspiracy to commit bank fraud and substantive counts of bank fraud, in connection with their alleged participation in the Cay Clubs Ponzi scheme. Dave Clark and Cristal Clark are scheduled for trial before United States District Judge Jose E. Martinez, in Miami, on June 1, 2015.
Mr. Ferrer commended the investigative efforts of IRS-CI, ICE-HSI and FHFA-OIG, and the assistance of the SEC Miami Regional Office in this matter. The matter is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Thomas A. Watts-FitzGerald.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Operator of Tax Preparation Businesses Sentenced to 70 Months in Prison for Identity Theft Tax Fraud SchemeRead the Press Release
A Broward resident who operated various tax preparation businesses was sentenced to 70 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $279,903.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and George L. Piro, Special Agent in Charge, FBI, Miami Field Office, made the announcement.
Julio Lugo, 38, previously pled guilty to one count of conspiracy to defraud the government with respect to claims and one count of aggravated identity theft.
According to court documents, Lugo operated various tax preparation businesses including #1 Tax Specialist, The Number One Tax Specialist, and Number Two Tax Specialist. Light House Refund, which was another tax preparation business, obtained an Electronic Filing Identification Number (EFIN) from the IRS to electronically file clients' income tax returns. Lugo used the EFIN for Light House Refund to file 48 fraudulent tax returns using stolen identities, and obtained tax refunds to which he was not entitled.
Co-defendant Jamar James was sentenced to two years of probation. James previously pled guilty to one count of making a false statement to a federal agency.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Laurence M. Bardfeld.
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.